EA-FIN: Lease Accounting (FI-LA)
Lease Accounting (FI-AA) is a part of the Financials Extension (EA-FIN) business function.
Technical Data
Technical name of the business function |
EA-FIN |
Type of business function |
Enterprise Extension |
Documentation based on release |
SAP ERP 6.0 |
SAP software component |
EA-APPL |
SAP application component |
FI-LA, FI-AA-LM |
Business Intelligence content |
Not relevant |
Additional content available in other SAP applications |
Not relevant |
Business function requiring activation in addition |
Not relevant |
Use
Lease Accounting covers all of the accounting aspects you need for handling your leasing business and mapping all of its transactions in the system. These transactions include all postings necessary for asset accounting, postings of contract-related accruals and deferrals in the general ledger, as well as one-time postings that arise during the term of a lease. Using the lease (contract object) as the starting point, the system automatically makes all postings in Asset Accounting and General Ledger Accounting.
Integration
Lease Accounting is controlled by the Lease Accounting Engine (LAE). The LAE determines the values from leases in SAP CRM in order to make the necessary postings in SAP ERP. Lease Accounting benefits from the strong integration of SAP CRM and Financial Accounting. The Financial Accounting side of this integration is comprised of the Lease Accounting Engine, the Accrual Engine, one-time postings, and Asset Accounting.
The Lease Accounting Engine triggers postings in the Accrual Engine, in Asset Accounting, or directly in the general ledger.
After extracting contract-related information, you can use all of the functions of SAP Business Intelligence (BI) for your reporting needs.
Lease Accounting is part of the Financials business process in the Leasing Operations (SAP Leasing Management)business scenario, available in your SAP Solution Manager system.
Prerequisites
The Enterprise Extension EA-FIN just enhances functions. The existing functions and interfaces remain unchanged. The existing process logic also remains unchanged; new logic is merely added.
Activating this switch can make it necessary to execute mass activities, but only in the case of a data migration from a non-SAP system.
You can also activate some functions of FI-LA separately in Customizing.
Features
Lease Accounting contains the following subfunctions:
● Basic functions of Lease Accounting with reporting
● Customizing of Lease Accounting
● Processing of leases with errors
● Accrual/deferral postings (Accrual Engine)
● Displaying and postprocessing of leases
● Management and monitoring of fixed assets (Asset Accounting)
● Interest calculation methods (financial mathematics of Lease Accounting)
● Financing classification, such as defining classification groups
● One-time postings
See also:
For more information about Lease Accounting, see SAP Library under SAP ERP Central Component → Financials → Financial Accounting → Lease Accounting (FI-LA).
For more information on activating the switch, see the following SAP Notes:
● 786590: Activating Asset Financing and Leasing
● 809831: Activation of the Accrual Engine