Asset on Lease.

Hi Experts,
We need to send a asset to different customer sites and charges will be based on the usage of the customer sites.
All asset accounting, depreciation will be in company only. We need to get the details of the usage of the asset customer wise,
what are the documents and movement to be used.(For example one JCB machine used in the different customer site, we need
to charge lease/rent on the customer)After use the same will come to the exact location(Company)
Pleaseu guide how to handle this.
J.Francis

Hi,
What i understood from your question is that, you want to charge depreciation based on your customer usage...right?
Then create your asset with dep key 0000 for all of your dep areas.
whenever you want to charge depreciation for that asset based on usage by your customer, then pass either Manual depreciation (ABMA) or unplanned depreciation (ABAA). with month end date and run the depreciation update run for that period, then you asset will be depreciate for that extent only.
This might help you.
Thanks,
Srinu

Similar Messages

Payment due date for Asset capital lease

Hi Gurus
We are using capital lease in our client and opening vendor postings are created when we click on opening posting leasing tab of asset master. The issue is with the payment due dates. If my lease duration is 60 months than I get 60 open items of vendor but there due dates are coming as per the fiscal year variant and not as monthly. Is there any way to solve this.
Tarun

Hi
User exit
Re: user exits in MM
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Ram

Asset to Lease

Hi,
Please help me the process regarding Assets giving to Lease .
regards
John.

Hi,
Use the following link:-
http://help.sap.com/saphelp_erp2005/helpdata/en/22/983841906da52fe10000000a155106/frameset.htm
regards
sunil
assign points if useful

Asset Lease accounting -non Linear lease payment

We are currently having a business scenario where an asset is acquired on capital lease basis.
Different depreciation area is maintained for leasing to account for interest on leasing.
The payments are made in monthly for lease payment.
The lease payment amount changes every year.
The lease tab in asset calculates Net present value on the basis on lease payment entered in the leasing tab.
Now since the lease payment varies every year the net present value calculation will be different(not as calculated in asset master -leasing tab).
I am not aware if the asset module can take care of any non-linear payment scenario to calculate the NPV and interest accordingly.
Example an asset ABC is acquired as capital/finance lease basis on
monthly lease payment for 4 years as follows:
The said asset is to be capitalized with net present value and we also need to ensure that interest calculation is done accordingly.
1st year 1000/month
2nd year 2000/month
3rd year 1500/month
4th year 1900/month
Since in lease tab only single lease payment can be entered, how the different monthly lease payment can be entered so as to calculate correct NPV.
Next how the correct interest calculation and net present value can be calculated correctly.
If any one has come across such situation, please reply.
Regards,
Manish Garg

Hi ,
SAp 4.7 does not support non linear lease payment. Only the Equal lease instalment can be generated automatically when you will go for opening balance at the leasing tab of the display assets(AS03).
But the ECC6.0 support the change over the lease instalment,
Rgds
Satyajit

Asset purchase on Lease

Hi ,
Is there any specific way to purchase an asset on lease mode .
Regards
Nandini

Hi Nandini ,
You may try the concept of Invoicing Plan.
http://help.sap.com/saphelp_47x200/helpdata/en/75/ee1fa755c811d189900000e8322d00/frameset.htm
Click on Purchase Order-->Invoicing Plan.
Regards
Ramesh Ch

Assets taken on lease but Ownership rests with the vendor

Hi
My Company has taken many assets on lease from various vendors(xerox machine,Air conditioner ,machinery etc) for which the company pays rent on a monthly basis.Such assets are not capitalized by the company nor follows the lease accounting concept as the ownership is with the vendor.The company just requires to track such assets on a statistical basis in SAP .
Is there a way out in SAP where we can statistically track such assets with the location info etc. just like an asset register
Thanks and Regards
Ajit Ravindran

Hi ajit,
in such a case you will have to add a new depreciation area to your chart of Depn with the indicator posting to G/L as " 0 " as ' 0 " means no posting shoudl be made to G/l account and means its statistical
Next you will have to Add this depn area in the asset class under the Transaction " Detemine Depn areas in asset Class "
Finally you have to Create an asset master and assign your requried Depn key to the Statistical Depn area .
NOTE : you have to deactivate the Depn area 01 in the config which i mentioned to you about or simply assing the Depn Key 0000 in the filed DKEY in the asset Master to the Depn Area 01.
Hope this helps Inshalah
Regards
sayeed baqresa

Asset Leasing Process

Hi Experts,
I am facing with a difficult scenario with asset to lease, I have already a suggestion for this if any body have another idea about this, please help me with other suggestions.
This is my scenario,
I have a new material (produced or purchased) and interested to give this to lease. For giving to lease I need to perform GI of Inventory item to Asset (using 241mvt type) using 'NEW' valuation type, asset no and serial no. Then assign asset no to equipment, change the equipment master batch to 'CAP' valuation type. After that perform a 501 mvt type in GR using the 'cap' valuation type with ZERO dollar value, so that the asset value is still in the asset account and deprecation is going to happen periodically. Equipment is again backing to stock with zero value, but we can track the quantity in stock and going to give them to rent. After the rental period the equipment will returned by the customer is again come to stock after the maintenance.
Thanks
John.

Hi ,
Still I suggest Invoicing plans only. As they are designed and delivered for this purpose by SAP.
You may study and evaluate the options available with the help of the following information.
Invoicing Plans (Rental, Leasing, Part-Payments)
Use
An invoicing plan comprises a list of scheduled dates on which invoices relating to PO items covering materials or services are to be entered in the system and subsequently paid.
The invoicing plan facilitates the largely automated creation and payment of invoices for both recurrent procurement transactions (e.g. rental or leasing) and transactions that are to be invoiced in stages (e.g. following the completion of individual phases of a construction project).
The following two invoicing plan types are available:
Periodic invoicing plan
Partial invoicing plan
Periodic Invoicing Plan
The total value of the PO item is invoiced on each due date set out in the invoicing plan.
For example, a $600 leasing charge for an automobile is invoiced and paid on the 27th of each month.
Partial Invoicing Plan
The total value of the item to be invoiced is broken down and distributed over the individual dates of the invoicing plan.
For example, payment with respect to a certain construction project is to be effected in three stages as follows: 30% of the value of a PO item is to be invoiced and paid following completion of the first construction phase, another 30% after the second phase, and the rest on completion and acceptance of the final phase of the work.
Prerequisites
In order to work with an invoicing plan, you must maintain the following settings (among others) in Customizing:
Desired invoicing plan type
Date categories
Date descriptions
Date proposals
You can also specify whether the invoicing dates are to be entered/maintained manually or whether the system is to suggest them.
Hope , this would help your purpose.
Regards
Raghuramam.

Lease Assets Management

Hi Gurus,
Thanks in advance
I need Lease Assets Management in SAP configuration documents.
If any body have please send me on following mail ID : [email protected]
Thanks

Hi deepika.... the following notes may useful to u ..
The "Leased Assets" scenario describes the management of leased assets from the standpoint of the lessee.
Leased assets create special accounting requirements for the lessee, as compared to assets that an enterprise purchases or produces itself. During the term of the lease, leased assets remain the property of the lessor or manufacturer. They represent, therefore, a special form of rented asset. Such assets are legally and from a tax perspective the responsibility of the lessor, and are not relevant for assessing the value of the asset portfolio of the lessee. However, in certain countries, you are nonetheless required to capitalize leased assets, depending on the type of financing.
This scenario makes it possible to handle different types of leased assets differently. Depending on legal restrictions, you can capitalize and depreciate leased assets (capital lease) or post their rent expense periodically to the profit and loss statement (operating lease).
There are different ways of handling the values of leased assets in the system. Depending on legal requirements and the conditions of the lease, there are two different options:
You have to capitalize and depreciate certain leased assets (capital lease).
You treat others as periodic rent expense, which flows into the profit and loss statement (operating lease).
This second type is not relevant to the fixed assets of the lessee. It is therefore sufficient to do one of the following:
Manage operating leases as statistical assets in the Asset Accounting component (with no active depreciation areas)
Manage them only as cost-accounting values (or for group accounting) in the corresponding depreciation areas
There is a special report on rent liability that can be used for all types of leased assets (see below).
You can also manage insurance values for purely statistical leased assets (without depreciation areas). You enter a manual insurance value and an index series for the leased assets in the asset master record. You obtain reports on these values using the standard report for insurance values.
Capital Lease Method
Leased assets can be capitalized in the Asset Accounting component using the capital lease method. The system calculates the acquisition value from the present value of the future lease payments in the leasing agreement. To be able to determine the future burden of payment, you need to maintain the following leasing conditions in the asset master records:
Amount of lease payment
Number of payments
Payment cycle
In order to calculate present value, also enter an interest rate. The system requires that you post a leasing partner as a vendor in the asset master record at the time of the acquisition posting (opening posting).
Periodic Posting
The depreciation posting program posts the depreciation of leased assets and the write-off of the interest. You can use any depreciation key. The standard R/3 System includes a special depreciation key, in which the depreciation amounts correspond to the present value of the periodic leasing payments (LEAS). Using this key, interest is determined as the difference between the leasing payments and the present value.
Calculation of Present Value
The present value of the leased asset is calculated on the basis of the following specifications:
g : Amount of lease payment
i : Annual interest rate
n : Number of lease payments
r: Leasing cycle (for example, 3 = quarterly, 6 = semiannual)
m : Number of periods in a year
q : Period interest factor = 1 + ( i / 100 * r / m)
If payment is made at the beginning of the period, the present value then results from the following formula:
Present value = g + g * q** (n-1) - 1 / (q**n-1 * (q - 1))
With payment at the end of the payment period, on the other hand, the present value is calculated as follows:
Present value = g * ( q*n - 1) / ( q*n * ( q - 1))
Example
g : 100
i: 10.000 %
n: 20
r: 3
m: 12
q: 1 + (10.000 / 100 * 3 / 12) = 1.025
Present value at the beginning of the payment period:
100 + 100 * (1.025*19 - 1) / (1.025*19 * (1.025 - 1)) = 1597.89
Present value at the end of the payment period:
100 * (1.025*20 - 1) / (1.025*20 * ( 1.025 - 1)) = 1558.92
Reports
There is a standard report in the system for determining future leasing liability (especially in regard to leased assets that are not capitalized). The report displays for each leased asset:
The payments already made
The payments due up to the date of the report
The total lease payments to be made for the asset
You can create a totals list with cumulative values for each fiscal year and company code. In order for the report to work properly, you must make sure that the following leasing conditions are properly maintained in the asset master record:
Start date of the lease
Payment information (lease payment amount, payment cycle, number of payments)
Leasing type
Using the APC by acquisition year indicator, you can display the theoretical acquisition value of leased assets according to acquisition year. This statistical analysis is required in some countries for financial reports. The system uses the base new value that is specified in the asset master record in the leasing information. The acquisition year is determined from the start date of the lease.
Implementation Considerations
General Tips
If you want to manage capitalized leased assets in the system, follow these steps:
Define leasing types in Customizing for Asset Accounting with the specifications for posting asset acquisitions.
Create special asset classes and account allocations for your leased assets.
Define depreciation areas, in which you plan to capitalize leased assets using the capital lease procedure, so that they manage interest that can be posted with the depreciation posting program.
Activate the depreciation areas, in which the leased assets will be capitalized and depreciated, in these asset classes.
Assign a leasing type to the asset master records for leased assets.
Maintain the information and conditions of the leasing agreement in the master records of the leased assets. Specify an interest rate for calculating the present value and determine whether the lease payments should be made at the beginning of the payment period or at the end of the payment period.
Post the acquisition of a leased asset with the display transaction for asset master data.
Leased Asset acquisition
The "acquisition of a leased asset" is considered for our purposes to be the entry of the leased asset in the FI-AA System. This does not necessarily mean that the leased asset must be capitalized. You can enter a leased asset simply to manage purely statistical data. You handle the leased asset as a master record, with no values in the book or tax depreciation areas.
Posting the acquisition of a leased asset may be necessary for one of the following reasons:
You have received a new leased asset (goods receipt).
You need to change the way bookkeeping is handled for a leased asset due to a change in the conditions of the lease.
You need to post a leased asset to a new asset master record due to a transfer.
Process Flow
Before posting the acquisition of the leased asset, you must determine the bookkeeping method to be used, either:
Capitalization of the leased asset to fixed assets, with the present value of the future lease payments and depreciation of the present value (capital lease)
Statistical management of the leased asset (no capitalization), and direct posting of the lease payments as rental expense in the profit and loss statement (operating lease)
For more details.....
http://help.sap.com/saphelp_47x200/helpdata/en/4f/71fd71448011d189f00000e81ddfac/frameset.htm
If u satisfied... please assif=gn me points...
Dasharathi

Leased Asset Process

Hello All,
I have an query that suppose i have to purchase asset on lease basis for 5 yrs and in the agreement there is lesser and lesse and they fix the monthly rent of this asset 5000/ they mutually agreed ,then what should be the initial purchase amount of that asset which is to be credited to the lesser a/c and debited to asset a/c .
what could be depreciation key would be used for this whether 0% or any thing else.
Ownership of an asset belongs to lesser not lessee.
how this process would be done in SAP.
Suggest

Hi Prem
The following [link|Re: Leased Assets - Calculation of Dep, Interest & Present value] would be very helpful for understanding the depreciation/interest on leased assets.
Regards
Virendra Malik

Operating Lease

Dear Experts,
Our company would like to introduce Operating Lease. I have read about customizing this operating lease but at the moment, it is still not working.
FYI - I have activated cost accounting depreciation area 20 (post to GL inactive). I also have created the leasing type - operating lease with the necessary doc type, posting key. I have also have created the asset class which is pointing to only depreciation area 20 with no depreciation. This asset class has leasing information - the vendor, amount, term and etc.
However, when I post a cost to this asset (created using the above asset class), I can only post in AA module with no corresponding entry in FI-AP (because post to GL is inactive). (btw - I am not able to post via FI - I have tried using standard transaction type for leasing as well as customised). I am just wondering how this can relates with - one time posting and clearing using recurring document (read this in SAP Document - Posting acquisition of Lease Asset (Operating Lease) http://help.sap.com/saphelp_erp60_sp/helpdata/en/4f/71fd71448011d189f00000e81ddfac/frameset.htm - if the debiting the assets does not hitting FI. I am also wondering at what point that I can debit the expenses (with appropriate cost center). I have tried a few scenario with different posting key to get the asset to be posted as statistical (some notes are tallking about statistical assets) and actual to expense, but still does not work. I also wondering how the payment to vendor will be updated in Asset Master.
I really appreciate some clue or any notes that I can read on this subject.
Thanks.
Regards
Fauzi

This is what I get from SAP documentation:
Post the asset acquisition using a transaction type that only posts to cost-accounting depreciation areas.
In FI, create a recurring document for lease payments.
After invoices are posted in the system, payment can be processed using the FI payment program.
How you process the cancellation of a lease depends on the lease method:
In the case of a capital lease you determine if the asset is being purchased or returned. If the asset is being purchased, you post an asset transfer, if it is being returned, you post a retirement.
In the case of an operating lease, you simply delete the master record for the statistical asset. The rental agreement must also be closed in FI (flag the recurring entry document for deletion).
If the lease is canceled ahead of time, you have to reverse the future liabilities that are due.

Lease Accounting Scenario

Dear:
            We have Lease accounting for assets configured in Organization Now the leasing process has changed. Management now receives funds from bank for the value of asset being purchased i-e finance lease. AS-IS process (currently running ) and TO-BE (what we want ) are given
Where lessor don't transfer funds for car in which accounting entries are as follows
AS-IS Process
At inception:
Security deposit               Dr.
                                Bank                      Cr.
Leased Asset                     Dr.
                                Lease Liability    Cr.
Monthly installment:
Lease Liability                    Dr.
Lease interest                   Dr.
                                Bank                      Cr.
TO-BE Process
·         We want this to be used Where lessor transfer funds for car. Please advice on the feasibility of automating this process in lease asset module. Specially the first entry is confusing. How will we cater it in AA module or passing a manual JV will be a solution. Please guide.
At inception:
Bank                                      Dr.
Security deposit               Dr.
                                Lease Liability                    Cr.
Monthly installment:
Lease Liability                    Dr.
Lease interest                   Dr.
                                Bank                      Cr.
Regards
Edited by: Atif Farooq on Jul 23, 2011 10:00 AM

Just a few question to clarify your scenario.
Your organization acquired the cars from the car dealership or manufacturer?
Your organization is the (lessor), and there are customers (lessees) who lease your cars?
When customers make payments, your bank receives the money and gives it to your organization?
If these 3 questions all have answer of Yes, then you have to decide what accounting rules you wish to follow. US GAAP, IFRS, something else. The reason must decide on accounting rules is because leasing rules are changing, and early adoption of the new rules may already be in place in your firm.
To get SAP advice, you have to be able to say whether or not this is a capital financing lease or is an operational lease.
If it is a capital financing lease (for your customer/buyer) then in the substance of the actual transaction you have already sold the car according to US GAAP existing rules. You do not have a capital asset (car) in your AA sub-ledger any longer. Instead you have a long-term lease receivable for the present value of all future payments to arrive. The current year portion of the amount will be classified as current year. As payments come in, you reduce the current receivable by the previously recorded present value amount, and you credit imputed effective interest income for the difference to balance your entry with cash.
But if the leases are operational leases, then you will depreciate the cars while you receive lease and imputed effective interest revenue. You will get the cars back with more than just small residual value left.

AS01- is there any batch loading for asset card creation?

Hi All,
I need advise here, is there any batch loading for end user to create asset card in SAP in Batch?
As from AS01, it only allows one creation each time, it will waste a lot of end user time if there're many inventories to be converted to Fixed asset for leasing purposes.

Hi Davie,
Hope you have completed your certification,
In AS01 screen you will see field "No of similar Assets" which refers to the count of assets you want create.
Enter the number of similar assets you want to create at this point of time.
Else Build LSMW around AS01.
Hope it helps,
Pankaj B

Asset Useful Life issue

Hi SAP Gurus,
For Asset class Lease hold Impr I changed the useful life from 10 years to 15 years in OAYZ, when I test it, the system is off course calculating right amount for 15 years($1000/15=$66.67)(LINR- st line) but in Asset explorer in Comparisons Tab Ord.Dep it is only displaying amounts for 10years(Upto 2020) and from 2021 to 2025 no amount at all and the total amount =$705.56.
Can you please advise how to fix this issue, so that user can see the Ord dep amount for all 15years and APC = Ord Dep balances to zero
Thanks in advance
Madhu

Hi,
This could be usual behaviour of AW01N.
Can you check how S_ALR_87012936 - Depreciation on Capitalized Assets (Depreciation Simulation) report looks like ?
Best Regards,
Madhu

Want to enable Attachment Feature for Lease Detail Form

Any body can help me to enable the Attachment Feature in lease detail form in the Fixed Assets module.
The Navigation for Lease Details window is
Fixed Assets Manager (Responsibility)->Setup-> Asset System->Leases-> Lease Details

A mini how-to on implementing attachments for Oracle Applications forms.
Link: [http://knol.google.com/k/cuauhtmoc-amox/adding-attachment-functionality-to-forms/153594c4goidl/5]

Activating EA-FS for ECC 6.0

Hello,
we want to activate extension set EA-FS (just on testsystem) - Does anybody know the effect for support packages also regarding year end packages?
And does anybody know if it is possible to deactivate it again?
Thanks for your help.
Best regards
Karin Höfer

Bill,
The EA component has various effects, some of them have been labeled as side-effects by the users (probably because they are recommended to be irreversible)!
Some of the incremental functionalities included in EA-FIN are (with relevant note nos.):
- Flexible Real Estate Management (RE-FX) (# 829676)
- Enhanced Bank Statement Processing (FEBAN) instead of the standard Bank statement processing (FEBA)
- Revaluation of Consumption (# 631395)
- Some corrections for RE-FX component (# 626056)
- Asset Financing & Leasing Solution (# 786590)
- Intercompany Reconciliation - t.code FB2E in SAP menu (# 823533)
- Accrual Engine (# 809831 & # 633924)
- New Depreciation Calculation (# 988238, # 1113840, # 1078619)
There are, of course, lots more. Some functionalities are as simple as making the menu paths available in SAP Easy Access menu (they are anyway available if you know the relevant T.Codes, but not accessible through the Easy Access Menu, till you activate the Extension Set).
I personally haven't come across any experience where activating the extension set would have had dramatic problems - except some minor hiccups, where the "old ways of working" don't work as expected, anymore! In fact, more often than not, the extension is activated after primary system is Productive !
If you've done your homework on SDN / OSS, I believe you should be good to take the plunge.
Like always, there are OSS Notes you'd need to apply immediately after you activate the extension (e.g., 1067468, for the new depreciation).
Hope this satisfies your appetite for information. I hope you'd have gone through # 1121965 (Documentation Enterprise Extension EA_FIN).
Remember to assign points if found useful.
Regards
Gulshan

Asset on Lease.

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