Leasing of Assets

Hi
I wanted to know how leasing are handled in FI (Assets Accounting) module.
There is one tab in asset master for lease assets
Here i have both the scenarios: Assets taken on lease and assets given on lease.
Please let me know how these scenarios is handled in SAP

Hi Meenu_ND,
you can take a look into the Lease Accounting Engine documentation as well.
http://help.sap.com/erp2005_ehp_05/helpdata/EN/ab/a158107e654d2184d55d3eb3d3475d/frameset.htm
Kind regards,
Steve

Similar Messages

Leasing an asset to customer

I'd like to have your input/recommendations in configuring the following scenario in SAP 4.6C:
We buy super-computers from our vendors on a 3 to 5 year lease. Each supercomputer is recorded as an individual Assets via Asset Master records. We pay our vendors based on usage time, i.e. number of days in that month * 24 hrs * 60 min minus any downtime on maintenance, upgrades, patches etc.
Often a few years down the lane we have little or no inhouse use for these assets and at that point we lease these supercomputers to our customers. Our Vendors invoice us based on Customer's usage and we in turn bill the customers with a 10 to 15% markup.
Please guide me in mapping this scenario in SAP.
Thanks,
Raj A

You can handle the scenario with (Time & Material) Resource Related Billing, incase you want to change the customer based on time usage. This can be handled along with PS / CS & FI consultant.
Incase you intend to Bill the Customer for Fixed Value, you can go ahead with Periodic Billing. This can be configured using Periodic Billing.
1. Create New Sales Order Type, say ZOR (Copy of OR) through T.Code: VOV8
Maintain Delivery Type as LF & Billing Type As 'F1' - Order Related / 'F2' Delivery Related.
IMG > Sales and Distribution > Sales > Sales Documents > Sales Document Header > Define Sales Documents Types
2. Assign New Sales Document Type to Sales Area, For Eg:
1000 (S.Org) / 10 (D.Channel) / 10 (Division) / ZOR (S.O Type)
IMG > Sales and Distribution > Sales > Sales Documents > Sales Document Header > Assign Sales Area to Sales Document Type
3. Create New Item Category, say ZTAN - Copy of TAN (For delivery Related) / ZTAD - Copy of TAD (For Order realted) / ZTAS - copy of TAS (For Third Party)
Maintain as under (others remaining same)
Billing Relevance: I
Billing Plan Type: 02
IMG > Sales and Distribution > Sales > Sales Documents > Sales Document Item > Define Item Category
4. Assign Item Category, for ex (assuming Usage & higher level item category as blank):
Sales Document Type | Item Category Group | Default Item Category
ZOR | NORM | ZTAN
ZOR | DEIN | ZTAD
ZOR | BANS | ZTAS
IMG > Sales and Distribution > Sales > Sales Documents > Sales Document Item > Assign Item Category
Note: In the above Billing Type '02' plays the main controller for periodic billing. while execution of process some messages pop-up with respect to date, just press enter & skip them. In Sales order, at item level, we require to maintain the billing plan.
Follow the Sales cycle as normal sales cycle for particular Scenarios
Regards,
Rajesh Banka
Reward point if Helpful

Using LAM (Lease And Asset Management Module) in CRM 4.0 - CRM2007

Hi, use anybody the LAM with CRM 4.0 im production?
if yes, with business you do and which are the leased objects?
and made a update form CRM 4.0 to CRM2007
how does it work?
txs a lot

hi Reiner
for the changes that are impacted from CRM 4 to CRM 7.0 just go through this link
https://websmp109.sap-ag.de/~form/sapnet
use your OSS id to access it
an dor leas and asset managment go through the link
http://help.sap.com/saphelp_crm60/helpdata/en/dd/6e133b3f618442e10000000a114084/frameset.htm
you will get each and every detail,that what leased objects are there and what is the differemce we came across from CRM 4 to 6.0
best regards
ashish

Lease of Assets

Hi,
Our Client has got certain assets which they give for Lease. So is it possible in SAP for any kind of Lease Management of assets. If so what are the necessary configuration required for it. Please kindly guide me.
Regards,
R.Ramakrishnaraj.

Hi Ram ,
For your client requirement lease asset in SAP asset class is there .there u configure that asset class. i thought in sap has not like a lease management.
check leased asset asset class .
Regards
Surya

Maintaining an asset without GL reconciliation flag

Hi Folks,
My client wants to maintain Leased Capital Assets out of SAP because they want to post these assets manually due to step up reasons. For that purpose he wants to remove the reconciliation flag from GL master data for both accounts - that is leased cap asset account and accumulated depreciation for leased cap asset account.
I have two questions;
1- We can remove automatic posting only flag form GL master data and leave these as a reconciliation accounts. Why do we need to terminate the status of these accounts as asset reconciliation accounts? As how they would maintain balance in AA ledger.
2- What could be the impact of this delinking in future?
Please also guide the right process for maintaining this account with manual postings.
Thanks

That is because of the following reasons:
1 - I believe the leased asset functionality in AA is not able to handle the increases in lease payments that occur over the duration of a lease term. Almost all the leases for my client have at least one increase in lease payment over the lease term (called step ups).
2 - SAP records the obligation under capital lease as a long term payable to the lessor. For my client's future reporting purposes this obligation will eventually need to be disclosed as a separate line item on the balance sheet, which will require a manual adjusting entry to transfer the amount from accounts payable into a new reporting category.
3 - Client also requires that the obligation under capital lease be reduced by the portion attributed as principal in the lease calculation, SAP calculates the reduction in obligation as the total cash payment to the lessor.
4 - Client desires the calculated interest to be part of the Obligation under Capital Lease, SAP only includes this as a liability.
in the light of foregoing, client wants to calculate and track Capital Leases through excel spreadsheets and doing manual entries into SAP to record these transactions.
Please advise

Use AM module to post pre-paid expense asset amortization (Straight Line)

I'm new to this area and please explain in detail what I'm supposed to do for this requirement.
The requirement: Use AM module to post pre-paid expense asset amortization (Straight Line amortization)
The implementation of this capability will allow Property Accounting to enter prepaid expenses into the FA subledger and have SAP automatically post monthly straight line amortizations as part of the month-end process. The idea is to configure a new asset class for "prepaid Leasing Commission" assets that will have the following GL accounts.
GL Account: 159001000
Cost Center: 159001000
Profit Center: SN09120001
Non-Reconcilition Account: 159002000
Expense Account: 890304000
What I have done so far:
I have created an asset and have created a Cost center and assigned the profit center to that. I have also created a non-recon account. The question is where do I use the Non-recon account and the expense account and have the SAP post it automatically? Will be helpful if you can provide the steps I should be following and the tcodes for this. Thanks for the help.

Hi,
I would recommend that you go through the IMG of Fixed Asset Accounting and complete the FI-AA configuration.
You store the accounts to be used in postings in the node "Integration with General Ledger".
Requirements to use cost center as accounting object are documented in the SAP Help Portal as well as in note 684659.
Regards,
Markus

Solution for lease & rental business

Hi,
What would be the better solution if I am going for Lease & Rental (Fleet Management) for automotive industry - Is it VMS or DBM that should be leveraged along with CRM ?
Since the requirement areas are Vehcile Lifecycle management (Procurement, Vehicle Database, Vehicle Contract Lease, Dispositions, Asset Management), not sure what to use with CRM.. VMS or DBM.
Thank you..
KK

Hi,
please have a look at functionality of IS-A-DBM in link
http://help.sap.com/saphelp_dimp50/helpdata/EN/6f/9fc1fa5e8f44b2858b845a3ad1249e/content.htm
Solution supports sales and service processes for dealers.
For overview of IS-A-VMS see link
http://help.sap.com/saphelp_dbm700/helpdata/en/8d/88c43ace7a3b46e10000000a114084/content.htm
IS-A-VMS supports business processes for vehicle importers.
Regards
Joachim

Leasing in SAP SRM or MM

Hi,
I´m working with SRM 5.0 and the client has in his business process the use of lasing. Is there something in SRM or MM for manage leasing?????? Is there a table, badi, program, any functionality in order to use that??????
have you ever worked with leasing before? How can i manage this kind of process in SRM or MM?????
Thanks.

Hi..
As of SRM5.5 Lease and asset management scenario is introduced with Stand alone deployement. Pls see some useful information.
++++
SRM Leasing and Asset Management (New)
Use
As of SRM 5.0, you can conduct leasing deals in the standalone scenario with Leasing and Asset
Management (LAM). LAM is a cross-application component that enables users to create and edit in
SRM external requirements, purchase orders, and invoices that stem from lease quotations in mySAP
Customer Relationship Management (CRM).
The external requirements that are created in SRM can contain the following external references to the
relevant leasing deals in CRM:
u2022 ID of the leasing deal
u2022 Item number of the leasing deal
u2022 Contract number
u2022 Item number of the contract
u2022 Global allocation ID (GAID)
u2022 Assumption of purchase order
If a purchase order is assumed, this means that a purchase order has already been generated
by some other means. For this reason, follow-on documents are created for external
requirements, but the vendor knows that even though there are two purchase orders, he only
has to deliver once.
The SRM system forwards the external references to the follow-on documents (purchase order and
invoice).
If a purchase order is created in SRM with reference to a leasing deal in CRM, an XML confirmation
message is sent to the CRM system. If the system cannot create a purchase order, the administrator of
SAP Exchange Infrastructure (XI) receives a message to this effect.
As long as there are no follow-on documents, it is possible to cancel and delete the external
requirements that have references to leasing deals and the relevant purchase orders. Changes to
leasing deals can also be transferred from the CRM system to the relevant external requirements and
purchase orders in SRM. If this is not possible, the purchaser is informed of these changes by e-mail.
In the SRM system, it is possible to create invoices with references and without references to purchase
orders (assumption of purchase order). However, the invoices must contain the external references.
Invoices can be approved either internally (in SRM) or externally (in CRM). If invoices are subject to
external approval, changes to the external references can be triggered by means of an XML message. If
invoices are subject to internal approval, then it is possible to change tax codes, account assignments,
and descriptions. As soon as invoices are in the approval process, it is no longer possible to change
products, quantities, or business partners.
Invoices that have not yet been passed on to financial accounting (the FI system) can be deleted by
means of an XML message. Invoices that have already been passed on to the FI system can be
canceled by means of an XML message. The system sends a message when invoices are rejected,
deleted, or canceled.
Effects on Existing Data
You have to convert all existing invoices that have references to quotations or contracts in CRM into
invoices without references to purchase orders. To do this, you have to perform the following steps:
1. Activate LAM (see the Customizing section below).
2. Run report BBP_LAM_INVOICE_XPRA550.
Effects on Customizing
The following Implementation Guide (IMG) activities are relevant for Leasing and Asset Management:
Release Notes 04.07.2005
SRM 5.0 21
u2022 Define Backend System for Product Category
Enter your local SRM system as the target system for the product categories.
u2022 Activate Scenario-Specific Fields
Activate Leasing and Asset Management.
u2022 Define Application Forms
Activate a new Smart Form that is based on the standard Smart Form BBP_PO. This new
Smart Form contains the ID of the purchase order assumption.
++++++++++
Hope this info is helpful for you.
Source: SRM5.5 release notes
Thanks
Kiran

Customization of Flow Category for LOAN product (Leasing Management)

Dear All,
we are getting in to upgrade of version CRM 4.0 to 7.0.
so i request to all if an idea can be given for customization of loan product.
Path i am looking for CAI - Contract Added Pricing Implement
In CRM 4.0
Leasing and Asset Management > Pricing > CAI - Contract Added Pricing Implement
please give me idea for the same in 7.0

Hi,
In this case whether we have to follow batch management, if so how to do the same.
What is you question exactly?
You can define batch management for each material master separately, there's no dependency. If you define batch management only for the FG, you will have information only on the FG from batch man. point of view and traceabilty won't work at SFG / RM level if those materials are not batch managed in SAP.
If you want to have tracabilty trough your production (logistics) process, you have to use batch management for your raw materials, SFGs, FGs, packaing materials, etc - this has nothing to do with MTO / REM / MTS / Kanban / etc.
That's all.
Regards,
Csaba
Edited by: Csaba Szommer on Apr 10, 2009 11:01 AM

Operating leasing configuration

Hi all,
I have a customer that has operating leasing. They want to have better control of their leasing costs. I have search on internet and found that there is possible to crate assets for operating leasing as follow:
I configure a new asset class, 6000 and then create a new asset in AS01. In AS01 i tell:
- Agreement number
- Agreement date
- Notice date
- Lease start date
- Lease lenght
- Type
- Base value as new
- Purchase price
- No lease paymen
- Payment cycle
- Lease payment
- Annual rate of interest
I then choose the depreciation areas tab page and select deact field for depreciation areas.
Then I can see the value in transaction S_ALR_87011992.
But how do I do when I then got invoices, how do I link the costs to this asset, so I can see that the cost belong to this asset? Do I have to create statistical orders that has the same number as the asset?
Is this the best solution for my customer, to create a new asset class and see the leasing among the other assets? If not what else can be a solution, for example only statistical orders?
They also want to have better control over the accruals of leasing. Do you have a better solution then transaction FBS1 and F.82?
Thanks in advance!
Regards Lisa

Hi Lisa
Please find answers to your questions
1. Okej, but if I have acquasition to this asset for 108 000 EUR for example and then run depreciation. Will my value of that asset still be 108 000, all time and the only thing that will be posten when I run the depreciation is the interest?
When you run depreciation, the value of asset will reduce as per percentage specified on depreciation key. Interest which you would normally pay on leasing any particular asset will be calculated and posted accordingly.
2.If I will lease this asset for 3 years, do I have to do anything after this tre years or does the system gives the value of this asset 0 EUR after the lease period automatic?
If you ahve set useful life as 3 years in asset master record and charging depreciation on useful life then asset value will become 0 at end of 3 years.
3. What does they mean with purchase price, is that price after the lease period?
purchase price is the price at which you have purchased the leased asset.
4. - What happens to the lease payment. Does that payment posts also when we run depreciation, as the interest?
Lease payment is not posted through Asset accounting. it should be posted from FI.
hope tht helps.
Thanks
Sanjeev

DMS with Utilities

Dear All,
Request you all to through some detail light on how to take DMS with the Utilities Module in R/3.
Regards,
Ravi

Hi Ravi
Following are the standard Object available for linking it to SAP DMS.
Object                     Description
/BEV3/CHT     Object Master
/BEV3/CHW     Contract Handl. Doc.
AENR                    ECM
ANLA                     Asset Master
CMQMEL                      Claim
CRVS_B                    Prod.Resource/Tool
DPR_OBJLN     cProjects Elements
DRAW     Document Info Record
EBAN     Purchase Req. Item
EKPO     Purchase Order Item
EQUI     Equipment Master
ESTLP     Report Variant
ESTRH     Substance Master
IFLOT     Functional Location
IMAV     Appropriation Req.
IMPTT     Measuring Points
INET     Object Link
IRLOT     Reference Location
KLAH     Class
KNA1     Customer
LFA1     Vendor
MARA     Material Master
MARC     Plant Material
MATCOMP     Material Component
NFAL     Case
NMQMEL     General Notification
NORG     Organizational Unit
NPAT     Patient
P1000     Organizational Unit
PACKKP     Packing Instruction
PLOGI     HR Object
PMQMEL     Maintenance Notific.
PNODID     PPE Node
PORDER     Production Order
POSVID     PPE Variant
PRPS     WBS Element
QINF     QM Info Record
QMQMEL     Quality Notification
QMTBDOC     Inspection Methods
QVDM     QM Info Record: SD
RMSEQR     Equip. Req. (RMS)
RMSPOB     Process (RMS)
SMQMEL     Service Notification
STKO_DOC     BOM Header
STPO     Material BOM
STPO_DOC     BOM Item
T242B     SAP EIS: Master Data
TMSTRIAL     Trial (TMS)
TWGLV     Layout Area
TWML     Layout Module
VBAP     Sales Document Item
VCM_BASEL     Baseline
VCM_PFOLD     Configuration Folder
VIMI01     Rental Unit
VIMIMV     Lease
VIOB01     Asset group
VIOB02     Real Estate
VIOB03     Buildings
VIOB22     Room
VIVW01     Management Contract
VORGNET     Network
WCAAP     Request
WCAHE     Work Clearance Doc.
WCAIT     WCD Item
WCAW     Work Approval
WLBM     Layout Area Item
Apart From these standard Object if you want any other SAP Standard Object please check this link which gives idea about the developeemnt needed
http://help.sap.com/saphelp_erp60_sp/helpdata/en/b2/c043a66fab11d1949500a0c92f024a/content.htm
Need any more help,please let me know.
With Regards
Mangesh Pande

ZX_TAX_RATE_NOT_EXIST when importing lease payment invoices from Assets

All,
I am on 12.1.2
I have created a lease agreement in oracle assets and run the export lease rentals to payables program.
Then, I ran the "Payables Open Interface Import" program.
The invoices fail import with error "ZX_TAX_RATE_NOT_EXIST - This Tax Rate does not exist".
I have not given any tax code for the lease or the invoice. Also have checked the supplier master and there is no tax setup.
Please advise.
Thanks,
Vishal.

Hello JD
I had read that note earlier. It says "The tax rate specified on the imported tax line does not exist. The provided tax rate should be existing to get processed".
As i mentioned, my invoice does not have any tax line. So I am not sure why this error msg is coming.
Thanks Vishal.

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
Regards
Ram

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

Purchase Order for Leased Asset

Hello,
I want to create an Purchase order for leased asset and want to make the payment for that.
It will be helpfull for me if you can tell the config setting required for that and the sequence of Transactions for completing the cycle for the same.
Cheers,
Manish Jindal

Hi,
You first need to create Asset Number in transaction AS01. This is normally done by finance people. Once you get the asset number, create purchase order in transaction ME21N, by selection account assignment as A - Asset. Enter other data such as material number, quantity, requirement date, price, tax code. In the account assignment tab at item level, enter the asset number you got while creating the asser in transaction AS01. Save the purchase order.
Once you receive the material against this purchase order, the accounting entries will be done against the asset number.
Hope this fulfills your query.
Regards,
Prashant

Leasing of Assets

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