Leased assets in SAP
for leased Asset ing you need to do the following. 1. Make sure leasing tab & leasing fields within are available for input (configuration for fields and tabs in asset class). 2. next step is to fill the leasing tab of asset master. This drives calculation of present lease values, leasing and interest payable on lease. The interest on lease is posted when you run T-code AFAB (depreciation calculation.)depending on your asset master data population. 3. You also need to assign relevant G/L in t-code AO90 to capture the cost in G/L. 4. Also chekc depreciation key which you are going to used for leasng assets,
Leased assets create special ing 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). Leased assets create special ing requirements for the lessee. 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. The Leased Assets component enables you to capitalize leased assets in the Asset ing (FI-AA) 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. Features: 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:
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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: u2013 Manage operating leases as statistical assets in the Asset ing component (with no active depreciation areas) u2013 Manage them only as cost-ing values (or for group ing) 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. General 1. Enable Interest Calculation in depreciation area (Transaction code OABZ) 2. Assign s for Interest calculation (Transaction code AO98) 3. Set Post Interest Flag (Transaction code OAYR) 4. Activate LEAS depreciation key (Transaction code AFAMA)
Asset Class 1. Set Up Screen Layouts 2. SPRO - FI - Asset ing - Master Data - Screen Layout - Define Screen Layout for Master Data 3. This step enables the use of field selection other than your existing asset classes - optional 4. Copy Existing Asset Class to Lease Class 5. SPRO - FI - Asset ing - Organizational Structures - Asset Classes Define Asset Classes 6. Copy and update Screen Layout 7. Update Depreciation Areas – transaction code OAYZ 8. Change default depreciation key to LEAS Basically I decided to place one line on the PO for the Asset and one Line for the interest. The G/L for the interest would be the same that would be set up as being posted to from your AS03 transaction.
The key is to use payment to drive the payment plan. This is different from an invoicing plan. Set up an installment payment plan and the corresponding monthly payment % amounts in OBB9. So lets say you have a 36 month lease. You can set up one payment term ZP36 as an installment plan and then 36 other to be used as the individual monthly amounts 2.778% (1/36). Afte rsetting up the 37 , go into OBB9 and assign ZP36 in the " of Payment" column, installment 1 would be 2.778% and use pmt term Z001. You may want to play with the Baseline date calculation during set up of the 36 individual . I create the PO as GR Non Valuated since you must wait until the items and leasing are accepted before valuating the asset. After the are accepted, process an invoice receipt using MIRO and apply the installment payment term created above. When you post this invoice receipt the entries will look exactly as they do when you post using AS03. Next - Go into the Asset Master and enter your of the lease. This will be necessary so that you can post the interest expense during your monthly depreciation run. DO NOT POST VIA AS03 as this will only double the amount of the asset. By using the installment payment you subsequently give yourself a link from the asset back to the purchasing documents - You may lose this if you value the asset via AS03. Another advantage is that if you have a budget in SAP, this will also show visibility during the transactions. One item to note - Depending on how your organization is set up, you may want to set up a separate vendor so that the liability is posted to the Lease Liability instead of s Payable when MIRO is processed. Enable Interest Calculation in depreciation area (Transaction code OABZ) Assign s for Interest calculation (Transaction code AO98) Set Post Interest Flag (Transaction code OAYR) Activate LEAS depreciation key (Transaction code AFAMA Set Up Screen Layouts SPRO - FI - Asset ing - Master Data - Screen Layout - Define Screen Layout for Master Data This step enables the use of field selection other than your existing asset classes optional Copy Existing Asset Class to Lease Class SPRO - FI - Asset ing - Organizational Structures - Asset Classes - Define Asset Classes Copy and update Screen Layout Update Depreciation Areas u2013 transaction code OAYZ Drill down into new asset class, then change default depreciation key to LEAS If default depreciation key is not available, go to depreciation screen layout -
transaction code AO21 Drill down into screen layout seen in previous step On FG 01 line, check 'Class'. Return to OAYZ to assign key. The functionality in 4.6c is quite good, but limited. You can only enter one payment amount, which is fixed across the life of the lease. Also, the calculation (based on the current book value) of the principal vs. interest components of the monthly payment is fixed, and the reporting is limited. However, it does set up the payments in AP automatically for the vendor. This enables payments to go out as part of the monthly check run without manual intervention each month, so can be a big time-saver. It also gets the depreciation/amortization and interest on the books within the ERP system. Check the SAP help link also. http://help.sap.com/saphelp_erp2005/helpdata/en/8f/806a41e2387f47e10000000 a1550b0/frameset.htm
Operating Lease Operating leased assets can be handled through asset ing. you have to create a separate asset class which you have already done. you also need to populate the leasing tab of the asset master. once you post acquisition to this asset the present value field in leasing tab will be populated by the system based on payment cycle, interest rate and other maintained in leasing tab of the asset aster. interest on leasing will be calculated and posted along with depreciation run. The interval of interest calculation will also depend on the leasing tab information. I dont think you should deactivate depreciation areas.
According to deactivate depreciation area, read that on this link (for operational lease): http://help.sap.com/saphelp_46c/helpdata/EN/48/ae9b88a63511d3a7320060087d 1a6b/content.htm In that link the system says deactivate depreciation area 30 and 31. you will
normally have book depreciation area as 01. If you deactivate depreciation area (book depreciation)then interest on lease , depreciation will not be posted on that asset. regarding linking your vendor invoices, if you are purchasing an asset via purchase order you have to use assignment category A in your purchase order then follow goods receipt/invoice receipt
If I have following example (as for the link I attached earlier): Base value as new 108 000 Purchase price 20 000 No lease payments 48 Payment cycle 1 Lease payment 2 000 Annual rate of interest 7,5 Could you explain to me - What does they mean with purchase price, is that price after the lease period? - What happens to the lease payment. Does that payment posts also when we run depreciation, as the interest?
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 ing. it should be posted from FI. 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 ing 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/71fd71448011d189f00000e 81ddfac/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. This is what I get from SAP documentation: Post the asset acquisition using a transaction type that only posts to costing 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.