Rental Laase

[neeraj_bhardwaj4]

Hi

We have a scenario for rental lease.

We lease out machines to customers for a period say 2 years. Till two years machine is with our ownership and we getting the rent for this. As the lease expires, the ownership gets transferred to Customer.

How to account for the cost in this scenario...?

Neeraj

[Former Member · Accepted solution]

HI,

for the first 2 years the asset belongs to you => aset master record in asset accounting. Post the periodic depreciation to a CO-order (by assigning this in asset master data), post the rent earned to the same CO-order. The order shows the result of this business transaction (and can be settled elsewhere eg to CO-PA).

After the lease contract expires sell the asset to the customer (eg T-code F-92).

BR Christian

[neeraj_bhardwaj4 · Accepted solution]

Hi Christian Ortner

It is actually our inventory item and not an asset. To be more precise you can call it an equipment. We lease out equipment

neeraj

[ajaycwa1981]

Hi Niraj / Christian

I guess its not that easy... We had a similar requirement in one of our client and we had to do a good amount of Z development, because this transaction cuts across MM-SD-FI & CO

Most importantly, this machine is required as a material to facilitate logistics transactions in SD/MM

There may also be clauses involved in the long run that if the customer wants to buy the asset after 6 months - He may need to pay some X amount... After 12 months - Some Y amount etc....

Similarly, if the lease is shortclosed after X period, it may atrract some charges....

hence, we ended up doing a massive Z development and it was not a good experience at all...

I guess Std SAP offers Leasing solution.. If you dont use it, Z solutions are the only option left out...

br, Ajay M