Straight Line Lease Rental Accounting

[Former Member]

Hi  Experts,

Currently I'm working on SAP RE-Fx implementation project for a Retail client.

There is a requirement for generating Accounting reporting based on IAS17, Lease Rental Accounting Standards.

PFA an example of how the Lease Rental Accounting should generate the accounting entries.

I need inputs related to:

1) Which SAP Note is available to be implemented for  St.Line Lease Rental Accounting in Commercial Lease -In business scenario.

2) What configurations (E2E) needs to be maintained in RECACUST for the St.Line Lease Rental Accounting

Thanks

Shantanu Kar

[former_member230443 · Accepted solution]

Hi Shantanu,

Please check out SAP note 907742.

[Former Member · Accepted solution]

Hi Vimal.

Thanks for your prompt reply.

I've checked this SAP Note. This note is talking about St.Line Lease Rental Accounting for Lease-Out scenarios. Is this note also applicable for Lease-In scenarios as well?

Also, if you can provide details of configuration set up needed to be done in RECACUST for St.line lease rental accounting.

Thanks

Shantanu Kar

[amarnath_r_dasa · Accepted solution]

Hello Shantanu

Straightlining of Rents holds good only for Lease Out scenarios.

[Former Member · Accepted solution]

Hi Amarnath,

Do you mean to say that we don 't have any solution to execute St.Line Lease Accounting for Lease-In scenarios?

Please confirm.

Thanks

Shantanu Kar

[amarnath_r_dasa · Accepted solution]

Hello Shantanu

Yes, there is no need of Straighlining for Lease In Contracts.

Pls refer to IAS17.

Let me know if you find otherwise.

Regards

Amarnath.R

[Former Member · Accepted solution]

Hi Amarnath,

Can you provide some reference which I can showcase to the client stating that Straight line Lease Accounting is not possible for Commercial Lease-In scenarios.

Thanks

Shantanu Kar

[Former Member · Accepted solution]

Hi Santanu,

the straight line functionality based on IAS17 and FASB13 is for LI & LO contracts and it can be implemented following the guidelines of the OSS Note 907742.

I´ve implemented it in my client more than one year ago in several markets (countries) and it works properly for both (LI & LO); also integrated with the ACE.

Best regards,

Fernando Díaz

[Former Member · Accepted solution]

Hi Fernando,

Thanks for your reply.

So in your opinion, I should directly apply the note OSS 907742 for commercial Lease-In process? Is there any other configurations also needed to be done in RECACUST apart from implementing this Note?

Pls revert.

Thanks

Shantanu Kar

[Former Member · Accepted solution]

Hi Shantanu,

Yes, the OSS Note 907742 is for Commercial Lease-In as well. Just to do settings in customizing for flow types, condition types, account determination and so on regarding lease in.

And, it is required additional configuration. I will send a SAP customizing guide for it.

Best regards,

Fernando Díaz