Leased Asset configuration required

RAJU T 118 posts since Mar 23, 2007

Leased Asset configuration required Jan 23, 2009 10:42 AM
Hi guru's
Can Anybody Help me Detailed Leased Asset configuration
Leased assets upload from excel to sap.
Thanks
raju

Manish Kumar 263 posts since Sep 29, 2008

Re: Leased Asset configuration required Feb 29, 2012 1:22 PM
Hi Raju,

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).
Leased assets create special accounting 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 Accounting (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:

You have to capitalize and depreciate certain leased assets (capital lease).

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Leased Asset configuration required

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:
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Manage operating leases as statistical assets in the Asset Accounting component (with no active
depreciation areas)
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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.
Hope this helps you. let me know if you need anyother information.
Rgds
Manish

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