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Hello Readers,

Greetings!!

I am here writing blog about not so common yet useful process of Lease accounting.

Starting with brief over-view about the process of Lease accounting.

Leased asset remains property of the lessor. They are special form of rented asset.This blog covers how Lessee can handle Leased asset in FI-AA.

This configuration is from the point of view of Lessee. There are two type of leasing.

  1.  Capital Lease

  2.  Operating Lease


Capital lease is shown in balance sheet and operating lease is treated as expense and not shown in balance sheet. Configuration steps are same for both, the difference arrive while settling the asset. Configuration is covered in this blog and other process will be covered in part 2.


                                                              Steps


 

 

1. Configuration


1.1 Create Account Determination


SPRO - Financial Accounting (NEW)- Asset Accounting – Organisation Structure-Asset Classes-Specify Accounting Determination


                                        Account determination of Lease account



1.2 Create screen layout


SPRO - Financial Accounting (NEW)- Asset Accounting – Organisation Structure-Asset Classes- create Screen Layout


                                                        Screen layout for Lease account



1.3 Make number range


SPRO- Financial Accounting (NEW)- Asset Accounting – Organisation Structure-Asset Classes-define number range interval (AS08)


                                                                     Number range for Lease asset



1.4 Create Asset class (OAOA)


SPRO- Financial Accounting (NEW)- Asset Accounting – Organisation Structure-Asset Classes-Define Asset Class

Make new Asset class and assign account determination, number range and screen layout


                                               enter detail as mention in screenshot


 

1.5 Creation of account –FS00



                                                            Create GL accounts



1.6 Integration of account (AO90)


SPRO-Financial Asset-Asset Accounting-integration with GL account- Assign GL Account

 


                                                              Assign the GL accounts



                                           Enter GL accounts for depreciation



                                           Enter account for interest paid


 

1.7 Determine Depreciation Area (OAYZ)


 


                                                           Maintain depreciation area



1.8Field status for leasing tab in Asset Master


SPRO-Financial Asset-Asset Accounting-Master data- Screen layout- Define Screen layout for Asset master

 



 

 

 

 

 

 

 

 

 

 

 

 

                          Choose Lease asset Screen layout



                                                Click on Leasing field



                                                 Select optional for all field


 

2 Activate interest calculation


2.1 Depreciation area


Asset Accounting – Integration with the General Ledger – Define How Depreciation Areas Post to General Ledger


                                            Click on Book depreciation area



                                      Select all values allowed in Interest tab


 

2.2 Depreciation Area Posting


Asset Accounting – Integration with the General Ledger – Post depreciation to the General Ledger – Specify Intervals and Posting Rules


                                                   Select the Company code



                                                    Tick on post interest


 

2.3 Specify Allowed Depreciation Types for Depreciation Areas- OABZ


 Asset Accounting (Lean Implementation) – Organizational structures – Depreciation Areas – Specify Allowed Depreciation Types for Depreciation Areas


                                                      Tick on interest tab


 

3. Creation of Asset Master data and Acquisition process



                                         Create Asset (AS01)



                                                              Write description



                                                              Go to Leasing tab



                                    Enter useful life same as mention in agreement



                                                               Open AS03



                                         Click on opening posting and post the document



                                                                Go to FB03


 

This is the Brief process of Lease Accounting in FI-AA. I hope y'all find the information useful. Your inputs are welcome.

 

Regards

 
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