SAP RE-FX lease contract migration with APC and Accumulated depreciation

[srividya_sripathy]

Hi,

I am following note 2544232 (scenario 2) to migrate open lease contracts in RE-FX. I have created legacy leased assets with APC and Accumulated depreciation with transition date (31.05.2022) as the first capitalisation date. Useful life and expired useful life are given.

I create a contract with the following terms:

Start date: 19.05.2020, end date: 18.05.2024

Conditions: V107 (Networth Value Specified) set to statistical with Net Book Value and an actual condition for the remainder of the lease instalments.

I assign the legacy asset to the contract and run valuation of the contract. Following things happen:

Useful life of the asset changes to the term assigned to the actual condition

A new RoU and Lease Liability is posted to the tune of the remaining lease instalments. So, the APC value in the asset is doubled and consequently higher depreciation

Can someone suggest what is the right method of migrating leased assets in lease contracts and how was this handled?

Thanks

Sri

[franz_posch]

Hi Sri,

please check the configuration of the permitted valuation properties in customizing view:

Condition Valuation Groups

Thank you.

Best regards,

Franz

[BalaU]

Dear Franz,

I have also the similar scenario that the lease migration asset postings got doubled.  How to resolve the issue.

Our system cofiguration settings...

Under Balance-Sheet Valuation of Contracts ==> Condition Valuation Group ==> Condition Types, Preassignment of Val. Property

ExPp = K

Ctyp = V107

Val. Prop = M - Networth Value Specified  (legacy data)

Consider = Full Consideration

Condition Valuation Group ==> Permitted Valuation Property

ExPp = K

Ctyp = V107

Val. Prop = M - Networth Value Specified  (legacy data)

Consideration = Full Consideration

When I run the valuation process, I am getting the error message as

"IFRS16 1, Net Worth Val. Spec.: Valuation property Net Worth Value Specified is not permitted

Message No. RECETM242"

Regards,

Bala

[franz_posch]

Hi Sri,

please check that the condition V107 you are using to inform the net book value of the lease asset has assigned the valuation property "Net Worth Value Specified (Legacy Data)" as described in SAP Note 2544232.

This should avoid double-posting of the asset acquisition by the valuation run.

Thanks.

Best regards,

Franz

[srividya_sripathy]

Thanks Franz, I am getting this error now.

Any thoughts?

Thanks

Sri