FIN (Finance), FIN Asset Accounting

Configuration 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.

Steps

1. Configuration

1.1 Create Account Determination

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

Account determination of Lease account

1.2 Create screen layout

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

Screen layout for Lease account

1.3 Make number range

SPRO- Financial Accounting (NEW)- Asset Accounting – organization 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

FIN (Finance), FIN Asset Accounting

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

1.8 Field 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.

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