Hi,
I have a questions from experts that how they are currently handling Operating Lease Accounting and Procurement of equipments in SAP for Lessee?
Operating Lease is quite common method around the world. However, SAP does not have any robust process or module for Accounting for Lessee.
I need help here and insight from the experts that how are they handling procurement of equipments and subsequently payment of lease payments of operating lease of these equipments. Are you using Asset Accounting in integration with Procurement (MM module)? If yes, then how the Accounting of Procurement is being handeled.
I am giving a typical scenario:
1. Operating unit raises a purchase requition and then purchase order is created for a supplier of equipment.
2. Supplier delivers the equipment ( G/R is made) in the system. Since this is not an asset how it is being treated or accounted for in the books?
3. Supplier is expecting a payment ( Although Lessor will make payment in his system). How do you clear the G/R in the books. Technically vendor is not going to raise invoice to the Lessee.
4. Lessee enters in the Lease agreement with Lessor for each equipment- Now how does the lease calculation start and lease payment triggered. Is this triggered from the Asset Accounting module or is initiated in Procurement or AP directly.
5. What happens if the lease terms are changed and/or equipment is sold or aquired before the termination of Lease Term.
6. Has anyone considered or worked on accounting of Operating Leases from aspect of IFRS changes being introduced in near future. Where Operating Leased Assets have to be recorded in the books.
Thanks For all your help!