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Apr 25 at 10:16 AM

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

97 Views Last edit Apr 25 at 11:57 AM 2 rev


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?