SAP Leasing

PDF download from SAP Help Portal:

http://help.sap.com
Created on August 25, 2015

The documentation may have changed since you downloaded the PDF. You can always find the latest information on SAP Help
Portal.

Note
This PDF document contains the selected topic and its subtopics (max. 150) in the selected structure. Subtopics from other structures are not included.

2015 SAP SE or an SAP affiliate company. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose
without the express permission of SAP SE. The information contained herein may be changed without prior notice. Some software products marketed by SAP
SE and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are
provided by SAP SE and its affiliated companies ("SAP Group") for informational purposes only, without representation or warranty of any kind, and SAP
Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set
forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional
warranty. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE in
Germany and other countries. Please see www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices.

Table of content

PUBLIC
2014 SAP SE or an SAP affiliate company. All rights reserved.

Page 1 of 17

Table of content
1 SAP Leasing
1.1 User Interface and Roles
1.2 Master Data
1.2.1 Business Partners for Financial Services
1.2.2 Products
1.2.3 Object in Leasing
1.3 Leasing Document
1.4 Outline Agreement with Customers
1.5 Third-Party Business Relationships
1.6 Financial Mathematics in Leasing
1.7 Pricing in Leasing
1.8 Tax Determination in Leasing
1.9 Change Processes
1.10 Billing
1.11 Management of Late Payments
1.12 Controlling in Leasing
1.13 Cancellation
1.14 Connection of External Systems

PUBLIC
2014 SAP SE or an SAP affiliate company. All rights reserved.

Page 2 of 17

1 SAP Leasing
SAP Leasing offers a comprehensive solution for companies that offer movable equipment leasing and supports their typical business processes from the
lessor's perspective. The solution meets international requirements as it supports a wide range of currencies and lets the user perform parallel valuation
according to different international accounting principles.
The use of individually configurable financing products in SAP Leasing (CRM product type: Financing ) makes it easier to create new opportunities for
financing in leasing. By integrating services (CRM product type: Service ), the lessor can offer full service leasing business and automate complex interaction
processes with lessees and external third parties, such as dealers and service providers.

Implementation Considerations
SAP Leasing supports leasing transactions for finished, mobile installations. This typically includes vehicle leasing.

Integration
The figure below illustrates the integration of the systems and components:

System Integration

To be able to use the full range of functions of financing and contract processing to manage your leasing business, and to benefit from the integration with your
accounting system, you need the following:
SAP CRM 7.0
SAP enhancement package 4 for SAP ERP 6.0. See SAP Note 786590.
SAP enhancement package 1 for SAP NetWeaver 7.0
You can also connect SAP SRM 7.0 as the procurement system.
You use SAP Solution Manager to configure the solution. For more information, see SAP Solution Manager under
Banking
Scenarios
Financing
Lease Operations (SAP Leasing Management) , and Customizing.

Solutions/Applications

SAP for

Features
The following functions are available in Leasing and Asset Management:
Product landscape
You can use the flexible product configuration in SAP Customer Relationship Management (SAP CRM) to map the different aspects of your individual
product range in the system. For more information, see Products.
Quotation and contract management
Using these functions, you can manage the entire contract management process from quotation to end-of-lease.
For more information, see Leasing Document.
Financial mathematics, pricing, and tax determination
The pricing process and the financial mathematics settings provide a set of rules for mapping complex financing models.
For more information, see Financial Mathematics in Leasing, Pricing in Leasing, and Tax Determination in Leasing.

PUBLIC
2014 SAP SE or an SAP affiliate company. All rights reserved.

Page 3 of 17

Flexible contract change

To enable you to react quickly to changing conditions and customer requirements, a wide range of change processes are available for existing lease
contracts.
For more information, see Change Processes.
Vendor integration
By integrating different systems, you can process purchase orders, and enter and check vendor invoices.
For more information, see Creation of a Purchase Order and Entering and Checking of Vendor Invoices.
Processing of third-party business relationships
In addition to the lessor and lessee, you can integrate other business partners, such as the manufacturer or dealer, into the leasing process.
For more information, see Third-Party Business Relationships.
Management of late payments
The management of late payments helps you to process open items for your leasing customers in Contract Accounts Receivable and Payable (FI-CA).
For more information, see Management of Late Payments.
Integration of services
If you want to offer your customers comprehensive service, you can also integrate services into your lease contracts alongside the actual leased object.
To enable the processing of service invoices, the agency business software in SAP ERP is seamlessly integrated into the process.
For more information, see Service Contract Product and Billing in Agency Business.
Asset management and accounting
Contract management for SAP Leasing is integrated with all accounting processes, including asset handling. This enables complete asset handling,
including all international requirements with regard to accounting, cost calculation, and depreciation.
For more information, see Lease Accounting (FI-LA).
Controlling
To ensure the transparency of your business efficiency, you can perform controlling analyses of your business. For more information, see Controlling in
Leasing.

Constraints
1. SAP Leasing is not designed for the lessee view.
2. SAP Leasing supports only the leasing processes for finished movables (no installations under construction, see also point 3).
3. SAP Leasing is not designed for the following leasing transactions:
Real estate leasing
Processes for installations under construction and payments after construction progress as part of big ticket leasing (such as for ships, oil rigs,
and aircraft)
4. Note any existing limits in the SAP Note concerning release restrictions for SAP CRM 7.0 (SAP Note 1248699).

1.1 User Interface and Roles

SAP Customer Relationship Management (SAP CRM) offers a uniform and clearly arranged user interface that bundles the functions for leasing processing
into roles.
You can use the roles that are predefined by SAP to access at any time all the data and information that you need for your day-to-day activities. You log on in
your role and can access all applications and data that are assigned to this role. SAP provides the following roles in leasing:
Leasing Manager (LEASING): Covers the functions for processing your leasing deals
Financial IC Agent Leasing (FCC_LEAS): Covers the functions for working and communicating with your customers

Structure
The Leasing Manager user role includes the following work centers:
Leasing documents
FS quotations
FS contracts
Outline agreements
Service documents
Service orders
Service confirmations
Products
Financing products
Services
The Financial IC Agent Leasing user role contains the general functions for the Interaction Center.

Note
For more information, see Interaction Center and Interaction Center WebClient.

Integration
General Settings
You can integrate into the standard user roles any additional functions that you may need.
For more information, see SAP Note 993315.

Example

PUBLIC
2014 SAP SE or an SAP affiliate company. All rights reserved.

Page 4 of 17

In leasing processing there are functions that you do not use often in your day-to-day activities, and these are therefore not contained on the CRM
WebClient interface. However, if you want to use these functions, you can integrate them manually in the Toolbox area.
You can change the standard user roles; for example, you can adapt the assignment of functions on the interface or create new user roles.
For more information, see the SAP Implementation Guide (IMG) for SAP CRM under UI Framework and
User Roles
Define User Roles .
If you want to create a new user role, note that the configuration of some of the views provided by SAP is dependent on the role. For example, there is
one role-specific view for searching for lease quotations.
The following views are configured for specific roles:
BT114S_QLAM/LeasingAdvSearch
BT114H_LAM/DetailsOV
BT114H_LAM/DetailsEF
BT114H_LAM/FinItemEF
BT114H_LAM/FinItemOV
If you want to use these views in a role, you must copy the configuration or enter new settings for the configuration. You make these settings in
Customizing for SAP CRM, by choosing
UI Framework
UI Framework Definition Configure User Interface .
Specific Settings for Financial Services
If you want to use the simulation tool for conditions and the financing page to display and edit the condition types of several related items on an
overview page, you must group these condition types together in a condition profile.
For more information, see the IMG for SAP CRM under
Financial Services
Basic Functions
CRM WebClient UI Edit Condition Profile .
You can specify the transaction type in which an application creates the documents for a business transaction.
For more information, see the IMG for SAP CRM under
Financial Services
Basic Functions
User Interfaces
CRM WebClient UI Determine
Interface for Transaction Types .
You can specify for the items in a financing document which interface is used to display the detail view for the relevant item categories.
For more information, see the IMG for SAP CRM under
Financial Services
Basic Functions
User Interfaces
CRM WebClient UI Determine
Interface for Item Categories .
You can specify for the items in the product overview of a financing document which conditions you want to display for a selected item.
For more information, see the IMG for SAP CRM under
Financial Services
Basic Functions
User Interfaces
CRM WebClient UI Determine
Detail View in Product Structure .
You can specify which items are displayed in the result list for financing documents.
For more information, see the IMG for SAP CRM under
Financial Services
Basic Functions
User Interfaces
CRM WebClient UI Define Item
Categories for Result List .
Connect Customer Support for Leasing to SAP ERP
Some of the functions that belong to the Financial IC Agent Leasing user role are available in SAP ERP. To be able to use these functions, a connection
must exist between SAP CRM and SAP ERP. You also have to make the necessary settings in SAP ERP.

More Information
For more information about Telephone Collections , see:
Management of Late Payments
Assignment of Worklists for Telephone Collections
Processing of Telephone Collections

1.2 Master Data

Purpose
In leasing, the master data forms the basis for the correct processing of financial transactions.
The following master data is used:
SAP Business Partner for Financial Services
Products
Objects in Leasing

1.2.1 Business Partners for Financial Services

People, organizations, or groups of people/organizations in which your company has a business interest.

You use business partner data in a series of business transactions. If you use the same business partner in different business partner roles and centrally store
the master data, the only source of information for all system functions, then you have to enter data only once and your systems do not retain any redundant
data.
For more information, see Distribution of Business Partner Data.

Structure
The business partner concept is based on the following:
Business partner category:
Depending on the business partner category, you can enter data in certain fields in business transactions.
Business partner role:
A business partner can take on different business partner roles that allow you to have different views of the business partner data, according to the

PUBLIC
2014 SAP SE or an SAP affiliate company. All rights reserved.

Page 5 of 17

A business partner can take on different business partner roles that allow you to have different views of the business partner data, according to the
business function.
Business partner relationship:
A relationship connects business partners and is characterized by the business partner relationship category.
When you create and maintain business partners, you enter general business partner data that applies for all business partners in SAP Customer Relationship
Management (SAP CRM), and data that is only needed for business partners in the area of financial services:
General business partner data, such as address and communication data or marketing attributes.
For more information, see Address and Communication Data and Classification and Marketing Data.
Business partner data in the area of financial services, such as:
Employment data, such as the type, duration, and status of the business partner's current or past employment relationships
Enterprise data, such as information about the balance sheet and annual results
Financial data, such as net income
Regulatory reporting data, which is forwarded to the supervisory financial institutions in Germany and Austria
For more information, see Data for the Business Partner for Financial Services.

1.2.2 Products
This section contains information about the following leasing-specific products:
Financing product
Service contract product
Relationships

More Information
For more information about products in SAP CRM, see Products.

1.2.3 Object in Leasing

Definition
A unique instance of a product, such as a car. It identifies a specific object and contains data that is only true for that exact object.

Use
You can use objects in all leasing-relevant processes that require a unique reference to a specific object, such as a car with its vehicle identification
number (VIN), model, construction year, and mileage.
Objects are quantity-based. This means they always have a quantity equal to one to ensure unique assignment. Moreover, objects can be identified
uniquely in all contracts, which means they can be used beyond a single contract.
In leasing, you use objects to map the leased object, such as a car. If you also use service cards in your leases, for example fuel cards, then you
create these cards, which have a unique number, as objects.

Integration
Pricing
You can create specific conditions for objects in pricing. If you want to use a specific pricing condition for an object, you have to adjust the modify sequence
to have pricing check the specific condition for the object first and use this to calculate the price. This price has priority over the price of the reference product.
The condition for the reference product is used only if no specific price can be determined for the object during pricing.

SAP ERP Accounting

In the ERP application, you have to create a reference product for the object and assign it to this object. The system uses the reference product to classify
the lease and to create an asset. This is imperative because the ERP application cannot process objects from the CRM application. When the system
transfers data to the ERP application, it replaces the object with the corresponding reference product.

Special Feature for Vehicles: Mileage Billing

A certain mileage value may be a component of the lease, depending on the term. SAP provides corresponding condition types for this in Customizing. You
can assign all terminating change processes to a certain condition function group that contains the conditions for mileage billing. Starting from a defined
amount (condition type 4K01), a starting value (4K02), an end value (4K03), and the resulting amount (4K04), the system calculates an additional, mileagespecific fee (4K05). These conditions are defined in the object item and copied to the corresponding items (4K11 to 4K15) in the billing request item, which
contains the fee incurred for the terminating change process. The system adds the mileage fee to the regular fee and bills it.

More Information
For more information about the object in leasing, see:
Creation of Objects
Service Card Object
Set Types for Vehicles

PUBLIC
2014 SAP SE or an SAP affiliate company. All rights reserved.

Page 6 of 17

Use of Objects in the Leasing Life Cycle

Internal Status of Objects
Distribution of Identification Data for Objects
For more information about objects in SAP Customer Relationship Management (SAP CRM), see Objects .

1.3 Leasing Document

Definition
Contains all the important information about an existing or future lease transaction (such as quotation, contract, contract changes, remarketings). The leasing
transaction is managed through the documents lease quotation ( FS Quotation )and lease ( FS Contract ).

Use
The lessor and lessee use one leasing document to process the leasing transaction. Based on master data and Customizing data, the leasing document
contains and manages the main information about the lease structure, the payment schedule and the end-of-lease options.
You create a quotation or contract on the CRM Web client user interface (CRM Web client UI). Before you can create leasing documents, you must enter the
data for the business partners in the master data of the CRM system. To be able to enter items in the document, you must enter the following products as
master data:
The product to be financed (reference product) is entered with the product type Material .
For more information, see Creation of Objects .
The financing product is entered with the product type Financing.
For more information, see Financing Product .
In the case of Full Service Leasing: The service contract product is entered with the product type Service .
For more information, see Service Contract Product .
You can process the leasing document using a number of different actions . You map the development of a document from quotation and conclusion of the
contract to the end date of the leasing transaction using different system statuses . You can view the further processing of a leasing document in the
transaction history.

Structure
On the CRM Web client UI, you can create a user-specific display for a leasing document by choosing Personalize to insert or remove assignment blocks. The
standard system includes the assignment blocks General Data, Product, Partner, Financing Plan, Actions, Status Management, and Prices.

1.4 Outline Agreement with Customers

An outline agreement contains shared conditions for several quotations and contracts, such as price agreements. Outline agreements apply to a particular
business partner or group of business partners.

You can use outline agreements to define centralized conditions, such as price agreements and general terms and conditions, for all lease quotations and
leases of a business partner or group of business partners. When you assign the outline agreement to a quotation or contract, the system copies the
corresponding data from the outline agreement.

Structure
In leasing, outline agreements are CRM documents of the transaction type Master Agreement (MA). You define the data used for the outline agreement in
transaction processing. When you create a lease or a lease quotation, you can assign an outline agreement at item level. Alternatively, you can use the outline
agreement to create a quotation or contract as a follow-up document.

Note
Activating the Contract Determination
Before you can assign outline agreements to a quotation or contract, you have to activate contract determination in Customizing for SAP CRM under
Transactions
Basic Settings
Define Transaction Types
and the detail view for the transaction types FS Quotation (FSO1) and FS Contract
(FSC1). You can then decide whether you want to automatically assign the outline agreement to the document where this assignment is unique (E) or
whether you want to confirm this assignment in a dialog box (F).
If more than one outline agreement can be assigned, the system always displays a dialog box from which you can manually select the relevant outline
agreement for the quotation or contract.
Contract determination: The system uses the parameters Sold-To Party and Validity Period to restrict the search for matching outline agreements. It also
checks whether the corresponding item in the outline agreement has the status Released . When you have assigned an outline agreement, you can view the
assignment at header and item level in the Transaction History assignment block.
Print function: At header level in the outline agreement, you can use the action Print GTC (action profile OUTLINE_AGREEMENT) to print the general terms
and conditions as a smart form.

PUBLIC
2014 SAP SE or an SAP affiliate company. All rights reserved.

Page 7 of 17

Integration
If you want to use survey templates to depict the general terms and conditions, you can use the CRM Survey Suite . For more information, see Survey Tool
and Survey Suite.

1.5 Third-Party Business Relationships

A third-party business relationship is a relationship between the lessor and a party other than the lessee, such as a dealer, manufacturer, or insurer.

Example
Example 1
Lessors and car dealers agree that the dealer receives a bonus if their customers finance their vehicles in a contract with the lessor. This type of payment
from the lessor to a third party is called participation.
Example 2
Payments can also be made from third parties to lessors; for example, if a car manufacturer wants to offer particularly favorable financing plans to promote
the launch of a new model onto the market. In this case, the manufacturer subsidizes the financing costs that are usually contained in the lease payments.
As a result, the lessor receives lower installment payments from the customer, but these are supplemented by payments from the manufacturer.

Features
To define binding conditions for third-party business relationships, you create special third-party programs. You then assign these agreements to a
financing document and transfer the data.
For more information, see Third-Party Program.
You can map the payments originating from third-party business in the financing contract as follows:
Automatic transfer of data from an outline agreement
Manual determination of data
For more information, see Third-Party Payments and Receivables in the Financing Contract.
When you activate the leasing document, the system transfers the document to Lease Accounting in SAP ERP.

1.6 Financial Mathematics in Leasing

In leasing, you use financial mathematics (FIMA) to transfer a one-time amount financed to a cash flow. You then receive a payment schedule in which the
outgoing payments precede the incoming payments. In the case of amounts that are not a financing (such as fees), you use financial mathematics to create
fee payment schedules.
You use the following functions in the lease to map financings to customer financing items of the category BUS2000301:
Date management: Contains the relevant general data for a financing, such as the start and end date of the financing, and the term
Payment structure and payment structure variant: Contains the financing template with the relevant entries
Calculation procedure
Financing view repository
Pricing document: Contains all the financing-relevant conditions
You generate a payment schedule in the following sequence:
1. In the product master data, you define at least one financing product that is used as the financing template. In doing so, you differentiate between onetime and periodic flows.
2. In the lease quotation or lease (SAP CRM), you configure the individual financing template and generate a payment structure. To do this, the system
first imports data from the financing product (payment structure template) and adds to this the data from FIMA Customizing and the appointment data
repository as well as the condition values (IPC conditions). You then make any further changes manually.
3. The system uses the calculation algorithm to create the cash flow and the payment schedule aggregated from it. This is controlled flexibly by the
settings for the financing product and in FIMA Customizing.
4. The system generates billing request items from the cash flow.
The following functions are available for financial mathematics calculations in leasing:
Payment Structure and Payment Structure Variants
Payment Structure in Change Processes
Flow Categories
Cash Flow
Financing Views
Example: Subsidy and Participation
Calculation Procedure
Effective Interest Rate Calculation
Calculation of Rate per Thousand
Interim Periods
Interest Calculation Methods
More Information
Date Management (CRM-BF-DAT)
Financial Mathematics (CA-FIM)

1.7 Pricing in Leasing

PUBLIC
2014 SAP SE or an SAP affiliate company. All rights reserved.

Page 8 of 17

In the case of pricing, the system uses the condition technique to determine relevant pricing information from condition records for a business transaction. The
system executes pricing using the Pricing Engine, a tool which ensures consistent pricing.

Prerequisites
You have made the settings for the condition technique.
For more information, see Customizing for SAP CRM under
Master Data Conditions and Condition Technique .
You have made the general settings for pricing in SAP CRM.
For more information, see Customizing for SAP CRM under
Basic Functions
Pricing .
The values of different items of a financing are interdependent; for example, the financing requirement for an object is also the amount to be financed in
a financing. To represent these dependencies in a flexible way, you can use a mapping based on search strategies.
For more information, see Customizing for SAP CRM under
Financial Services
Basic Functions
Pricing Define Condition Mapping Using
Search Strategies .

Note
Before you can use condition mapping using search strategies, you must have defined your search strategies. For more information, see
Customizing for SAP CRM under
Financial Services
Basic Functions
Cross-Item Functions
Search Strategies .
To calculate prices using search strategies in the calculation procedure as well, you must define the basis formula 4100 Assign Conditions Using
Search Strategy or 4101 Assign Conditions Using Search Strategy with Initialization for the relevant condition types in your calculation procedure.
To calculate condition type values with ABAP functions, you must assign the value formula 4102 or the basis formula 4102 as recall types to the
condition type in the calculation procedure. For example, conditions whose values are based on the financial mathematics cash flow use corresponding
financial mathematics functions in ABAP.
For more information, see Customizing for SAP CRM under
Financial Services
Basic Functions
Pricing Assign ABAP Functions to Condition
Types .

Features
Conditions
Pricing Procedure
Fixation Group
Maintenance of Prices

More Information
For more information about pricing in SAP CRM, see Pricing.

1.8 Tax Determination in Leasing

Use
To determine taxes in leasing, you use the functions in SAP Customer Relationship Management (SAP CRM) and SAP ERP.
For more information, see Taxes .
Specific adjustments for leasing have been made in the following areas:
Tax determination
Tax calculation
Billing

Integration
The system forwards the tax-relevant information in a new contract or a change process through billing to Accounting. The system assigns the contract item to
the fixed assets of either the lessor or the lessee depending on whether you have classified it as a capital lease or as an operating lease.

Prerequisites
Before you can use tax determination, you must make the necessary settings in SAP CRM and SAP ERP.

The tax determination described here applies only to contracts in leasing.

You have made the following settings for the data transfer of conditions for business partner data and product master data between SAP ERP and SAP CRM:
Tax assignment for the business partner (BP) and product
Tax type and tax group for the business partner (BP) and product

PUBLIC
2014 SAP SE or an SAP affiliate company. All rights reserved.

Page 9 of 17

Product tax data

Assignment of business partner-relevant tax data in the ERP conditions to CRM
Creation of tax-relevant conditions in SAP ERP and transfer to SAP CRM
Assignment of revenue account determination to conditions
Assignment of the parameters required for tax determination to master data for customer and product in SAP ERP and in SAP CRM
You have made the following settings in SAP CRM. These settings define the tax calculation methods in leasing:
Activation of ERP conditions that exist as text entries in the CRM pricing procedure
Definition of the flow categories for up-front tax
Adjustment of the condition function in the tax conditions
Definition of the tax calculation rule for each lease class
Definition of the tax exclusion
Adjustment of the tax codes in Customizing for the change processes
Installation of an external tax program to determine taxes for the United States and Canada

Features
Tax Determination
Leasing supports tax determination for the following countries:
Germany/Austria
For Germany and Austria, you use SAP CRM to determine value-added tax (VAT). The system uses the following as the tax base:
Net value of the item
Sum of periodic net values and billing request items (up-front tax)

The financing of taxes is not possible in Germany and Austria.

United States/Canada
You determine taxes for the United States using a special pricing procedure. This procedure supports periodic and up-front tax payments. The system uses
the following as the tax base:
Net value of the respective billing request items
Up-front tax, determined from a condition
If an up-front tax payment is involved, the taxes can be financed.
The system uses external tax programs to determine the relevant American and Canadian tax rates and the jurisdiction code. The basis for tax determination
is the jurisdiction code, which the program determines for both the point of departure and the place of destination and saves in the respective plant and ship-to
party.

Tax Calculation Methods

The tax calculation method is determined by the following data:
Type of leasing transaction, which is either derived from the type of financing and the classification, or is specified manually
Country in which the transaction is processed
Tax calculation in the lease differentiates between the following procedures:
Periodic tax payment
A periodic tax payment is normally used for operating leases. Depending on the tax classification, the system uses the table of tax rules to determine the
calculation method.
The system uses the net value from the billing request items as the tax base. Tax base condition MWSB assumes this value in each billing request item
for example, in an annuity or interim period. Tax condition MWST uses the value of condition MWSB as the calculation base in SAP CRM and in SAP ERP.
The customer cannot finance the tax within leasing. The system does not generate a separate billing request item for the tax payment.
Up-front tax
In a capital lease, a one-time, up-front tax payment at the start of the lease is the rule. Based on the tax classification, the system uses the table of tax rules
to determine the calculation method.
In the case of an up-front tax payment, the system generates a separate billing request item (for example, flow category OTAX ) in which the system
calculates the tax.
Depending on the underlying tax calculation method, the system differentiates between the following methods for calculating one-time amounts:
Tax on the sales price
The value of a condition determines the tax base. The system determines the condition in the object item and copies it to tax base condition MWSB . In the
IMG activity Assign ABAP Functions to Condition Types within pricing, you specify the condition provided by the value.
The customer can finance the up-front tax through a loan. This loan is administered, calculated, and displayed within the lease.
Tax on the sum of periodic payments
Within this calculation method, the system determines the net item values of the periodic payments from all billing request items and totals these values in the
tax base.

PUBLIC
2014 SAP SE or an SAP affiliate company. All rights reserved.

Page 10 of 17

For more information, see Calculation of One-Time Taxes and Fees .

Determination of the Tax Delta

The tax payment always takes the entire agreed term of the lease into account. If the term changes, this directly affects the tax to be paid.
If a lease is terminated early, the system credits the customer with the tax payable from the cancelled period, or bills the tax authorities for the same amount.
The system uses conditions to clear the billing document.

Example of the determination of the tax delta

Up-front tax in the original contract
Total installments: USD 500,000
19% VAT: USD 95,000
Early termination after 2/5 of the lease term
Taxes paid: USD 38,000
Tax credit for remaining term: USD 57,000
If the term of a lease is extended beyond the term originally agreed, the new installments are liable for taxes. Depending on the classification, the tax is due
either as a lump sum or as a periodic tax payment.

Tax Financing
Tax financing enables the lessee to finance the sales tax, which is due immediately, through a loan.
Tax financing is allowed for taxes that are due immediately.
For more information, see Financing of One-Time Tax Payments .

Tax Indicators
The tax indicators that are defined for the business partner and the product determine the tax rates in the sales document. Condition records are defined in the
system, and the access sequences of these condition records use the indicators as keys.
An exception to this is the simultaneous tax analysis of the financed product and the financing product in a lease: As a rule the system uses the tax indicator
of the financing product to access existing condition records. If the financing product does not have a tax indicator, the system uses the tax indicator of the
financed product.

1.9 Change Processes

Use
You use this function to change existing lease contracts. Each change process has a different effect on the further processing of the lease, both in contract
management and in accounting.
In SAP Customer Relationship Management (SAP CRM), change processes with similar functions are grouped in the leasing scenario and are copied to
generic change processes. This reduces the number of business transactions and change processes in the CRM application without restricting the range of
functions.

The TERM process uses a specific assignment rule to handle the ETER process.
For more information, see Overview of Mid-Lease Change Processes .
In the Lease Accounting Engine (LAE, SAP ERP), none of the change processes have been changed. A Business Add-In (BAdI) (enhancement
spotCRM_FS_ACC_CHANGE_PROC) is used to assign the generic business transactions and change processes from SAP CRM to the processes in the
Lease Accounting Engine. The rules used to assign the processes correctly are defined in the BAdI. When a change process is executed, the BAdI is called.
In CRM, the BAdI writes the result to data segmentCHNGPROC_I, from where it is read by the middleware, and transferred to the ERP application.
You can use your own custom BAdI implementations to change the way in which the LAE processes are assigned.

Prerequisites
You have made all the required settings in Customizing for Customer Relationship Management under Financial Services Leasing Change
Processes Basic Settings for Change Processes Make Settings for Change Processes .
The settings you make here control all the change processes.
To execute the change processes, you must have at least one active lease.

PUBLIC
2014 SAP SE or an SAP affiliate company. All rights reserved.

Page 11 of 17

Features
Time-driven execution of change processes
You can start most of the change processes during the contract term. Depending on the contract situation, you can also execute the processes at the end of
the contract term.
For more information, see Overview of Mid-Lease Change Processes and Overview of End-of-Lease Change Processes .
Manual and automatic execution of change processes
Change processes are not started automatically. You start them manually. However, you can also execute change processes using options. Options are
predefined rights, defined together with the lessee, which the system either proposes or executes automatically at a specific exercise time.
You can use options to execute the following change processes:
Base lease extension (RESC)
Early buyout (BUYO)
Purchase of leased object (BUYO)
Continuation (CONT)
Renewal (RNEW)
Early termination with return (TERM)
Change processes with or without financing character
Depending on the change process, the options you can exercise either entail further financing or not.
Change processes with upgrades
For an overview of the change processes that you can execute during (product) upgrades, see Upgrade Processes .
Transaction history
The change processes are executed either in the same item or in a follow-on item/follow-up document. For more information about the change processes that
are executed directly in the same item (inbound change), see Change Processes for the Same Item .
In these cases, the system automatically executes the certificate of acceptance and inception.
You have the following processing options (transaction history):
New contract item in initial contract
When you execute the change process, the system immediately creates a new contract item in a new contract.
New contract document
When you execute the change process, the system immediately creates a new contract.
Inbound change
The changes are made directly in the item or header, without a new item or contract being created.
Inbound change with optional quotation
New quotation document; new contract document
When you execute the change process, the system creates a new quotation document. Once the quotation has been created, you must manually create a
certificate of acceptance and execute inception (action: Business Transaction Header Activation ).
New quotation document; new contract item in initial contract (item change processes only)
When you execute the change process, the system creates a quotation. Once the quotation has been created, you must manually create a certificate of
acceptance and execute inception (action: Business Transaction Header Activation ). When the contract is accepted, a new contract item is created in the
initial contract.
Optional quotation document; new contract item in initial contract (item change processes only)
When you execute the change process, the system gives you the option of creating a quotation. This option can be selected on the user interface for change
processes. In the case of quotation creation, a new contract item is created in the initial contract when the contract is accepted; in other cases it is created
immediately.
Optional quotation document; new contract document
When you execute the change process, the system gives you the option of creating a quotation. This option can be selected on the user interface for change
processes. In the case of quotation creation, a new contract item is created in a new contract when the contract is accepted; in other cases it is created
immediately.
For all change processes for which a follow-up quotation is to be created, you must manually generate a certificate of acceptance and execute inception
(action: Business Transaction Header Activation ). The quotation becomes a contract document only when the contract has been accepted.
Change processes at header or item level
If change processes are executed at header level, the changes apply to the entire contract.
If change processes are executed at item level, the changes apply to the individual contract items.
Change processes for item groups
In a service-oriented scenario, it is important that the various dependent items can be displayed across change processes in the same original document.
When groups are processed, services can be offered for financing and can be processed with the financing over the complete lease cycle in the overall view.
When change processes are executed for an item, you can specify that this item and its dependent items are processed together as a group in the Certificate
of Acceptance , Inception , and - if applicable - Cancellation . Processing can be carried out with the same change process or a different change process,
depending on what is defined in Customizing.
During processing, the system first determines the group to be processed and then verifies which rules are to be used to process the group. To do this, the
system uses rules that have been defined in the Business Rule Framework (BRF).
You have performed the Customizing activities under Customer Relationship Management Financial Services Leasing Change Processes
Basic Settings for Change Processes:
Transaction-Dependent Settings for Change Processes
Define Rules for Change Processes

PUBLIC
2014 SAP SE or an SAP affiliate company. All rights reserved.

Page 12 of 17

You have a contract that contains one financing item and one service item, whereby the two items are dependent on each other through rules. At the end of
the contract term, you give the customer a new financing and service quotation. In the change process to be executed, you want to be able to change only the
financing item to meet the customer requirements:
Group determination is defined in such a way that both items of the old contract are found
Group determination is defined in such a way that only the single item is found
On the user interface, the change processes that have been executed for a contract are displayed in the Financing Details assignment block.

Activities
To execute a change process:
Open the required lease contract.
At header level in the contract, choose Change Processes .
Choose Change Processes Header or Change Processes Item . How the system proceeds depends on your Customizing settings and on which change
process you selected.
Alternatively, you can schedule a change process as an action in the Show Actions assignment block.

1.10 Billing
This section contains information about the following topics related to billing:
Generation of Billing Request Items
Billing Process in CRM
Update of Lease Items
Billing in Agency Business
Processing of Service Invoices in Agency Business

1.11 Management of Late Payments

The management of late payments is part of the SAP Leasing solution and helps you to process open items for your leasing customers in Contract Accounts
Receivable and Payable. You define the measures taken by the system to deal with late payments and specify after how many days these measures are
triggered.
The figure below provides an example of this:

Management of Late Payments

For example, you can specify that a customer is contacted by telephone after 30 days, that late fees are charged and invoiced after 60 days, and that the
system sets the status to Non-Accrual after 90 days.

PUBLIC
2014 SAP SE or an SAP affiliate company. All rights reserved.

Page 13 of 17

Prerequisites
You have made the following settings:
You have specified levels for processing late payments by using the number of overdue days. Each level is a delinquency status that is linked to certain
measures.
For more information, see Customizing for SAP ERP under
Financial Accounting (New) Contract Accounts Receivable and Payable
Enhancements for Leasing Arrears .

Note
We provide the Non-Accrual delinquency process. You can also use the delivered Business Add-In /LSIERP/DELINQ_PROC_DEF to include your
own delinquency processes.
You have defined dunning activities. We provide function modules for the following dunning activities:
Non-accruals
Add to the worklist of a customer service representative
Remove from the worklist of a customer service representative
For more information, see Customizing for SAP ERP under
Financial Accounting (New) Contract Accounts Receivable and Payable
Transactions
Dunning Notices
Configure Dunning Activities .
You have defined dunning procedures with dunning levels and assigned the required dunning activities to the dunning levels.
For more information, see Customizing for SAP ERP under
Financial Accounting (New) Contract Accounts Receivable and Payable
Transactions
Dunning Notices
Configure Dunning Procedure .

Business

Business

Note
For more information, see Configuration of the Dunning Process Flows.
You have assigned the corresponding function modules to the following events:
Event

Function Module

0020

/Lsierp/Stop_Non_Accrual_0020

2807

/Lsierp/Send_Delinq_Stat_2807

1799

/Lsierp/Trigger_Non_Acc_1799

For more information, see Customizing for SAP ERP under

Financial Accounting (New) Contract Accounts Receivable and Payable
Enhancements
Define Customer-Specific Function Modules .
You have created and activated financing contracts for leasing in SAP Customer Relationship Management (SAP CRM).

Program

Note
You can use the functions for the Management of Late Payments in FI-CA only if you have assigned a business agreement to each contract item
in a financing contract in SAP CRM.

Features
If you execute dunning runs in day-to-day business, this can result in the following dunning activities:
Customer contact by telephone
After a certain period of non-payment, you can assign open items to the worklist of a customer service representative. This representative contacts the
customer by telephone, reminds them that payment is outstanding, and discusses the next steps directly with the customer.
For more information, see Assignment of Worklists for Telephone Collections and Processing of Telephone Collections.
Late fees
You can define different late fees and bill the customer. For more information, see Processing of Late Fees.
Categorization of open items as non-accruals
You can classify as non-accruals those open items for which incoming payment is not guaranteed and for which you expect a complete or partial loss on
receivables.
For more information, see Categorization of Open Items as Non-Accruals.

1.12 Controlling in Leasing

Use
When you want to perform a controlling analysis of your leasing deals, you can use the integration of SAP Customer Relationship Management (SAP CRM)
and Controlling (CO) (SAP ERP). SAP Leasing uses the account assignment manager to link external objects, such as leases, with an ERP application.
The account assignment manager manages the link between external objects and CO account assignment objects in SAP ERP. On request the manager
makes the assignment between the external object and the CO account assignment object. Such a request is required only if you need to make a CO account
assignment for an activity allocation or a material withdrawal, for example. In addition to managing these assignments, the account assignment manager can
also create CO account assignment objects for the external object in SAP ERP
You set the controlling type in the account assignment manager. This indicates whether you want to perform mass-object controlling or single-object
controlling:
Mass-object controlling: In the account assignment manager, you set the business scenario CRMFIN (CRM Financing) . The account assignment manager
uses this setting to automatically create a cost center and a profitability segment for each contract item.

PUBLIC
2014 SAP SE or an SAP affiliate company. All rights reserved.

Page 14 of 17

Single-object controlling: In the account assignment manager, you set the business scenario CRMSRV (CRM Service) for service contract items and the
business scenario CRMFIN (CRM Financing) for object and financing items. The account assignment manager uses this setting to automatically create an
internal order and a profitability segment for each contract item.

You can use only one of the two controlling types in SAP Leasing. It is not possible to use the two types in parallel.
You also specify in the account assignment manager which characteristics are used to define the profitability segment. You use these characteristics to have
the system create analysis reports with different focuses. The characteristics entered in the account assignment manager are linked to the attributes of the
contract item via a Business Add-In (BAdI).

Prerequisites
You have configured Controlling (CO).
Settings for the account assignment manager in SAP ERP:
Business scenario:You have configured the business scenario ( CRMFIN ; CRMSERV ) with the required characteristics, by choosing Business Scenario
Translator (transaction IAOM0).
Controlling scenario:In the case of single-object controlling, you have entered the controlling scenario with the controlling-relevant parameters for the business
scenario, by choosing Maintain Controlling Scenario (transaction IAOM1).
Controlling type and controlling level:You have entered the controlling type (single-object controlling or mass-object controlling) and the controlling level
(contract header or contract item), by choosing Maintain Controlling Integration (transaction IAOM2).

If you are using single-object controlling, you must also define a controlling scenario.
Business scenario extensions:You have entered values for the required business scenario extensions (extendable BAdIs in the account assignment manager),
by choosing Business Scenario Extensions (transaction IAOM4).

Integration
The figure below shows the integration in Controlling:
Integration in Controlling takes place at contract item level. The account assignment manager uses the item category for the contract item to determine the
correct business scenario ( CRMFIN or CRMSRV ). Depending on the settings for the contract items, the account assignment manager automatically
creates subsequent CO account assignment objects for each contract item and assigns these to the contract item:
Internal orders
Cost center
Profit center
Profitability segment with characteristic structure in CO-PA
Lease Accounting Engine (LAE): You can create accrual/deferral postings and one-time postings for internal orders and cost centers.
Asset Accounting (FI-AA): You can create postings for cost centers and/or profit centers.
Agency business: You can create postings for internal orders, cost centers, profit centers, and profitability segments.
For more information about internal orders, Cost Center Accounting, Profitability Analysis, and Profit Center Accounting, see Controlling (CO)

1.13 Cancellation
Use
You can use a cancellation to reverse new leasing documents (quotations and contracts) and leasing documents that were created as a result of change
processes ( Base Lease Extension or Renewal ). In this case, the change processes are also reversed.

Prerequisites
In Customizing for the actions, you must define the cancellation as an action so that this option is displayed and can be executed in the leasing document.
You define actions in Customizing for SAP CRM under
1.
2.

Create Actions with Wizard

Change Actions and Conditions

Customer Relationship Management

Basic Functions

Actions

Actions in Transaction

Define Action Profiles and Actions

Features
PUBLIC
2014 SAP SE or an SAP affiliate company. All rights reserved.

Page 15 of 17

If you call the cancellation from the document header, all items of the document are included. If you call the cancellation at item level, in the first processing
step the system selects only this item for cancellation.
In the second processing step, the system uses the header and item business categories to check which items and dependent objects, such as invoices and
purchase orders, need to be processed for cancellation.
In the third processing step, the system selects for cancellation all other items and documents that are linked using the invoices. It displays this selection.
Invoices and purchase orders do not exist as independent documents in the CRM system; they are located in the connected purchasing system (such as
SAPSRM). Therefore, invoices and documents are not cancelled directly. Instead, a cancellation request is sent to the connected purchasing system via an
XI interface .
The life cycle status of the leasing document determines whether an associated invoice or purchase order is also cancelled.
You can cancel leasing documents as follows:
Cancellation of a quotation:
Both invoices and purchase orders are cancelled.
Cancellation of a certificate of acceptance:
The invoices for the items to be cancelled are displayed on the screen. You can set indicators to determine whether the invoices are to be cancelled.
Purchase orders are not cancelled.
Cancellation of a contract :
If a contract item is cancelled, the associated invoices are also cancelled. Purchase orders are not cancelled.
The cancellation of an invoice requires a special process:
If an invoice is to be cancelled, the system checks whether there are other leasing items for this invoice. If so, these leasing items are also cancelled.
The figure below illustrates the principle of cancelling a leasing document item with an assigned invoice item:

An invoice is connected to the leasing document header and consists of invoice items. The invoice items are assigned to the leasing document items.
If a leasing document item (1) and the associated invoice item are cancelled (2), the entire invoice and all its items must be cancelled (3). Since the invoice
items can point to different leasing document items from different leasing documents, these leasing document items must also be cancelled (4).

Example
You have selected a leasing document item for cancellation. The system can use the associated invoice items to select and display other leasing
documents and items for cancellation.

Cancellation of a change process

If a change process is cancelled, the system checks which predecessor documents need to be resurrected.

Activities
At document header or document item level in the leasing document, you can choose Actions to schedule and execute cancellation.
The following is displayed on the screen:
Leasing document items to be cancelled
Invoices and purchase orders (SRM documents) for cancellation
Leasing document items to be activated (documents to be resurrected)
If the cancellation relates to a certificate of acceptance with invoice, you can manually flag the associated invoice for cancellation.
You execute the cancellation by choosing the action Cancel Complete Document (header level) or Cancel Contract Item (item level).
The system displays the status of the cancelled item as Completed in the Display Status assignment block.
To complete the cancellation, choose Save .

1.14 Connection of External Systems

PUBLIC
2014 SAP SE or an SAP affiliate company. All rights reserved.

Page 16 of 17

Use
In the leasing deal process, you can use a connection to an external procurement system (for example, SAP SRM) to order or commission the leased object
from a dealer or manufacturer. You can also check invoices that relate to your purchase order and transfer the information to the lease quotation.
Moreover, you can reconcile service invoices that are entered in external systems (for example, agency business) with documents in the CRM system.
The data exchange required for this communication process takes place via a middleware XI adapter that connects your systems.

Integration
You use CRM Middleware to replicate, synchronize, and distribute data. In the CRM Middleware, adapters convert inbound and outbound messages.
For more information, see CRM Middleware .
You use SAP NetWeaver Exchange Infrastructure (SAP NetWeaver XI) to process the exchange of data between the systems.
For more information, see SAP NetWeaver Exchange Infrastructure .
The integration scenario for connecting a procurement system describes the interfaces and message types used in the scenario.
For more information, see Integration with Procurement System .
For more information about SRM-specific settings for processing leasing deals, see SAP Help Portal at
help.sap.com SAP Business Suite SAP
Supplier Relationship Mgmt. SAP Supplier Relationship Mgmt. SAP SRM 7.0 BusinessScenarios
Plan-Driven Procurement Plan-Driven
Procurement with Plant Maintenance Processing Leasing Invoices in SRM
.
For more information about SAP SRM, see SAP Help Portal at
help.sap.com SAP Business Suite SAP Supplier Relationship Management.
The integration scenario for checking service invoices describes the interfaces and message types required for performing the check.
For more information, see Service Invoice Check .

PUBLIC
2014 SAP SE or an SAP affiliate company. All rights reserved.

Page 17 of 17