Lease Accounting

SAP S/4HANA 2022 – 2020 (all FPS) Fully-Activated PUBLIC
Appliance
March 2023 (V1.7)
English
SAP S/4HANA 2022 – 2020 Fully-Activated Appliance:

Lease-In Accounting
Demo script
Table of Contents
1 Introduction 4
1.1 Where Can This Script Be Used? 4
2 Demo Story: Lease-In Accounting 5

2.1 Create Contract – In Local Currency 5
2.1.1 Insert the valuation parameters 14
2.2 Periodic Posting 16
2.2.1 Periodic Posting - Simulation 16
2.2.2 Periodic Posting – Execution 18
2.3 Post Contract Valuation 20
2.3.1 Post Contract Valuation – Simulation 20
2.3.2 Post Contract Valuation - Execution 23
2.4 Maintain Contract 25
2.4.1 Change Contract End Date 25
2.4.2 New Condition 32
2.4.3 Change Condition 40
2.4.4 Edit Contract Valuation 48
2.5 Change vendor 50
2.6 Adjustment 57
2.6.1 Free Adjustment 57
2.6.1.1 Free Adjustment - Simulate 57
2.6.1.2 Free Adjustment - Execute 61
2.6.2 Index Adjustment 65
2.6.2.1 Index Adjustment – Simulate 65
2.6.2.2 Index Adjustment – Execute 68
2.7 Report Contract 71
2.7.1 Report: Contracts Overview 71
2.7.2 Report: Valuation Rules 72
2.7.3 Report: Condition Specific Valuation Rules 74
2.7.4 Report: Contract Valuations 75
2.7.5 Report: Valuation cockpit 77
2.7.6 Report: Business Partners for Contracts 79
2.7.7 Report: Objects for Contracts 80
2.7.8 Report: Term 81
2.7.9 Report: Reminder Dates 82
2.7.10 Report: Posted Documents for Contracts 83
2.7.11 Report: Reclassification 85
2.7.12 Report: Liabilities Grading 86
2.7.13 Report: Assets for Contracts 87
2.7.14 Report: Documents for Contracts 89
2.7.15 Report: Valuation Balances 90
2.8 End Contract 91
2.9 Technical Transactions 93
2.9.1 Cash Flow Update for Contracts – Simulation 93
2.9.2 Cash Flow Update for Contracts – Execution 94
2.9.3 Worklist: Update Objects - Simulation 95
2.9.4 Worklist: Update Objects - Execution 96
2.9.5 Analyze Logs 97
2.9.6 Archive Contract 98
Document History
Revision Date Change
1.0 December Released for customer 2020 FPS00

2020
1.1 April 2021 Adapted and released for customer 2020 FPS01
1.2 July 2021 Adapted and released for customer 2020 FPS02
1.3 December 2021 Adapted and released for customer 2021 FPS00
1.4 April 2022 Adapted and released for customer 2021 FPS01
1.5 July 2022 Adapted and released for customer 2021 FPS02
1.6 December 2022 Adapted and released for customer 2022 SP00
1.7 March 2023 Adapted and released for customer 2022 FPS01
3
1 Introduction
1.1 Where Can This Script Be Used?

This demo script has been written for usage with the SAP S/4HANA 2022 – 2020 Fully-Activated Appliance (in short “appliance” in
this script), hence you will need such an appliance to make use of this guide.
The appliance can be brought up in two ways, and the demo scenario in this script is largely the same for both:
1. Via SAP Cloud Appliance Library (hosted on cloud providers)
You need a cloud provider account at AWS, MS Azure, or GCP. With this, you can deploy the appliance within 1-2 hours from
https://cal.sap.com > Solutions > SAP S/4HANA <your release> Fully-Activated Appliance.
2. Via installing it on your own on-premise hardware.
You need to provide your own hardware, and order & install the appliance as explained in SAP Note 2041140.
If you are new to the SAP S/4HANA Fully-Activated Appliance, introductory information can be found here:
https://blogs.sap.com/2018/12/12/sap-s4hana-fully-activated-appliance-create-your-sap-s4hana-1809-system-in-a-fraction-of-
the-usual-setup-time/
Important:
Before you start your demo, please read SAP S/4HANA Fully-Activated Appliance: Demo Scripts for information about necessary
preparations, especially any post-deployment steps to ensure the full functionality of your appliance. These steps are covered in
sections:
B) General Remarks
C) Post-deployment Steps
D) Log-on to the system
Besides this, you will also find links to all demo scripts on this page.
4
2 Demo Story: Lease-In Accounting
Lease contracts describe contractual agreements between two partners: the lessor and the lessee. The lessor is the owner of an
asset, whereas the lessee has a right to use this asset during the period agreed in the lease contract. For the use of the asset, the
lessee must pay lease payments, which are agreed to in the lease contract.
This scope item helps you standardize and automate your lease-in credit contract management activities for real estate,
machinery, equipment, vehicles, and computer hardware.
You can easily create new contracts, execute periodic and valuation postings for existing contracts.
You can change the supplier of an existing contract and run reports of your existing contracts as part of your daily business.
You can create reminder rules for every contract, such as to check contract conditions, the contract term or renewal options,
helping you save time and effort while freeing up capacity for more strategic tasks.
Leveraging the reporting functions enables you to make better and more informed lease management decisions.
This document provides a detailed procedure for testing this scope item, reflecting the predefined scope of the solution. Each
process step, report, or item is covered in its own section, providing the system interactions (test steps) in a table view. Steps that
are not in scope of the process but are needed for testing are marked accordingly. Project-specific steps must be added.
• Note – This demo story is based on the SAP Best Practices Scope Item 1T6_US, Lease-In Accounting.
2.1 Create Contract – In Local Currency

To execute this activity, go step by step through the table.
What to Do What You Will See

Open the Fiori
Launchpad.
User: S4H_FIN_DEM
Password: Welcome1
In the Accounts
Payable – Leasing
section, choose the
Manage Contract app
from the Quick Access
group.
In the Contract view,

choose Create Object.
Make the following

entries and choose
Continue:
Contract Type: Lease
in Others
Company Code: 1710
5
In the General Data tab,

make the following
entries and choose
Save:
Contract Name:
Vehicle #1
Contract Currency: USD

Valuation Relevance:
Leasing Valuation
In the Partners tab,

choose the (+) Assign
New Partner dropdown
and choose Supplier
(Fin Accounting).
Select the BP Role and

choose Copy.
Make the following

entries and choose
Continue.
Business Partner:
17300001
6
Use the following
selection options to
select the correct role.
In the Term tab, make

the following entries
and press Enter:
Contract start date:

01.01.2022
1st Contract End:
31.12.2023
7
In the Correct Cash

Flow Form dialog box,
choose Continue.
In the Objects tab,

choose the (+) Assign
button and choose
Object.
Make the following

entries:
Contract object:
Vehicle #1 (for
example, COB)
Object type: YCO06 -
Vehicles
Account assignment:
CTR A000/17101101
In the Conditions tab,

choose the Insert
Condition(s) button
and choose the
Condition Type of your
contract.
Choose Apply.
8
For each condition,

make the following
entry:
Unit Price: 10.000
9
In the Terms section of
the Conditions tab,
choose the Display or
Change Term for
Posting button.
In the Posting: Details

view, make the
following entry:
Tax Jurisdiction code:

NY00000000
In the Terms section,

choose Display or
Change Term for
Organization
Assignment and make
the following entries:
Profit Center: for

example, YB600
Functional Area: for
example, YB40
If the Business Partner

is relevant for
Withholding tax, then
under Terms, choose
Display or Change
Term for Withholding
Tax.
In the Withholding Tax:

Details view, choose
the Add Withholding
Tax dropdown button
and choose Propose
Partner Data.
10
In the Select
Withholding Tax Data
of Partner view, choose
Continue.
In the Withholding Tax:

Details view, choose
Continue.
In the Terms view all

conditions including
Withholding tax can
now be checked.
In the Conditions tab,

choose Simulate.
11
Choose the Back to
Conditions button.
When tax group Y-

FULL and jurisdiction
code is selected, a
statistical condition
with the tax amount
with the same
condition type must be
created:
Simulate the cash flow,
to know the amount of
tax.
Choose Insert
Condition(s) to select
the Condition Type of
your contract.
Condition purpose:
<statistical>
Unit price: 400
Make sure the contract

type, object type and
condition type are
matched.
For example, if the

contract type is Lease
in Real Estate, the
condition type should
be YCO01
Land/Property or
YCO02 Building,
condition type should
be RE land or RE
building related.
12
In the Resubmission
tab, choose Create
Reminder Rule and
choose one reminder
rule type (for example,
Before End of Term).
For each reminder rule

make the following
entries and choose
Continue:
Reminder rule:
<Select a
reminder rule>
Resubmission reason:
<Select a reason>
Choose Save.
Choose Activate.
In the Execute Activity

dialog box, choose Yes.
13
A confirmation
message displays.
Save your contract.

A confirmation
message displays.
2.1.1 Insert the valuation parameters

Open the Fiori
Launchpad as a
Contract Valuation
Specialist – Leasing.
User: S4H_FIN_DEM
Password: Welcome1
Navigate to the Leasing
Valuation section and
choose the Manage
Contract Valuation app
from the Valuation
Processing group.
Make the following

entries and choose
Change Object
Company Code: 1710
Contract: the contract
number previously
created, for example
1200000000041.
Choose Create term to

assign a valuation rule
to your contract object.
Valuation parameter:
<the relevant
valuation
principle> (for
example, US Gen.
Acc. Acc. Prinp.
FL or US Gen.
14
Acc. Acc. Prinp.
OL)
If an informational
valuation rule is
selected, there is no
posting in FI or CO and
only RE documents will
be created.
Object: COB 0010
Vehicle #1
Start of consideration:
<Your Contract
Start date (is
already in)>
Interest rate: 7% (is
added)
Val. Behavior: 3 new
Start (is already
in)
Acct. Assignment: <as
object (is
already in)>
Choose Rule complete
to complete the
valuation rule.
Please ignore the

warning message
Valuation is
pending and still
needs to be
completed.
Choose Save.
An asset number was
created. You can copy
this for future
reference.
Also, the Valuation was

automatically
calculated.
15
2.2 Periodic Posting
2.2.1 Periodic Posting - Simulation

In this activity, you can simulate the periodic posting of an existing contract as part of your daily business.
When a contract is posted, it is useful to first simulate the posting.
Open the Fiori

Launchpad as an
Accounts Payable
Accountant - Leasing
User: S4H_FIN_DEM
Password: Welcome1
Navigate to the
Accounts Payable-
Leasing section and
choose the Periodic
Posting: Contracts app
from the Journal
Entries group.
Make the following

entries and choose
Execute:
Company Code: 1710

Contract:
1200000000041
Contract Type: YI10 or
YI50 (Lease in
Contract Type)
Month for Posting Run:

<First month of
the start date of
your contract -
01>
Year for Posting Run:
<Year of the
start date of
your contract -
2022>
Posting Run Mode:
Simulation
Type of Posting Run:
Integrated
posting
Execute
16
Push E n t e r after you
enter the month and
year of the Posting
Run.
Check the posting and

choose Documents and
go to the next view.
Check the Documents

(accounts and cost
elements) and choose
Back to go back.
Choose Back to go
back.
17
2.2.2 Periodic Posting – Execution
In this activity, you can execute the periodic posting of an existing contract as part of your daily business.

Open the Fiori
Launchpad as an
Accounts Payable
Accountant – Leasing.
User: S4H_FIN_DEM
Password: Welcome1
Navigate to the
Accounts Payable-
Leasing section and
choose the Periodic
Posting: Contracts app
from the Journal
Entries group.
Make the following

entries and choose
Execute:
Company Code: 1710

Contract:
1200000000041
Contract Type: YI10 or
YI50 (Lease In
Contract Type)
<First month of
the start date of
your contract -
01>
Year of Posting Run:
<Year of the
start date of
your contract -
2022>
Posting Run Mode:
Update Run
Type of Posting Run:
Integrated
posting
Push E x e c u t e after
you enter the month
and year of the Posting
Run.
18

choose Documents to
Check the Documents

(accounts and cost
Back to go back.
Choose Back to go
back.
19
2.3 Post Contract Valuation
2.3.1 Post Contract Valuation – Simulation

In this activity, you can simulate the posting of the valuation (Valuation rule US GAAP) for an existing contract as part of your daily
business.
When a contract valuation is posted, it is useful to first simulate the posting.

Open the Fiori as a
Contract Valuation
Specialist – Leasing
User: S4H_FIN_DEM
Password: Welcome1

choose the Post
Valuation for Contracts
app from the Valuation
Processing group.
Make the following

entries and choose
Execute:
Company Code: 1710

Contract:
1200000000041
20
Month for Post Run:
<First month of
the start date of
your contract -
01>
Year of Post Run:
<Year of the
start date of
your contract –
2022>
Posting Run Mode:
Simulation
Choose Enter after you

enter the month and
year of the Posting
Run.
In case of an error
check the error log.
Further details can be

provided in the long
text.
Mandatory fields of an
asset might be missing
(e.g. cost center).
Correct the asset and

then execute again.
21

choose Documents and
Note:
If an informational
valuation rule is
selected in the
contract, there is no
posting in FI or CO.
Check the Documents

(accounts and cost
Back to go back.
22
Choose Back to go
back.
2.3.2 Post Contract Valuation - Execution

In this activity, you can execute the posting of the valuation (Valuation rule US GAAP) for an existing contract as part of your daily
business.
When a contract valuation is posted, it is useful to first simulate the posting.
Open the Fiori

Launchpad as a
Contract Valuation
User: S4H_FIN_DEM
Password: Welcome1

choose the Post
Valuation for Contracts
app from the Valuation
Processing group.
23
Make the following
entries and choose
Execute:
Company Code: 1710

Contract:
1200000000041
<First month of
the start date of
your contract -
01>
Year of Posting Run:
<Year of the
start date of
your contract -
2022>
Posting Run Mode:
Update Run

choose Documents to
Note: If an
informational valuation
rule is selected in the
Check the Documents

(accounts and cost
24
Back to return to
previous view.
Choose Return to go
back.
2.4 Maintain Contract

In the Manage Contract view, you can make changes to the contract. Below are some examples of typical changes to the Leasing
process. Although you can change many fields in the contract, we will focus on changes concerning the leasing process.
2.4.1 Change Contract End Date

In this activity, you can change an existing contract as part of your daily business.
25
Open the Fiori
Launchpad as a
Contract Specialist –
Leasing.
User: S4H_FIN_DEM
Password: Welcome1
In the Accounts
Payable – Leasing
section, choose the
Manage Contract app
group.
Make the following

entries and choose
Change Object:
Company Code: 1710
Contract:
1200000000041
Choose Enter.
Check the entries and

choose Term.
Make the following
entries and choose
Save:
1st Contract End:

<Your new
contract end date
– 12.31.2024>.
26
To update the valuation rule, please follow the steps below:

Open the Fiori
Launchpad as a
Contract Valuation
User: S4H_FIN_DEM
Password: Welcome1

choose the Manage
from the Valuation
Processing group.
Make the following

entries and choose
Change Object
Company Code: 1710
Contract:
1200000000041
27
The status of the
Valuation Rule is
Incomplete, and the
Valuation is Open.
Cut a Time Slice when

the change is agreed.
Make the following and

press Continue:
Valid From:
02/01/2022
The Time Slice has a

Validity period. Check
the individual Time
Slice using the small
arrows (left-right).
Val. Behavior will be set
automatically to
Absolute Difference.
28

choose Rule Complete
and go to the next view
(the status of the
Valuation Rule is
Incomplete, and the
Valuation is Open).
Choose Save.
Choose Save for the

subsequent valuation
to be calculated.
Click on Find button, in

the lower part of the
screen, in case the
valuation row does not
appear.
29
Check the results by

selecting Calculated
values.
A new window will

display with the new
calculation.
30
31
2.4.2 New Condition
To reflect the sub-lease-contract during asset capitalization, it is required to enter the total amount of rent income as statistical
condition (Condition type LG50) on the head-lease contract (Asset retirement). This condition will reduce the asset capitalization.
Refer to the procedures below for this operation.
Open the Fiori

Launchpad as a
Leasing.
User: S4H_FIN_DEM
Password: Welcome1
In the Accounts
Payable – Leasing
section, choose the
Manage Contract app
group.
Make the following

entries and choose
Change Object:
Company Code: 1710
Contract:
1200000000041

choose Conditions and
32
Choose Insert
Condition(s) to select
the new conditions of
your contract.
Select LG50 Asset

Retirement
Obligation
Choose Apply.
For each condition,

make the following
entries:
Unit price: 2000
Valid From:
03/01/2022, for
example
Choose Simulate to
simulate the cash flow.
Then, choose To
Conditions to go back
to the Conditions tab.
33
Choose Save.
To update the valuation rule please follow below steps:

Open the Fiori
Launchpad as a
Contract Valuation
with
User: S4H_FIN_DEM
Password: Welcome1
choose the Manage
from the Valuation
Processing group.
Make the following

entries and choose:
Change Object
Company Code: 1710
Contract:
1200000000041
34
The status of the
Valuation Rule is
Incomplete and the
Valuation is Open.
Cut a Time Slice when

the change was
agreed.
Enter a Valid From:

date, 03/01/2022, for
example and press
Continue.

the individual Time

automatically to
35

(the status of the
Valuation Rule is
Incomplete, and the
Valuation is Open).
36
Choose Save for the
to be calculated
automatically.

values. A new window
will display with the
new calculation.
37
If the Valuation isn’t

calculated
automatically, the
manual steps to follow
are:
Choose Simulate
Valuation to simulate
the valuation.
See the Simulate

Valuation result.
Choose Continue.
Choose Perform
Valuation to run the
valuation.
A small window will

appear. Choose
Continue.
38
See the Valuation

result.
39
Choose Save.
2.4.3 Change Condition

Open the Fiori

Launchpad as a
Leasing.
User: S4H_FIN_DEM
Password: Welcome1
In the Accounts
Payable – Leasing
section, choose the
Manage Contract app
group.
Make the following

entries and choose
Change Object:
Company Code: 1710
Contract:
1200000000041
40
Select the condition
you want to change.
Make the following

entries:
Valid From: <Your

new valid from
date of the
condition –
04/01/2022 for
example>
Unit price: <Your
unit price of the
condition – keep
the same, for
example>
Choose Simulate to
simulate the cash flow.
Choose Enter.
Choose Save.
A confirmation
message at the bottom
displays.
41
To update the valuation rule, please follow below steps:

Open the Fiori
Launchpad as a
Contract Valuation
User: S4H_FIN_DEM
Password: Welcome1

choose the Manage
from the Valuation
Processing group.
Make the following

entries and choose
Change Object
Company Code: 1710
Contract:
1200000000041
42
The status of the
Valuation Rule is
Incomplete, and the
Valuation is Open.
Choose the Valuation

tab and delete the old
valuation step.
Confirm by choosing
Yes.
Go back in the
Valuation Parameters
tab and delete the last
time slice.
43
Create a new Time

Slice and enter the
Valid From date as
04/01/2022 and
press Continue.

the individual Time

automatically to
44

(the status of the
Valuation Rule is
Incomplete, and the
Valuation is Open).
45
Choose Save for the
to be calculated
automatically.

values. A new window
will display with the
new calculation.
If the Valuation isn’t

calculated
automatically, the
manual steps to follow
are:
Choose Simulate
Valuation to simulate
the valuation.
46
See the Simulate

Valuation result.
Choose Continue.
Choose Perform
Valuation to run the
valuation.
A small window will

appear. Choose
Continue.
See the Valuation

result.
Choose Save.
47
2.4.4 Edit Contract Valuation

In this activity, you can change an existing contract valuation rule (Interest rate, Contract probable end date) as part of your daily
business.
48
Open the Fiori
Launchpad as a
Contract Valuation
User: S4H_FIN_DEM
Password: Welcome1

choose the Manage
from the Valuation
Processing group.
Make the following

entries and choose
Change Object,
Company Code: 1710
Contract:
1200000000041
Choose Create term to

assign a valuation rule
to your contract object.
Check the data for
your Valuation rule
and/or edit.
Valuation Parameter:
<the relevant
valuation
principle> (for
example, International
Financial Reporting
Standards)
Contract Object: COB

0010
Probable End:
06/30/2022
Acct. Assignment: as
object
Choose Rule complete

to complete the
valuation rule.
49
Choose Save.
2.5 Change vendor

In this activity, you can change a vendor of an existing contract as part of your daily business.
50
Open the Fiori
Launchpad as a
Leasing.
User: S4H_FIN_DEM
Password: Welcome1
In the Accounts
Payable – Leasing
section, choose the
Manage Contract app
group.
Make the following

entries and choose
Change Object:
Company Code: 1710
Contract:
1200000000041
Choose Partners.
Choose Edit to change
between Display and
Change mode.
Make the following

entry for an old vendor:
End of relationship:
06/30/2022 and
push Enter.
Ignore the warning

message: There are
gaps in
assignment of
required role
FLVN00 Supplier
(Financial
Accounting.
51
Choose Assign New
Partner.
Choose Supplier
(Fin.Accounting).
Make the following

entries in the Business
Partner Search view:
New Vendor:
17300002
Choose Continue.
Choose Copy.
Ignore the error

message: No more
than 001 partners
can be assigned
in role FLVN00 at
the same time.
52
Make the following
entry and after push
Enter:
Start of relationship:
07/01/2022.
Choose Conditions.
Under terms, choose

Display or Change
Term Posting.
Choose Show time

dependence.
Choose New: Add

validity period.
Make the following

entries and choose
Continue for each.
53
Valid From:
07/01/2022
Partner: 17300002
54
Follow the above steps
and change the validity
in Withholding Tax
Under Terms, in
Conditions.
Choose Show time

dependence.
Choose New: Add

validity period.
Make the following

entries and choose
Continue for each.
55
Valid From:
07/01/2022
Select the drop-down

list for Business
Partner and click on
the second entry.
Choose Add, then

Propose Partner Data
and Press Continue.
The withholding
partner data was
added. Press Continue.
56
Choose Save to save

your contract.
2.6 Adjustment
2.6.1 Free Adjustment
2.6.1.1 Free Adjustment - Simulate

In this activity, you adjust the condition of an existing contract as part of your daily business.
57
Open the Fiori
Launchpad as a
Leasing.
User: S4H_FIN_DEM
Password: Welcome1
In the Accounts
Payable – Leasing
section, choose the
Manage Contract app
group.
Make the following

entries and choose
Change Object.
Company Code: 1710
Contract:
1200000000041
Choose Adjustment.
Choose Create Term to

select the adjustment
rule Free – Modifiable
to your contract.
Choose Conditions
next to Free -
Modifiable.
58
Choose Assign Free

Condition(s) to assign
one of the conditions of
the contract.
Choose Save.
Choose Simulate
Adjustment.
59
Make the following

entries and choose
Continue in screen
Adjustment
Parameters.
Next possible valid

from date: activate
Adjustment reason:
Standard
In the screen
Parameters of Free
Adjustment, input one
of the parameters for
free adjustment and
choose Continue.
In the screen
Adjustment Record,
choose Continue.
60
In the screen
Adjustment Data for
Condition, choose
Continue.
2.6.1.2 Free Adjustment - Execute


Open the Fiori
Launchpad as a
Leasing.
User: S4H_FIN_DEM
Password: Welcome1
In the Accounts
Payable – Leasing
section, choose the
Manage Contract app
group.
61
Make the following
entries and choose
Change Object.
Company Code: 1710
Contract:
1200000000041
Choose Adjustment.
Choose Conditions.
Choose
Execute/Continue
Adjustment.
Make the following
entries and choose
Continue in screen
Adjustment
Parameters.
Next possible valid

from date: activate
Adjustment reason:
Standard
In the screen
Parameters of Free
Adjustment, input one
of the parameters for
free adjustment and
choose Continue.
62
In the screen
Adjustment Record,
choose Activate
adjustment.
Choose Execute
Simulation.
In the screen Simulate

Condition Adjustment,
choose Continue.
63
In the screen
Adjustment Record,
choose Continue.
Choose Save to save

your contract in screen
Adjustment Data for
Condition.
64
2.6.2 Index Adjustment
2.6.2.1 Index Adjustment – Simulate

In this activity, you adjust the condition of an existing contract as part of your daily business.

Open the Fiori
Launchpad as a
Leasing.
User: S4H_FIN_DEM
Password: Welcome1
In the Accounts
Payable – Leasing
section, choose the
Manage Contract app
group.
Make the following

entries and choose
Change Object
Company Code: 1710
Contract:
1200000000041
Choose Adjustment.
Choose the Create

Term icon and select
the adjustment rule
Index - Modifiable
United States for
your contract.
65
Choose Unlink from
Customizing and
maintain your data.
Min. Change Pts:

<your point>
Min. Percent: <your
percent>
Either input values for

one of those fields or
ignore the warning
message: Adjustment
XX: the minimum
change fields are
not filled.
Base Year: <your

base year>
Input value for base
year if the below
message appears:
Adjustment 10:
entry is required
for base year
Choose Conditions.
Choose Assign Free
Condition(s) to assign
one of the conditions of
the contract.
Choose Save.
Choose Simulate
Adjustment. Make the
following entries and
choose Continue in
66
view Adjustment
Parameters.
Next possible valid

from date: activate
Adjustment reason:
Standard
In the view Parameters

of Free Adjustment,
input one of the
parameters for free
adjustment and
choose Continue.
In the view Adjustment

Record, choose
Continue.
67
In the view Adjustment

Data for Condition,
choose Save.
2.6.2.2 Index Adjustment – Execute


Open the Fiori
Launchpad as a
Leasing.
User: S4H_FIN_DEM
Password: Welcome1
In the Accounts
Payable – Leasing
section, choose the
Manage Contract app
group.
Make the following

entries and choose
Change Object.
Company Code: 1710

Contract:
1200000000041
68
Choose Adjustment.
Choose Conditions.
Choose
Execute/Continue
Adjustment.
Make the following
entries and choose
Continue in screen
Adjustment
Parameters.
Next possible valid

from date: activate
Adjustment reason:
Standard
In the screen
Adjustment Record,
choose Activate
adjustment.
Choose Execute
Simulation.
In the screen Simulate

Condition Adjustment,
choose Continue.
69
In the screen
Adjustment Record,
choose Continue.
Choose Save to save

your contract in screen
Adjustment Data for
Condition.
70
2.7 Report Contract
2.7.1 Report: Contracts Overview

In this activity, you run a report of existing contracts as part of your daily business.

Open the Fiori
Launchpad as a
Leasing.
User: S4H_FIN_DEM
Password: Welcome1

Contract Management
section and choose the
Contract Information
Systems app from the
Quick access group.
Make the following

entries and choose
Execute:
Company Code: 1710
Contract: your contract
number for example
1200000000041, if
left empty it
will apply for
all
Use Grid Control:

<select>
Choose Execute:
71
2.7.2 Report: Valuation Rules

Open the Fiori
Launchpad as a
Contract Valuation
User: S4H_FIN_DEM
Password: Welcome1

choose the Valuation
Rules Information
System app from the
Insights group.
Make the following

entries and press
Execute:
Company Code: 1710
number for example
1200000000041, if
left empty it
will apply for
all
Use grid control:

<select>
Activity: <Change>
Choose Execute.
72
73
2.7.3 Report: Condition Specific Valuation Rules

Open the Fiori
Launchpad as a
Contract Valuation
User: S4H_FIN_DEM
Password: Welcome1

choose the Condition
Specific Valuation
Rules for Contracts
Information System
app from the Insights
group.
Make the following

entries and press
Execute:
Company Code: 1710
number for example:
1200000000041
Note - If left empty it
will apply for all.
Use grid control:

<select>
Activity: <Change>
Choose Execute.
74
2.7.4 Report: Contract Valuations


Open the Fiori
Launchpad as a
Contract Valuation
User: S4H_FIN_DEM
Password: Welcome1

choose the Display
group.
75
Make the following
entries and choose
Execute:
Company Code: 1710
number for example
1200000000041, if
left empty it will apply
for all.
Output: <Choose
between Process
and Cash flow>
Choose Execute.
Note:
If an informational
valuation rule is
selected in the
76
2.7.5 Report: Valuation cockpit
Open the Fiori

Launchpad as a
Contract Valuation
User: S4H_FIN_DEM
Password: Welcome1

Cockpit app from the
Quick Access group.
Check the two donut

charts, select one
section and press on
Manage Contract to
check the details of a
contract.
77
78
2.7.6 Report: Business Partners for Contracts

Open the Fiori
Launchpad as a
Leasing.
User: S4H_FIN_DEM
Password: Welcome1

Contract Management
Business Partners of
Contracts app from the
Insights group.
Make the following

entries and press
Execute:
Company Code: 1710
number for example
1200000000041,
Note: If left empty it
will apply for all.
Use Grid Control:

<select>
Choose Execute.
79
2.7.7 Report: Objects for Contracts
Open the Fiori

Launchpad as a
Leasing.
User: S4H_FIN_DEM
Password: Welcome1
Contract Management
section and choose
Objects for Contracts
group.
Make the following

entries and press
Execute:
Company Code: 1710
number for example
1200000000041, if
for all
Use Grid Control:
<select>
Choose Execute>
80
2.7.8 Report: Term
Open the Fiori

Launchpad as a
Leasing.
User: S4H_FIN_DEM
Password: Welcome1

Contract Management
section and choose
Term of Contracts app
from the Insights
group.
Make the following

entries and press
Execute:
Company Code: 1710
number for example
1200000000041, if
for all.
Use Grid Control:

<select>
Choose Execute.
81
2.7.9 Report: Reminder Dates

Open the Fiori
Launchpad as a
Leasing.
User: S4H_FIN_DEM
Password: Welcome1
Contract Management
section and choose
Manage Dates for
Contracts app from the
Contract Processing
group.
Make the following

entries and press
Execute:
Company Code: 1710
number for example
1200000000041,
will apply for all.
82
2.7.10 Report: Posted Documents for Contracts

Open the Fiori
Launchpad as an
Accounts Payable
Accountant – Leasing.
User: S4H_FIN_DEM
Password: Welcome1
Navigate to the
Accounts Payable-
Leasing section and
choose Item Overview
group.
Make the following

entries and press
Execute:
Company Code: 1710
number for example
1200000000041,
Note: if left empty it will
apply for all.
Use Grid Control:

<select>
Choose Execute.
83
84
2.7.11 Report: Reclassification

Open the Fiori
Launchpad as a
Contract Valuation
User: S4H_FIN_DEM
Password: Welcome1

choose the
Reclassification app
from the Insights
group.
Make the following

entries and press
Execute:
Company Code: 1710
number for example
1200000000041,
will apply for all.
Use grid control:
<select>
Sort Method: SAP
SAP(EU 93
fin.stat.guidelin
es)
Key Date: <Your key
date>
Choose Execute.
85
2.7.12 Report: Liabilities Grading

Open the Fiori
Launchpad as a
Contract Valuation
User: S4H_FIN_DEM
Password: Welcome1

choose the Liabilities
Grading app from the
Insights group.
Make the following

entries and press
Execute:
Company Code: 1710
number for example
1200000000041,
will apply for all.
Start Date:
01/01/2022
Sort Method: SAP(EU
93
fin.stat.guidelin
es)
Choose Execute.
86
2.7.13 Report: Assets for Contracts

Open the Fiori

Launchpad as a
Contract Valuation
User: S4H_FIN_DEM
Password: Welcome1
choose the Assets for
Contracts app from
Insights group.
87
Make the following
entries and press
Execute:
Company Code: 1710
number for example:
1200000000041
will apply for all.
Choose Execute.
88
2.7.14 Report: Documents for Contracts

Open the Fiori
Launchpad as a
Contract Valuation
User: S4H_FIN_DEM
Password: Welcome1

choose the Documents
for Contracts app from
the Insights group.
Make the following

entries and press
Execute:
Company Code: 1710
number for example
1200000000041,
will apply for all.
89
2.7.15 Report: Valuation Balances


Open the Fiori
Launchpad as a
Contract Valuation
User: S4H_FIN_DEM
Password: Welcome1

Balance app from the
Insights group.
90
Make the following
entries and press
Execute:
Company Code: 1710
number for example
1200000000041
will apply for all.
2.8 End Contract

Open the Fiori

Launchpad as a
Leasing.
User: S4H_FIN_DEM
Password: Welcome1
In the Accounts
Payable – Leasing
91
section, choose the
Manage Contract app
group.
Make the following

entries and choose
Change Object:
Company Code: 1710
Contract:
1200000000041
Choose Change Object.

choose Term.
Change the following
entries:
1st Contract End:
<Your new
contract end date
– 31.10.2022>.
Choose Save.
92
2.9 Technical Transactions
2.9.1 Cash Flow Update for Contracts – Simulation
Open the Fiori

Launchpad as an
Administrator -
Leasing.
User: S4H_FIN_DEM
Password: Welcome1
Navigate to the
Administration-Leasing
Cash Flow Update for
Contract app.
Make the following

entries:
Company Code: 1710
Contract: <Your
contract(s)>
Simulation:
<activate>
Choose Execute.
93
2.9.2 Cash Flow Update for Contracts – Execution
Open the Fiori

Launchpad as an
Administrator -
Leasing.
User: S4H_FIN_DEM
Password: Welcome1
Navigate to the
Cash Flow Update for
Contract app.
Make the following

entries and choose
Execute:
Company Code: 1710

Contract: <Your
contract(s)>
Simulation:
<deactivate>
94
2.9.3 Worklist: Update Objects - Simulation
Open the Fiori

Launchpad as an
Administrator -
Leasing.
User: S4H_FIN_DEM
Password: Welcome1
Navigate to the
Worklist: Update
Objects app.
95
Make the following
entries and choose
Execute:
Person responsible:
S4H_FIN_DEM
Display selection list:
<selected>
2.9.4 Worklist: Update Objects - Execution

Open the Fiori
Launchpad as an
Administrator -
Leasing.
User: S4H_FIN_DEM
Password: Welcome1
Navigate to the
Worklist: Update
Objects app.
96
Make the following
entries and choose
Execute:
Person responsible:
<Own user ID>
Update immediately:
<selected>
2.9.5 Analyze Logs
Open the Fiori

Launchpad as an
Administrator -
Leasing.
User: S4H_FIN_DEM
Password: Welcome1
Navigate to the
Administration -
Leasing section and
choose the Analyze
Logs app.
97
Make the following
entries and choose
Execute:
User: S4H_FIN_DEM
2.9.6 Archive Contract

Open the Fiori
Launchpad as a
Leasing.
User: S4H_FIN_DEM
Password: Welcome1
In the Accounts
Payable – Leasing
section, choose the
Manage Contract app
group.
Make the following

entries and press
Enter:
Company Code: 1710
Contract:
1200000000040
Note: It is
recommended to
create a new contract,
with no postings for
98
this step. If postings
have been made,
deactivation is not
possible.
Go to: More – Contract

– Activation and Term
– Deactivate
Confirm the message.
Note: Make sure the

contract end date is in
the past.
Go to: More – Edit –

Change Status –
Archive – Set Deletion
Flag.
Confirm the message.
99
Press Entry to save

your contract.
This concludes our demo guide for “Lease-In Accounting” which reviews the process to standardize and automate your lease-in
credit contract management activities for real estate, machinery, equipment, vehicles, and computer hardware.
Each process step, report, or item is covered in its own section, providing the system interactions (test steps) in a table view. This
demo story is based on the SAP Best Practices Scope Item 1T6_US, Lease-In Accounting.
100
www.sap.com/contactsap
© 2023 SAP SE or an SAP affiliate company. All rights reserved.

See Legal Notice on www.sap.com/legal-notice for use terms,
disclaimers, disclosures, or restrictions related to SAP Materials
for general audiences.
101

Lease Accounting

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Lease Accounting

Uploaded by

Copyright:

Available Formats

SAP S/4HANA 2022 – 2020 (all FPS) Fully-Activated PUBLIC

SAP S/4HANA 2022 – 2020 Fully-Activated Appliance:

2 Demo Story: Lease-In Accounting 5

Revision Date Change

1.0 December Released for customer 2020 FPS00

1.1 Where Can This Script Be Used?

2.1 Create Contract – In Local Currency

What to Do What You Will See

In the Contract view,

Make the following

In the General Data tab,

Contract Currency: USD

In the Partners tab,

Select the BP Role and

Make the following

In the Term tab, make

Contract start date:

In the Correct Cash

In the Objects tab,

Make the following

In the Conditions tab,

For each condition,

In the Posting: Details

Tax Jurisdiction code:

In the Terms section,

Profit Center: for

If the Business Partner

In the Withholding Tax:

In the Withholding Tax:

In the Terms view all

In the Conditions tab,

When tax group Y-

Make sure the contract

For example, if the

For each reminder rule

In the Execute Activity

Save your contract.

2.1.1 Insert the valuation parameters

What to Do What You Will See

Make the following

Choose Create term to

Please ignore the

Also, the Valuation was

2.2.1 Periodic Posting - Simulation

What to Do What You Will See

Open the Fiori

Make the following

Company Code: 1710

Month for Posting Run:

Check the posting and

Check the Documents

What to Do What You Will See

Make the following

Company Code: 1710

Check the posting and

Check the Documents

2.3 Post Contract Valuation

2.3.1 Post Contract Valuation – Simulation

What to Do What You Will See

Navigate to the Leasing

Make the following

Company Code: 1710