Lease Component Definition

Lease Administrators or Accountants must enter information on the contract Definition page.

This page should be filled out at contract inception, when the Contract Phase is "Initial" and the Lease Component Status is "Define".

To define the lease component:

  1. Open the lease component.
  2. The following information is in the General Information section:
    • The Lease Component ID was automatically generated, based on the year and company code.
    • If required, the Name can be modified.
    • If required, enter a Description for the lease component.
    • The Quantity field indicates the number of units agreed on in the lease contract that share the same terms and conditions. This field specifies how many units (and assets) are created, unless Bulk Asset is selected.

      Note: Nakisa recommends limiting the number of units per contract to 100, which allows for easy maintenance and tracking. If you need this limit to be changed, contact Nakisa Support. If the lease component is managed as a bulk asset, the maximum allowed quantity is 10,000.

    • Select the Unit of Measure for the Quantity field. Note that currently, only "EA" (i.e., Each) is supported.
    • Select an Asset Class that has been defined in the Nakisa AdminConsole. Note that these asset classes are mapped to SAP asset classes in the Nakisa AdminConsole. The SAP asset classes will be used once the activation groups are classified.

      Note: This field cannot be set if the contract is a non-lease service contract, short term lease, or low value lease (set in the Lease Type field).

    • The Fair Market Value (FMV) is the value of the asset on the market. Enter the FMV / Unit if it is known. This field is used during the determination of the accounting classification for the asset. Once the contract has been approved, this field can no longer be edited.
    • The Currency field shows the value that was selected for the MLA or contract.
    • The Useful Life (months) for the units is automatically set based on the configured values for the asset class. The useful life represents the life used for depreciating an asset. Changes in useful life has an impact on asset depreciation.

      Note: This field is not used if the contract is a non-lease service contract, short term lease, or low value lease (set in the Lease Type field).

    • Select the Bulk Asset checkbox to indicate that the asset should be managed as a group or not. If this field is selected, one asset will be created (ignoring the value in Quantity). The Quantity value will be passed to the asset quantity field in SAP. Note that because only one asset will be created in SAP, the activation group split functionality will not be available. If this field is not selected, the number of units and assets created follows the value specified in the Quantity field.

      Note: The terms and conditions defined for a bulk asset are for the total amount. The application will not multiply the term amounts by the amount in the Quantity field.

      Note: This field cannot be set if the contract is a non-lease service contract, short term lease, or low value lease (set in the Lease Type field).

See also:  

Nakisa Lease Administration 2022.R2-SP © 2024

 

 

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