Intercompany Transfers

Lease administrators and Accountants can transfer all units in an activation group to another legal entity (i.e., company code) via an intercompany transfer. This event transfers the ROU asset and the lease liability by derecognizing the asset in the first company (company A) and recognizing the same carrying values in the new company (company B). Note that an activation group can only ever be transferred to another company once, and cannot be reverted.

Accruals and depreciation are booked against the GL accounts and cost objects of company B. Payment and charge postings generate two posting documents by default, the document for company A records the payment, while the document for company B records the accruals and expenses. Optionally, you can determine that all payments are made by company B, in which case a single posting document that uses the GL accounts and cost objects of company B is generated for each payment or change posting. Note that intercompany transfers do not result in using all of the configuration of company B.

Note: Intercompany transfers are disabled by default. Contact your system administrator to enable the feature and configure the required GL accounts, and intercompany transfer variants (if connected to SAP). Note that intercompany transfers cannot be applied to contracts that use WBS, or for non-lease service contracts, short term leases, or low value leases.

In a fully connected system, note the following limitations:

  • Intercompany transfers are not supported for SAP ECC6 systems with Classic Accounting.
  • Due to a limitation with a standard BAPI in SAP ECC6 systems with New Asset Accounting, intercompany transfers can only be successfully completed for contracts where no carry-over balances were entered.

To transfer assets to another company, both companies must be in the same system and have the same: 

  • Company currencies and group currencies
  • Accounting standards
  • Fiscal year shift configuration
  • SAP Posting Start Date configuration (which determine if documents are posted internally or to SAP)
  • Depreciation configuration for finance leases
  • Hybrid configuration (i.e., both companies have to be in the same mode of operation: connected, hybrid, or standalone)

See also:  

Nakisa Lease Administration 2022.R2-SP © 2024



Nakisa Inc. All rights reserved worldwide.