MLA Definitions

The Lease Administrator must enter the following master lease agreement definitions. Note that the Definitions page can only be edited while the Master Agreement Status is "Define".

To define the master lease agreement:

  1. Open the Master Agreement, which automatically loads the Definitions page.
  2. Fill out the following General Information fields:
    • The Master Agreement ID field shows the generated ID.
    • The Created By field indicates the user that created the contract.
    • The Master Agreement Name may be modified, if required.
    • Enter a Description of the MLA.
    • The Valid From and Valid To fields are automatically filled, based on the earliest start date and latest end date of all of the contracts under the MLA.
    • If known, enter the Target Value for the MLA. For example, it can be used it indicate the line of credit, or the budget for the attached contracts.

      Note: The number of decimal places displayed is based on the configuration for currency selected. If only the currency is set, then the application uses the configuration for the first match found in the Currency configuration table. If both the currency and company code are set, then the application uses the configuration defined for the specific combination. If no currency is set at all, then the application displays two decimal places.

    • Select one of the pre-defined Agreement Group values, if required.
    • Select the Language of the MLA and all of the attached contracts.
    • If required, select the Currency. Note that every contract under the MLA will have to use the specified currency. If this field is not set, each contract can use a different currency.

      Note: This currency is used for interest accruals and making payments, which may differ from the currency determined by the company code, which is used for asset capitalization and asset retirement/deactivation.

    • Select one of the pre-defined MLA Category values, if required.
    • The Legal Jurisdiction indicates the area subject to its own distinct tax regulations, such as a municipality, city, county, or country.
    • The Principal Position for the attached contracts is automatically set to the value "Lessee".
  3. All of the fields set in the Hierarchy section of the MLA will be copied down to attached contracts, and cannot be overridden. If optional fields are not set, different values can be set for each attached contract.
    • The Lease Area represents a regional area or different legal responsibilities. It was set when the MLA was created, and cannot be modified.
    • You must select the Lease Business Unit, which represents a line of business or management responsibilities. Note that a business unit can be assigned to one or more company codes.
    • If required, set the Company code, which is the legal entity used for accounting purposes. The available company codes is filtered down based on the selected lease area and lease business unit.
    • If required, set the Lease Department, which can represent a group of activities. The lease department is assigned to a company code.
    • If required, set the Lease Group, which can represent a team. A lease group is assigned to a lease department.
    • If required, set the Trading Partner, which represents a legally independent company belonging to the group.
  4. Attach any supporting documents to the MLA, and tag relevant areas of the document for the information gathered on this page.

    Note: Documents can be attached to the master lease agreement at any stage of contract operation.

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