Contract Definition

Once the lease determination information has been entered, Lease Administrators or Accountants can enter information on the contract Definition page.

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

To enter the general contract information:

  1. Open the contract, and click Definition in the left-panel.
  2. The following information is in the General Information section:
    • The Contract ID was automatically generated, based on the year and company code.
    • If required, the contract Name can be modified, and a Description can be entered.
    • The Created By field indicates the user that created the contract.
    • The External Contract Reference can be recorded on this page.
    • The fields Validity Period From and To are generated by the application, based on the earliest expected start date and latest end date from the Standard term category in the terms and conditions.
    • Use the Amendment Date to indicate when the last amendment took place. This field is not used during contract inception.
    • By default, the Lease Type shows the suggested lease type (based on the lease determination questionnaire). If required, select another lease type:
      • Lease contract (fix): A full lease contract with all objects will be created (contract, lease component, activation group, and units).
      • Lease contract (fix & variable): A full lease will be created.
      • Lease short term: A lease contract will be created, but without any units.
      • Lease low value: A lease contract will be created, but without any units.
      • Non-lease service contract: A lease contract will be created, but without any units.
      • Non-lease: Only the contract and lease component will be created.
    • Select one of the pre-defined Contract Category values, if required.
    • If the currency was not set in the master agreement, you must define the Contract Currency.
    • The Principal Position is automatically set to "Lessee".
    • Select the Form of Lease to identify with whom responsibilities lie. With a full lease, the lessor pays for operating expenses, whereas with a net lease, some of the expenses are paid by the lessee.
    • If required, set the Joint Venture Lease Type to "Gross Lease" or "Net Lease". Not that this field is only used for informational or reporting purposes.
  3. The fields in the Hierarchy section of the contract are inherited from the MLA if they were set, and cannot be overridden.
    • If the optional Lease Department and Lease Group fields were not set, they can be set at the contract level.
    • If the Trading Partner is specified, it will be passed in all GL postings, including asset liability. Note that trading partners are not included in the asset creation and capitalization.
  4. Use the Groups section to specify additional external groupings for the contract, which can be used for reporting purposes.

    Note: These fields can also be used for any other purpose. Contact your system administrator to change the captions in the Nakisa AdminConsole Caption Editor.

  5. The Signature section contains the following fields:
    • Enter the name of the person that signed the lease for the company (lessee) in the Signing Person field.
    • Specify the Place of Signature and Date of Signature for the contract.

See also:  

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