Contract Definition

Once the lease determination information has been entered, users can enter information on the contract Definition page.

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

To enter general contract information:

  1. Open the contract.
  2. At the top of the contract, navigate to the Definition page. The following information is in the General Information section:
    • The ID is automatically generated.
    • If required, the Contract Name can be modified, and a Contract 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 to record the earliest expected start date and end date.
    • Lease Type shows the suggested lease type (based on the lease determination questionnaire). If required, select another lease type, where the available options are configurable in Financial Organization Structure.
      • Lessee contract lease types:
        • Lease contract (fix)
        • Lease contract (fix & variable)
        • Lease short term
        • Lease low value
        • Non-lease service contract
        • Non-lease
      • Lessor contract lease types:
        • Lease Contract (Operation / Short term): This lease type is currently the only one supported (for subleases).
    • Select one of the pre-defined Contract Category values, if required.
    • Use the Amendment Date to indicate when the last amendment took place.
    • If the currency was not set in the master agreement, you must define the Contract Currency.
    • The Principal Position is set to "Lessee" or "Lessor", based on the value entered in the Create Contract pop-up, and cannot be changed.
    • Select the Form of Lease to identify with whom responsibilities lie.
    • If required, set the Joint Venture Lease Type to "Gross Lease" or "Net Lease".
    • The Approver Comment field displays comments entered in the Leave Comment pop-up when the contract was approved.
  3. If you are using an indexed currency (e.g., UF/CLP), set the values in the Indexed Currency section. Refer to Using Indexed Currencies for more information about how to fully set up the contract and lease component, and the effects to the financial schedules and postings.
  4. The fields in the Hierarchy section of the contract are inherited from the master agreement if they were set, and cannot be overridden. If the optional fields were not set, they can be set at the contract level. Note that the Company Code cannot be changed once it is set in the create contract pop-up.
  5. If the lessor contract is a sublease of an existing lessee contract, enter the information in the Sublease Information section:
    • Select the Sublease checkbox (if you did not already do so in the Create Contract pop-up).
    • The Referenced Lessee Contract drop-down lists all of the contracts in the lessee contracts under the same master agreement. Select the one that this sublease is releated to.
    • The Referenced Lease Component drop-down lists all of the lease components that are under the selected lessee contract.
    • The Referenced Internal Asset Class is automatically set, based on the selected lease component.
    • The Referenced Activation Group drop-down lists all of the active activation groups that are under the selected lease component.
  6. Use the Groups section to specify additional external groupings for the contract, which can be used for reporting purposes.
  7. The Signature section contains the following fields:
    • Enter the name of the person that signed the lease for the company in the Signing Person field.
    • Specify the Place of Signature and Date of Signature for the contract.

Nakisa Lease Administration 2023.R4 © 2024

 

 

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