Migration of Lease Contracts in SAP Business ByDesign
Recently, I noticed several questions in the SAP Community related to the migration of lease contracts in SAP Business ByDesign. It seems, that this topic lacks some information. Therefore, I want to provide some more information around it with this blog post.
Currently, a migration of lease contracts within the standard Migration of Financial Accounting Data in SAP Business ByDesign is not supported. In general, there are two options how you can take over existing lease contracts during a migration.
When these settings are done, you can either manually create existing lease contracts or import them by the Migration Tool (Migration Workbench). For more information about using the migration tool for lease contracts, see Configuration: Transition of Lease Contracts section Migrate Data Using the Migration Tool (Migration Workbench).
- Due to different approaches in the calculation of the present value, interest and depreciation amounts (for example interest usance used) the calculated values in the system may not fit exactly the values in the legacy system.
- The system will post the opening balances on the transition date.
- In the current design the retrospective approach will post the right-of-use asset opening balance on the transition date as one value (remaining book value) and will not separate the values of historical acquisition cost and accumulated depreciation to different g/l accounts, see also my comment on 29.03.2022 in my blog post.
- If you choose this approach, you need to exclude the corresponding g/l account balances from the Migration of Account Balances or create a manual journal entry voucher to reverse the balances. In addition, the corresponding fixed assets of these lease contracts need to be excluded from the Migration of Fixed Assets.
Let’s assume, you want to migrate a lease contract on 31.12.2021 with the following details.
- Interest: 1,5%
- Start Date: 01.07.2018
- Lease Term in Months: 60
- Transition Type: Retrospective
- Lease Installment: 10.000 USD
- Payment Form: In Arrears
- Recurrence: Monthly
- Day of month: 31
The only other way to handle existing lease contracts is to create manual postings in the system. In this case, you need to create a Fixed Asset for the Right-of-Use Asset, Supplier Invoices and Journal Entry Vouchers manually to reflect such a lease contract on balance sheet.
When using this option, the relevant amounts for all postings must be calculated outside SAP Business ByDesign.
This information shall help you to select the right approach for the migration of lease contracts.