SAP Contract and Lease Management

This solution enables the parallel valuation of rental and leasing contracts according to different accounting principles for lease-in and lease-out relationships. Based on these valuations, postings are made in Asset Accounting and in the financial statement.

Supporting the Full Leasing Lifecycle

Contract Closeout / Renewal

  • Management of termination options

  • Execution of renewal options


  • Lease classification

  • Calculation lease valuations

  • Manage valuation modification

Rating and Classification

  • Structured communication

  • Track lease progress

  • Document versions and tracking

Contract Execution

  • Contract abstraction

  • Assignment of CO cost objects

  • Document terms and conditions


  • Manage terms and conditions

  • Monitor critical dates and options

  • Generate letters and correspondence

Direct integration with SAP Finance to simplify compliance with IFRS 16 and US GAAP ASC 842

Functional Overview

  • Supports the full lifecycle of the contract (create, maintain, post to FI, adjustment, renewal, give notice)
  • Different contract types
  • Integration into SAP Financials
  • IFRS 16 / US GAAP ASC 842 compliant
  • Adjustment process
  • Sales based rent
  • Reminder dates
  • Integration to other SAP components
  • CAM / Service charge settlement
  • Document management

Supporting IFRS 16 and US GAAP ASC 842 Compliance

SAP Contract and Lease Management is built on the integrated contract management functionality of the SAP Real Estate Management application and leverages IFRS 16 and US GAAP ASC 842 enhancements.

  • Valuation and Classification
  • Multi-GAAP Posting
  • Contract Management


Detailed Contract
Management Solution

Direct Finance Integrated Cash Flow with Tax Management and Multi-Currency Functionality

Support for New Leasing Regulations with Full Financial Integration

Integration with SAP S/4HANA or SAP ECC to Help Ensure Consistent Financial Insight

Integration with Accrual Engine, Cash Management and SAP BI


Easy to use, personalized, and simplified user experience with SAP Fiori

Open, flexible, and expandable system that supports on-trend functionality

Flexible, scalable IT infrastructure, and fast, mobile accessibility to Big Data

Improved user productivity by simplifying day-to-day tasks