SAP Contract and Lease Management is a solution that allows entities to manage full lease agreements per new lease accounting standards efficiently with real-time insight and integrated financial postings.
SAP Contract and Lease Management CLM involves actively managing lease agreements.
- Track terms and conditions for lease contracts to support compliance and quick identification of leasing responsibilities.
- Monitor critical dates for renewal and termination notices, rent adjustments, and insurance certifications.
- Generate and post payments in real time and without developing interfaces to accounts payable.
- Ensure lease and contract payments are consistent with the terms of the agreement and handle complex scenarios such as step and free-rent periods.
- Calculate and post lease valuations in compliance with IFRS16 and ASC842 for both real estate and equipment leases.
Value Drivers
Reduce lease compliance errors by automatic valuation calculations, tracking of lease modifications, and consistency between lease agreements and financial postings.
Reduce finance cost by monitoring all critical dates of the contract in preparation for renewal and termination options.
Reduce real estate management cost by monitoring all critical dates of the contract in preparation for renewal and termination options.
SAP S/4HANA Contract and Lease Management provides a single point of entry for collection, validation of lease contract data, performs valuation calculations and generates the financial postings derived from these calculations.
SAP S/4HANA Contract and Lease Management supports the requirements for the new IFRS 16 and US GAAP ASC 842 standard.
Key Features
Contract Management – Lease in
- You can create new contracts, execute periodic postings for existing contracts, and execute valuation postings for existing contracts.
- You can change the supplier of an existing contract and run reports of your existing contracts as part of your daily business.
- You can create reminder rules for every contract, for example to check the contract conditions, the contract term, or the renewal options, helping you to save time and effort and free up capacity for more strategic tasks.
- Leveraging the reporting functions enables you to make better and more informed lease management decisions.
Contract Management – Lease out
- This feature helps you to standardize and automate your lease-out debit contract management activities for Real Estate, as well as for machinery, equipment, vehicles, and computer hardware.
- You can create new contracts and execute periodic postings for existing contracts.
- You can change the customer of an existing contract, as well as run a report of existing contracts as part of your daily business.
Contract Management – Sublease/Intercompany
- This feature allows you to assign or give certain rights to the sublessee – an affiliate company – that are held under the terms of the own original lease with the landlord.
- The company handles the sublease contract and related valuation under local GAAP, IFRS, or US GAAP.
- You can create new contracts and execute periodic postings for existing contracts.
- You can change the customer of an existing contract, as well as run a report of existing contracts as part of your daily business.
Service Contract
- This feature helps you to standardize and automate your lease service credit contract management activities for real estate, as well as for machinery, equipment, vehicles, and computer hardware.
- You can create new contracts and execute periodic postings for existing contracts.
- You can change the supplier for existing contracts, as well as run reports of existing contracts as part of your daily business.
- You can create reminder rules for every contract, for example to check the contract conditions, the contract term, or the renewal options, helping you to save time and effort and free up capacity for more strategic tasks.
- Leveraging the reporting functions enables you to make better and more informed lease management decisions.
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