22/11/2019 SAP e-book

Lesson: Understanding SAP Lease Contract Management

Lease Contracts are contractual agreements between lessors and lessees, where the lessor is
the legal owner of an asset and the lessee has the right to use the asset during a period of
time. For the right of use, the lessee pays lease payments.
Subjects of Lease Contracts include any of the following characteristics:
● Partners (lessor or lessee)
● Objects (rights of use for assets)
● Terms (contract start date, contract end date duration)
● Valuation rules and conditions
● Conditions (one-time or periodic lease payments)

Figure 19: Lease Contract and Their Relationship to Other Contracts

A contract in SAP is always a contract between a company and a business partner.

The company providing or consuming the right of use for assets is represented by the
company code of the contract, which is visible as part of the contract key (such as 1000/1;
contract 1 within company code 1000).
Lease Contracts use the functionality of the SAP contract.
Examples for lease-in contracts are mainly described in course RE050.

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