3522260 - Lease Contract posting to wrong G/L account: Retained Earnings Brought Forward

You have created the Lease posting run and when you checked the postings tab you can be able to see that certain amount is getting posted to the G/L account: Retained Earnings Brought Forward which is unexpected, and you want to know the reason.

SAP Business ByDesign 

1. Go to Lease contract management work center.
2. Go to the Lease postings run sub view.
3. Search for the relevant Run 'ABC'.
4. Navigate to the postings tab.
5. You will see the amount 100.000,50 EUR will be credited to the G/L account: Retained Earnings Brought Forward

Note: The amounts mentioned in this KBA is just for reference.

'ABC' refers to Lease Posting run ID.

In the Lease posting run 'ABC', take the note Lease contract 'AA'

1. Go to the Lease Contract Management work center.
2. Go to the Lease Contract sub view.
3. Search for the Lease Contract 'AA'
4. Select the general tab.
5. Under transition, you can be able to see Transition Type as Retrospective.

The Lease contract 'AA' of company 'BB' is the transition contract with transition type as 'Retrospective' because of which the cashflow calculations happened completely based on the start date and end date of the contract and as per the condition value given in contract 'AA'.

For example: The Lease Contract transition date is 31.12.2023 for company 'BB' the lease liability opening balance for the contract on the transition date as per the cashflow report will go to the Lease liability G/L account which is 200.000,50 EUR and the balance amount of Right of Use asset will be going to Retained earnings G/L account which is 100.000,50 EUR and now if you check the Right of Use asset opening balance calculated on the transition date is 300.001,00 EUR (200.000,50 EUR + 100.000,50 EUR). 

You can check the RoU asset Opening balance in the Report: Lease Contract valuation Cash flow.

Retained earnings, Lease Contract, Lease Posting run, RoU Asset, Transition Type, Lease Contract valuation Cash flow. , KBA , SRD-FIN-FA , Fixed Assets , Problem