3570659 - Initial Cost Not Posted to Expense account for Lease Contract with Expense Set of Books Relevance

• For lease contract XYZ the set of books relevance is set to Expense (XYZ represents a lease contract ID). 
• In the Conditions an Initial Cost of, say 10.000,00 LC is maintained (LC means local currency). 
• When posting supplier invoice ABC accounted to lease contract XYZ, to clear the initial cost,  then the invoice debits the lease contracts clearing account instead of the Expense account. 
• This creates a debit balance on the lease contracts clearing account which cannot be cleared. 

SAP Business ByDesign

1. In the Lease Contract Management work center go to the Lease Contracts view.
2. Find and open lease contract XYZ. 
3. Navigate to the Lease Objects tab and here to the Set of Books Relevance sub-tab: The relevance is set to Expense. Therefore, all payments are to be posted to an expense account. 
4. Go to the Conditions sub-tab. Here, an initial cost of 10.000,00 LC is maintained. You expect this amount to be debited to the expense account (as maintained in Account Determination - General Ledger - Lease Liability - Service Charge). 

• However, after releasing the lease contract the initial cost is not considered (for example to credit the lease contracts clearing account and debit the expense account. 
• A supplier invoice over 10.000,00 EUR to clear the initial cost, is not posted to the expense account but to the Lease clearing account, which now leaves a debit balance on this account that cannot be cleared.

In SAP Business ByDesign, the inital cost is to be considered for the financial lease set of books relevance, where the initial cost is added to the opening balance of the generated Right of Use asset (ROU).  

Supplier invoices accounted to lease contracts are always posted to the lease contracts clearing account and never to the expense account, even when the set of books relevance of the lease contract is set to Expense. 

If the supplier invoice is accounted to lease contract XYZ, then the debit balance on the lease contracts clearing account must be cleared from the account and realised on the expense account manually:

Create a manual journal entry voucher of type 00047 - Manual Posting - Journal Entry Voucher to

• credit the lease contracts clearing account, associated with the lease contract and
• to debit the expense account, associated with the lease contract and cost center. 

The only other option is to create a supplier invoice without accounting it to the lease contract but to post it directly to an expense account.
However, in this case, the invoice is not connected to the lease contract.

lease contract, expense, initial cost, lease contracts clearing account.  , KBA , AP-ACC-LM , Accounting Lease Management , Problem