Service Contract (21R)

Lease contracts describe contractual agreements between two partners: the lessor and the lessee. The lessor owns an asset, whereas the lessee has a right to use this asset during the period agreed in the lease contract. The lessee pays lease payments for the use of the asset, as agreed upon in the lease contract.

This scope item helps you 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 easily 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.

Key Process Steps Covered

• Create contract
• Maintain contract
• Make adjustments
• Integrate SAP S/4HANA and C4RE
• Perform periodic posting contract
• Change customer
• Report contract
• End contract
• Perform administration tasks

Benefits

• Accelerate leasing processes
• Standardize and automate your recurring lease administration activities
• Gain full control and visibility of leases and critical dates
• Monitor critical dates on your leases, such as lease notifications and renewals
• Improve decision making
• Help ensure compliance to the latest financial reporting standards, like the new lease accounting standards IFR16 and FASB ASC 842

Where is Service Contract(21R) being used?

This Scope item is used in the following way:

• As a support function of Advanced Accounting and Financial Close within Finance Scope Item Group
• As a management function of Real Estate Management within Finance Scope Item Group

• Best Practices of SAP S/4HANA On Premise *1
• Best Practices of SAP S/4HANA Cloud *2
• Best Practices of SAP Analytics Cloud *2
• Best Practices of Robotics Process Automation(RPA) with SAP Leonardo *2

• RISE with SAP
• SAP S/4HANA Cloud
• SAP on Azure
• Business Process Management