SAP CLM
SAP Contract and Lease Management (CLM) is SAP's solution for managing lease contracts and performing lessee lease accounting within SAP S/4HANA. It is part of "SAP S/4HANA for contract, lease, and real estate management."
SAP
Explanation
As a lessee accounting solution, CLM supports:
• capturing lease contracts, terms, options, and payment schedules,
• applying valuation rules per accounting principle,
• calculating lease liabilities and right-of-use assets,
• generating postings for interest, depreciation, and payments,
• remeasurement after contract changes,
• providing data for lease disclosures.
The solution supports ASC 842, IFRS 16, and GASB 87. Whether a contract contains a lease remains an accounting judgment made by the company.
Why It Matters
Companies with large lease portfolios – real estate, vehicles, equipment, IT – need reliable, integrated lessee accounting. CLM brings this into SAP S/4HANA Finance. For lessor accounting, especially in bundled equipment and service contracts, SAP Revenue Accounting and Reporting (RAR) is the complementary solution.
Related Terms
Right-of-Use Asset · Lease Liability · ASC 842 · IFRS 16 · Lessor / Lessee · Incremental Borrowing Rate (IBR) · Lease Modification
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