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SAP CLM
What is SAP CLM? SAP Contract and Lease Management (CLM) is SAP's solution within SAP S/4HANA for managing lease contracts and accounting for them from the lessee perspective. It is offered as part of SAP S/4HANA for contract, lease, and real estate management and supports lease accounting under ASC 842, IFRS 16, and GASB 87. Since ASC 842 and IFRS 16 brought most leases onto the lessee's balance sheet, US companies with large portfolios of real estate, vehicle, equipment, and IT leases need a system that captures contracts, calculates the right-of-use asset and lease liability, and posts reliably to the general ledger.
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What Is SAP Contract and Lease Management?
An overview of SAP Contract and Lease Management (CLM) in SAP S/4HANA – scope, key capabilities for lessee accounting under ASC 842 and IFRS 16, and how it relates to SAP RAR.
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SAP CLM
Lessee Accounting under ASC 842 / IFRS 16 with SAP CLM
How lessee accounting under ASC 842 and IFRS 16 works – and how SAP Contract and Lease Management supports recognition, measurement, postings and disclosures.
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SAP CLM
Lease-In and Lease-Out: Connecting SAP CLM and RAR
Companies that lease assets in and lease them out to customers need both lessee and lessor accounting. How SAP CLM and SAP RAR can work together.
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What You'll Find Here
The articles in this category follow the lessee lifecycle in SAP CLM: capturing lease contracts, applying valuation rules per accounting principle, and generating schedules for interest and depreciation – or, for ASC 842 operating leases, a single straight-line lease cost. Further topics include short-term and low-value lease exemptions, discount rates and incremental borrowing rate tables, lease modifications and remeasurement, index-linked lease payments, payments through accounts payable, identifying embedded leases in service and supply contracts, and data for lease disclosures.
Key Questions We Cover
• How are ASC 842 finance and operating leases and IFRS 16 leases valued in parallel for the same contract?
• Where do discount rates come from, and how are they governed?
• Which contract changes trigger remeasurement of the lease liability?
• How do exemptions and embedded leases affect the scope of the lease portfolio?
• Which data does finance need for maturity analyses and other disclosures?
Lessee and Lessor: Two Sides of Leasing
In our view, CLM covers the lessee side (lease-in). Lessor accounting – lease income, lease receivables, and interest income based on the lease classification – runs in SAP RAR without additional software. Companies that lease assets in and lease them out to customers can connect both sides to track subleases, margins, and changes consistently. At Revident, we design that architecture following Discover. Engineer. Validate. Operate., with human-governed automation for data checks and close preparation.
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• What Is SAP Contract and Lease Management?
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