An evergreen contract is a lease contract with a fixed minimum duration (12 months or more under IFRS 16) that is then followed by an ‘evergreen’ period of a further minimum fixed duration. For example, a lease contract for a car may have an initial minimum period of 24 months and that if it enters its evergreen period will always have 6 further months unless either the lessor or lessee decide to give the appropriate notice. In this way the contract is extended from 24 to 30 months in period 24 and from 25 to 31 months in period 25. This continues automatically until notice is given.
Natively SLAN does not include a specific functionality for evergreen leases, however this kind of leases can be represented with manual efforts.
SAP Lease Administration by Nakisa 4.0.2 SP3 / SP5
SLAN; evergreen leases;; MCS; Mission Critical Support , KBA , XX-PART-NKS-LCA , SAP Lease Administration by Nakisa , XX-SER-MCC , Mission Control Center - Knowledge Management , How To
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