CONTRACT CREATION
To create a RE-FX Lease Contract you have to access to transaction /RECN/ and insert the company code for which the contract needs to be created and then click on the blank page (contract creation – red arrow)

This will open a new window where you can choose which kind of contract you are going to create (ex: a car contract will be categorized as "Transportation equipment")
Fill in all the necessary information page by page (General data, Partners, Terms…)

• In Partner part always choose Lessor and put the Business Partner number
• In the Term part you can choose if the contract has a renewal option
• In Objects part always choose Contract Object options and fill Contract Item with the short description of the contract, the Object Type and the Account Assignment with the correct Cost Center or WBS
• Differing Measurement part is optional; it can be used when you have to apply the condition to more than one item and the nr. of these items changes during the time (ex: Containers contracts – see contract ZFR3/400007 as example below)

• In Posting Parameters part, can be set the frequency of postings (if it's in advance, in arrears, if the amount is daily, monthly, annually etc)
• In Conditions part always choose the appropriate one, starting by "R" (ex: car contract = R160 Lease for cars). Here you have to fill the start date, the rent amount and the 1^st posting date. ATTENTION: if the start date of the contract is before 01.01.2019, the first posting date will be ALWAYS 01.01.2019, as shown below.

• In Valuation Parameters part, always choose the Valuation for both IFRS 16 and Local GAAP (the last one may vary based on the country for which the contract is created, according to IFRS16 rule). The correct Valuation to be chosen is the J4 one. ATTENTION: the system by default assumes that the start date of the valuation is the same of the start date of the contract, but as in Conditions, if the start date of the contract is before 01.01.2019, the Start of Consideration of the valuation date should be 01.01.2019 (both for IFRS16 and Local GAAP). Fill in both valuation with the correct interest rate (in case of some countries like France, China, etc. where IFRS16 is not applicable at Local GAAP level, choose as Distribution Form "Divide equally"). In order to create the valuation, it's necessary to "apply the rule", by selecting both lines (blue arrow) and clicking on the flag (red arrow). Once the Valuation is completed an asset number will be created and in the Rule Status 2 flags will appear and it will say Complete.

The contract is now fully filled, but it's necessary to save it, in order to create the RE-FX number and, most important, it's necessary to activate the contract by clicking on the following icon .
Once the contract is active it will automatically generate a Valuation and in General Data part the System Status will appear as ACTV REL.















SPECIAL FLOW
Once a contract has been modified several times, it may create a SPECIAL FLOW, which is a posting that falls into the P&L account and it's not supposed to. If this happens the accounts are not balanced. In order to solve this problem you have to revert the previous postings to have the same amount in both local and IFRS16 valuation. 
Once you have done that, you have to change the status of the postings of the previous years that are "marked manually" as shown below:

  
Activate the rule and save the contract, the amount will be the same.

Be aware that, before posting again, you have to change the status of the posting the conditions .