Oracle Cloud Lease Accounting Part-2

Lease Accounting Process

The below diagram shows the pictorial view of the lease accounting business processes and all the kind of transaction and functionality we can perform in this module.

We are going to see the Financial Lease contract processing. The Lessor enter the lease contracts in the Lease accounting modules once the required information is received from the lessor with regard to the contracts terms and conditions.
Below is the navigation and steps on the lease creation process:

Navigator → Lease Accounting → Leases
Click on plus icon

In the Overview section, select accounting classification like operating lease and financial lease.Select the lease start date and end date. Amortization start date defaults from the lease start date but we can change. Enter the Discount Rate index.

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Navigate to Assets Tab

Click on plus icon

In the Asset section, we have to enter asset number, location, asset start date and end date.

Once the asset details are entered, click on Save and Close button.

Navigate to Payments Tab

Click on plus icon

Select the appropriate payment template, supplier, supplier site, payment frequency and amount.

Once all the payment information are entered, click on save and close button.

Navigate to Actions

Click on Validate

Navigate to Actions

Click on Generate Schedules

Review the Schedules for Amortization

Review the Schedules for Payment

Submit for approval

Approval Worklist

The Approver view from the notification and approves it

Search for the lease and after opening the lease, click on attach lease details report

Click on Process Lease Payment task

Enter the parameters like process type: Lease Payments, Business unit, payment processing as Approve, Export to payables as Yes, Launch import payable invoice as Yes

Click on Submit

Navigator → Payables →  Invoices → Manage Invoices

To review the lease invoices we should follow the above navigation and search the invoices in manage invoices screen.

Click on Process Lease Payment task

Enter the following parameters like process type as Accruals and business unit.

Click on Submit

Click on Create Accounting task

Enter the following parameters like subledger application as lease accounting, ledger, end date, accounting mode as final, report style as detail transfer to GL as Yes and Post to GL as Yes

Click on submit

Lease Booking Accounting Entry:

Lease Expense Accounting Entry:

Lease Payment Approval Accounting Entry:

List of reports available in Lease accounting module:

1.Lease Liability Analysis Report
2.Lease Transactions and Balances Report
3.Lease Abstraction Details Report
4.Lease Disclosures Report

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