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Oracle Lease and Finance Management Implementation Guide
Release 12.1
Part Number E13577-05
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ERP Implementation Tasks

This chapter covers the following topics:

Define Assets

The Define Assets area includes:

Define General Asset Information

The Define General Asset Information section includes:

Define System Controls

Required

Specify your enterprise name, asset numbering scheme, and key flexfield structures in the System Controls window. Also specify the oldest date placed in service of your assets.

For more information, see the Oracle Assets User Guide.

Prerequisites

None

Responsibility

Asset Manager

Module

Oracle Assets

Navigation

Setup > Asset System > System Controls

Define Location Flexfield

Required

The location flexfield lets you specify and track the physical location of your assets. You must assign the state segment qualifier to one segment of your location flexfield. The state segment facilitates property tax reporting. All other segments are optional. You can use the same setup windows to create your location flexfield as you do for your other key flexfields.

For more information, see the Oracle Assets User Guide.

Prerequisites

None

Responsibility

Asset Manager

Module

Oracle Assets

Navigation

Setup > Financials > Flexfields > Key > Segments

Define Asset Depreciation

An asset can belong to any number of tax depreciation books, but it must belong to only one corporate depreciation book. This defines the depreciation rules for that asset. Depreciation methods determine the way in which Oracle Assets amortizes the asset over the time it is in use. You can specify default depreciation rules for a category and a book.

You must set up these steps in Oracle Assets in order for Oracle Lease and Finance Management to function correctly:

Define Calendars

Required

Use the Calendars window to set up as many depreciation and prorate calendars as you need. Calendars break down your fiscal year into accounting periods. Define your calendars with as many periods as you need. Define a prorate calendar and a depreciation calendar for each depreciation book. Depreciation books can share a calendar, and you can use the same calendar for your depreciation calendar and prorate calendar if appropriate.

For more information, see the Oracle Assets User Guide.

Prerequisites

None

Responsibility

Asset Manager

Module

Oracle Assets

Navigation

Setup > Asset System > Calendars

Define Fiscal Years

Required

Use the Fiscal Years window to define the beginning and end of each fiscal year since the start of your company. Your fiscal year groups your accounting periods. You must define the start and end date of each fiscal year beginning with the oldest date placed in service. For example, if you are using a 4–4–5 calendar, your start and end dates change every year. When you run the depreciation program for the last period in your fiscal year, Oracle Assets automatically generates the dates for your next fiscal year.

For more information, see the Oracle Assets User Guide.

Prerequisites

None

Responsibility

Asset Manager

Module

Oracle Assets

Navigation

Setup > Asset System > Fiscal Years

Define Depreciation Methods

Required

Depreciation methods specify how to amortize the asset cost. Oracle Assets come with many standard depreciation methods, including, life-based depreciation, flat-rate depreciation, bonus-depreciation, units of production depreciation, and formula-based depreciation, for example. You can define additional methods in the Methods window if necessary.

Note: If you are modeling lease pricing outside of Oracle Lease and Finance Management, set up your depreciation methods to match your modeling options.

For more information, see the Oracle Assets User Guide.

Prerequisites

None

Responsibility

Asset Manager

Module

Oracle Assets

Navigation

Setup > Depreciations > Methods

Define Prorate and Retirement Conventions

Required

Use the Prorate Conventions window to set up your prorate and retirement conventions. Prorate and retirement conventions determine how much depreciation expense to take in the first and last year of life, based on when you place the asset in service. Oracle Assets lets you set up as many prorate and retirement conventions as you need.

For more information, see the Oracle Assets User Guide.

Prerequisites

None

Responsibility

Asset Manager

Module

Oracle Assets

Navigation

Setup > Asset System > Prorate Conventions

Define Books and Asset Categories

The Define Books and Asset Categories section includes:

Define Book Controls

Required

Use the Book Controls window to set up your depreciation books. While you can set up an unlimited number of independent depreciation books, only one corporate pool can be linked to a ledger. Each book has its own set of accounting rules and accounts so you can organize and implement your fixed assets accounting policies. When you define a tax book, you must specify an associated corporate book. You can mass copy assets and transactions from the source book into your tax book. Specify the current open period, and Initial Mass Copy copies each asset into the tax book from the corporate book as of the end of that fiscal year as defined in the corporate book.

For more information, see the Oracle Assets User Guide.

Prerequisites

None

Responsibility

Asset Manager

Module

Oracle Assets

Navigation

Setup > Asset System > Book Controls

Define Asset Category Flexfield

Required

The asset category flexfield lets you define asset categories and subcategories. For example, you can create an asset category for your computer equipment. You can then create subcategories for personal computers, terminals, printers, and software. You must assign the major category segment qualifier to one segment of your category flexfield. All other segments are optional. You use the same setup windows to create your asset category flexfield as you do for your other key flexfields.

This step is required for matching inventory item codes, which assign asset categories automatically during authoring. It is also important for assigning depreciation methods.

For more information, see the Oracle Assets User Guide.

Prerequisites

None

Responsibility

Asset Manager

Module

Oracle Assets

Navigation

Setup > Asset System > Flexfields > Key > Segments

Define Asset Categories

Required

Asset categories let you define information that is common to all assets in a category, such as depreciation method and prorate convention. Oracle Assets uses this information to provide default values to help expedite asset entry.

You must update the asset category description for the asset category that appears on the Off-Lease Asset Hold Periods setup page.

For more information, see the Oracle Assets User Guide.

Prerequisites

Define asset category flexfield.

Define depreciation methods.

Define prorate/retirement conventions.

Responsibility

Asset Manager

Module

Oracle Assets

Navigation

Setup > Asset System > Asset Categories

Set Up Assets for Like-Kind Exchange

Oracle Lease and Finance Management supports the use of like-kind exchanges in lease contracts. Like-Kind Exchanges occur when you transfer the tax properties from an off-lease asset to a new on-lease asset and defer any tax payable on the disposal of the original off-lease asset. Both the off-lease and the on-lease asset must use the same asset category.

To set up assets for like-kind exchanges, you:

  1. Define an asset book for like-kind exchange as a tax book associated with the primary corporate book for the lease contract. For more information on defining books and asset categories, see Define Books and Asset Categories.

  2. Define the asset categories and depreciation methods in the manner defined for the federal tax asset book. For more information on defining books and asset categories, see Define Books and Asset Categories. For more information on defining asset depreciation, see Define Asset Depreciation.

  3. Define the Like-Kind Exchange Hold Days on the Accounting Options page.

Responsibility

Asset Manager

Module

Oracle Assets

Navigation

Setup > Asset System

Define Asset Book for Multi-GAAP Reporting

Required for multi-GAAP reporting

Equipment lessors who operate in various countries may be required, for the same lease or loan transaction, to meet multiple accounting and tax regulations set by the different government and industry organizations. To do this, they must use multi-GAAP reporting.

The basic principle of multi-GAAP is that you create accounting entries for a single lease or loan transaction in one ledger to meet local GAAP rules and create different accounting entries in another ledger to meet the reporting GAAP rules.

To calculate the asset depreciation for the country where you use the reporting GAAP rules, you must set up a tax asset book in Oracle Assets, to be associated with the corporate asset book set up for that country.

For more information on defining books and asset categories, see Define Books and Asset Categories

Prerequisites

None

Responsibility

Asset Manager

Module

Oracle Assets

Navigation

Setup > Asset System >

Guidelines

You must define a combination of corporate asset book and associated tax asset book for each Multi-GAAP enabled operating unit for the purpose of Oracle Lease and Finance Management (OLFM). The Multi-GAAP enabled operating unit is one where the Secondary Representation Method is set to either Report or Automated in the Accounting Systems Options on OLFM. This tax asset book shall be selected as Reporting Product Asset Book in the Accounting Systems Options on OLFM.

The following restrictions apply when you define a tax asset book:

Set Up General Ledger

In order for Oracle Lease and Finance Management to function properly with Oracle General Ledger, you must complete all necessary setup steps in General Ledger. For information on implementing General Ledger, see Oracle General Ledger Implementation Guide.

Define Inventory

Oracle Inventory provides these features and facilities for Oracle Lease and Finance Management:

Oracle Inventory has these implementation tasks for Oracle Lease and Finance Management:

Define Item Flexfield

Required

You use the Item Flexfield (also called the System Items Flexfield) for recording and reporting your actual item description. You must design and configure your Item Flexfield before you can start defining items.

All Oracle Applications products that reference items share the Item Flexfield and support multiple-segment implementations. Therefore, if you have already configured this flexfield while setting up another product, you do not need to perform this step. For more information on planning and organizing item flexfields, see the Oracle Inventory User's Guide and the Oracle Applications Flexfields Guide.

Prerequisites

None

Responsibility

Oracle Inventory Administrator

Module

Oracle Inventory

Navigation

Setup > Flexfields > Key > Segments

Define Item Categories Flexfield

Required

You must design and configure your Item Categories Flexfield before you can start defining items since all items must be assigned to categories.

You can define multiple structures for your Item Categories Flexfield, each structure corresponding to a different category grouping scheme. You can then associate these structures with the categories and category sets you define.

The item category assists you in controlling processes for related groups of items, in restricting the use of certain groups of items by functions in your organization and in analyzing your asset portfolios. The structure of the field should logically group items together for these purposes. For more information, see the Oracle Inventory User's Guide.

Prerequisites

None

Responsibility

Oracle Inventory Administrator

Module

Oracle Inventory

Navigation

Setup > Flexfields > Key > Segments

Define Item Catalog Groups

Required

If you make entries for your items in a standard industry catalog or if you want to group your items according to certain descriptive elements, you need to define item catalog groups. An item catalog group consists of descriptive elements to which you assign certain sets of values. When you assign an item to an item catalog group, you can choose descriptive elements from the group and define values for each descriptive element.

During the remarketing process of Oracle Lease and Finance Management, you need to associate a catalog for the remarketer assignment. By defining an item catalog, you assure that each item is only associated with one catalog.

For more information, see the Defining Item Catalog Groups section of the Oracle Inventory User's Guide.

Prerequisites

Define item catalog group flexfield.

Responsibility

Oracle Inventory Administrator

Module

Oracle Inventory

Navigation

Setup > Items > Catalog Groups

Define Inventory Organizations

Required

Organizations describe distinct entities in your company that use the inventory function and can include separate manufacturing facilities, warehouses, distribution centers, and branch offices.

You need to define one or more organizations in Oracle Inventory. Subsequently you assign items and categories to a particular organization to which users are also assigned. A user can work within only one organization at a time.

Since Oracle Inventory lets you implement multiple sets of books with multiple organizations, you need to specify the ledger to which your organization is tied.

Note: It is mandatory that you set up one organization for authoring and another for remarketing.

For more information, see the Oracle Inventory User's Guide.

Prerequisites

None

Responsibility

Oracle Inventory Administrator

Module

Oracle Inventory

Navigation

Setup > Organizations > Organizations

Change Organizations

Required

Until you define an organization and set parameters, Oracle Inventory operates with no specific organization chosen.

In all post-setup working, you need to identify a specific organization as your current organization, to set up items and item categories. For both authoring and remarketing organizations, change to one of the organizations you created, using the Change Organization window.

Note: An Oracle Lease Management user profile option is OKL: Contract Items Inventory Organization.

When you author a contract, this profile option must point to the same organization as the one you change to in Oracle Inventory.

When you work with remarketing organizations, this profile option does not need to point to the same organization as the one you change to in Oracle Inventory.

For more information, see the Oracle Inventory User's Guide.

Prerequisites

Define Inventory Organizations

Responsibility

Oracle Inventory Administrator

Module

Oracle Inventory

Navigation

Change Organization

Define Unit of Measure Classes

Required

A unit of measure is a logical unit description for grouping items - for example, box, each, or pair.

You must define unit of measure (UOM) classes and the base unit of measure for each class. UOM classes represent groups of units of measure with similar characteristics, such as Volume or Length. Each unit of measure you define must belong to a unit of measure class.

For more information, see the Oracle Inventory User's Guide.

Prerequisites

Change Organizations

Responsibility

Oracle Inventory Administrator

Module

Oracle Inventory

Navigation

Setup > Units of Measure > Classes

Define Subinventories

Required

A subinventory is a physical or logical grouping of your inventory, such as raw material, finished goods, defective material, or freezer compartment. It provides a further subdivision of an inventory, which is useful in narrowing searches. For example, Oracle Lease and Finance Management uses subinventories for the warehouse that you would use in remarketing assets.

You must move each item into, out of, or within a subinventory whenever you perform an inventory transaction.

You must define at least one subinventory for each organization.

For more information, see the Oracle Inventory User's Guide.

Prerequisites

Change Organizations

Responsibility

Oracle Inventory Administrator

Module

Oracle Inventory

Navigation

Setup > Organizations > Subinventories

Define Categories

Required

You can use categories and category sets to group items for various reports and programs. A category is a logical classification of items that have similar characteristics. A category set is a distinct grouping scheme and consists of categories.

Categories are actual functional names for groups of items, and are defined using a flexfield-type format, for example, transportation.aircraft.OEM.engines.

Categories can be used to designate items or products (assets) to portfolios or industries to assist with analysis and residual planning.

For more information, see the Oracle Inventory User's Guide.

Prerequisites

Define Item Categories Flexfield

Change Organizations

Responsibility

Oracle Inventory Administrator

Module

Oracle Inventory

Navigation

Setup > Items > Categories

Define Category Set

Required

Category sets are used to group categories together. For example, a category set could group inventory categories by function usage, such as Warehousing, Contracts, and Order Management. Alternatively, a category set could be used to define groups of items that can be leased versus those that are manufactured or sold wholesale.

For more information, see the Oracle Inventory User's Guide.

Prerequisites

Change Organizations

Define Categories

Responsibility

Oracle Inventory Administrator

Module

Oracle Inventory

Navigation

Setup > Items > Categories > Category Sets

Define Default Category Set

Required

When you install Oracle Inventory, you must assign a default category set to each of these functional areas: Inventory, Purchasing, Order Management, Costing, Engineering, Planning, and Contracts.

Oracle Inventory automatically assigns items defined for use by a particular functional area to the category set associated with the functional area. You can assign items to more than one functional area by assigning the item to multiple categories and category sets.

Note: Inventory items to be leased are included in the Contracts functional area; inventory items to be remarketed are in the Inventory and Order Management functional areas.

When referencing a category set, processes conducted by the functional area, such as leasing within Contracts, use the default category set value for that functional area.

For more information, see the Oracle Inventory User's Guide.

Prerequisites

Change Organizations

Define Category Set

Responsibility

Oracle Inventory Administrator

Module

Oracle Inventory

Navigation

Setup > Items > Categories > Default Category Sets

Define Statuses

Required

You must define statuses that you can assign to items, denoting the level of activity you allow for them. A status is a set of Yes/No values for the status attributes. Status attributes are flags that exist for each functional area for which you enable an item: stockable, transactable, purchasable, build in WIP, customer orderable, internal orderable, BOM allowed, and invoice enabled. When you define an item, you can use statuses to control the values of or provide default values for the status attributes, or to drive behavior during processes.

Statuses can be assigned to items used for a particular purpose, such as leasing, remarketing, or manufacturing. For example, items used solely for leasing could be configured with a status where the Purchasable flag was set to No.

For more information, see the Oracle Inventory User's Guide.

Prerequisites

Change Organizations

Responsibility

Oracle Inventory Administrator

Module

Oracle Inventory

Navigation

Setup > Items > Status Codes

Guidelines

Create a status of Lease. All the attributes associated with it must be set to No. To change this, deselect the box to the left of the attribute.

Define Item Type for Insurance Products

Required

You must register insurance products that are sold by the lessor as inventory items in Oracle Inventory, so that they can make use of other Oracle Applications facilities, such as calculation of tax.

In Oracle Inventory, you must first create an item type used to categorize insurance products. You only have to do this once. When you create your insurance inventory item, you must associate it with this item type.

For more information, see the Oracle Inventory User's Guide.

Responsibility

Oracle Inventory Administrator

Module

Oracle Inventory

Navigation

Setup > Items > Item Types

Guidelines

This item type, which you created for your insurance items, must be associated with a profile option called OKL: Insurance Item Type.

See Define Insurance.

Define Items

You must define or update items and the attributes associated with them (such as description, lead time, unit of measure, lot control, or statuses). These items can then be used as the assets to be leased or loaned in Oracle Lease and Finance Management.

To automatically assign depreciation methods in Oracle Assets, the item must be related to an asset category. This is done on the Purchasing tab in the Item Definition page.

When you are authoring a contract, each leased item points to an item master. For more information, see the Oracle Inventory User's Guide.

Prerequisites

Define Item Flexfield

Define Item Categories Flexfield

Define Inventory Organizations

Change Organizations

Define Unit of Measure Classes

Define Subinventories

Define Categories

Define Category Set

Define Default Category Set

Define Statuses

Define Item Type for Insurance Products

Responsibility

Oracle Inventory Administrator

Module

Oracle Inventory

Navigation

Items > Master Items

Guidelines

To enable Oracle Lease and Finance Management's full functionality, set up these items, if applicable:

Item for Lease

For inventory items to be leased, the basis for Serial Number Generation should be the same in the Inventory Master Organization and the Leasing Organization.

Responsibility

(Forms) -> Inventory

Navigation

Inventory > Item > Organization Items > <find your leasing item in the Find window> > Organization Item (form) > Inventory Tab > Field > Serial

The Generation field should have same value for leasing inventory Organization and Master Inventory Organization.

Item for Service

Responsibility

(Forms) > Inventory

Navigation

Inventory > Items > Master Items >

  1. Select an item.

  2. Select the Service tab.

  3. Select the Serviceable Product check box.

Item for Insurance

When the Master Item window appears, enter the item code for your insurance product in the Item field, and optionally a Description.

On the Main tab, perform:

On the Purchasing tab, perform:

On the General Planning tab, perform:

Usage Based Billing Items for Leases

Lease-related Usage Based Billing (UBB) items must be available in the Oracle Install Base module so you can associate lease-related UBB items with pricing counter groups. To make Usage Based Billing (UBB) items available in the Oracle Install Base module, you must select the Serviceable Product box on the Service tab.

Usage Items

In the Oracle Pricing module, you associate usage items with price lists. In the Install Base module, you associate usage items with counter groups.

For Usage Items:

Associating Asset Categories with Items

Note: To automatically populate Oracle Assets when booking a contract, you must associate all items with asset categories, previously set up in Oracle Assets. For each item, enter the Asset Category field on the Purchasing tab.

Define Remarketing Items with Web Attributes

Required

To enable an item to be published and orderable on the Web, you need to update some of the item attributes. You can do this as you create or update the item.

For more information, see the Oracle Inventory User's Guide.

Prerequisites

Define Items

Responsibility

Oracle Inventory Administrator

Module

Oracle Inventory

Navigation

Items > Master Items

Set Up Order Management

Required

Oracle Order Management setup covers how you create sales orders and returns, and copy existing sales orders from orders in Oracle iStore.

Oracle Order Management shares business and setup information with other Oracle Applications products. Therefore, you must refer to other implementation and user guides when you set up and use Oracle Order Management.

Order Management setup involves several phases, including setting up other integrated applications, that include Oracle General Ledger, Oracle Receivables, and Oracle Inventory. Oracle Lease Management uses Order Management during the remarketing of an asset. When an asset is sold through Oracle iStore, a sale is created in Order Management. Oracle Lease Management has modified some Order Management workflows so that Lease Management automatically updates transactions with asset sales and appropriately retires assets.

You must also set up some Oracle Lease Management specific transaction types for Order Header and Order Line. The process is detailed in the steps below.

For more information on implementing Oracle Order Management, see the Oracle Order Management Suite Implementation Manual.

Set Up Transaction Types

To sell inventory items through Oracle iStore, you must enable specific transaction types that Oracle Lease and Finance Management uses.

Prerequisite

An Oracle Lease and Finance Management custom workflow must be set up.

Responsibility

Order Management Super Menu

Module

Oracle Applications (Log in as SYSADMIN User)

Navigation

Setup > Transaction Types > Define

Steps

Perform the following steps:

  1. When you select the Define option, the Transaction Types window opens. In the Line Transaction Type field, run a query for the a transaction type of "Standard (Line Invoicing)".

  2. Make sure the transaction type code is "LINE" and the Order Category is "Order."

  3. Click the Shipping tab and choose the warehouse name from the list of values.

  4. Save your work.

    Return to the main Transaction Types window and create an Order Header Transaction type with the following values:

  5. In the Transaction Type field enter "OKL_Standard."

  6. In the Descriptions field, enter "OKL Standard Order Type."

  7. In the Transaction Type Code field, choose Order from the list of values.

  8. In the Order Category field, choose Mixed from the list of values.

  9. In the Order Workflow field, choose the customized Order Management Order Header Workflow process called "OKL Order Flow - Generic" from the list of values.

  10. On the Main tab, in the Agreement Type field, choose Standard Terms and Conditions from the list of values.

  11. In the Default Order Line Type field, choose "Standard (Line Invoicing)" from the list of values.

  12. In the Price List field, choose Corporate from the list of values.

  13. In the Ordering field, choose Booking from the list of values.

  14. In the Shipping field, choose Picking from the list of values.

  15. Click the Shipping tab and in the Warehouse field, choose the name of the warehouse from the list of values.

  16. Click the Assign Line Flows button.

    This opens the Line Workflow Assignments window. Enter the following:

  17. In the Order Type field choose "OKL_Standard" just as you did in the Transaction Type field.

  18. In the Line Type field, choose "Standard (Line Invoicing)."

  19. In the Item Type field, choose "Standard Item."

  20. In the Process Name field, choose "Line Flow - Generic."

  21. Enter a Start Date.

  22. Save your work.

Set Up Oracle Receivables

Oracle Receivables is a required module for Oracle Lease Management. You must implement Oracle Receivables as required by the Oracle Receivables User Guide. There are also multiple steps that require configurations specific to Lease Management

Oracle Receivables has the following implementation tasks that affect Oracle Lease Management:

Define Line Transaction Flexfield Structure for AutoInvoice

Required

To use AutoInvoice to import Oracle Lease and Finance Management invoices and create transactions in Oracle Receivables, you must define the line transaction flexfield and all the segments within it.

Transaction flexfields are descriptive flexfields that AutoInvoice uses to uniquely identify transaction lines. Oracle Receivables lets you determine how to build your transaction flexfield structure and what information to capture.

Step 1:

Enter OKL_CONTRACTS

Enter OKL_MANUAL

Enter OKL_INVESTOR

Step 2:

To define the line-level Transaction Flexfield, query “Line transaction Flexfield” in the title field of the Descriptive Flexfield Segments window and enter the text and segments associated with this transaction flexfield.

The following table shows the values for the line transaction flexfields for most of Lease Management.

Line Transaction Flexfield Values for Lease Management
Column Name Segment Name Value Set Req
INTERFACE_LINE_ATTRIBUTE10 CONSOLIDATED_STREAMS_ID1 (None) Y
INTERFACE_LINE_ATTRIBUTE11 CONSOLIDATED_STREAMS_ID2 (None) Y

The following table shows the values for the line transaction flexfields for advance receipts functionality.

Line Transaction Flexfields for Advance Receipts (Advance Monies) Functionality
Column Name Segment Name Value Set Req
INTERFACE_LINE_ATTRIBUTE10 CONSOLIDATED_STREAMS_ID1 (None) Y
INTERFACE_LINE_ATTRIBUTE11 CONSOLIDATED_STREAMS_ID2 (None) Y

The following table shows the values for the line transaction flexfields for investor agreements functionality.

Line Transaction Flexfields for Investor Agreements Functionality
Column Name Segment Name Value Set Req
INTERFACE_LINE_ATTRIBUTE2 CONSOLIDATED_STREAMS_ID1 (None) Y
INTERFACE_LINE_ATTRIBUTE3 CONSOLIDATED_STREAMS_ID2 (None) Y

Responsibility

Oracle Receivables Administrator

Navigation

Setup > Financials > Flexfields > Descriptive > Segments

Steps

Perform the following steps

  1. Select Oracle Receivables as the application and Line Transaction Flexfield for the Title.

  2. Deselect the Freeze Flexfield Definition box--otherwise you cannot create a new record.

  3. In the Context Field Values area, select OKL_CONTRACTS.

  4. Click Segments to edit the definition.

  5. Enter the values listed in the appropriate table under Define Line Transaction Flexfield Structure

    Note: These values must be in upper case.

  6. To compile the flexfield, click the Compile button.

  7. Repeat steps 3-6, selecting OKL_INVESTOR in the Context Field Values area, and entering the values listed in the appropriate table under Define Line Transaction Flexfield Structure.

  8. Select the Freeze Flexfield Definition box to freeze the definitions.

For more information about defining Transaction Flexfield indexes, see the Transaction Flexfields of the Oracle Receivables User Guide.

Define Payment Terms

Required

Define payment terms to determine the payment schedule and discount information for customer invoices, debit memos, and deposits. You can also define proximo payment terms to pay regular expenses such as telephone bills and credit card bills that occur on the same day each month, and create split payment terms for invoice installments that have different due dates.

The two seeded options are 30 Net, which indicates that a payment is due within 30 days, and Immediate. By default, Oracle Receivables uses 30 NET. However, Oracle Lease Management uses the Immediate option, ONLY.

For more information, see the Payment Terms section of the Oracle Receivables User Guide.

Prerequisites

None

Responsibility

Oracle Receivables Administrator

Module

Oracle Receivables

Navigation

Setup > Transactions > Payment Terms

Open Accounting Periods

Required

Open or close periods in your accounting calendar to control the recording of accounting information for these periods. Receivables uses the status of these accounting periods to control transaction entry and journal entry creation to your general ledger. You cannot enter an activity in a closed accounting period. Receivables provides these period statuses: Not Opened, Future, Open, Close Pending, and Closed.

For more information, see the Opening and Closing Accounting Periods section of the Oracle Receivables User Guide.

Prerequisites

None

Responsibility

Oracle Receivables Administrator

Module

Oracle Receivables

Navigation

Setup > Financials > Calendars > Period Types

Define AutoAccounting

Required

Define AutoAccounting to specify the general ledger accounts for transactions that you enter manually or import using AutoInvoice. AutoAccounting uses this information to create the default revenue, receivable, freight, tax, unearned revenue, unbilled receivable, finance charges, bills receivable accounts, and AutoInvoice clearing (suspense) accounts.

Oracle Lease Management requires that AutoAccounting be enabled because not all billing items have accounting associated with them. Leasing contracts always have the accounting pre-defined, but for items such as vendor billing or billing at the customer level, the accounting needs to be generated in Receivables.

Lease Management does not send an accounting flexfield for any tax lines created with an invoice. You must set up AutoAccounting for tax lines to ensure successful import of invoices using AutoInvoice and accounting of tax amounts.

For more information, see the AutoAccounting section in the Oracle Receivables User Guide.

Responsibility

Oracle Receivables Administrator

Module

Oracle Receivables

Navigation

Setup > Transactions > AutoAccounting

Define Transaction Types

Responsibility

Oracle Receivables Administrator

Module

Oracle Receivables

Navigation

Setup > Transactions > Transaction Types

Define Transaction Type Invoice

Caution: For the transaction types of Invoice-OKL, Credit Memo-OKL, or Investor-OKL, an Overapplication Allowed check box appears. This check box is to allow overapplication of funds to invoices. Lease Management does not support overapplication of funds to invoices., and this check box should not be selected.

Steps

Perform the following steps:

  1. Enter a transaction name: Invoice-OKL

    This OKL transaction type is case sensitive and you must enter it as Invoice-OKL.

  2. Optionally enter a description.

  3. Enter Invoice as transaction class for this transaction type.

  4. Select the Open Receivable box.

    This updates your customer balances each time you create a complete debit memo, credit memo, charge back, or on–account credit with this transaction type. Receivables also includes these transactions in the standard aging and collection processes.

  5. Select the Post to GL box to be able to post transactions with this type to your general ledger.

  6. Choose a default Printing Option for transactions with this transaction type.

    Choose Print or Do Not Print. You can override this value when entering transactions.

  7. Choose a Transaction Status of Open, Closed, Pending, or Void.

    Use these statuses to implement your own invoice approval system.

  8. Select the Allow Freight box to allow freight to be entered for transactions with this transaction type.

  9. Deselect the Tax Calculation checkbox if your transaction type is Invoice-OKL, Credit Memo-OKL, or Investor-OKL.

  10. Choose a Creation Sign.

    The default is Positive Sign for transaction types with a class of either Guarantee or Deposit. If you are using the Cash Basis accounting method, your transaction's creation sign must be either Positive or Negative. You cannot update this field after you enter transactions with this type.

  11. If this transaction type's class is not Deposit or Guarantee and you want to restrict the direction in which items with this transaction type can be updated by applications entered against them, select the Natural Application Only box.

    If you select this box, Receivables sets Allow Overapplication to No. You cannot update this option after you save this transaction type.

  12. Enter an Application Rule Set for this transaction type or select one from the list of values (optional).

    An Application Rule Set determines the default payment steps when you use the Applications window or AutoLockbox to apply receipts to transactions using this type. If you do not enter a rule set, Receivables uses the rule set in the System Options window as the default.

  13. If this transaction type's class is not Deposit or Guarantee, and you did not select the Natural Application Only box, choose whether to Allow Overapplication against items with this transaction type by selecting or deselecting this box.

    If you select this box, Receivables sets Natural Application to No and you cannot update it after you save this transaction type. If you use the Cash Basis accounting method, the default value is No and you cannot change it.

  14. If this transaction type's class is either Deposit or Guarantee, enter the Invoice Type to use for invoices entered against commitments or deposits with this transaction type.

    When you enter an invoice against either a deposit or a guarantee with this transaction type, the value you enter here is the default invoice transaction type.

  15. If this transaction type's class is Deposit, Guarantee, Debit Memo, or Invoice, enter the Credit Memo Type to use when crediting items with this transaction type (optional).

    When you enter a credit memo against an invoice with this transaction type, the value you enter here is the default credit memo transaction type.

  16. Enter the range of dates that this transaction type is active.

    The default Start Date is today's date, but you can change it. If you do not enter an End Date, this transaction type is active indefinitely.

  17. Save your work.

Define Transaction Type Credit Memo

Steps

Perform the following steps:

  1. While still in the Transaction Types page, create a new transaction type called Credit Memo-OKL (Case sensitive).

  2. From the Navigator, access the Receivables Administrator responsibility > Setup > Transactions > Transaction type.

  3. Enter Credit Memo-OKL for the transaction name.

    This is case-sensitive and must be entered exactly as specified. Optionally, enter a transaction description.

  4. Enter Credit Memo as transaction class for this transaction type.

  5. Choose a default Printing Option for transactions with this transaction type, either Print or Do Not Print.

    You can override this value when entering transactions.

  6. For Transaction Status, enter Open.

  7. For Creation sign, enter Any Sign.

  8. Select these boxes:

  9. Save your work.

Define Transaction Type Investor

Follow the same procedure as described in Define Transaction Type Credit Memo. In Step 3, enter Investor-OKL (case sensitive). In Step 4, enter Invoice.

For more information, see the Transaction Types section in the Oracle Receivables User Guide.

Set Up Grouping Rules for Invoices

Required

The setup of grouping rules for Oracle Lease Management invoices is a two-stage process:

For setting up grouping rules for investors, see:

Specify Grouping Rules

Required

Prerequisites

None

Responsibility

Receivables Manager

Module

Oracle Receivables

Navigation

Setup > Transactions > AutoInvoice > Grouping Rules

Steps

Perform the following steps:

  1. In the AutoInvoice Grouping Rules window, specify or complete these fields:

  2. Choose File > Save.

After you specify grouping rules, attach the grouping rules to a batch source.

Attach Grouping Rules to Batch Source

Required

Prerequisites

Create the grouping rule. For more information, see Specify Grouping Rules.

Responsibility

Receivables Manager

Module

Oracle Receivables

Navigation

Setup > Transactions > Sources

Steps

Perform the following steps:

  1. In the Name field, choose OKL_CONTRACTS.

    OKL_CONTRACTS is your transaction source name.

  2. In the Type field, choose Imported.

  3. Click the AutoInvoice Options tab.

  4. Complete the following fields:

  5. Select only the Allow Sales Credit box.

  6. Choose File > Save.

Set up Grouping Rules for Investor

To set up grouping rules for investors, follow the same procedures as described in Specify Grouping Rule and Attach Grouping Rules to Batch Source. Use OKL_INVESTOR_GRP_RL , and use L.INTERFACE_LINE_ATTRIBUTE2 and L.INTERFACE_LINE_ATTRIBUTE3 .

Define Transaction Sources

Required

Batch sources control the standard transaction type assigned to a transaction and determine whether Oracle Receivables automatically numbers your transactions and transaction batches. Active transaction batch sources appear as list of values choices in the Transactions, Transactions Summary, and Credit Transactions windows.

You can define two types of transaction batch sources:

You can make a batch source inactive by deselecting the Active box and saving your work. Receivables does not display inactive transaction batch sources as list of values choices or let you assign them to your transactions.

Responsibility

Oracle Receivables Administrator

Module

Oracle Receivables

Navigation

Setup > Transactions > Sources

Steps

To define transaction sources, perform:

  1. Click the Batch Source tab.

  2. Enter OKL_CONTRACTS as the name.

  3. Select Imported as the type.

  4. Enter a Description.

  5. Enter the range of Effective Dates for this source.

    The Start date is the current date, but you can change it. If you do not enter an end date, this transaction batch source is active indefinitely.

  6. If this is a Manual source, and you want to automatically number new batches you create using this source, select the Automatic Batch Numbering box and enter a Last Number.

    For example, to start numbering your batches with 1000, enter 999 in the Last Number field. If you are defining an Imported transaction batch source, Receivables automatically numbers the batch with the batch source name – request ID.

  7. Select the Automatic Transaction Numbering box and enter a Last Number to automatically number new transactions you create using this source.

    You can use automatic transaction numbering with both Imported and Manual sources.

  8. Select the Copy Document Number to Transaction Number box (optional) to use the same value for both the document number and the transaction number for transactions assigned to this source.

  9. For the Reference Field Default Value select interface_header_attribute6. This will display contract numbers in the Reference field in the Transaction window.

  10. Enter Invoice-OKL as the Standard Transaction Type for this batch source.

    When you choose a batch source during transaction entry, this is the default transaction type. You can define new transaction types in the Transaction Types window.

    Click the AutoInvoice Options tab.

  11. Specify how you want AutoInvoice to handle imported transactions that have Invalid Tax Rates.

    An invalid tax rate is one in which the imported transaction's tax rate does not match its tax code.

    Enter Correct if you want AutoInvoice to automatically update the tax rate that you supplied to the one that you defined previously for the tax code.

    Enter Reject if you want AutoInvoice to reject the transaction.

  12. Specify how you want AutoInvoice to handle imported transactions with Invalid Lines by entering either Reject Invoice or Create Invoice.

  13. Specify how you want AutoInvoice to handle imported transactions that have lines in the Interface Lines table that are in a closed period.

    In the GL Date in a Closed Period field, enter “Adjust” to have AutoInvoice automatically adjust the GL dates to the first GL date of the next open or future enterable period. The name of this attribute is GL Date in a Closed Period.

    Enter “Reject” to reject these transactions.

  14. If you want AutoInvoice to require that the revenue amount for each transaction line is equal to the selling price times the quantity specified for that line, select the Create Clearing box.

    Use this option to distribute revenue on an transaction in an amount that is not equal to the transaction line amount. If you select this box, AutoInvoice puts any difference between the revenue amount and the selling price times the quantity for a transaction into the AutoInvoice Clearing account that you have defined. Otherwise, AutoInvoice requires that the revenue amount be equal to the selling price times the quantity for all of the transactions it is processing.

  15. Define your clearing account in the Automatic Accounting window.

  16. Indicate whether sales credits can be entered for transactions using this source by selecting or deselecting the Allow Sales Credit box.

    This option and the Require Salesreps option in the System Options window determine whether sales credits are optional or required.

  17. Click the Customer Information tab.

  18. Select Id for each option to indicate that AutoInvoice validates your customer information for this batch source using an identifier.

  19. Choose Value if you use this batch source to import data from a non–Oracle system.

  20. Click the Accounting Information tab.

  21. Select Id to indicate how AutoInvoice validates your Invoice and Accounting Rule data for this batch source.

  22. Select Id to indicate whether you want AutoInvoice to validate the identifier for this batch source.

  23. Select the Derive Date box to derive the default rule start date and default GL date from the ship date, rule start date, order date and the default date that you supply when you submit AutoInvoice.

    If Oracle Inventory is installed, this must be selected.

  24. Select Id to indicate that AutoInvoice validates your Payment Terms for this batch source using identifiers.

  25. Select Percent to indicate that AutoInvoice validates your Revenue Account Allocation data for this batch source.

  26. Click the Other Information tab.

  27. Select Id to validate other data except for Agreement, Sales Territory, and Related Document.

  28. Click the Sales Credit Validation tab.

  29. Select Id for first two options to validate information using identifiers for this batch source.

  30. Select Percent to validate sales credits based on percent.

  31. Save your work.

For more information, see the Transaction Batch Sources section in the Oracle Receivables User Guide.

Define Transaction Sources for Investor Agreements

Follow the same procedure described in Define Transaction Sources. At Step 2 enter OKL_INVESTOR. At Step 10 enter Investor-OKL.

Define Remittance Banks

Required

Define all of the banks and bank accounts you use to remit your payments. You can define as many banks and bank accounts as you need. As bank accounts are associated to a legal entity as an owner, Oracle Receivables and Oracle Lease Management identify the legal entity for a receipt based on the remittance bank account entered on the receipt. Though each bank account has one primary currency, you can remit the payment from different currencies if it is a multi-currency account. To indicate that a bank account can accept receipt in a different currency, set the multi-currency flag to Yes while defining the bank accounts.

If you already defined your remittance banks when setting up Oracle Payables or Oracle Receivables, then proceed to the next step.

For more information, see the Defining Banks section in the Oracle Receivables User Guide.

Prerequisites

You must install Oracle Payments.

Responsibility

Oracle Receivables Administrator

Module

Oracle Receivables

Navigation

Setup > Receipts > Banks

Define Receipt Classes

Required

Define receipt classes to specify whether receipts are created manually or automatically. For manual receipts, you can specify whether to automatically remit it to the bank and/or clear your accounts. For automatic receipts, you can specify a remittance and clearance method, and whether receipts using this class require confirmation.

For more information, see the Receipt Classes section in the Oracle Receivables User Guide.

Prerequisites

None

Responsibility

Oracle Receivables Administrator

Module

Oracle Receivables

Navigation

Setup > Receipts > Receipt Classes

Define Payment Methods

Required

Define the receipt methods to account for your receipt entries and applications and to determine a remittance bank information. When defining payment/receipt methods, you must enter a receipt class, remittance bank information, and the accounts associated with your payment receivables type. You can also specify accounts for confirmation, remittance, factoring, bank charges, and short–term debt.

For more information, see the Payment Methods section in the Oracle Receivables User Guide.

Prerequisites

You must define receipt classes and your banks.

Responsibility

Oracle Receivables Administrator

Module

Oracle Receivables

Navigation

Setup > Receipts > Receipt Classes

Create LockBox

Same as Oracle Receivables. For Lease, set the field Line Level Cash application to Oracle Lease Management.

See: Lockboxes, Oracle Receivables Implementation Guide

Define Transmission Formats

Same as Oracle Receivables. No specific setup for Lease.

See: Define Transmission Formats, Oracle Receivables Implementation Guide

Define Aging Buckets

Required (Prerequisite for general loss provision functionality. See Define Loss Provision Rules.

Define aging buckets to review and report on open receivables based on the number of days each item is past due. For example, the 4–Bucket Aging bucket that Receivables provides consists of four periods: –999 to 0 days past due, 1 to 30 days past due, 31–61 days past due, and 61–91 days past due.

For Oracle Lease Management, you must define aging buckets that you use to create loss provisions.

For more information, see the Aging Buckets section in the Oracle Receivables User Guide.

Prerequisites

None

Responsibility

Oracle Receivables Administrator

Module

Oracle Receivables

Navigation

Setup > Collections > Aging Buckets

Integration with Oracle E-Business Tax

Oracle Lease Management integrates with Oracle E-Business Tax to provide a single point solution for transaction-based tax service needs. Before tax can be processed in Lease Management, you must complete all relevant Oracle E-Business Tax set up steps.

To complete Oracle E-Business Tax set up steps, see Oracle E-Business Tax Implementation Guide.

For more information on E-Business Tax and Lease Management, see Sales Tax, Oracle Lease Management User’s Guide.

Billing Adjustments for Lease Management

Navigation

Setup > Receipts > Receivable Activities

Steps

Lease Management includes a seeded receivable activity record, Adjustment.

Create another record with identical attributes and name it OKL Adjustment. This is required before you run the concurrent program Create AR Adjustment.

Billing Approval Limits for Adjustments for Lease Management

Navigation

Setup > Transactions > Approval Limits.

Steps

Set up approval limits for the appropriate users according to their usernames in Oracle Lease Management. Make sure that the Document Type is Adjustment.

Set Up Install_At and Ship_To Addresses For Customers and Assets

Navigation

Oracle Forms

Set up Install_At sites and ensure that they have corresponding Ship_To addresses, required for billing processing and for display as possible installed locations when creating an asset. (If an address is later found to be invalid, the Bill_To address for the contract is used as the Ship_To address in Receivables.)

Steps

  1. Log onto Oracle Forms with responsibility Telesales Manager.

  2. Log onto Oracle Forms with responsibility Receivables Manager.

  3. Repeat for each possible Install_At site for each customer.

Define Receivables Lookups

Required

Lookup names display as list of value choices throughout Oracle Applications to help speed data entry and accuracy. Receivables provides many lookups types for you. Some lookup types can be updated to suit your business needs. You cannot update a lookup type if Receivables requires those settings for its own internal use.

You can create new lookup types and define as many additional lookups as you want in the Receivables Lookups window. For Oracle Lease Management, you need to define two additional lookups, described in the Guidelines below.

You cannot change lookup name values after you save them. To remove an obsolete lookup you can: disable the code, enter an end date, or change the meaning and description to match a replacement code.

A lookup is any defined value that was not defined in a setup window. Use the Oracle Purchasing Lookups window to review and maintain sets of values, or lookups that you use in Payables.

For more information on defining your Receivables lookups, see the Oracle Receivables User Guide.

Prerequisites

None

Responsibility

Oracle Receivables Administrator

Module

Oracle Receivables

Navigation

Setup > System > QuickCodes > Receivables

Guideline

You must define the following Oracle Lease Management-specific lookups. To do so, within the QuickCodes > Receivables page enter a query of type CUSTOMER_CATEGORY. Add two blank lines and add the two new lookups with these values.

The following table shows two codes with descriptions and meanings.

Lookups for Oracle Lease Management
CODE MEANING DESCRIPTION
Insurer Insurance Agent Insurance Agent
Insurance_Agent Insurance Agent Insurance Agent

Set Up Payables

Required

Oracle Lease Management links with the Oracle Payables module to let you make disbursements to pay vendor or supplier invoices. Items that you would typically need to set up include defining or specifying: payables lookups, invoice currency, payment currency, currency exchange types and rates, payment terms, tax codes, withholding tax groups, document categories, pay groups, and open payables periods.

The specific setup steps of Oracle Payables that directly impact Oracle Lease Management include:

For more information on setting up Oracle Payables, see the Oracle Payables User Guide.

Define Payment Terms

Required

You need to define payment terms that you can assign to an invoice to automatically create scheduled payments when you submit an approval for an invoice. You can define payment terms to create multiple scheduled payment lines and multiple levels of discounts, and you can create an unlimited number of payment terms. Payment terms have one or more payment term lines, each of which creates one scheduled payment.

For more information on defining payment terms, see the Oracle Payables User Guide or the Oracle Applications Help, available in Oracle Payables.

Prerequisites

None

Responsibility

Accounts Payable Super User

Module

Oracle Payables

Navigation

Setup > Invoice > Payment Terms

Define Payables Lookups

Required

A lookup is any defined value that was not defined in a setup window. Use the Oracle Payables Lookups window to review and maintain sets of values, or lookups that you use in Payables.

When you define your payables lookups, you can:

For more information on defining financial options, see the Oracle Payables User Guide or the Oracle Applications Help, available in Oracle Payables.

You must enter one Oracle Lease Management–specific payable lookup. On the Lookups > Payables page, enter a query of type SOURCE. Add a lookup to this list with these values:

Code = OKL

Meaning = Oracle Lease Management

Description = Create Payables Invoices from Oracle Lease Management

Prerequisites

None

Responsibility

Accounts Payable Super User

Module

Oracle Payables

Navigation

Setup > Lookups > Payables

Set Up Purchasing

Required

Oracle Lease Management links with Oracle Purchasing.

The specific setup steps of Oracle Purchasing that directly impact Oracle Lease Management include:

For more information on setting up Oracle Payables, see the Oracle Purchasing User Guide.

Define Purchasing Lookups

Required

A lookup is any defined value that was not defined in a setup window. Use the Oracle Purchasing Lookups window to review and maintain sets of values, or lookups that you use in Purchasing.

When you define your purchasing lookups, you can:

For more information on defining your purchasing lookups, see the Oracle Purchasing User's Guide.

For Oracle Lease Management, you must define two purchasing lookup types:

Prerequisites

None

Responsibility

Accounts Payable Super User

Module

Oracle Payables

Navigation

Setup > Lookups > Purchasing

Define Suppliers

Required

You need to set up suppliers to record information about individuals and companies from whom you purchase goods and services. You can also enter employees whom you reimburse for expense reports. When you enter a supplier that does business from multiple locations, you store supplier information only once, and enter supplier sites for each location. You can designate supplier sites as pay sites, purchasing sites, RFQ only sites (suppliers from whom you receive quotations), or procurement card sites.

Areas about suppliers that you can complete include: general information, classification, accounting, control, payment, bank accounts, Electronic Data Interchange (EDI), various tax issues, purchasing, and receiving.

For more information on defining suppliers, see the Oracle Payables User Guide or the Oracle Applications Help, available in Oracle Payables.

Prerequisites

None

Responsibility

Accounts Payable Super User

Module

Oracle Payables

Navigation

Suppliers > Entry

Define Insurance Providers

Required

You must register vendors of insurance products as suppliers in Oracle Payables.

You must set up at least one vendor site per organization unit for all insurance providers. This vendor site is used in sending credits and payments to insurance providers of Lease Management insurance product policies.

You must also set up, or verify that users set up, third-party insurance providers as customers or as Trading Community Architecture (TCA) organization parties. The lookup for third-party providers draws from the TCA model, while the Lease Management setup for providers of insurance products draws from (po_vendor) Purchasing tables.

See Define Insurance and the Oracle Payables User Guide for further information.

Prerequisites

None

Responsibility

Accounts Payables Super User

Module

Oracle Payables

Navigation

Suppliers > Entry

Guidelines

On the Classification tab of the Suppliers window appears, perform:

Set Up Document Sequencing of Payables Invoices

Required

To generate invoice numbers, you must set up document sequencing for payables invoices. This is a one-time setup, and you must specify certain values in the following procedures. You can apply this setup to more than one ledger.

The sequence of setup topics for document sequencing of payables invoices is:

Create Document Sequence

Required

The first part of setting up document sequencing for payables invoices is to create the document sequence. You provide a name, specify the application, effective dates, manual or automatic types, and an initial value.

Note: You create the following document sequence only one time. If you use multiple sets of books, then all sets of books will use the same document sequence.

Prerequisites

None

Responsibility

System Administrator

Module

Oracle Applications--forms

Navigation

Application > Document > Define, Open

Steps

Perform the following steps:

  1. In the Document Sequences window on one empty row under the Name column, enter OKL Lease Pay Invoices.

    Note: You must enter exactly OKL Lease Pay Invoices.

  2. Under the Application column, click the Ellipses button, and choose the Oracle Lease Management or Contracts for Lease.

  3. Under the Effective From and To columns, click the Ellipses button, and choose a starting and ending effective date for your document sequence.

  4. Under the Type column, choose Automatic.

  5. Under the Initial Value column, enter the initial invoice number.

    Note: If you are using multiple sets of books, then each book will use the same initial invoice number.

  6. Click the Save button.

Define Category

Required

After you have created the document sequence, define the document's sequence category that you assign to a specific table name. In the following procedures, you specify the application; enter code, name, and description; and choose the table name.

Note: You create the following document sequence category only one time. If you use multiple sets of books, then all sets of books will use the same document sequence.

Prerequisites

Create Document Sequence

Responsibility

System Administrator

Module

Oracle Applications--forms

Navigation

Application > Document > Categories, Open

Steps

Perform the following steps:

  1. In the Document Categories window on the first blank row under the Application column, click the Ellipses button, and choose the product name for Oracle Lease Management.

  2. Under the Code, Name, and Description columns, enter OKL Lease Pay Invoices.

    The Code name must be unique, and you must use this name.

  3. In the Table Name column, click the Ellipses button and choose OKL_TRX_AP_INVOICES_B.

  4. Click the Save button.

Assign Category and Sequence

Required

After you have defined the category for document sequence for payables invoices, you can assign the category and the sequence.

If you have multiple sets of books, you must run the following procedures multiple times to assign each sequence and category to another ledger.

Prerequisites

Create Document Sequence

Define Category

Responsibility

System Administrator

Module

Oracle Applications--forms

Navigation

Application > Document > Assign, Open

Steps

Perform the following steps:

  1. In the Sequence Assignments window on the Document tab in the Application column, click the Ellipses button and choose Contracts for Lease or Oracle Lease Management.

  2. In the Category column, click the Ellipses button and choose the category that you set up previously.

  3. In the ledger column, click the Ellipses button and choose the ledger' name to which you want to assign the category.

  4. In the Method column, choose Automatic.

  5. Click the Save button.

    The Assignment tab becomes active. If not, then click the Assignment tab. On the Assignment tab, the system automatically populates both the Application and Category fields.

  6. On the Assignment tab, in the Start Date and End Date fields, click the Ellipses buttons and choose the respective dates at which you want the assignment to be effective.

  7. Click the Save button.

Set Up Subledger Accounting for Lease and Finance Management

Setup for Contract Trial Balance and Account Balance

Oracle Subledger Accounting provides the Supporting Reference Balance feature to store and report account balances on one or more transaction parameter such as Contract Number, Financial Product, and Customer. You can use this feature to report balance on one or a combination of parameters to maintain and view account balances.

Oracle Lease Management leverages this feature to provide Contract Trial Balance at the contract level. The Trail balance view at the contract level displays contract balance for each account for a specified period.

To use the Contract Trial Balance view at the contract level, you must complete the following steps in Oracle Subledger Accounting:

  1. Set Up Supporting Reference

  2. Assign Supporting Reference with Journal Line Types

  3. Upload Initial Balance

1. Set Up Supporting Reference

For detailed setup steps, see Supporting References, Oracle Subledger Accounting Implementation Guide.

To set up the Contract Trial Balance at the contract level for Lease and Finance Management, follow these steps:

2. Assign Supporting Reference with Journal Line Type

You must perform this step for each Accounting Method used by ledgers for which you need to maintain trial balance at the contract level. If more than one ledger uses the same accounting method, then you need to perform this step only once.

Assign Supporting Reference to each Journal Line Type

To assign Supporting Reference to each Journal Line Type, you must select Application>Event>Journal Line Definition>Journal Line Type and then assign the supporting reference for each Journal Line Type.

3. Initial Balance Upload

Oracle Subledger Accounting starts maintaining the balance for supporting reference from the date it is enabled and does not maintain balances prior to that. So if you are upgrading from an earlier version or migrating from a legacy system then, you need to specify the initial balance for a period prior to which SLA started maintaining the supporting reference balance. This ensures that SLA displays the correct balance for a supporting reference.

The initial balance is the starting balance in ledger currency for a supporting reference (Analytical criteria) and a combination of supporting reference values, in the context of an application, ledger, CCID, and a period. You can specify the initial balance either as debit balance or credit balance.

Note: There is no journal entry in SLA to support initial balances.

To specify the initial balance for supporting references, SLA provides an interface table and a concurrent program to upload the data to the SLA table. Using these you can do the following:

Define Initial Balance

You can specify the initial balance for a period prior to which SLA started maintaining the balance. You can define initial balances as Net of Debit and Credit balance. You can define initial balance for a closed period and also after SLA created balances and entries for the supporting reference value.

When you define an initial balance for a supporting reference source value, SLA synchronizes the balance for all the periods that fall after the period for which you are defining the initial balance.

If there is a balance record for a combination for which you are defining initial balance, SLA updates the balance record for subsequent periods for which the balance exist to synchronize the balance. The subsequent periods for which balance needs to be updated depends on the Carry Forward Balance and Account Type for which initial balance record is created. The following table describes the Carry Forward Balance and Account Type combination.

Carry Forward Balance and Account Type Combination
Carry Forward Balance Account Type Result
Always Any Balance record is updated for all the subsequent period for which balance record exists.
Never Any Balance record is updated for all the subsequent periods of the financial year in which the initial balance record falls.
Based on Account Asset or Liability or Owner's Equity or Null Balance record is updated for all the subsequent period for which balance record exists.
Based on Account Income or Expense or Budget-DR or Budget-CR Balance record is updated for all the subsequent periods of the financial year in which the initial balance record falls.

Update Initial Balances

Once the initial balance is entered, you can modify the initial balance if required. You can either change the initial balance amount or change the period or both. SLA synchronizes the balances for the periods following the initial balance due to change in the initial balance. The period up to which SLA synchronizes the balance depends on the same conditions as mentioned in the Define Initial balance section.

To change the initial balance, upload a record for the same period, ledger, and CCID for the supporting reference detail value combination for which the initial balance is uploaded.

Note: You cannot update the period of an initial balance prior to a period for which the initial balance is already defined

Delete Initial Balances

To delete the initial balance, upload a record with zero amount for the same period, ledger, and CCID for the supporting reference detail value combination for which the initial balance is already uploaded. When you delete the initial balance record, SLA re-synchronizes the balances for the subsequent period.

Steps to Upload Initial Balances

To define, update, or delete initial balances for supporting references, follow these steps:

Error Conditions

Error Message Description
Invalid or Not an SLA Application Application should be a subledger application defined in the Subledger Accounting architecture.
Invalid Ledger Ledger Identifier should correspond to a valid ledger defined in General Ledger application.
Missing Account or Segment Values Account information is missing. Either the Accounting Code combination or the Accounting Segments should be provided to identify the account.
Invalid Account Invalid Account. The Account does not represent a valid account for the ledger.
Invalid Period Name for Ledger Invalid Period. The period name is not valid for the ledger
OR
An initial balance record for the supporting reference detail value combination already exists for a period that is earlier than the period for which the initial balance is attempted to be loaded.
Journal Entries exists previous to this period The supporting reference balance already exists for a period prior to the period for which the initial balance is uploaded for the Account and combination of supporting reference values due to existing journal entries in SLA.
Initial Balance Amount is NULL Initial Balances provided for both the Debit and Credit side are NULL.
Either Invalid Amount or Negative Amount Initial Balance provided for either the Debit or Credit side is negative or non-numeric.
Invalid Supporting Reference Interface table contains a supporting reference that has not been enabled.
OR
Supporting reference for which the maintain balance flag is set to No.
OR
Invalid Supporting Reference Code.