The accounting processes from the Period Open to Close enable accruals, loss provisions, write-downs, periodic adjustments, and journal entries specific to the asset-based finance industry. This chapter reviews Lease Management accounting transactions, transaction processes, inquiries, and summaries.
For more information on the Lease and Finance Management accounting process, see Accounting Integration.
The accrual process enables recognition of the periodic income and expense for a contract to satisfy accounting requirements. Lease and Finance Management has three concurrent programs to process accrual for contracts based on the Revenue Recognition Method defined on the product.
The amount of accrual is determined based on either the stream elements or the amount of the formula on the accounting template. All accrual amounts are in the contract currency.
The Generate Accruals concurrent program validates the accrual date. If the date is not in an open accounting period, the Generate Accruals program terminates with an error and displays an error message in the log file requesting that you open the period in the Accounting Periods page.
Three concurrent programs have been seeded for accrual processing for a contract. Each concurrent program selects contracts for accrual processing based on the value of the quality Revenue Recognition Method on the Financial Product. The accrual process generates accrual transactions for those stream types that are selected for accrual on the product. No other stream type is processed for accrual.
The concurrent programs to generate accruals are:
Generate Accruals Master – Streams - This program processes all contracts with the Revenue Recognition Method of Streams.
Generate Accruals Master – Estimated & Billed - This program processes all contracts with the Revenue Recognition Method of Estimated & Billed. The process generates two types of accrual. Estimated accrual is generated for each accounting period for an amount determined by formula on the accounting template. Estimated accrual is reversed in each subsequent month. The program also accrues the amount billed for each billing cycle using billed stream.
Generate Accruals Master – Actual – This program processes all contracts with the Revenue Recognition Method of Actual. It accrues actual income for the period calculated by a formula defined on the accounting template.
Use this procedure to specify an accrual batch name and accrual date
Optionally, define accrual rules. This should have been completed in the implementation of Oracle Lease and Finance Management. For more information, see Oracle Lease and Finance Management Implementation Guide.
Optionally, define accrual reversal days. This should have been completed in the implementation of Oracle Lease and Finance Management. For more information, see Oracle Lease and Finance Management Implementation Guide.
The accrual stream accounting templates should have been completed in the implementation of Oracle Lease and Finance Management. For more information, see Oracle Lease and Finance Management Implementation Guide.
Set the accrual override for contracts that you want to fail accrual evaluation. See Specify Accrual Override.
Navigation options are as follows:
Finance > Processing > Schedule > Generate Accruals Master - Actual
Finance > Processing > Schedule > Generate Accruals Master - Estimated And Billed
Finance > Processing > Schedule > Generate Accruals Master - Streams
To generate batch accruals, perform the following steps:
In the Batch Name field, enter a name for your accrual batch.
In the Accrual Date field, click the Calendar icon and click a date.
The Accrual Date is the cut-off date for income recognition and is the date that you specify. It does not need to be the current or system date.
Click Submit.
Lease and Finance Management obtains the amounts used in accrual accounting from the streams or formula depending on whether the contract is a fixed or a variable rate contract. Fixed rate contracts include amounts from streams to determine an accrual amount. You set up streams at the product level. For more information on setting up streams, see Define Streams and Pricing, Oracle Lease and Finance Management Implementation Guide.
Variable rate contracts use a formula to determine an accrual amount. The automatic reversal of accruals in the next period happens only for variable rate contracts.
Accrual reversal rules create the following situations:
If a contract fails the accrual evaluation, income recognized in earlier periods may be reversed. For example, income that was accounted for with the memo flag set to No becomes accounted for with the memo flag set Yes.
If a contract that previously failed now passes accrual evaluation, the income that had been reversed, or accounting for using an accounting template where the memo flag was set toys, now uses the accounting template with the memo flag set to No.
Use this procedure to specify that accrual rule evaluation not apply to a specific contract. With the accrual override option, the accrual rule evaluation treats the contract as if evaluation has failed. Failure of accrual rule evaluation has the following consequences:
Income for that contract goes to a non-income account rather than an income account.
Lease and Finance Management reverses income that you recognized earlier for the number of days defined in setup.
The contract uses an accrual accounting template with the Memo checkbox set to Yes
To specify an accrual override, navigate to Finance > Accrual Override and locate the current contract you want to override. Select the Override Accrual checkbox and click Apply.
The Memo checkbox in accounting templates identifies the template to be used based on the accrual evaluation. If a contract fails accrual evaluation, income may be accounted for in a different account using an accounting template with the Memo checkbox set to Yes. A contract with accrual override also uses an accounting template with the Memo checkbox set toYes.
If a contract passes accrual evaluation, income goes to an income account and uses an accounting template with the Memo checkbox set to No.
Loss provisions let you create estimated or tentative loss reserves against contracts. Loss provisions make use of aging buckets that you set up in Oracle Receivables. The loss provision rates associate aging buckets with loss provision rates. All loss provision amounts are in the contract currency.
The Generate Loss Provision concurrent program validates the loss provision date. If the date is not in an open accounting period, the program terminates with an error and displays an error message in the log file requesting you to open the period in the Accounting Periods page.
General loss provisions apply to all contracts for a product except for any contract that has a specific loss provision. General loss provision calculations are based on the following:
A provision calculation on Net Book Value (NBV), Net Investment Value (NIV), or principle balance
Outstanding Receivables
Rates are based on setup in Lease and Finance Management—one for each aging bucket
General loss provisions apply reversals in the next period run or upon contract termination. When you determine an actual loss, you can create an adjusting entry to record that loss.
Before running this concurrent program, the following tasks must be completed:
Define the Product
Set up stream types with the stream purpose of General Loss Provision
Set up loss rates for Oracle Receivables aging buckets
Set up accounting templates for streams, specifying the transaction type as General Loss Provision
Set up aging buckets for general loss provisions
To calculate and process general loss provisions, you must run the General Loss Provision concurrent program.
To run the General Loss Provision program, navigate to Finance > Processing > Schedule and select the General Loss Provision concurrent program.
Enter the details for your lease scenario and click Submit.
The following table describes field options for the General Loss Provisions page.
| Field | Description |
|---|---|
| Product | Applies to all contracts for the product unless you applied a Specific Loss Provision. |
| Stream Type | Only General Loss Provision stream types are available. |
| Bucket Name | You define loss rates for aging buckets in Lease and Finance Management setup. This task should have been completed during implementation. For more information, see Define Loss Provision Rules, Oracle Lease and Finance Management Implementation Guide. |
| Provision Date | Effective date of the loss provision. |
Specific loss provisions are applicable to a specific contract. A specific loss provision reverses on contract termination, and it reverses previous provisions in addition to, or in place of, any earlier loss provisions.
Before you can create a loss provision, you must have completed the following tasks:
Set up stream types with a stream purpose of Specific Loss Provision
Set up accounting templates for the streams with a transaction type of Specific Loss Provision
To create or update a loss provision, navigate to Finance > Loss Provisions, locate the contract, click Create or Update, and enter the loss provision details. Then click Apply.
Like-kind exchanges apply to off-lease assets whose tax properties you are applying to another new on-lease asset that has the same asset category. All asset amounts are in the functional currency of the ledger.
In like-kind exchanges, one replacement asset (new asset) is matched against multiple relinquished assets (old retired asset). Assets available as replacement assets must meet the following conditions:
The asset category of the replacement asset must be the same as the asset category of the relinquished asset.
Assets must have a Date Placed In Service (DPIS) date within the number of days defined in the Like Kind Match Limit Days field prior to the current date.
Like-kind exchanges are calculated by dividing the proceeds of the sale of a relinquished asset in the tax book by the match amount for the relinquished asset.
Before you can process like-kind exchanges, you must have completed the following setup tasks:
Set up asset book for like-kind exchanges
Set up asset categories and depreciation methods for the Federal tax asset book
Specified the Like-Kind Match Limit Days
For information on these setup tasks, see Set Up Assets For Like-Kind Exchanges, Oracle Lease and Finance Management Implementation Guide.
Before you can process like-kind exchanges, you must have completed the following:
Created an asset return of relinquished asset
Specified like-kind exchange
Placed the asset into context
For more information on these tasks, see Search for a Returned Asset Request and Create a Manual Asset.
The following table outlines the business process for like-kind exchanges.
| Step | Description |
|---|---|
| Terminate Asset | Terminate an asset in Lease and Finance Management. |
| Run Process Transaction | Run the Process Transaction in Fixed Assets concurrent program in Lease and Finance Management. |
| Mark Retired Asset as Eligible | Mark the retired asset as eligible for Like-Kind Exchange in Lease and Finance Management. |
| Retire Asset in Corporate Book | Retire the relinquished asset in the corporate book and run the Calculate Gain Or Loss concurrent program in Fixed Assets. |
| Retire Asset in Tax Book | Retire the relinquished asset in the tax book and run the Calculate Gain Or Loss concurrent program in Fixed Assets. |
To process like-kind exchanges, perform the following steps:
Navigate to Assets > Transactions > Like-Kind Exchange > Create
Select corporate book, tax book, asset category, and replacement asset book.
Select the relinquished assets for the like-kind adjustment.
Optionally, enter the match amount for each relinquished asset with the following restrictions:
For each relinquished asset, the maximum match amount cannot be more than the sale proceeds of that asset in the tax book
The total match amounts for all relinquished assets cannot be more than the current cost of the replacement asset
If the match amount is not entered, Lease and Finance Management uses the maximum allowable match amounts for each relinquished asset to do the automatch
The main topics in this section are:
Off-Lease Asset Transactions: Review and change depreciation hold period and depreciation basis.
Salvage Value Writedown: Review or change the salvage value of an asset in Oracle Assets.
Residual Value Writedown: Review or change the residual value of an asset on a contract.
You can create off-lease asset transactions on assets:
Whose lease contracts have ended.
That may or may not have been returned to the possession of the lessor.
For off-lease assets, you may want to review or change the hold period and/or depreciation method. A hold period is the number of days during which you defer or suspend recognition of depreciation after the asset comes off of a lease. For more information on setting up the hold period, see the Oracle Lease and Finance Management Implementation Guide.
Note: All amounts associated with off-lease asset processing are in the ledger currency.
The topics in this section include:
View Summary of Off-Lease Asset Transactions
Update Off-Lease Asset Transaction Details
Set up off-lease Asset s. For more information, see the Oracle Lease and Finance Management Implementation Guide.
Lease Super User, Asset Manager
Assets > Transactions > Off-Lease Asset Transactions
When an asset comes off lease, Oracle Lease and Finance Management automatically creates an off-lease transaction record. On the Off-Lease Asset Transactions page, you can search and view the following information about off-lease asset transactions:
Asset Number
Asset Depreciation
Transaction Type
Asset Category
Date Created
Transaction Date
Hold Period Days
Depreciation Method
Depreciate
Transaction Status
Details
You can view or edit the hold periods days and the depreciation method of your off-lease asset.
Perform the following steps:
Query the off-lease asset transactions using the Off-Lease Asset Transactions page.
In the search results, click the asset number or the Update icon for the off-lease asset that you want to modify.
The Off-Lease Asset Transaction page opens.
Update any of the following fields:
Click the Update button to save changes that you made.
Changes happen whenever the concurrent program processes update the Oracle Assets module.
To process the updated off-lease asset transaction details in Oracle Assets, run the Process Transactions In Fixed Assets concurrent program in Lease and Finance Management. This concurrent program will automatically update Oracle Assets.
Salvage value is the remaining value of an asset that you do not depreciate. During the asset's life, you can revise the salvage value using the salvage value writedown procedures. The salvage value is in the ledger currency.
The topics in this section include:
Specify or Update Salvage Value Writedown
View Asset Details - Salvage
Use the following procedure to specify or change an asset's salvage value writedown. See Salvage Value Writedown.
The asset must exist in Oracle Assets.
Lease Super User, Asset Manager
Assets > Transactions > Salvage Value Writedown
On the Salvage Value Writedown page, search for the asset by specifying one or more search criteria by Asset Number, Asset Category, Asset Description, or Asset Corporate Book.
Click the Go button.
In the Results area, matches appear.
On the row that shows the asset for which you are looking, enter the salvage value under the New Salvage Value column.
Click Update to save your information.
To process the updated salvage value writedown in Oracle Assets, run the Process Transactions In Fixed Assets concurrent program in Lease and Finance Management. This concurrent program will automatically update Oracle Assets.
You can view the following information about the assets: Asset Number, Asset Description, Contract Number, Contract Status, Asset Status, Contract Start Date, Contract End Date, Asset Type, Original Cost, Serial Number, In Service Date, Manufacturer Name, Model Number; Depreciation: Life in Months, New/Used, Salvage Value, Depreciation Category, and Depreciation Start Date.
Note: The Asset Details page of both the Salvage Value Writedown and the Residual Value Writedown areas contain the same fields and options.
None
Lease Super User, Asset Manager
Assets > Transactions > Salvage Value Writedown
On the Salvage Value Writedown page, search for the asset by specifying one or more search criteria by, Asset Number, Asset Category, Asset Description, or Asset Corporate Book.
Click the Go button.
In the Results area, matches appear.
On the row that shows the asset for which you are looking, click the asset number hypertext link under the Asset Number column.
The Asset page shows the asset's information. You cannot edit information on this page. You can specify or change the salvage value on another page. See Specify or Update Salvage Value Writedown or Specify or Change Residual Value Writedown.
Residual value is the value of an asset at the end of a lease term that you record on the lease contract. Periodically, you may need to reduce the residual value of the asset.
Note: The residual value is in the contract currency.
The topics in this section include:
Specify or Change Residual Value Writedown
View Asset Details - Residual
Use the following procedure to specify or change an asset's residual value writedown. See Residual Value Writedown.
A booked contract with assets having residual values
Lease Super User, Asset Manager
Assets > Transactions > Residual Value Writedown
Perform the following steps:
On the Residual Value Writedown page, search for the asset by specifying one or more search criteria for:
Click the Go button.
In the Results area, matches appear.
On the row that shows the asset for which you are looking, enter the Residual Value under the New Residual Value column.
Note: The residual value is in the contract currency.
Click Update to save your information.
To process the updated residual value writedown in Oracle Assets, run the Process Residual Value Writedown Transaction concurrent program in Lease and Finance Management. This concurrent program will automatically update Oracle Assets.
You can view the following information about the assets: Asset Number, Asset Description, Contract Number, Contract Status, Asset Status, Contract Start Date, Contract End Date, Asset Type, Original Cost, Serial Number, In Service Date, Manufacturer Name, Model Number; Depreciation: Life in Months, New/Used, Salvage Value, Depreciation Category, and Depreciation Start Date.
None
Lease Super User, Asset Manager
Assets > Transactions > Residual Value Writedown
Perform the following steps:
On the Residual Value Writedown page, search for the asset by specifying one or more search criteria: Asset Number, Item Category, Product, Asset Description, or Contract Number.
Click the Go button.
In the Results area, matches for the search appear.
On the row that shows the asset for which you are looking, click the asset number hypertext link under the Asset Number column.
The Asset page shows the asset's information. You cannot edit information on this page, but you can specify or change the Residual value in another area. See Specify or Change Residual Value Writedown.
You can create manual journals for miscellaneous transactions for a contract in Subledger Accounting. You can also associate a contract number as a supporting reference to the journal lines if the supporting reference has been setup. For information on creating manual journal and using supporting references, see the Oracle Subledger Accounting Implementation Guide.
This section contains the following topics on creating accounting entries for transactions accounted in Lease and Finance Management:
Create Subledger Journals
Accrual Reversal
Several processes in Lease and Finance Management, like Booking, Rebook, Termination, and Accrual create transactions in Lease and Finance Management. These transactions are accounted in Oracle Subledger through the Create Accounting concurrent program, which processes the accounting events for the transaction.
You can choose to create and post General Ledger journals in addition to creating subledger journals by selecting the required parameters on the Create Accounting program in Lease and Finance Management.
Navigate to Finance > Processing > Schedule to execute the Create Accounting concurrent program. The following table describes the additional parameters that allow you to customize the processing of the subledger journal or determine the output.
| Parameter | Description |
|---|---|
| Representation Code | Specify the valuation method for which the transactions should be processed. |
| Process Categroy | Specify the Process Category that should be processed. |
| End Date | Specify the date up to which transactions should be processed. |
| Mode | Specify if the accounting process should create Draft or Final subledger journals. |
| Errors Only | Specify if Output Report should be created in Detail or Summary, or should not be created. |
| Transfer to General Ledger | Specify if the subledger journal should be transferred to General Ledger and create General Ledger journals. |
| Post in General Ledger | Specify if the General Ledger journal should be posted. |
| General Ledger Batch Name | Specify the batch name for the General Ledger journals. |
| Include User Transaction Identifiers | Specify if the User Transaction Identifiers should be included in the output report. |
If the Lease and Finance Management Create Accounting program fails to create subledger journals for any accounting event, that accounting event is assigned a status of Error. You can query the accounting events with an Error status in the Accounting Event inquiry screen to review the error message and make corrections.
For more information about the Create Accounting concurrent program, see Create Accounting, Oracle Subledger Accounting Implementation Guide.
Reversal of estimated accrual for a contract with the Revenue Recognition Method of Estimated and Billed is automated using the accrual reversal functionality in Oracle Subledger Accounting. Lease and Finance Management flags the estimated accrual transactions for reversal and assigns the first date of the next accounting period as the Accrual Reversal Date.
When the Lease and Finance Management Create Accounting concurrent program processes the estimated accrual transaction with an Accrual Reversal date, the program also generates a reversal accrual entry with the Accrual Reversal Date.
For information on accrual reversal, see Oracle Subledger Accounting Implementation Guide.
Lease and Finance Management has the following two methods to transfer subledger journal entries to Oracle General Ledger:
Create Accounting
Transfer Journal Entries to GL
You can transfer Lease and Finance Management subledger journal entries to General Ledger by running the Create Accounting concurrent program. To complete the transfer to GL, set the following program parameters when running Create Accounting:
Mode = Final
Transfer to General Ledger = Yes
This program creates and validates subledger journal entries and transfers the final journal entries to General Ledger.
You can also transfer Lease and Finance Management accounting entries to General Ledger by running the Transfer Journal Entries to GL concurrent program. This program transfers all journal entries that have been completed either manually or with a prior run of the Create Accounting program with the Transfer to General Ledger option set to No.
The Multi-GAAP Adjustment Report is generated by a concurrent program. The report provides users with information necessary to pass the month end adjustment accounting entries manually, to assist in multi-GAAP reporting.
All active contracts, whose local product is associated with a reporting product, are eligible for multi-GAAP reporting. Loan and loan-revolving contracts backed by a real estate line instead of an asset line are not eligible for multi-GAAP reporting.
The output report will display the following sets of information:
contract information, to serve as an audit trail
summary information, to direct manual adjustments in Oracle General Ledger
For each multi-GAAP-enabled contract, the contract information is as follows:
revenue that needs to be reversed
depreciation that needs to be reversed
revenue to be accounted
depreciation to be accounted
The summary information shows the data adjustments that you must make manually in Oracle General Ledger. The summary information is as follows:
summary of accrual/non-accrual to be reversed by product
summary of accrual/non-accrual to be accounted by product
summary of local depreciation to be reversed by asset category
summary of reporting depreciation to be accounted by asset category
Note: Accrual and revenue amounts appear in the contract currency. Depreciation amounts appear in the ledger currency.
Before generating the Multi-GAAP Adjustment Report, you must have completed the following tasks:
You must have created and booked contracts, whose local product is associated with a reporting product.
You must have a reporting asset book set up in Oracle Assets.
You must have run the Depreciation program in Oracle Assets for the reporting asset book.
You must have run the Generate Accrual program for the local ledger in Oracle Lease and Finance Management.
An optional prerequisite is to run the Depreciation Adjustment for Accrual program in Oracle Lease and Finance Management, and then to adjust local depreciation manually in Oracle General Ledger accordingly.
To generate a Multi-GAAP Adjustment Report, perform the following steps:
Navigate to Finance > Processing > Programs > Multi-GAAP Adjustment Report
In the Batch Name field, specify a name that will appear in the report header.
In the Period from field, specify the start date of the adjustment period.
In the Period to field, specify the end date of the adjustment period.
Click Submit.
You can query transactions in Lease and Finance Management and review the accounting for any transaction. The following table describes search criteria fields for the Accounting Transactions page.
| Field | Description |
|---|---|
| Contract Number | Enter the contract number you are searching for. |
| Transaction Date From | Use Calendar icon to enter the starting date of the transaction. |
| Transaction Date To | Use Calendar icon to enter end date of the transaction. |
| Transaction Type | Select the transaction type. |
| Source | Choose the application for the transaction, such as Oracle Assets, Oracle Payables, Oracle Receivables, or Lease and Finance Management. |
| Currency | Choose the contract currency. |
When the search is completed, all found transactions are listed in the Transaction Number column.
To view accounting events for a transaction, complete the following steps.
Navigate to Finance > Accounting Transactions and search for the contract transaction. Click on the transaction and review the transaction lines. You can review transaction details like transaction type, stream type, transaction status, transaction and line amounts, and transaction date.
Select the transaction and click View Accounting Event to review the details such as ledger, event class, event type, event status, and user transaction identifiers.
Select an accounting event and click View Journal Entries to review account codes, entered and accounted amounts, entered currency, and supporting references.
Lease and Finance Management creates transactions and subledger journals are created in Oracle Subledger Accounting which are then transferred to Oracle General Ledger. Drilling back to the source transactions for all journals posted in General Ledger provides the accountant an audit and review trail from the accounting back to the transaction.
There following two methods of drilling down are available:
General Ledger Drill Down – GL to SLA
Subledger Accounting Drill Down – SLA to transactions
From a General Ledger journal, you can view subledger journal entry lines associated with that journal. To view the subledger journal entries from a General Ledger journals page, select the Drilldown option from the Tools menu to navigate to the Subledger Journal Entries page. This page displays all the subledger journal entry lines associated with the journal.
Important: To enable this drill down, you must ensure that the Import Journal References option is selected for the journal source in the General Ledger Journal Sources.
You can drill down to transactions in Lease and Finance Management from the Accounting Events or Subledger Journal Entry Lines.
For information on subledger accounting drill down, please refer to the Inquiries chapter in the Oracle Subledger Accounting Implementation Guide.
To close an accounting period in Oracle Lease and Finance Management, perform the following tasks in sequence:
Disburse funds that should be accounted in the current accounting period. This is part of the Credit Application to Booking key business flow.
Review all funding requests that have not been approved.
Modify the funding requests to meet the approval requirements.
Resubmit the funding requests for approval.
Book all contracts that should be accounted in the current accounting period. This is part of the Credit Application to Booking key business flow.
Review the contracts that have failed the QA check.
Update the information that has resulted in the QA failure.
Resubmit the contract for QA check.
Review the contracts that have not received streams from your lease price modeling software.
Modify the information to correct the errors.
Resubmit the call to lease price modeling software for generating streams.
Review the list of contracts that have not been approved.
Modify the contracts to meet the approval requirements.
Resubmit the contracts for approval.
Re-book all contracts that should be accounted in the current accounting period. This is part of the Credit Application to Booking key business flow.
Review all contracts that are under revision.
Review all contracts that are under release or restructure.
Submit the revisions approved for rebooking.
Carry out asset adjustments. Three key business flows are part of this area: Quote to Termination, Asset Return and Disposal, and Accounting Period to Close.
Enter asset returns for assets on lease.
Enter asset returns for assets on loan; manually update Oracle Lease and Finance Management and assets.
Update location changes.
Update off-lease amortization changes.
Update changes in book or tax depreciation.
Effect salvage value write-downs.
Effect residual value write-downs.
Terminate contracts. This is part of the Quote to Termination key business flow.
Review pending termination quotes.
Complete the acceptance for termination to be accounted in the current accounting period.
Run the automatic termination process.
Condition assets. This is part of the Asset Return to Disposal key business flow.
Review asset condition invoices to be raised on customers or vendors.
Generate invoices against customers and vendors.
Remarket assets. This is part of the Asset Return to Disposal key business flow.
Complete repurchase of assets by vendor.
Do asset billing for sales done through iStore.
Close period in Oracle Inventory.
Payment of remarketing commissions.
Maintain insurance policies. This is part of the Inquiry to Resolution key business flow.
Pay service providers for insurance.
Bill customers for insurance.
Accrue the insurance for income and expense.
Run automatic insurance process.
Perform pre-billing activities. This is part of the Invoice to Receipt key business flow.
Run the pre-funding interest calculation program.
Update counter reading for UBB.
Run the Oracle Contracts for Service billing for UBB.
Run the variable interest rate program.
Run the evergreen billing program.
Run the late charge program.
Run the third-party billing import.
Generate periodic billing for the open accounting period. This is part of the Invoice to Receipt key business flow.
Review exceptions and errors.
Resolve the exceptions and errors.
Re-run the periodic billing process.
Transfer the invoices into Oracle Receivables.
Enter receipts from customers. This is part of the Invoice to Receipt key business flow.
Enter the receipts individually or in batches.
Run the batch receipts interface to Oracle Receivables.
Run the lockbox interface to Oracle Receivables.
Manually apply the receipts that the cash application rules do not process.
Update syndicated contracts. This is part of the Credit Application to Booking key business flow.
Record investments against syndication contracts.
Invoice for payment of investors' share of syndicated contracts.
Create manual journal entries in Oracle Subledger Accounting for adjustments at a contract level. This is part of the Period Open to Close key business flow.
Transfer miscellaneous disbursements and debit memos to Oracle Payables. This is part of the Oracle Payables module. These miscellaneous disbursements and debit memos include:
Passthroughs
Vendor cure
Ad hoc expenses
Security deposit refund
UCC (Uniform Commercial Code) and registration expenses.
Transfer miscellaneous billing and credit memos to Oracle Receivables. This is part of the Oracle Receivables module. These billings and credit memos include:
Vendor cure
Ad hoc fees
Investor stake
UCC (Uniform Commercial Code) and registration fees
Write-Off Receivables. This is part of Oracle Receivables.
Effect write-offs from Oracle Collections.
Effect write-offs from Oracle Receivables.
Run the accrual and income generation program for the accounting period. This is part of the Period Open to Close key business flow.
Run the depreciation adjustment for accrual program for the accounting period, and pass manual journal entries if required. This is part of the Period Open to Close key business flow.
Create loss provisions for the accounting period. This is part of the Period Open to Close key business flow.
Run the loss provision program for the accounting period. This is part of the Period Open to Close key business flow.
Close Oracle Payables (recommended but optional). This is part of the Oracle Payables.
Transfer all approved funding requests to Oracle Payables.
Approve the invoices in Oracle Payables.
Issue payments from Oracle Payables.
Transfer subledger journal entries from Oracle Payables to Oracle General Ledger.
Close the accounting period in Oracle Payables
Close Oracle Receivables (recommended but optional). This is part of Oracle Receivables.
Transfer all customer invoices to Oracle Receivables.
Transfer subledger journal entries from Oracle Receivables to Oracle General Ledger.
Close the accounting period in Oracle Receivables.
Close Fixed Assets (recommended but optional). This is part of Oracle Fixed Assets.
Run the final depreciation and close the depreciation period.
Calculate gain or loss on sale for any disposed assets.
Do tax-related adjustments.
Create Accounting. This is part of the Period Open to Close key business flow.
Run the Create Accounting – Lease and Finance Management concurrent program to create subledger journals.
Review errors and resolve.
Transfer subledger journal entries from Oracle Subledger Accounting into Oracle General Ledger.
Post the GL entries from Oracle Lease and Finance Management, Oracle Payables, Oracle Receivables, and Oracle Assets.
Transfer accounting from Oracle Lease and Finance Management to Oracle General Ledger (recommended but optional). This is part of the Period Open to Close key business flow.
Transfer accounting entries from Oracle Lease and Finance Management into Oracle General Ledger.
Review errors and resolve.
Transfer from Oracle General Ledger interface to journal tables.
Post the accounting entries from Oracle Lease and Finance Management, Oracle Payables, Oracle Receivables, and Oracle Assets.
Close accounting period in Oracle Lease and Finance Management. This is part of the Period Open to Close key business flow.
You can schedule the concurrent programs to run at a specified time periodically, or you run them by manual intervention.
In Lease and Finance Management and Finance, you can have reconciliation reports for Balance and Activity.
The reconciliation process for balance identifies whether the accounting balance in General Ledger matches the related stream element for contracts in Lease and Finance Management for a specified period.
You can run reconciliation reports for the following balance sheet accounts and related streams.
Unbilled Receivables
The reconciliation between the sum of unbilled stream elements for a contract and the balance in the Unbilled Receivables account in GL for a specified period.
Unearned Income
The reconciliation between the sum of unearned income stream elements for a contract and the balance in the unearned income account in GL for a specified period.
Residual Value
The reconciliation between the residual value stream elements for a contract and the balance in the residual value account in GL for a specified period.
If the GL balance does not match the related stream elements for contracts, then the reconciliation report provides break up of the differences with the reason. For each reason, it provides drill down to related transactions. The reconciliation report also provide suggestions for corrective action to reconcile the balances based on the difference.
The reconciliation process for activity identifies whether the accounting activity in General Ledger matches the related stream element and transacted activity for contracts in Lease and Finance Management for a specified period. Oracle Lease and Finance Management only supports accrual activity.
Note: The deviations between stream balance or activity, transaction balance or activity, and GL balance or activity are captured in separate categories.
Set up Reconciliation Templates.
See: Set Up Reconciliation Report Templates, Oracle Leasing and Finance Management Implementation Guide.
Lease Administrator
To create a reconciliation report, perform the following:
Navigate to the Submit Request page.
Select Generate Reconciliation Report.
Select a template type.
Select a template name in the Report Definition Name field.
Select a ledger name.
Select a period range for which you want to generate the reconciliation report.
Set the drill down level for the report output by selecting Yes or No.
Note: Select Yes in Display Drilldown 2 to see transaction level details.
See: Using Standard Request Submission, Oracle Applications User Guide
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 a combination of parameters to maintain and view account balances.
See: Set Up Subledger Accounting in Lease and Finance Management, Oracle Leasing and Finance Management Implementation Guide.
Run Create Accounting.
Lease Super User
To view the Contract Trial Balance at the contract level, perform the following:
Navigate to the Contract Trial Balance page.
Select an operating Unit and a contract number.
Select the representation name.
Select the period name.
Drilldown: You can drill down to journal entries or a contract in a specific account during a period by clicking period activity. You can drill down to transactions that can be from any application such as payables, receivables, and assets.
Drilldown for Fixed Assets transactions: To drilldown to Fixed Assets transactions such as additions and depreciations, you must run the Capture Lease Depreciation Sources - Master concurrent request using the Lease Administrator responsibility.
Note: Run the Lease Depreciation Sources - Master concurrent request before you run create accounting in Fixed Assets.
Note: The account balance report is Multi-GAAP compliant and you can use the report to study the secondary representation.
The Account Balances report display transactions for the specified natural accounts. This report extracts data for the specified accounts for a specified period across contracts or a contract using the supporting references for transactions. The report has the following two levels of drilldown:
First level: shows transactions for all code combination for a natural account
Second level: shows transaction level information.
You can use this report to reconcile the activity for the specified natural accounts with the posting done in GL and balances in subledgers. The report also shows the extent of transactions not posted to GL, you can use this to complete the posting. Since the report is based on supporting references, you can do a variety of analysis, for example, instead of contract number, you can use asset number as a supporting reference and query data pertaining to some natural account for a particular asset number and analyse.
Note: The account balance report is Multi-GAAP compliant and you can use the report to study the secondary representation.
Run Create Accounting.
Lease Super User
To generate an account balance report, perform the following:
Navigate to the Account Balance page.
Select a ledger and a supporting reference.
Optionally, specify a value for the source to filter the report on that source. Some examples of sources are contract numbers, stream type names, and transaction date.
Select an account range.
Select the view balance date.
Select a starting period for the activity.
Enter the period ending balance range and click Go.
Click account links to see the details.
Click View Transaction to see the transaction details.