This chapter covers the following topics:
The Define Assets area includes:
Define General Asset Information
Define Asset Depreciation
Define Books and Asset Categories
Set Up Assets for Like-Kind Exchange
Define Asset Book for Multi-GAAP Reporting
The Define General Asset Information section includes:
Define System Controls
Define Location Flexfield
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 for Oracle Lease and Finance Management to function correctly:
Define Calendars
Define Fiscal Years
Define Depreciation Methods
Define Prorate and Retirement Conventions
Use the Calendars window to set up depreciation and prorate calendars. Calendars break down your fiscal year into accounting periods. Define your calendars with many periods. 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.
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Asset Manager
Oracle Assets
Setup > Asset System > Calendars
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.
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Asset Manager
Oracle Assets
Setup > Asset System > Fiscal Years
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, and such. 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.
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Asset Manager
Oracle Assets
Setup > Depreciations > Methods
Use the Prorate Conventions window to set up 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.
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Asset Manager
Oracle Assets
Setup > Asset System > Prorate Conventions
The Define Books and Asset Categories section includes:
Define Book Controls
Define Asset Category Flexfield
Define Asset Categories
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.
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Asset Manager
Oracle Assets
Setup > Asset System > Book Controls
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.
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Asset Manager
Oracle Assets
Setup > Asset System > Flexfields > Key > Segments
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.
Define asset category flexfield.
Define depreciation methods.
Define prorate/retirement conventions.
Asset Manager
Oracle Assets
Setup > Asset System > Asset Categories
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:
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.
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.
Define the Like-Kind Exchange Hold Days on the Accounting Options page.
Asset Manager
Oracle Assets
Setup > Asset System
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
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Asset Manager
Oracle Assets
Setup > Asset System >
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. 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 in Oracle Lease and Finance Management. This tax asset book shall be selected as reporting product asset book in the accounting systems options in Oracle Lease and Finance Management.
The following restrictions apply when you define a tax asset book:
The tax asset book is associated with the corporate asset book defined for the specific operating unit.
The tax asset book is associated with the secondary ledger that is associated with the primary ledger of the above corporate asset book. The tax asset book cannot be associated with the corporate asset book for it to be selected as the reporting product asset book in Oracle Lease and Finance Management.
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.
Oracle Inventory provides these features and facilities for Oracle Lease and Finance Management:
Consistent asset descriptions and bill-of-materials (BOM) components.
Service products.
Links assets on contracts to inventory for portfolio analysis and asset tracking.
Links to insurance products for cataloging.
Controls off lease assets.
Integration with iStore.
Oracle Inventory has these implementation tasks for Oracle Lease and Finance Management:
Define Item Flexfield
Define Item Categories Flexfield
Define Item Catalog Groups
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
Define Items
Define Remarketing Items with Web Attributes
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 E-Business Suite 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 E-Business Suite Flexfields Guide.
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Oracle Inventory Administrator
Oracle Inventory
Setup > Flexfields > Key > Segments
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.
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Oracle Inventory Administrator
Oracle Inventory
Setup > Flexfields > Key > Segments
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, Oracle Inventory User's Guide.
Define item catalog group flexfield.
Oracle Inventory Administrator
Oracle Inventory
Setup > Items > Catalog Groups
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 you can implement multiple sets of books with multiple organizations in Oracle Inventory, 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.
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Oracle Inventory Administrator
Oracle Inventory
Setup > Organizations > Organizations
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.
For more information, see the Oracle Inventory User's Guide.
Define Inventory Organizations
Oracle Inventory Administrator
Oracle Inventory
Change Organization
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.
Oracle Inventory Administrator
Oracle Inventory
Setup > Units of Measure > Classes
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.
Oracle Inventory Administrator
Oracle Inventory
Setup > Organizations > Subinventories
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.
Define Item Categories Flexfield
Change Organizations
Oracle Inventory Administrator
Oracle Inventory
Setup > Items > Categories
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.
Change Organizations
Define Categories
Oracle Inventory Administrator
Oracle Inventory
Setup > Items > Categories > Category Sets
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.
Change Organizations
Define Category Set
Oracle Inventory Administrator
Oracle Inventory
Setup > Items > Categories > Default Category Sets
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.
Change Organizations
Oracle Inventory Administrator
Oracle Inventory
Setup > Items > Status Codes
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.
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 E-Business Suite 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.
Oracle Inventory Administrator
Oracle Inventory
Setup > Items > Item Types
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.
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.
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
Oracle Inventory Administrator
Oracle Inventory
Items > Master Items
To enable Oracle Lease and Finance Management's full functionality, set up these items, if applicable:
Lease items
Service items
Insurance items
Usage-based billing items
Usage items
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.
(Forms) -> Inventory
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.
Responsibility
(Forms) > Inventory
Navigation
Inventory > Items > Master Items >
Select an item.
Select the Service tab.
Select the Serviceable Product check box.
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:
For the Primary Unit of Measure, select Each.
For the User Item Type, select the insurance item type that you created in Define Item Type for Insurance Products.
On the Purchasing tab, perform:
For the Taxable field, choose either Yes or No.
If you chose Yes for the Taxable field, select a tax code.
On the General Planning tab, perform:
For the Inventory Planning Method, select Not Planned.
For the Make or Buy field, select Buy.
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.
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:
Select the Customer Ordered box on the Order Management tab.
Select the Invoice Enabled box on the Invoicing tab.
Select the Usage Item box on the Service tab.
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.
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.
Define Items
Oracle Inventory Administrator
Oracle Inventory
Items > Master Items
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 E-Business Suite 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 and Finance 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 and Finance Management has modified some Order Management workflows so that Lease and Finance Management automatically updates transactions with asset sales and appropriately retires assets.
You must also set up some Oracle Lease and Finance 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.
To sell inventory items through Oracle iStore, you must enable specific transaction types that Oracle Lease and Finance Management uses.
An Oracle Lease and Finance Management custom workflow must be set up.
Order Management Super Menu
Oracle E-Business Suite (Log in as SYSADMIN User)
Setup > Transaction Types > Define
Perform the following steps:
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)".
Make sure the transaction type code is "LINE" and the Order Category is "Order."
Click the Shipping tab and choose the warehouse name from the list of values.
Save your work.
Return to the main Transaction Types window and create an Order Header Transaction type with the following values:
In the Transaction Type field enter "OKL_Standard."
In the Descriptions field, enter "OKL Standard Order Type."
In the Transaction Type Code field, choose Order from the list of values.
In the Order Category field, choose Mixed from the list of values.
In the Order Workflow field, choose the customized Order Management Order Header Workflow process called "OKL Order Flow - Generic" from the list of values.
On the Main tab, in the Agreement Type field, choose Standard Terms and Conditions from the list of values.
In the Default Order Line Type field, choose "Standard (Line Invoicing)" from the list of values.
In the Price List field, choose Corporate from the list of values.
In the Ordering field, choose Booking from the list of values.
In the Shipping field, choose Picking from the list of values.
Click the Shipping tab and in the Warehouse field, choose the name of the warehouse from the list of values.
Click the Assign Line Flows button.
This opens the Line Workflow Assignments window. Enter the following:
In the Order Type field choose "OKL_Standard" just as you did in the Transaction Type field.
In the Line Type field, choose "Standard (Line Invoicing)."
In the Item Type field, choose "Standard Item."
In the Process Name field, choose "Line Flow - Generic."
Enter a Start Date.
Save your work.
Oracle Receivables is a required module for Oracle Lease and Finance Management. You must implement Oracle Receivables as required by the Oracle Receivables User Guide. There are multiple setup steps that require configurations specific to Lease and Finance Management.
Oracle Receivables has the following implementation tasks that affect Lease and Finance Management:
Define Payment Terms
Open Accounting Periods
Define AutoAccounting
Define Remittance Banks
Define Receipt Classes
Define Payment Methods
Create LockBox
Define Transmission Formats
Define Aging Buckets
Billing Adjustments for Lease and Finance Management
Billing Approval Limits for Adjustments for Lease and Finance Management
Define Receivables Lookups
The following information applies to other Oracle Receivables set up steps in Lease and Finance Management.
Set Up Grouping Rules for Invoices - the default invoice grouping rule OKL INVOICE is seeded in Oracle Receivables and may be updated if required. The invoice grouping rule in Lease and Finance Management may be configured if the grouping rule in Receivables does not meet your requirements.
Define Line Transaction Flexfield Structure - the default Line Transaction Flexfield is seeded.
Define Transaction Types - the default Transaction Types for contract, investor billing, and credit memos are seeded.
Define Transaction Sources - the default Batch Sources for contract and investor billing are seeded.
Define payment terms to determine the payment schedule and discount information for customer invoices, debit memos, and deposits. You can also define 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 and Finance Management uses the Immediate option, ONLY.
For more information, see the Payment Terms section of the Oracle Receivables Implementation Guide.
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Oracle Receivables Administrator
Oracle Receivables
Setup > Transactions > Payment Terms
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.
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Oracle Receivables Administrator
Oracle Receivables
Setup > Financials > Calendars > Period Types
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 and Finance 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 and Finance 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.
Oracle Receivables Administrator
Oracle Receivables
Setup > Transactions > AutoAccounting
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 and Finance 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.
You must install Oracle Payments.
Oracle Receivables Administrator
Oracle Receivables
Setup > Receipts > Banks
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.
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Oracle Receivables Administrator
Oracle Receivables
Setup > Receipts > Receipt Classes
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.
You must define receipt classes and your banks.
Oracle Receivables Administrator
Oracle Receivables
Setup > Receipts > Receipt Classes
Same as Oracle Receivables. For Lease, set the field Line Level Cash application to Oracle Lease and Finance Management.
See: Lockboxes, Oracle Receivables Implementation Guide
Same as Oracle Receivables. No specific setup for Lease.
See: Define Transmission Formats, Oracle Receivables Implementation Guide
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 and Finance 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.
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Oracle Receivables Administrator
Oracle Receivables
Setup > Collections > Aging Buckets
Oracle Lease and Finance 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 and Finance 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 and Finance Management, see Sales Tax, Oracle Lease and Finance Management User's Guide.
Setup > Receipts > Receivable Activities
Lease and Finance 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.
Setup > Transactions > Approval Limits.
Set up approval limits for the appropriate users according to their usernames in Oracle Lease and Finance Management. Make sure that the Document Type is Adjustment.
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.)
Log onto Oracle Forms with responsibility Telesales Manager.
In the E-Business Center, in the Party Type list, select Organization and select the customer name.
Enter the address that you want to set up as the Install_At address.
On the Address/Phone tab, in the Address Type list, select Install_At.
Log onto Oracle Forms with responsibility Receivables Manager.
In the Customers, Standard form, select the customer. On the Addresses tab, select New.
In the Customer Addresses form, in the Site Number field, select the address entered as the Install_At address for the customer.
On the Business Purpose tab, in the Usage field, select Ship_To and select or enter the site.
Repeat for each possible Install_At site for each customer.
Lookup names display as list of value choices throughout Oracle E-Business Suite 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 and Finance 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.
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Oracle Receivables Administrator
Oracle Receivables
Setup > System > QuickCodes > Receivables
You must define the following Oracle Lease and Finance 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.
| CODE | MEANING | DESCRIPTION |
|---|---|---|
| Insurer | Insurance Agent | Insurance Agent |
| Insurance_Agent | Insurance Agent | Insurance Agent |
Oracle Lease and Finance 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 and Finance Management include:
Define Payment Terms
Define Payables Lookups
For more information on setting up Oracle Payables, see the Oracle Payables User Guide.
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 E-Business Suite Help, available in Oracle Payables.
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Accounts Payable Super User
Oracle Payables
Setup > Invoice > Payment Terms
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:
Search for seeded lookups.
Review the available types to determine what you need to add.
Refer to your various product setup documentation to determine required payable lookups.
Add or update User or Extensible lookups.
For more information on defining financial options, see the Oracle Payables User Guide or the Oracle E-Business Suite Help, available in Oracle Payables.
You must enter one Oracle Lease and Finance 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 and Finance Management
Description = Create Payables Invoices from Oracle Lease and Finance Management
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Accounts Payable Super User
Oracle Payables
Setup > Lookups > Payables
Oracle Lease and Finance Management links with Oracle Purchasing.
The specific setup steps of Oracle Purchasing that directly impact Oracle Lease and Finance Management include:
Define Purchasing Lookups
Define Suppliers
Define Insurance Providers
Set Up Document Sequencing of Payables Invoices
For more information on setting up Oracle Payables, see the Oracle Purchasing User Guide.
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:
Search for seeded lookups.
Review the available types to determine what you need to add.
Refer to your various product setup documentation to determine required payable lookups.
Add or update User or Extensible lookups.
For more information on defining your purchasing lookups, see the Oracle Purchasing User's Guide.
For Oracle Lease and Finance Management, you must define two purchasing lookup types:
PAY GROUP. On the Lookups > Purchasing page, enter a query of type PAY GROUP. Add a new lookup to the list with these values:
Code = Oracle Lease and Finance Management
Meaning = Oracle Lease and Finance Management
Description = Create Invoices from Oracle Lease and Finance Management
VENDOR TYPE. On the Lookups > Purchasing page, enter a query of type VENDOR TYPE. Add a lookup to the list with these values:
Code = Insurer
Meaning = Insurance Provider
Description = Insurance Provider
None
Accounts Payable Super User
Oracle Payables
Setup > Lookups > Purchasing
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 E-Business Suite Help, available in Oracle Payables.
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Accounts Payable Super User
Oracle Payables
Suppliers > Entry
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 and Finance 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 and Finance 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.
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Accounts Payables Super User
Oracle Payables
Suppliers > Entry
On the Classification tab of the Suppliers window appears, perform:
For the Type, select Insurer for the insurance category.
You can optionally enter the SIC code.
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
Define Category
Assign Category and 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.
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System Administrator
Oracle Applications--forms
Application > Document > Define, Open
Perform the following steps:
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.
Under the Application column, click the Ellipses button, and choose the Oracle Lease and Finance Management or Contracts for Lease.
Under the Effective From and To columns, click the Ellipses button, and choose a starting and ending effective date for your document sequence.
Under the Type column, choose Automatic.
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.
Click the Save button.
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.
Create Document Sequence
System Administrator
Oracle Applications--forms
Application > Document > Categories, Open
Perform the following steps:
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 and Finance Management.
Under the Code, Name, and Description columns, enter OKL Lease Pay Invoices.
The Code name must be unique, and you must use this name.
In the Table Name column, click the Ellipses button and choose OKL_TRX_AP_INVOICES_B.
Click the Save button.
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.
Create Document Sequence
Define Category
System Administrator
Oracle Applications--forms
Application > Document > Assign, Open
Perform the following steps:
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 and Finance Management.
In the Category column, click the Ellipses button and choose the category that you set up previously.
In the ledger column, click the Ellipses button and choose the ledger' name to which you want to assign the category.
In the Method column, choose Automatic.
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.
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.
Click the Save button.
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 and Finance 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:
Set Up Supporting Reference
Assign Supporting Reference with Journal Line Types
Upload Initial Balance
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:
Select both Enabled and Maintain Balances on the Create Supporting Reference page.
Select Always from the Year End Carry Forward list.
Enter only one supporting reference detail.
On the Assign Source page, select a combination of Application, Event, and Source and assign it to the supporting reference detail. Note that you must select Contract Number as the accounting source for each combination of event and application. The following applications have events that uses Contract Number as an accounting source.
Assets
Payables
Purchasing
Receivables
Lease and Finance Management
Tip: To quickly assign the combination, search Contract Number in the Source field on the Assign Sources page. The application displays all the combination of application and event having source name as Contract Number. Select all the combination and click apply to assign the source to the supporting reference detail.
Assign the supporting reference to the 'OKL: Supporting Reference for Trial Balance' profile option.
Note: Only supporting reference with Owner as user is available for selection.
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.
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:
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 | 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. |
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
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.
To define, update, or delete initial balances for supporting references, follow these steps:
Upload data into the XLA_AC_BALANCES_INT interface table.
Run the Import Supporting Reference Initial Balances concurrent program. This program does the following:
Imports the data from the XLA_AC_BALANCES_INT interface table.
Validates the record in the interface table.
Uploads all the records to the SLA table that passes the validation check.
Generates an error report for records that fails the validation check.
Purges the interface table based on the purge mode selected.
See: XLA_AC_BALANCES_INT interface table.
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. |