Before You Begin

This 15-min OBE shows you how to add a manual billing record that affects the right of use asset (ROUA) for the leased asset.

Background

Many businesses lease office space and equipment from different suppliers. According to the new lease accounting standards, businesses must account for these leases and the leased asset on them on their balance sheets. The Lease Accounting functionality in JD Edwards provides the ability to comply with these standards.

Scenario Guidelines

In this series of OBEs, you will learn how to set up the system and perform the required actions for following lease scenario:

• You are leasing a copier from Electronics R Us.
• The lease is for two years and you expect to return the copier at the end of the lease.
• You will pay $2,500 quarterly in advance.
• You have to pay an up-front installation charge of $1,000 to secure the lease.
• At the beginning of the second quarter, you renegotiate the price of this lease based on an agreement to lease other equipment from the vendor and they agree to a price break on the existing lease. Your new quarterly payment will be $2,250 starting from the second quarter.
• At the end of the second quarter, the copier breaks down and the cost of repairs is greater than the replacement cost, so you negotiate with the vendor to terminate this lease and create a new one for a newer copier model.

What Do You Need?

You must have completed the following tasks:

• Completed the basic setup
• Set up billing frequency code R.
• Set up bill code IDC.
• Set up processing options for Manual Billing Revisions program (P1511).
• Added a lessee lease

Setting Up Manual Billing

1. Navigate to EnterpriseOne Menus, Financials (G1), Lessee Accounting (G15202), Periodic Processing (G1520220), Manual Billing (65/G1520220), Manual Billing Entry (P1511).
2. On the Work with Manual Billings form, select Add to add the manual billing.
3. On the Manual Billing Revisions form, complete these fields:
   • Lease Number: Enter the lease number added in the OBE
   • Invoice Amount: $1,000
   • Invoice Date: 01/01/19
   • G/L Date = 01/01/19
   • Gen Type = 7
4. On the grid, complete these columns in the grid:

Gross Amount	Bill Code	Effect on ROU Asset
$1,000	IDC(Lease Initial Direct Cost)	Initial Direct Cost

Other header fields default from the lease defaults.

5. Exit the row to populate the other columns from the lease defaults.
6. Click OK to save the entries.

Your manual billing record should look like this:



Scroll to the right of the grid to see the Effect on ROU Asset column. Note that the Sub Type (Subledger Type) is automatically set to “E” (equipment number) and the Sub Ledger column is populated with the asset number.