Before You Begin

This 30-minute OBE shows you how to generate recurring billing records 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?

• Entered lessee lease
• Entered recurring billings for bill code LPMT
• Set processing options for R15100.

Generating Recurring Billings

1. Navigate to EnterpriseOne Menus, Financials (G1), Lessee Accounting (G15202), Periodic Processing (G1520220), Recurring Billing (62/G1520220), Recurring Billing Generation (R15100).
2. On the Work With Batch Versions – Available Versions form, select version XJDE0002 (Recurring Billing Generation – Payables).
3. Click Select to submit the batch program.
4. On the Version Prompting form, select the Data Selection checkbox. Click Submit.
5. On the Data Selection window, select the lease that was entered in the OBE “Processing Options for Recurring Billing Generation” by setting the following fields:
   • Operator: Where
   • Left Operand: Document (Order No, Invoice, etc.)(F1502B)(DOCO)[BC]
   • Comparison: is equal to
   • Right Operand: 20491 (This is the lease that was entered in the OBE.)



6. Click OK.
7. On the Processing Options tab, select the processing options entered in the OBE “Setting Processing Options for Recurring Billing Generation (R15100)” and click OK.
8. Click OK. The Printer Selection form is displayed.
9. On the Printer Selection form, click OK.

The system displays the recurring billing report.



Review the Billing Edit Register report (R15300) and check for errors. This report shows that the system has generated the recurring billing LPMT (Lease Payment) that was added in the OBE “Setting Up Processing Options for Recurring Billing Master (P1502)”. The report should look like this:

Reviewing Recurring Billings

1. Navigate to EnterpriseOne Menus, Financials (G1), Lessee Accounting (G15202), Periodic Processing (G1520220), Recurring Billing (62/G1520220), Recurring Billing Journal Review (P150011).
2. On the Work With Batches form, populate the filter fields set the option in the header:
   • Batch Number: Enter the batch number created in the OBE “Setting Processing Options for Recurring Billing Generation (R15100)”.
   • Generation Type: 1 (Recurring Billings)
   • Batch Status: Select Unposted Batches.
3. Click Find. The result should look like this:



4. Select the grid record and click Select.
5. On the Invoice Batch Review form, review the journal entry. The journal entry should look like this:



6. Click Cancel to exit the Invoice Batch Review form.

Posting Recurring Billings

1. Navigate to EnterpriseOne Menus, Financials (G1), Lessee Accounting (G15202), Periodic Processing (G1520220), Recurring Billing (62/G1520220), Recurring Billing Journal Review (P150011).
2. On the Recurring Billing journal Review - Work With Batches form, populate the filter fields and select the options in the header:
   • Batch Number: Enter the batch number created in the OBE “Setting Processing Options for Recurring Billing Generation (R15100)”.
   • Generation Type: 1 (Recurring Billings)
   • Batch Status: Select All Batches.
3. Click Find.
4. Select the grid record and from the Row menu, select Post by Batch and then select Post A/P Batch.
5. On the Printer Selection form, click OK.
6. After the batch program is complete, click Find to refresh your grid results. If the post was successful, the Batch Status for the batch that was posted changes from Approved to G/L Posted. Your results should look like this:



7. Review the General Ledger post report. The Prepaid Lease – Lessee Leases account is debited (AAI item L0). The Accounts Payable – Trade account is credited (AAI item PCLPMT).

The report should look like this: