Processing PeopleSoft Asset Management Lease Payments in PeopleSoft Payables

The integration between PeopleSoft Asset Management lease payments and PeopleSoft Payables automatically generates vouchers for lease payments that are calculated in Asset Management, including both capital and operating leases. In addition, the lease payment schedule segregates the principal and interest of each payment, which are used by the AMDPCLOS process to generate the payment accounting entries. The payments can be allocated on a monthly basis, depending upon your setup of payment schedules.

To configure Asset Management for the integration of lease payments with PeopleSoft Payables:

  1. Set up the lease payment options for the Payables integration on the Interface Options page of the AM Business Unit Definition component (Set Up Financials/Supply Chain, Business Unit Related, Asset Management, Asset Management Definition, Interface Options).

    The integration sends to Payables the information that is stored in the book that is defined as the Lease Book on the AM Business Unit Definition page.

    1. Select the Lease Interface Processing check box to enable the integration for the business unit.

    2. Select whether to auto approve vouchers.

    3. Enter the default Payables business unit.

      See Interface Options Page.

  2. Set up the Payables Integration page within the Leased Assets components when adding or updating a leased asset (Asset Management, Asset Transactions, Leased Assets).

    The Payables Integration page is visible only after Lease Interface Processing is enabled for the business unit.

    See:

    PeopleSoft Asset Management: Integrating Lease Payments with PeopleSoft Payables

    PeopleSoft Asset Management: Understanding Leased Assets

  3. Add the Lease Interest Contra and Lease Obligation Contra accounts as clearing accounts.

    Both accounts are credited in AM and debited subsequently during the voucher posting process in Payables.

    See Accounting Entry Templates Page.

  4. Select whether to prorate the lease expense on the lease payment schedule (Set Up Financials/Supply Chain, Product Related, Asset Management, Payment Schedules).

    This determines whether the accounting entries that are generated for lease payments by the depreciation close process prorate the interest or payment expense on a monthly basis (in accordance with GAAP).

    See Payment Schedules page.

To process the lease payments through the Asset Management integration with Payables:

  • Approve the lease payments before sending them to Payables using the Approve Payments page (if the auto approve vouchers option is not selected for the business unit).

  • Once the lease payments are ready to be processed, upload them to the Payables staging tables using the Lease Payments to Payables run control page.

    This process populates the voucher build integration tables. It also updates the status of the integration depending on the processing results. The status is displayed on the Lease Payment Schedule page [ASSET_LEASE_03] and editable from the Review Payments page.

  • Review the status of the lease payments on the Review Payments page. You can update the status from this page if the payments have not yet been approved or processed.

See PeopleSoft Asset Management: AP/AM Payment Reconciliation Page.

  • Asset Management provides Payables with the AM business unit, asset ID, payment date, accounting date, interest and principal obligation amounts, transaction currency, market rate type, market rate index, Payables business unit, supplier ID, and voucher ID. Therefore, all the aforementioned fields are required before you save at the asset level when the integration to Payables option is selected.

  • The integration extracts the payment data from the Lease Payment Schedule table. Payables continues the process from the voucher build staging tables to obtain the corresponding vouchers. When the vouchers are generated, Payables adds the voucher ID to the Asset Management records.

  • PeopleSoft Payables assigns an origin source for vouchers coming from the lease payment integration with AM to avoid the potential risk of resending these lease payments to AM as adjustments to existing assets.

  • The Lease ID displays on the Payables Invoice Information page (VCHR_EXPRESS1). This field appears only when the voucher origin source for lease payments from Asset Management is invoked in update mode.

  • Run the reconciliation process that compares the lease payment information that is sent from Asset Management to Payables with the voucher information that is stored in the Payables tables. This process creates the AM/AP Payment Reconciliation report (Asset Management, Financial Reports, Leased Assets, AP/AM Payment Reconciliation).