Payables Leases

Payables leases enable a tenant (lessee) to manage and report on rent, operating expenses, and miscellaneous rents. Lease classification can be tested to determine if a lease should be treated as capital/finance or operating. You can set up recurring payment schedules to facilitate the lease. You can set up percent rent terms based on sales reported by tenant. You can capture specific lease clauses and lease options, and set up critical date alerts for important events related to the lease, such as lease expiration. You can also audit operating expenses, comparing with previous years to ensure continuity of spending. Select the View Audit Log action on the General Information page to view the search audit logs page, where users can review the audit log information for the leases.

Note:

View Audit logs action is displayed only when at least one lease audit log event is enabled on the Enable Audit Logging page (Set Up Financials/ Supply Chain, Common Definitions, Audit Logging, Enable Audit Logging).

You create a payables lease when your organization is the tenant (or lessee) and you are issuing rent payments to a landlord (or lessor) for space or equipment that you are using. You enter the lease terms from your signed lease agreement as a payables lease and set it up for payment processing through PeopleSoft Payables. As a result, the majority of your transactions are payables transactions or payments that you are issuing through PeopleSoft Payables to be paid to your lessor.

When you enter the lease, you can establish recurring rent payments that the system processes on a periodic basis of your choosing. When processing rent payments, the system generates transactions with PeopleSoft Payables as the transaction destination. Even manual payments, which include ad-hoc entries, security deposits, operating expense audits, and percent rent sales reports, can be sent through PeopleSoft Payables with their associated accounting ChartFields, as determined by the transaction routing code and accounting rule setup. You can also send through PeopleSoft Payables (first as a negative reversal entry of the originating transaction and then as a new entry for the revised payment amount) any adjustment entries caused by changes in security deposits, operating expense audit adjustments, or percent rent sales reports.

Paybles leases allow you to capture clause-specific user-defined fields, notes, attachments, and supplemental data.

For payables leases, the integration points to consider for processing are PeopleSoft General Ledger (for straightline accounting), Payables, and Asset Management (for the Asset Repository). Since PeopleSoft Billing integration is not needed for payables leases, any adjustment transactions are sent through PeopleSoft Payables as negative voucher entries.

See Transaction Routing Codes Page.

See Understanding PeopleSoft Lease Administration Accounting Rules.

See Application Fundamentals: Setting Up Financials Audit Framework (Audit Logging)