Receivables Leases

Corporate lease administration sometimes requires landlord billing capabilities for leasing owned property and subleasing leased property. Accounting for all costs and lease income associated with lease management is critical to a landlord (lessor). Receivables leases enable you to collect rent, manage your expenditures, and allocate them proportionately to the departments or other entities.

When you create a receivables lease, you set up recurring invoices that generate automatically in the frequency defined in the lease. You can track lease clauses and options, and set up critical dates to remind you of important events related to the lease, such as lease expiration. You can also set up simple to complex rent terms, track percent rent schedules, and upload percent rent sales reports to determine the percent increase to bill for monthly rent.

You create a receivables lease when your organization is the landlord (or lessor) and you are submitting rent bills to a tenant (or lessee). For a receivables lease, you enter the lease terms from your signed lease agreements and set up the terms for processing as the landlord. As a result, the majority of your transactions are billing transactions or bills that you are issuing through PeopleSoft Billing to your tenant.

When entering the lease, you can establish recurring rent bills that the system processes on a periodic basis of your choosing. When processing rent invoices, the system generates transactions with PeopleSoft Billing as the transaction destination. Even manual bills, which include ad hoc entries, security deposits, operating expense reconciliations, and percent rent sales reports, are sent through PeopleSoft Billing with their associated accounting ChartFields, as determined by the transaction routing code and accounting rule setup. You can also send through PeopleSoft Billing (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.

Security deposit refund processing, which is available on receivables lease processing (outside of the lease component) can potentially divert the security deposit refund to PeopleSoft Payables if, during lease expiration, the refund has not been depleted by sufficient deductions to cover the remaining amount outstanding and money is owed back to the tenant.

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

For Receivables leases, the integration points to consider for processing are PeopleSoft General Ledger (for straightline accounting), Billing, and Asset Management (for the Asset Repository). Although, for the most part, any adjustment transactions are sent through PeopleSoft Billing as negative invoice lines, a PeopleSoft Payables integration is also available (and potentially necessary) to handle security deposit refund processing during lease expiration.

See Understanding Transaction Routing Codes.

See Understanding PeopleSoft Lease Administration Accounting Rules.