Understanding Leases

PeopleSoft Lease Administration is an integrated solution that effectively manages the entire life cycle of equipment and corporate real estate leases, from lease execution and financial processing through lease expiration and termination.

A lease is an agreement between a lessee and a lessor that defines the terms of the rental. The lease is the basis for invoices or vouchers and receipts or payments. You create a lease to enable processing for an invoice or payment for recurring rent and operating expenses for that lease.

You can process everything from a single invoice or payment to the most complex recurring invoices or payments as required by the lease. You can perform cost allocations, rent escalations, and capacity planning for your organization, and establish critical date alerts to notify you when you must take action on or make a decision about a particular lease.

Before you create a lease, you must determine the type. There are two types of leases: payables leases and receivables leases. Your role—lessee or lessor —determines the type of lease that you create.

This section discusses:

• Payables leases.

• Receivables leases.