1. Using Lease Accounting
  2. Activate Leases

Activate Leases

You must enable the Activate Lease Contract feature in the Lease Accounting functional area.

After you generate the lease schedules, you must activate the lease.

  1. Click Actions.

  2. Click Activate.

  • Oracle Lease Accounting generates a booking transaction with the Lease Booking accounting event. Lease accounting creates the Lease Booking as an unprocessed accounting event.

  • You can view the Lease Details Report in the Schedules tab.

  • Click Attach Lease Details Report to generate and attach the report to the lease. Lease accounting submits the request and notifies you after it completes.

  • In the background, Process Lease Actions, a scheduled program using the Oracle Enterprise Scheduler, performs the following activities:

    • Generate the Lease Details report.

    • Moves the lease status from Booked to Finalized.

You will receive the confirmation message on the activation of the lease.

Click Done to return to the Lease landing page.

Workflows

You now have workflows for the lease activation and amendments flows. You can start the workflows from the system options for lease transactions (activation + amendments) and the leases imported from FBDI. Lease accounting regroups the FBDI leases into two buckets - Migrated leases midlife and new leases.

If you start the workflows and select the relevant lookups, the activation process waits for the approvals. A new drop-down action called Submit for Approval is available after generating schedules.

Post Lease Activation Activities

You must generate lease expenses on the lease after the lease is active. Generating lease expenses is typically a period-end activity.

You can schedule the Oracle Enterprise Scheduler Job: Process Lease Accounting program with Accruals as the parameter, which will generate the transactions for lease expenses as follows:

  • Amortization Expenses

  • Interest Expenses

This Oracle Enterprise Scheduler program has the following three parameters:

  • Business Unit (Required)

  • Lease Number

  • Period

The program generates the lease expenses for the business unit and all the accounting standards if there are multiple ledgers.

Create Accounting.

Lease accounting accounts for all the accounting events generated for Lease Booking in 'Draft' or 'Final' status using the Create Accounting program.

Process Lease Payments

You can now use the Process Lease Payments from the side panel to complete the following:

  1. Approving Lease Payments.

  2. Generating 'Payment Approval' accounting for payment approval.

  3. Transferring payment information to Payables and importing information to generate invoices in Payables.