1. Using Lease Accounting
  2. Create Payment Terms

Create Payment Terms

After adding the asset details in the Assets tab, you can enter the payment information for expense leases in the Payments tab.

Payments Tab: Expense Lease

Click New (+) to display the Create Payment page.

The following fields are available as part of the payment term creation for expense leases:

Field

Description

Payment Template

Select the payment term template.

Supplier

Select the supplier.

Supplier Site

Select the supplier site.

Asset Number

Select the asset.

Start Date

Select the payment start date.

End Date

Select the payment end date. If you select the payment end date, you can't enter the number of payments.

Amount

Enter the payment amount.

Arrears

Select arrears if the payment is made at the end of the payment cycle.

Payment Purpose

Select the payment purpose.

Your choices are as follows:

  • Base Rent
  • Cleaning
  • Depreciation
  • Insurance
  • Operating Expense
  • Rent
  • Percentage
  • Allowance
  • Purchase

You can add more values as the payment purpose.

Payment Type

Select the payment type.

Your choices are as follows:

  • Abatement
  • Appliance Rental
  • Base Rent
  • Common Area Maintenance
  • Cleaning
  • Deposit
  • Depreciation
  • Direct
  • Escalation
  • Payment for Option
  • Tenant Improvement
  • Insurance
  • Property Taxes

You can add more values as the payment type.

Frequency

Select the frequency of payment.

Your choices are as follows:

  • Annually
  • Monthly
  • One Time
  • Quarterly
  • Semiannually

Number of Payments

Enter the number of payments. If you enter the number of payments, you can't enter the payment end date.

Currency

Select the payment currency.

Click Save and Close.

You can either provide the Number of Payments or the end date of the payment for generation of payment schedule, but not both.

If the payment end date results in a partial month, Oracle Lease Accounting does the payment proration using the proration rule on the lease. Oracle Lease Accounting creates the prorated payment as a stub.

  • For equipment lease, Lease Accounting always creates the stub in the last period of the payment.

  • For property lease, Lease Accounting can create the stubs in the first payment period or last payment period, or both based on which period is partial.

You can update the automatically created stubs in the Payments tab.

Summary Subtab:

You can view or add the following payment information in the Overview section:

Field

Description

Payment Template

You can view the payment template name.

Number

You can view the payment number.

Payment Purpose

Retain or change the payment purpose.

Payment Type

Retain or change the payment type.

Payment Status

You can view the payment status.

Asset Number

Select the asset number, if you require.

Currency

Select the currency, if you require.

You can view or add the notes for the payment terms in the Overview section.

  1. Click the Note icon.

  2. Click New (+) to display the Create Note page.

    The following fields are available as part of the note creation for a payment term:

    Field

    Description

    Type

    Lease Accounting selects the Leasing Activities note type by default.

    Your choices are as follows:

    • Compliance
    • General
    • Leasing Activities
    • Legal

    Private

    Select the check box to make the note private and only visible to you.

    Click Save and Close.

    Click OK.

The supplier section of the Payments: Summary tab in the Lease page gives the supplier information and the payment term information.

You can view or add the following payment information in the Supplier section:

Field

Description

Supplier

Retain or change the supplier name.

Supplier Site

Retain or change the supplier site.

Purchase Reference Number

Enter the purchase reference number.

Purchase Order Number

Select the purchase order number as follows:

  • Click Search to open the Search and Select: Purchase Order page.

  • Enter the purchase number in the search box and click Search.

  • Select the purchase order from the displayed list.

  • Click OK.

  • Click Reset to clear the search values.

  • Click Advanced for more search options.

Purchase Order Line

Select the purchase order line number.

  • Click Search to open the Search and Select: Purchase Order Line page.

  • Enter the line number, item description, or item code in the search box and click Search.

  • Select the line from the displayed list.

  • Click OK.

  • Click Reset to clear the search values.

  • Click Advanced for more search options.

Payment Term

Select the payment term.

You can view or add the following payment information in the Schedule section:

Field

Description

Start Date

Retain or change the payment term start date.

Arrears

Select the check box if there are arrears associated with the payment.

Frequency

Retain or change the payment frequency.

You can view the following payment information in the Payment Line section:

Field

Description

Line Number

You can view the payment line number.

Line Type

Select whether the payment is a Stub or Recurring.

Number of Payments

Retain or change the number of payments.

Amount

Retain or change the payment amount.

Line Start Date

You can view the payment line start date.

Line End Date

You can view the payment line end date.

First Payment Date

Retain or change the first payment date.

Click New (+) or select Add from the Actions menu to add more payment terms.

You can also split a payment line to make it modifiable for periods after the amendment commencement date.

Total Payment Schedules

If you create a payment increase agreement on a payment, Lease Accounting generates the schedules for the payment increase.

Lease Accounting displays the schedules in the Total Payment Schedules section.

You can view the following payment information in the Total Payment Schedules section:

Field

Description

Payment Line Reference

You can view the payment line reference number.

Line Type

You can view the payment line type.

Start Date

You can view the payment line start date.

Number of Payments

You can view the number of payments.

End Date

You can view the payment line end date.

Base Payment Amount

You can view the base payment amount.

Increase Amount

You can view the payment increase amount.

Final Amount

You can view the sum of base payment amount and increase amount as the final amount.

Accounting Subtab:

You can view or add the following payment information in the Compliance section:

Field

Description

Right-of-Use

Select the right-of-use option to include the payment amount for calculating the right-of-use for the payment term.

Use only this check box for capitalizing expenses into Right-of-Use without liability, such as Initial Direct Cost.

You can now provide the migration balance amounts for Operating and Finance right-of-use.

Liability

Select the liability option to include the payment amount for calculating the lease liability for the payment term.

Intercompany

Select the intercompany option to mark the schedules as intercompany.

Discount Rate

You can view the discount rate.

Rate Adder

You can view the rate adder value.

You can view or add the following payment information in the Tax section:

Field

Description

Primary Intended Use

Select the primary intended use for the payment term.

Tax Classification

Select the tax classification for the payment term.

Tax Included

Select whether the tax is included for the payment term.

Withholding Tax Group

Select the withholding tax group for the payment term.

Product Category

Select the product category for the payment term.

Product Fiscal Classification

Select the product fiscal classification for the payment term.

Product Type

Select the product type for the payment term. Your choices are Goods or Services.

Transaction Business Category

Select the transaction business category for the payment term.

User-Defined Fiscal Classification

Select the user-defined fiscal classification for the payment term.

Migration Balances

Lease Accounting displays this section if it is a migrated lease. You can select the migrated lease in the Overview tab. You have to enter the right-of-use balances for the migrated lease.

You can view or add the following payment information in the Migration Balances section:

Field

Description

Operating Right-of-Use Amount

Enter the right-of-use balance amount for the operating lease.

Finance Right-of-Use Amount

Enter the right-of-use balance amount for the finance lease.

You can view or add the following payment information in the Accounting section:

Field

Description

Ledger Name

Select the ledger name for the payment term.

Account Name

Select the account name for the payment term.

Code Combination

Select the code combination for the payment term.

Click New (+) to add new accounting information.

Predefined SLA Integration

For account creation using SLA integration for accounting events, there are five event classes: Lease Booking, Lease Expense, Lease Revision, Lease Payments Approval, and Lease Termination.

You can add the following default accounts for both payment terms and options for a primary ledger as well as a secondary ledger:

Ledger Name

Account Name

Vision Operations (USA)

Right-of-Use

Vision Operations (USA)

Lease Expense

Vision Operations (USA)

Lease Liability

Vision Operations (USA)

Accumulated Amortization

Vision Operations (USA)

Amortization Expense

Vision Operations (USA)

Interest Expense

Vision Operations (USA)

Reserve

Vision Operations (USA)

Payables Clearing

Vision Operations (USA)

Payables Liability

Vision Operations (USA)

Gain or Loss

Vision Operations (USA)

Foreign Exchange Gain or Loss

Vision Operations (USA)

Noncompliance Expense

Vision Operations (USA)

Accrued Liability

Lease Accounting provides the following predefined Subledger Accounting components for five event classes (with complete SLA AMB components):

  • Lease Booking

  • Lease Expense

  • Lease Revision

  • Lease Payments Approval

  • Lease Termination

Lease Accounting predefines the New Journal Sources, Categories, and Journal Rule Sets in the General Ledger and Subledger Accounting for carrying out the accounting for the five event classes.

You can use SLA to derive foreign exchange rates, which convert the payment currency schedules into functional currency.

Milestones:

You can view or add the milestones for the payment in the Milestones tab.

  1. Click New (+) to display the Create Milestone page.

  2. These fields are available as part of the milestones creation for a payment

    Field

    Description

    Milestone Type

    Select the milestone type.

    Your choices are as follows:

    • Asset Expiry
    • Lease Expiry
    • Option Exercise

    Object Type

    You can view the object type.

    Object Number

    You can view the object number.

    Milestone Date

    Select the milestone date.

    First Notice Date

    Select the first notice date, if required.

    Notice Frequency

    Select the notice frequency, if required.

    Your choices are as follows:

    • One Time
    • Daily
    • Weekly
    • Monthly
    • Quarterly
    • Semi Annual
    • Annual

Payments Tab: Revenue Lease

Click New (+) to display the Create Payment page.

The following fields are available as part of the payment term creation for revenue leases:

Field

Description

Payment Template

Select the payment term template.

Customer Name

Select the customer.

Bill-to Site

Select the bill-to site.

Asset Number

Select the asset.

Ship-to Site

You can view the ship-to site from the asset.

Start Date

Select the payment start date.

End Date

Select the payment end date. If you select the payment end date, you can't enter the number of payments.

Amount

Enter the payment amount.

Arrears

Select arrears if the payment is made at the end of the payment cycle.

Payment Purpose

Select the payment purpose.

Your choices are as follows:

  • Base Rent
  • Cleaning
  • Depreciation
  • Insurance
  • Operating Expense
  • Rent
  • Percentage
  • Allowance
  • Purchase

You can add more values as the payment purpose.

Payment Type

Select the payment type.

Your choices are as follows:

  • Abatement
  • Appliance Rental
  • Base Rent
  • Common Area Maintenance
  • Cleaning
  • Deposit
  • Depreciation
  • Direct
  • Escalation
  • Payment for Option
  • Tenant Improvement
  • Insurance
  • Property Taxes

You can add more values as the payment type.

Frequency

Select the frequency of payment.

Your choices are as follows:

  • Annually
  • Monthly
  • One Time
  • Quarterly
  • Semiannually

Number of Payments

Enter the number of payments. If you enter the number of payments, you can't enter the payment end date.

Currency

Select the payment currency.

Click Save and Close.

You can either provide the Number of Payments or the end date of the payment for generation of payment schedule, but not both.

Summary Subtab:

You can view or add the following payment information in the Overview section:

Field

Description

Payment Template

You can view the payment template name.

Number

You can view the payment number.

Payment Purpose

Retain or change the payment purpose.

Payment Type

Retain or change the payment type.

Payment Status

You can view the payment status.

Asset Number

Select the asset number, if you require.

Currency

Select the currency, if you require.

You can view or add the notes for the payment terms in the Overview section.

  1. Click the Note icon.

  2. Click New (+) to display the Create Note page.

    The following fields are available as part of the note creation for a payment term:

    Field

    Description

    Type

    Lease Accounting selects the Leasing Activities note type by default.

    Your choices are as follows:

    • Compliance
    • General
    • Leasing Activities
    • Legal

    Private

    Select the check box to make the note private and only visible to you.

    Click Save and Close.

    Click OK.

The customer section of the Payments: Summary tab in the Lease page gives the customer information and the payment term information.

You can view or add the following payment information in the Customer section:

Field

Description

Customer

Retain or change the customer name.

Bill-to Site

Retain or change the bill-to site.

Payment Term

Retain or change the payment term.

Customer Account

You can view the customer account number.

Ship-to Site

Retain or change the ship-to site.

Ship-to Address

You can view the ship-to address.

You can view or add the following payment information in the Schedule section:

Field

Description

Start Date

Retain or change the payment term start date.

Arrears

Select the check box if there are arrears associated with the payment.

Frequency

Retain or change the payment frequency.

You can view the following payment information in the Payment Line section:

Field

Description

Line Number

You can view the payment line number.

Line Type

Select whether the payment is a Stub or Recurring.

Number of Payments

Retain or change the number of payments.

Amount

Retain or change the payment amount.

Line Start Date

You can view the payment line start date.

Line End Date

You can view the payment line end date.

First Payment Date

Retain or change the first payment date.

Click New (+) or select Add from the Actions menu to add more payment terms.

Accounting Subtab:

You can view or add the following payment information in the Revenue section:

Field

Description

Revenue Method

Select the revenue method.

You can select the method for Lease Revenue or Non-Lease Revenue.

You must have a minimum of one lease revenue payment for the lease.

Lease revenue is calculated from the lease start date till the lease end date.

Non-lease revenue is calculated from the payment start date till the payment end date.

You can view or add the following payment information in the Tax section:

Field

Description

Primary Intended Use

Select the primary intended use for the payment term.

Tax Classification

Select the tax classification for the payment term.

Tax Included

Select whether the tax is included for the payment term.

Product Category

Select the product category for the payment term.

Product Fiscal Classification

Select the product fiscal classification for the payment term.

Product Type

Select the product type for the payment term. Your choices are Goods or Services.

Transaction Business Category

Select the transaction business category for the payment term.

User-Defined Fiscal Classification

Select the user-defined fiscal classification for the payment term.

Migration Balances

Lease Accounting displays this section if it is a migrated lease. You can select the migrated lease in the Overview tab. You have to enter the accrued asset balance for the migrated lease.

You can view or add the following payment information in the Migration Balances section:

Field

Description

Accrued Asset Balance

Enter the accrued asset balance amount for the revenue lease.

You can view or add the following payment information in the Accounting section:

Field

Description

Ledger Name

Select the ledger name for the payment term.

Account Name

Select the account name for the payment term.

Code Combination

Select the code combination for the payment term.

Click New (+) to add new accounting information.

Predefined SLA Integration

For account creation using SLA integration for accounting events, there are five event classes: Lease Booking, Lease Expense, Lease Revision, Lease Payments Approval, and Lease Termination.

You can add the following default accounts for both payment terms and options for a primary ledger as well as a secondary ledger:

Ledger Name

Account Name

Vision Operations (USA)

Accrued Asset

Vision Operations (USA)

Receivables

Vision Operations (USA)

Receivables Clearing

Vision Operations (USA)

Revenue

Lease Accounting provides the following predefined Subledger Accounting components for five event classes (with complete SLA AMB components):

  • Lease Booking

  • Lease Expense

  • Lease Revision

  • Lease Payments Approval

  • Lease Termination

Lease Accounting predefines the New Journal Sources, Categories, and Journal Rule Sets in the General Ledger and Subledger Accounting for carrying out the accounting for the five event classes.

You can use SLA to derive foreign exchange rates, which convert the payment currency schedules into functional currency.

Milestones:

You can view or add the milestones for the payment in the Milestones tab.

  1. Click New (+) to display the Create Milestone page.

  2. These fields are available as part of the milestones creation for a payment

    Field

    Description

    Milestone Type

    Select the milestone type.

    Your choices are as follows:

    • Asset Expiry
    • Lease Expiry
    • Option Exercise

    Object Type

    You can view the object type.

    Object Number

    You can view the object number.

    Milestone Date

    Select the milestone date.

    First Notice Date

    Select the first notice date, if required.

    Notice Frequency

    Select the notice frequency, if required.

    Your choices are as follows:

    • One Time
    • Daily
    • Weekly
    • Monthly
    • Quarterly
    • Semi Annual
    • Annual