Import Leases

You can import a large number of leases through a file-based data import or FBDI feature. FBDI is the best way to mass data import quickly.

You can import new leases using it as an implementation tool and convert midlife leases from your legacy systems.

Import Leases:

• Select Import Leases from the side panel to run the program.

• The following parameters are available in Basic Options:

  • Action Type:

    • Import - This will import all leases.

  • Import Type:

    • New Leases - This will import all new leases.

    • Manage Options and Terminations - This will import all terminated leases and options in leases that have been modified.

    • Lease Amendments - This will import all leases with amendments.

      You can import the amendments for the following changes:

      • Rate Changes
      • Scope Changes such as adding new assets.
      • No Scope Changes such as adding a residual option
      • Payment Changes
      • Edit Nonfinancial Changes

    • Lease Impairments - This will import all impaired leases.

      You can import the impairments for the following changes:

      • No Scope Changes

  • Business Unit - Select the business unit from which you want to import the leases.

  • Load Request Identifier - Select the load request identifier.

  • Interface Lease from Identifier - Optionally, you can select interface lease from the identifier.

  • Interface Lease to Identifier - Optionally, you can select interface lease to the identifier.

• Oracle Lease Accounting notifies you when the process completes if you check the notify check box.

• Click Submit to run the process.

Key Calculations:

Lease accounting calculates and maintains the lease liability and right-of-use balances for every period after the lease amortization start date that you enter for each lease. You can view the high-level description of the calculations as follows:

• Lease Liability: Lease Accounting discounts the cash flows marked as 'Liability' and have a payment due date on and after the lease amortization start date. It uses a rate from the discount rate index selected in the lease to arrive at the lease liability. It calculates the interest amounts using this discount rate for all periods after the lease amortization start date.

• Right-of-Use Finance Lease: When you provide a right-of-use value for a migrated lease, Lease Accounting amortizes on a straight calculation basis over the asset's remaining life after the lease amortization date. If you don't provide this value, Lease Accounting discounts the cash flows marked as 'ROU' to calculate the right-of-use balance using the same logic that you used to calculate lease liability.

• Amortization expense: Lease Accounting derives it by calculating the right-of-use balance between the lease amortization start date and the expected lease or asset end date.

• Right-of-Use Operating Lease: When you provide a right-of-use value for a migrated lease, Lease Accounting amortizes with the difference between lease expense and interest expense over the remaining life of the lease after the lease amortization start date. If you don't provide this value, Lease Accounting discounts the cash flows marked as 'ROU' to calculate the right-of-use balance using the same logic that you used to calculate lease liability.

• Lease Expense: Lease Expense for a nonmigrated lease is the mean of cash outflows per period. For migrated leases with the right-of-use value provided by you, lease expense is the sum of that value plus the interest expense from that payment. For example, if the right-of-use value is $100,000 and a projected interest expense of $10,000, then the total lease expense is $110,000. Lease Accounting calculates the total lease expense over the remaining life of the asset or lease after the amortization start date.