1. Using Lease Accounting
  2. Key Features

Key Features

Oracle Lease Accounting has the key features of lease creation, generating amortization schedules, and maintaining accounting balances.

Lease Accounting helps you do the following activities:

  • Create expense and revenue leases.

  • Capture cash schedules needed for the generation of balances and invoices.

  • Generate balances required as specified by IFRS16 and ASC842 guidelines for expense leases.

  • Generate amortization schedules using daily compounding interest and daily amortizations for expense leases.

Lease Accounting creates the cash schedules with amortizations when you opt to generate schedules in expense leases. With this information, Lease Accounting generates the balances for right-of-use and lease liability balances based on different periods.

Lease Accounting calculates the balances and amortizations by discounting the cash flows using the discount rates on the lease.

Note: Currently, the only interest calculation method is the 'Daily Compounding Interest.' The amortization method is 'Daily' or 'Periodical' amortization.

Using this information on the cash flows, Lease Accounting calculates the initial measurement amounts, which the standards require.