One of your ideas has been delivered from your suggestion.Automated Rent Increases for Revenue Leases

Capture a rent increase rate or amount, or capture a rent increase index, to automatically modify the rent on a lease over future periods.

In business environments where lease administrators manage a large number of revenue leases, automatic rent calculation is essential to streamline business processes and avoid data entry errors. The lease terms and conditions often include an automatic increase or decrease of the rental payment based on a fixed percentage or amount or based on an index. For example, rental payments may automatically increase two percent each year to cover inflation or they may be tied to changes in the Consumer Price Index.

To create automated rent increases for revenue leases:

  1. Navigate to Setup and Maintenance and select the task Manage Payment Increase Configuration.
  2. Create Payment Increase Indexes and Revenue Agreement Templates.
  3. Navigate to Lease Accounting and select Leases.
  4. Create a revenue lease and select Payment Increase Applicable.
  5. Add an asset and payment to the lease.
  6. Navigate to the Payment Increase Agreement tab and create a Payment Increase Agreement.
  7. Select Generate Payment Increase under Actions to calculate the payment increase amounts.
  8. Validate, Generate Schedules and Activate the lease.
  9. For index-based payment increase agreements, run the Index Based Assessments process periodically to calculate payment increase amounts prior to processing revenue lease payments.

The following screenshots describe the process of creating automated rent increases for revenue leases:

Create Revenue Payment Increase Agreement Template page

Create Revenue Payment Increase Agreement Template page

Lease Details page

Lease Details page

Create Payment Increase Agreement page

Create Payment Increase Agreement page

Generate Payment Increase

Generate Payment Increase

Lease Schedules page

Lease Schedules page

Business benefits include:

  • Automated payment increases for revenue leases based on terms and conditions of the lease.
  • Simplified data entry with payment increase templates.
  • Better control over billing lessees with automated calculations.

Steps to Enable

Use the Opt In UI to enable this feature. For instructions, refer to the Optional Uptake of New Features section of this document.

Offering: Financials  No Longer Optional From: Update 25D

Key Resources

  • This feature originated from the Idea Labs on Oracle Cloud Customer Connect: Idea 686953

Access Requirements

You do not need any new role or privilege access to set up and use this feature.