Lease Payments in Arrears

Create leases with payments in arrears where the payment is due and payable at the end of each payment period. After capturing this information, lease administrators can generate schedules and activate lease contracts to complete the lease creation process. Generate lease amortization schedules for liability and interest expenses, considering the payment timing to be the end of day of the payment period. 

Configure the lease system option Arrears Payments Due to define the payment timing for lease payments in arrears. The Arrears Payments Due option can now be defined as End of the Day when using the Daily Compound Interest calculation method. The feature lets you generate amortization schedules for liability and interest expense for lease payments in arrears with payment timing considered to be the end of the day for day count calculations.

Lease System Options

Business benefits include:

• Enables accurate calculation of interest expense and liability amortization.
• Ensures timely payment to lessors and suppliers as per the agreed upon contractual terms.

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 26B

Key Resources

• Based on Idea 830513 from the Lease Accounting Idea Lab on Oracle Cloud Customer Connect

Access Requirements

No new access requirements.