E1: 15: Enhancement Request for Functionality for Asset Transfers in Lease Accounting
(Doc ID 2441639.1)
Last updated on MARCH 16, 2020
Applies to:JD Edwards EnterpriseOne Real Estate Management - Version 9.2 and later
Information in this document applies to any platform.
Similar to fixed assets, the leased property is assigned to a specific business unit - How is it moved to some other business unit if the leased asset is transferred between units? It could be a transfer to another business unit or even to a
different company. Does the system have functionality to handle a lease transfer so that lease value and accumulated amortized amounts and the remaining monthly entries go to the new business unit or company?
Currently, if a user wants to transfer a fixed asset for Lease Accounting to a new Business Unit or Company, the following steps must take place. These are high level steps and each step might have several steps underneath it.
The following steps are the process a user would need to take if a fixed asset gets transferred and is currently on a lessor lease:
- Do an early termination of the lease (change the recurring ending date - this functionality should be available in the future on the lease term change enhancement coming soon). The early termination would clear out
the balance sheet accounts (BU.Obj.sub.subledger).
- Transfer the fixed assets - this is a process in Fixed Asset that can move the asset between BU/Companies.
- Either create a new lease or add the asset back onto the same lease which would default the new BU and create new recurring billing, create amortization schedules, etc.
Much like Fixed Asset's processes for transfer of non-property assets, enhancement is requesting additional functionality to be added to the lease accounting process in the system:
For some of the companies, who lease multiple vehicles and transfer them between locations / jobs fairly often, current process to transfer assets would be a lot of work for a user. It would be beneficial if there was an actual
lease "transfer" program - similar to the one in Fixed Assets, that would update the lease header and the related asset and load in the new "responsible business unit" - and if needed, also update the company - and make the
necessary journal entries to transfer the remaining liability to the new company along with the remaining lease amortization. That way the future lease expenses would go to the correct business unit / job - and if the transfer
was to a different company, all future lease amortization would go to the correct company.
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