E1: 15: Term Change with Early Termination does Not Set the Recalculate Lease Liability if the Early Termination Year Is Greater than the Lease Accounting JE Thru Date (LEJTD) Year but the Termination Month is Smaller than the LEJTD Month (Doc ID 2876631.1)

Last updated on JUNE 13, 2022

Applies to:

Symptoms

When trying to make an Early Termination of a Lessee  lease in Form Lease Terms Change (W1502G), the system will attempt to make sure the termination date is after any prior posted Journal Entries. The last posted Journal Entry date is stored in Lease Master Detail (F15017) Lease Accounting JE Thru Date (LEJTD). If the Early Termination year is greater than the LEJTD year but the termination month is smaller than the LEJTD month the comparison is not correct and the Recalculate Lease Liability (LERLL) is left 0 - ‘No Action Required’.

Ex:
Lease Accounting JE Thru Date = 4/1/21,
Early Termination Date 2/28/22.
Lease Accounting JE Thru Date = 4 and Early Termination Date Month = 2.

Because the Recalculate Lease Liability is left 0 the Terminate Early exit is not available in Work with Amortization Schedules (P15171).

Steps:

1. In Work With Leases (P1501) enter one Lessee Lease and in Recurring Billing Revisions (P1502) enter recurring billing information for the Lessee Lease with Starting Date in the prior year (2021)
2. In Work with Amortization Schedules (P15171) take Row Change Status and change it to ’10 – Lease Terms Complete’ then take Row exit ‘Create Amort Sched’ then Create Commence JE
3. Run Create Balance Sheet Accounting Journals (R15180) through period 4 of the previous year. This will make the Journal Entry Thru Date (LEJTD) = 04/01/21
4. In Recurring Billing Revisions take Row Exit Change Lease Terms and enter Early Termination with Term Change End Date in period 2 of the current year (2/28/22).
5. Review Amortization Schedules notice ‘No Action Required’ and Early Termination exit is not displayed. This is because the termination year is after the year of the Journal Entry Thru Date Year but the Termination Month is after the Journal Entry Thru Date Month.
 

Changes

Cause

My Oracle Support provides customers with access to over a million knowledge articles and a vibrant support community of peers and Oracle experts.