One-Time Payments and Lease Incentives in Oracle Leased Assets (Doc ID 2499062.1)

Last updated on JANUARY 25, 2023

Applies to:

Goal

Users are looking to implement Oracle Leased assets in the system but they need to be sure whether it is as per IFRS 16 guidelines effective from JAN-19. They have the below questions regarding the functionality. Could you please address the same?

1. How should users insert normal one-time payments?
For example the ones that are not recurring periodic lease payments but that still need to be included in a lease liability
and do not fall under any of the categories above currently available under one-time payments options?
- Advanced lease payment
- Initial direct costs
- Purchase price
- Residual value
- Termination penalty

2. Lease incentives:
How should users insert lease incentives in this tool?
Many lease contracts offer lease incentives, for example first 3 months for no payment or certain months during the lease period for no payment, etc. Should users simply insert them as 0 value payments?
Does that work in the tool?
 

Solution

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