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Leases: Unexpected Amortisation Schedule (Doc ID 2688557.1)

Last updated on JULY 08, 2020

Applies to:

Oracle Fusion Assets Cloud Service - Version and later
Information in this document applies to any platform.


On : version, Utilize Assets-Depreciate Assets


User was trying to replicate a lease however the amortisation schedule generated is unexpected.

The expectation is to have a lease with a start date in November 2019.
The lease interest begins accruing and posted to each period in the GL from the 30th November 2019 for each month. However, the first lease payment of 58,072 will not be until 1st February 2022.

I have therefore entered a lease start date of the 15th November. Payment Quarterly and in advance (with no lease invoice to be generated).
The recurring payment shows a payment date of 01/02/22 and interest due on the 28/02/22. The interest rate specified is 1.769725 and we have checked the flag Calculate monthly accrued interest.

Whilst the first few months (Nov, Dec, Jan) appear to be as expected but in February interest has been counted twice. March's interest therefore is increased. In May-20 this drops down before going back up again.
Could you advise how we would configure a lease so that interest is charged on a monthly basis but the payment quarterly but no payment due until 2022.

It is not clear why two interest lines are being generated in February, May, August and November (on the quarter).

 The interest calculate must be one on each quarter.

The issue can be reproduced at will with the following steps:
1. Users are planning on migrating an asset when implement leases. Therefore users need the leases to begin in November for this example.
2. However, users changed the date for July 2020 but still have the interest calculate twice on each quarter.
 Current period is May.

Lease with the following details and the same issue exists

Start Date = 01/07/20
Frequency = Quarterly
Payment = In Advance
Non Canc Term = 12
Lease Classification = Finance
Calculate Monthly Accured Interest = Ticked.
Period Lease Payment - Payment Date 01/10/20
Interest Due 30/09/20
Amount 100
Interest 2%

Interest calculated in Oct-20, Jan-12 twice


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