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Partial Termination Leaves Unaccrued Rental Accrual Stream for Termination Month (Doc ID 1411504.1)

Last updated on MAY 26, 2021

Applies to:

Oracle Lease and Finance Management - Version 12.1.2 and later
Information in this document applies to any platform.


On : 12.1.2 version, Asset Management

Find that when doing a partial termination of an operating lease using ISG, the RENTAL ACCRUAL stream on the terminated asset leaves the steam element for the termination month in the stream and unaccrued on a current stream. It will then be accrued on subsequent accrual runs. On a full termination the RENTAL ACCRUAL stream is made a historical stream and thus the termination months accrual is never picked up by accruals.

Termination formulas for clearing deferred income require the billed amount and the accrued amount be cleared through deferred income and revenue to clear the deferred income to zero. Currently the termination formula for Rental Accrual is calculating the total of the accrued streams which will not include the amount for the current month since accruals only run at the end of the month. This works correctly for a full termination but if it is a partial the unaccrued Rental Accrual will accrue and through the deferred income account out of balance.

The behavior needs to be the same for partial terminations as it is for full terminations. The RENTAL ACCRUAL stream needs to be made historical so no further accruals will be generated from the terminated asset.

The issue can be reproduced at will with the following steps:
Partial Termination:
1. Book an operating lease with two assets
2. Accrue through the prior period end (as the system would be mid month)
3. Bill to the current date.
4. Terminate one asset on the current date.
5. Look at the RENTAL ACCRUAL stream for the terminated asset. Note there is still a current version of this stream and it still has one unaccrued element for the current month.




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