Automatic Trigger Of The “prospective” Depreciation Flag In FA In A Rebook From OLFM

(Doc ID 1936145.1)

Last updated on SEPTEMBER 06, 2016

Applies to:

Oracle Lease and Finance Management - Version 12.1.3 and later
Information in this document applies to any platform.

Symptoms

ACTUAL BEHAVIOR
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If we extend the lease term and/or change the residual value on an operating lease, FA recalculates depreciation retrospectively from the placed in service date and generates a current month adjustment. The proper accounting (for our circumstance) would be to reflect the change prospectively during the renewal period.


EXPECTED BEHAVIOR
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Ct would like the system to automatically trigger the ‘prospective’ flag in FA for all rebook transactions for operating leases flowing over from OLFM.

STEPS
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User is trying to review a contratc.
Rebook contract for extending the term.
Term changed to 30 from 24 on contracts and payments tab.

BUSINESS IMPACT
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Depreciation on rebooked operating leases is incorrectly posted to the ledger.

Cause

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