T&A Of DF Lease - Asset Adjustment Transaction Not Accounted
Last updated on DECEMBER 02, 2016
Applies to:Oracle Lease and Finance Management - Version 12.1.3 and later
Information in this document applies to any platform.
On : 12.1.3 version, Billing Modules
T&A of DF Lease - Asset Adjustment Transaction not Accounted
doing a Transfer & Assumption of a DF Lease. This is creating a new Contract on the new Customer as expected and terminating the old contract.
But- for the Asset on the Original Contract, 2 Adjustment transactions are being created.
a) First Adjustment entry is putting the Asset cost back in FA - and the Transaction is being accounted (Debit Asset Cost - Credit Asset Clearing)
b) The Second Adjustment entry is also being created - but it is not getting processed by the 'Create Accounting' program. The Event Status is shown as 'No Accounting Needed'
Due to this, the Accounting is not correct. The balances in the Asset Account and the Asset Clearing Account are not getting closed
Entries should process by 'Create Accounting' program.
The issue can be reproduced at will with the following steps:
. Create a DF Lease Contract
2. On booking of the contract, there are 2 accounting entries created in Fixed Assets:
a) An Addition entry that creates an Asset in FA for the Asset Cost (Debit: Asset Cost Credit: Asset Clearing)
b) An Adjustment entry that reverses the above accounting (Credit: Asset Clearing Credit: Asset Cost)
Due to the above, the Asset in FA is for $0
3. After a few months, do a Transfer and Assumption for the above contract to a new customer
4. On booking of the T&A, the old Contract gets terminated - and a new Contract is created on the new customer
5. This process again creates 2 transactions in FA:
a) Adjustment # 1: Adds the Asset Cost back in FA (Debit: Asset Cost Credit: Asset Clearing). This transaction gets accounted and transferred to GL
b) Adjustment # 2: This is to reverse the Asset Cost in FA. This should create the accounting as Debit: Asset Clearing Credit: Asset Cost. But this transaction does NOT gets accounted.
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