How can we Add Multi-GAAP Amortized Fees Back on an Assumed Contract when there is a Difference In Amortization between the two Ledgers? (Doc ID 2232002.1)

Last updated on FEBRUARY 14, 2017

Applies to:

Oracle Lease and Finance Management - Version 12.2.5 and later
Information in this document applies to any platform.

Goal

Contracts are created with Fees that are billed in full on the first day of the contract. These fees are then amortized over the life of the contract. In cases where a Transfer and Assumption is processed on these contracts, the fees are not transferred to the new contract because there are no remaining payments. ER Bug 21825504 has been logged to change this so that the remaining amount to be amortized can be brought into the new contract so that the amortization can complete as expected rather than being accelerated in the first contract when that is terminated. As a workaround it was suggested to add the fees back to the new contract after the Transfer and Assumption completes. This is fine in some cases, but not all.

One example that is not resolved by this workaround is when the amounts left to accrue are not the same for the Financial and Reporting products when a Multi-GAAP contract is created after the transfer. The original contract could be created with a Fee in the amount of 11,000. That Fee is then amortized differently in for the US GAAP Product and the Local GAAP product. So when the Transfer and Assumption is processed there is one amount left to be amortized for US GAAP, say 2,000 and in the Local GAAP there is 2,500 left. But the Fee can only be for one amount. How can we get these two amounts to amortize correctly in their respective ledgers?
 

Solution

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