Unamortized Expense Fee Not Getting Accelerated After A T&A
(Doc ID 2311434.1)
Last updated on MARCH 05, 2019
Applies to:Oracle Lease and Finance Management - Version 12.2.5 and later
Information in this document applies to any platform.
On : 12.2.5 version, Billing Modules
When a contract that has an Expense fee undergoes a Transfer and Assumption, the remaining fee amount is not getting accelerated as part of the termination process
When a contract that has an Expense fee undergoes a Transfer and Assumption, the remaining fee amount should get accelerated as part of the termination process
The issue can be reproduced at will with the following steps:
1. Create a DF Lease Contract. Contract effective from Date = 15-Aug-2016 and Contract term = 48
2. Contract has 1 Asset – for a value of $ 170,486.14. No Residual value on the asset
3. Create one Financed fee (Fee Type = Financed) for an amount of $25,572.92 - and associate the asset to this Fin fee
4. Create one Expense Fee (Fe Type = Expense) for an amount of $2940.89. In this Initial direct cost = 2940.89, # of periods = 1, Amount per period = 2940.89 and Freq = Monthly)
4. In the payment tab, create 2 payments. One is for ‘RENT’ payment for the asset (In Advance, 48 periods of $4081.44 per period). Also create a payment for the Financed Fee (In Advance, 48 periods of $612.22 per period)
5. Validate and book the contract
6. Process billing till 28-Feb-2016
7. Process accrual till 28-Feb-16. This creates accrual transactions as on 28-Feb-17
8. Process a T&A as on 15-Mar-2017
9. The original contract gets terminated
10. Query the accrual transactions for this contract
11. There is no 'Accrual Catchup / accrual acceleration' transaction created for the Expense Fee on the contract
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