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Incorrect Lease Accrual Cancellation on Termination when a Rebook Adjustment Exists (Doc ID 2586493.1)

Last updated on SEPTEMBER 09, 2019

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,

Find that in a scenario where rebook has been performed as of start date of the contract to reduce the residual value or rent, a rebook adjustment transaction is created to catchup for the pretax income until today. Then when a full termination is performed effective 3 or 4 months prior to sysdate, after completion of the quote, the accrual catchup is being reversed completely and does not consider the quote effective from date.

Expectation is that only accrual catchup after the quote effective from date should be cancelled.

The issue can be reproduced at will with the following steps:
1. Take an active finance lease contract which has income accrued till the current month
2. Perform a rebook effective from contract start date. Reduce the Residual Value or RENT. This would recalculate the PRETAX INCOME and other streams as per the reduction in RV or RENT.
3. A rebook adjustment transaction would be created to catch up for PRETAX Income till date. This gets accounted as one large amount in the current period. This is a catch up from contract start date to till date
4. Create a full termination quote effective from 3 or 4 months in to past periods i.e 31-Jan-19 or so. The quote type could be Termination without purchase
5. Complete the termination quote.
Expectation is that accruals after the quote effective from date should be cancelled i.e on or after 31-Jan-19. But, the rebook adjustment transaction created in step 3 above would have been cancelled.


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