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Equpiment Lease Termination Without IFRS Enabled Produces Incorrect Values (Doc ID 2762926.1)

Last updated on DECEMBER 06, 2022

Applies to:

Oracle Property Manager - Version 12.1.3 and later
Information in this document applies to any platform.


System calculates wrong normalization amounts incorrectly when a lease amendment is terminated prematurely on equipment leases.

Steps to replicate:

Use the responsibility Property Manager, Vision Operations (or similar that has access to the Equipment Lease menu).

Menu path:  Equipment Menu : Equipment Lease

1)  Set up new Equipment Lease with structure similar to this:

Lease Commencement date: 01-Oct-2020
Lease Termination Date: 30-Sep-2020

Term details
Start Date: 01-Oct-2020
End Date: 30-Sep-2021
Amount: 12,000 GBP per year (Annual Frequency)
Normalize- Checked
ROU- Unchecked
Liability- Unchecked

2)  Assign asset to the lease and link to payment term

3)  Finalize lease

4)  Amend lease as:

Amendment commencement date: 15-Jan-2021
Amendment execution date: 15-Jan-2021
Amendment Termination date: 15-Jan-2021

Change the lease termination date to : 15-Jan-2021

When reviewing the schedule that generates, the values for the period containing the Amendment Commencement Date will be incorrect:


                    Currency                          Total       Normalization     Account          Accrued
Date                 Code         Cash           Cash           Expense     Adjustment          Liability
======  =========   ======  =====  ======   ============   =======
01-OCT-20          USD         3.517,81       3.517,81       1.000,00     <2.517,81>     <2.517,81>
01-NOV-20          USD              0,00               0,00       1.000,00       1.000,00        <1.517,81>
01-DEC-20          USD              0,00               0,00       1.000,00       1.000,00       <517,81>
01-JAN-21          USD               0,00               0,00       3.517,81       3.517,81       3.000,00


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