ELA: When A Lease Does Not Start On The 1st Of The Month, Accounting Entries Are Incorrect
(Doc ID 2431633.1)
Last updated on AUGUST 03, 2018
Applies to:PeopleSoft Enterprise FIN Lease Administration - Version 9.2 and later
Information in this document applies to any platform.
When lease commencement does not start on the first of the month, accounting entries are incorrect. The system does not prorate the first month remaining days. Rather, it includes that prorated amount as "initial direct cost" because the lease starts after the regularly scheduled payment date. However, the entries for this initial direct costs are incorrect. The straight line adjustment amount for the first month never gets posted. It stays in pending status, which creates incorrect rent expense amounts.
Steps to Replicate:
1) Create a Lease where start date is 03/24/2018, end date is 7/31/2018, and periods are closed until 2018/7.
2) Activate the lease.
3) Run following processes in order:
a. Generate Straight line schedule
b. Run Depreciation Calc
c. Run Create Accounting Entries
d. Run Depr Close for Fiscal Year 2018/Period 7
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