ELA: Capturing Free Rent Period Through Lease Admin
(Doc ID 2431634.1)
Last updated on MARCH 27, 2019
Applies to:PeopleSoft Enterprise FIN Lease Administration - Version 9.2 and later
Information in this document applies to any platform.
How can we get ROU asset to amortize correctly for operating lease with a free rent period?
Per Bug 27445026 - ELA: INFO - HOW TO ADD FREE RENT a workaround was posted for generating free rent for a lease. Please find attached.
When implementing the workaround for free rent that was provided by development in file Workaround_for_adding_free_rent.docx, the payment schedule screen on the lease terms page shows a Present Value of Rent Payments that is less than the total Obligation Reduction. To determine this, download the payment schedule and sum the Obligation Reduction. In the example provided by the workaround, if you change the payment type to "Advance" and sum all the obligation amounts the total exceeds amount for the initial liability and ROU asset created.
Per Bug 28372441 - ELA: MONTHLY LEASE INTEREST AND ROU REDUCTION FOR NON-MONTHLY LEASE PAYMMENTS
Users can now enter rent free period on leases with base rent 0 on financial terms. This was implemented in Image 29
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