ELA: Lease Amendment Issue: Stepped Escalation Lease
(Doc ID 2433192.1)
Last updated on AUGUST 08, 2018
Applies to:PeopleSoft Enterprise FIN Lease Administration - Version 9.2 and later
Information in this document applies to any platform.
When extending a lease term via an amendment to a stepped lease, the results are incorrect.
Rent Escalation Type: Stepped
Extend the Lease Term by 5 Years
Change the Borrowing Rate from 10 to 5%.
Expected ADJ Values are:
After the amendment the asset and the liability value are expected to be both 140,000 USD
(lease extended by 5 years, new borrowing rate of 5%)
· The liability
needs to adjusted by 68,162
· The asset needs
to be adjusted by 70,740 The difference of 2,578 needs to be recognized as
This issue can be replicated by performing the following steps:
1) Create an operating Lease
2) Create Base Rent with Escalation type Stepped
3) Amend the lease to extend the term.
To view full details, sign in with your My Oracle Support account.
Don't have a My Oracle Support account? Click to get started!