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ELA: Salvage Value Error For Low Amount (0.01) Base Rent (Doc ID 2510875.1)

Last updated on OCTOBER 12, 2020

Applies to:

PeopleSoft Enterprise FIN Lease Administration - Version 9.2 and later
Information in this document applies to any platform.

Goal

Qn1:When creating a lease with Probable Guaranteed Residual Value and a base rent amount of 0.01, the lease is validated successfully but while activating it the following error is returned - "Total salvage value cannot be greater than the total cost for each book (8010,165)"
 
When we remove Probable Guaranteed Residual Value from the asset and keep the Fair Value at End Date, the system allows the lease to activate. When we add Probable Guaranteed Residual Value, the value is added to the total payment. As per the borrowing period and base rent terms, the PVLP is calculated considering the discounts which will always be less than Probable Guaranteed Residual Value.


1) What is the difference between Fair Value at End Date and Probable Guaranteed Residual Value?

2) Why does the system validate PVLP against the Salvage/Probable Guaranteed Residual Value?

3) How can we enter a lease that requires Probable Guaranteed Residual Value?

Solution

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In this Document
Goal
Solution
References


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