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ELA: Lease Incentives Not Working With Amendments (Doc ID 2527491.1)

Last updated on JULY 21, 2020

Applies to:

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

Symptoms

On :  9.2 version, 2.4 Lease Maintenance

ACTUAL BEHAVIOR  
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We are live in Production with the new Leasing functionality in the Asset Management module. We are working on a lease that needs to be amended to add an additional lease incentive amount to an already active lease. However, when we add the lease incentive using the Amendments functionality and generate the accounting entries, the accounting entry does not match to the actual straightline schedule amounts. Apparently the system applies some kind of prorated rate and under books the amount.

EXPECTED BEHAVIOR
-----------------------
Per business, the lease incentive amount should simply be spread evenly across all open periods... there is no need for any type of proration.

STEPS
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The issue can be reproduced at will with the following steps:
 
1) Make Jan 2019 as the open period for AM
2) Enter a lease with start and end date of 1/1/2019 to 8/31/2021
3) Enter Financial Term of Base Rent for 19400 per month, no escalation
4) Enter Financial Term of Lease Incentive for 86164.00 with 1/1/2019 payment date
5) Save, allocate and activate the lease
6) Run following jobs in order:
a. General Straightline Schedule
b. Depreciation Calculation
c. Create Accounting Entries
d. Depreciation Close for Jan 2019
7) Open Feb 2019 as the open period for AM
8) Create an Amendment for the lease
9) Enter Financial Term of Lease Incentive for 40000.00 with 1/1/2019 payment date
10) Save, allocate and activate the lease
11) Run following jobs in order:
a. General Straightline Schedule
b. Depreciation Calculation
c. Create Accounting Entries
d. Depreciation Close for Feb 2019
12) Review the Accounting entries and the ps_re_ls_stline_vw

BUSINESS IMPACT
-----------------------
The issue has the following business impact:
Due to this issue, the straightline schedule amounts are under booked.

Cause

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In this Document
Symptoms
Cause
Solution
References


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