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ELA: Wrong Accounting Entry Amounts After Lease Amendment With Backdated Trans Date (Doc ID 2541828.1)

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.

Symptoms

Accounting Entries are incorrect after Lease is amended with a backdated transaction date.

Expected Results
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It is expected that the accounting entries will match the customer's expectations which are documented in file Customer_Analysis_Dist_ln.xlsx

Steps
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This issue can be replicated by performing the following steps:

1. Lease was created with 2 years term, rent of 100 for first year and 150 for second year, and IBR of 6%.
2. Activated the lease.
3. Ran the following processes one after another – Manage Transaction Generator, Generate Straightline Schedule, Deprecation Calculation, Create Accounting Entries, and Deprecation Close for fiscal year 2018, periods 8, 9 and 10.
4. Amended the Lease by extending it by 1 year, effective date (transaction date) for the amendment is 9/1/2018, while accounting date is 11/1/2018, as periods 8, 9 and 10 are closed by now.
5. Ran the following processes one after another – Manage Transaction Generator, Generate Straightline Schedule, Deprecation Calculation, Create Accounting Entries, and Deprecation Close for fiscal year 2018, periods 11, 12, and fiscal year 2019, period 1.
6. For November, Rent expense entries should have been $150.71, but instead were 228.83.
7. Similarly, Lease Obligation and Asset Amortization were also incorrect.


Business Impact
-----------------------
The accounting entries are incorrect when amending a lease with a backdated transaction date.

Cause

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In this Document
Symptoms
Cause
Solution
References


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