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ELA: Generation Of Accounting Entries With Escalating Rent And Inclusion Of Lease Incentive. (Doc ID 2584103.1)

Last updated on JULY 22, 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 found an issue in the generation of accounting entries with escalating rent and inclusion of Lease Incentive.

Business Expectation:

Rent should have 2 Dr amount for rent expense (For Example)
6/30/2019 LEX <Account 1> (Premises Rent) B 5,000.00 Detail Rent Expense
6/30/2019 LPY <Account 1> (Premises Rent) B 2,000.01 Detail Rent Expense

And offset entries (Rent Expense Contra) should go to Asset Account for LEX entries and Premises rent for LPY entries.
6/30/2019 LEX <Account 2> (ROU Asset)          B -5,000.00 Detail Rent Expense Contra
**6/30/2019 LPY <Account 1> (Premises Rent) B -2,000.01 Detail Rent Expense Contra

System Generated:

Rent should have 2 Dr amount for rent expense (For Example)
6/30/2019 LEX <Account 1> (Premises Rent) B 5,000.00 Detail Rent Expense
6/30/2019 LPY <Account 1> (Premises Rent) B 2,000.01 Detail Rent Expense

And offset entries (Rent Expense Contra) are going to both Asset Account for LEX and LPY
6/30/2019 LEX <Account 2> (ROU Asset)    B -5,000.00 Detail Rent Expense Contra
**6/30/2019 LPY <Account 2> (ROU Asset) B -2,000.01 Detail Rent Expense ContraPlease find the complete details attached in the excel.

EXPECTED BEHAVIOR
-----------------------
It is expected that the offset entries (Rent Expense Contra) are going to both Asset Account for LEX and LPY for ROU Asset and Premises Rent.

STEPS
-----------------------
The issue can be reproduced at will with the following steps:
1. Create Lease.
2. Add Base Rent.
3. Add Lease Incentive.
4. Generate Straightline.
5. Calculate Depreciation.
6. Generate Accounting Entries.
7. Close Depreciation.

Replication Steps Attached.

Changes

 

Cause

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In this Document
Symptoms
Changes
Cause
Solution
References


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