ELA9.2: Incorrect Depreciation Amount When a Foreign Currency Lease Reclassified From Operating to Finance
(Doc ID 2623752.1)
Last updated on DECEMBER 26, 2019
Applies to:PeopleSoft Enterprise FIN Lease Administration - Version 9.2 to 9.2 [Release 9]
Information in this document applies to any platform.
Depreciation AD amounts are incorrect when a foreign lease reclassified from Operating lease to Finance lease if market rates are varying every month.
In DIST_LN entries, Sum of FA & AA (remaining ROU before Lease was reclassified to FIN) is not equal to sum of AD amounts (total accumulated depreciation) after reclassification.
In other words sum of FA + AA + AD entries should be zero in this scenario
Steps to replicate:
1. Make sure that market rate between a currency in which lease is entered & the book base currency varies every month.
2. Enter a foreign currency operating lease for 04 months. Save & Activate.
3. Generate straight line schedule & Process lease for first 2 periods, create accounting entries
4. Amend the lease to Reclassify from Operating Lease to Finance Lease on beginning 3rd period
5. Generate Straight-line schedule & calculate depreciation again
6. Close depreciation for remaining 2 periods. Create Accounting entries. Check that sum of FA + AA + AD entries is zero.
To view full details, sign in with your My Oracle Support account.
Don't have a My Oracle Support account? Click to get started!
In this Document