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ELA9.2: Incorrect Depreciation Amount When a Foreign Currency Lease Reclassified From Operating to Finance (Doc ID 2623752.1)

Last updated on JANUARY 25, 2021

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.




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