EAM9.2:GASB 87 Capital Lease Did Not Generate Lease Payment Accounting Entries For Basic Rent
(Doc ID 2647229.1)
Last updated on MARCH 16, 2020
Applies to:PeopleSoft Enterprise FIN Asset Management - Version 9.2 to 9.2 [Release 9]
Information in this document applies to any platform.
The Lease Payment Accounting Entries for Basic Rent are not generated by Close Depreciation (AM_DPCLOSE) because the asset is not classified.
Steps to replicate:
- Uncheck Lease Administration Module in Installation Options page (Set Up Financials/Supply Chain > Business Unit Related > Install> Installation Options - Lease Administration)
- In Installation Option - Lease Administration page, select 'Apply ASC 842, IFRS 16 and GASB 87 Accounting' option.
- Note that in Installation Option - Asset Management page, 'Lease Expense = LEX' is displayed.
- For LA Business Unit Definition, no Changes made on GASB 87 Lease BU (Set Up Financials/Supply Chain > Business Unit Related > Lease Administration > LA Business Unit Definition)
2. Create New Lease (Lease Administration > Payable Leases > Create New Lease)
3. Check Lease Schedule
4. Run AM processes:
Following processes were run after Lease is activated. Asset is created when the lease is activated.
- Run Depreciation Calculation
- Run Create Accounting Entries
- Run Close Depreciation
5. Check AM Accounting Entries
1. When the Reviewed button is clicked in the Asset List Grid (asset not classified yet, Classification is blank in the grid) and error message is displayed
2. When the Checked Box of Mark Classification Reviewed is clicked, the Reviewed in the Asset List is checked without any error.
When the asset is saved, the asset is not classified. When the asset is activated it still remains as not classified.
The asset is treated as non capital/non finance as such accounting entries (LPY) are not generated.
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