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ELA: Incorrect Interest Is Being Calculated on Lease with Advance Payment and There Is No Reduction In Lease Obligation in GASB87 (Doc ID 2829616.1)

Last updated on JANUARY 06, 2022

Applies to:

PeopleSoft Enterprise FIN Lease Administration - Version 9.2 to 9.2 [Release 9]
Information in this document applies to any platform.

Symptoms


Lease obligation reduction and Lease Interest not calculating correctly for Advance payment type in GASB87.


The issue can be reproduced at will with the following steps:


1. Review Installation Options – New Accounting Standards enabled (Set Up Financials/Supply Chain, Install, Installation Options, in Product Options select Lease Administration)

2. Create Schedule for Lease - (Set Up Financials/Supply Chain, Common Definition, Calendar/Schedules, Create Schedules)

3. Review Delivered Calendar - Set Up Financials/Supply Chain, Common Definition, Calendar/Schedules, Detail Calendar)

4. Create New Lease - Lease Administration, Payable Leases, Create Payable Lease)

    a. Add Asset

    b. Enter Financial Terms

    c. Add Base Rent

    d. Allocate Costs

    e. Classify Asset

    f. Validate and Activate Lease

    g. Preview Payment Schedule Page and shows interest on 1st month and no reduction in obligation; incorrect for GASB87

 

Cause

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In this Document
Symptoms
Cause
Solution
References


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