ELA : Incorrect Lease Obligation(LO) Amount Calculated in DIST_LN Table After Recategorizing the Leased Asset (Doc ID 2872572.1)

Last updated on NOVEMBER 17, 2023

Applies to:

Symptoms

A payable lease is amended to update the asset category and the Lease Obligation account (on asset cost distribution).
After processing the accounting entries it is observed that in the DIST_LN table the Lease Obligation amount was moved in full to the new Lease Obligation account, any payments previously made were not taken into consideration i.e. lease obligation amount is not reduced by the previous payment amounts.

Steps to Replicate:

1. Create new payable Lease, with asset Asset Lease Machinery(OLME).
   Lease Start date 01/01/2022
   Lease End date 12/31/2024
   Lease Signed date 01/01/2022
   Menu > Lease Administration > Payables Leases > Create New Payables Lease
2. On Financial summary page update the transaction date and accounting date as 01/01/2022.
   
   
3. Add a borrowing rate of 4% and Base rent of 1000 USD to be paid on first of every month.
   
   
4. Validate and activate the Lease.
   
   
5. Run Manage transaction generator process
   Menu > Lease Administration > Integrations >Manage Transaction Generator.
   
   
6. Process payments to payables.
   Menu > Lease Administration > Payables Leases > Process Payable Lease Pymts.
   
   
7. Run manage interface transactions to AP/BI process
   Menu > Lease Administration > Integrations > Manage Interface to AP/BI.
   
   
8. Calculate depreciation
   Menu Asset Management > Depreciation > Processing >Calculate Depreciation.
   
   
9. Create accounting entries entries, the Lease obligation amount for account 215000 is 42553.6 USD( Trans type ADD).
   Menu > Asset Management > Accounting Entries > Create Accounting Entries
   
   
10. Close depreciation for period 1-3, year 2022.
    Menu > Asset Management > Accounting Entries > Close Depreciation.
    
    
11. Create an amendment in April-2022 to update the asset category to OLAUTO with transaction date 01/01/2022.
    Navigation: Menu > Lease Administration > Payable Leases > Maintain Payable Lease.
    
    
12. On asset cost distribution page update lease obligation account from 215000 to 100000.
    
    
13. Activate the amendment.
    
    
14. Calculate the depreciation.
    
    
15. Create accounting entries.
    
    
16. Review accounting entries, Lease obligation amount of 42553.6 was transferred from 215000 to 100000.
    Since the asset category and account were updated in Apr-2022, expecting the system to consider the payments done for period Jan,Feb,March-2022 i.e. an amount of 39103.73 USD should be transferred to account 100000, category OLAUTO.

Cause

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