ELA : Operating Expenses Are Not Included in Total Present Value Lease Payments and Also Interest Expense Is Not Calculated for Operating Expenses. (Doc ID 2880562.1)

Last updated on DECEMBER 31, 2023

Applies to:

Symptoms

A Payable lease has a base rent and an operating expense that needs to be paid on a monthly basis. It is observed that Operating expenses for payable lease is not included in the Total Present value lease payment(ROU asset cost/capitalized lease amount). Interest expense is also not calculated for Operating expenses i.e. On the preview payment schedule page for an Operating expense the interest expense is zero.

Steps to Replicate:

1. Create a new Payable Lease under US005 (GASB87 reporting BU).
     Menu > Lease Administration > Payable Leases > Create a New Payable Lease.

2. Add Base rent to be paid at first of each month. Preview payment schedule, total lease obligation amount is included in the Present value lease payment and interest expense is also calculated.

3. Add a Operating expense for the expense category ADMINFEE. Preview payment schedule, total lease obligation amount of an operating expense is not included in the Present value lease payment and interest expense is 0 for all the periods.
    Expecting the Operating expenses to be included in the Total Present value lease payment(ROU asset cost/capitalized lease amount) and interest expense should be calculated.

Cause

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