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EAM: Asset Management Leased Asset Recategorization is Not Creating Proper Accounting Entries, the Lease Obligation(LO) Amount is Incorrect. (Doc ID 2882688.1)

Last updated on JULY 18, 2022

Applies to:

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

Symptoms

Asset Management - Leased assets - when recategorizing from one lease category to another does not create the proper accounting entries for the lease obligation. The previous lease payments were nor considered while calculation the Lease Obligation(LO) amount for new asset category.

Steps to Replicate:

1) Create a new Leased asset in AM using lease express ADD.
    Menu > Asset Management > Asset Transactions > Leased Assets > Lease Express Add.

2) Process the payments to payables.
    Menu > Asset Management > Send/Receive Information > Load Interface > Lease payments to Payables.

3) Create Accounting Entries.
    Menu > Asset Management > Accounting Entries > Create Accounting Entries.

4) Run Depreciation close process for the required period.
     Menu > Asset Management > Accounting Entries > Close Depreciation.

5) Now Recategorize the asset.
    Menu > Asset Management > Asset Transactions > Financial Transactions > Cost Adjust/Transfer Asset.

6) Create accounting entries  and run close depreciation.

7) Review accounting entries, It is observed that entire Lease obligation amount was transferred to new asset category without considering the previous payments. The Expected LO amount for new category is ( ADD LO amount – Sum of LPY LO amount).

Demo Accounting Entries.

Cause

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In this Document
Symptoms
Cause
Solution
References


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