ELA: Incorrect Accounting Entries Are Generated After Activating and Processing a Decrease in Scope (Decrease in ROU) Amendment
(Doc ID 2890648.1)
Last updated on AUGUST 18, 2022
Applies to:PeopleSoft Enterprise FIN Lease Administration - Version 9.2 and later
PeopleSoft Enterprise FIN Asset Management - Version 9.2 and later
Information in this document applies to any platform.
Incorrect Accounting Entries are generated after activating and processing a Decrease in Scope (Decrease in ROU) Amendment.
"When a Leased Asset is ‘Impaired’ (referred to as Reduction in Scope), the system should do the following;
a. Debit the Impairment Account for Los
b. Reduce the ROU Assets
c. Ensure that the remaining month Accumulated Amortization is taken out of the Impairment Loss account instead of the ROU
What is happening: The system is not reducing the ROU on 'Leased Asset Impairment'. Amortization of ROU continues even after the Impairment"
The issue can be reproduced at will with the following steps:
1. Create an operating lease (Lease Administration > Payables Leases > Create New Payables Lease)
2. Generate the Straightline Schedule (RE_FASB_GEN) process (Lease Administration > Integrations > Generate Straightline Schedule)
3. Run the Depreciation Calculation (Asset Management > Depreciation > Processing > Calculate)
4. Create the Accounting Entries (Asset Management > Accounting Entries > Create Accounting Entries)
5. Close the Depreciation (Asset Management > Accounting Entries > Close Depreciation)
6. Create and Activate an Amendment to reduce the scope of the lease (Lease Administration > Payables Leases > Maintain Payables Lease)
7. Generate the Straightline Schedule
8. Run the Depreciation Calculation
9. Create the Accounting Entries
10. Close the Depreciation
Detailed DEMO Replication Steps Attached
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