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Transcript of 16 Whitepaper - Transaction Accounting Lease Management
Strictly Oracle Confidential, subject to Non-Disclosure Agreement
Transaction Accounting in Oracle Lease Management v. 11.5.10.H An Oracle White Paper October 2006
Transaction Accounting in Oracle Lease Management v. 11.5.10.H
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Transaction Accounting in Oracle Lease Management
Executive Overview.......................................................................................... 6 Introduction ....................................................................................................... 6 Accounting Setup .............................................................................................. 6
Stream Generation Template ...................................................................... 7 Accounting Template Set ............................................................................ 7 Financial Product .......................................................................................... 7 Accounting Templates ................................................................................. 7 Account Generator....................................................................................... 9 Set of Books ................................................................................................ 11 Accounting Periods .................................................................................... 11 Date Default Logic ..................................................................................... 11 Asset Accounting ........................................................................................ 12 Receivables Sub Ledger ............................................................................. 12 Payables Sub Ledger................................................................................... 12 Lease Sub Ledger ........................................................................................ 12 General Ledger............................................................................................ 13 Additional Accounting ............................................................................... 13 Process Flow................................................................................................ 14
Business Processes that Generate Accounting Events .............................. 15 Accounting Setup for Accounting Events................................................... 26 Accounting Parameter – Transaction Types ............................................... 48 Accounting Parameter - Basis of Accounting Call ..................................... 49 Accounting Parameter – Formulas and Programs ..................................... 51
Seeded Formulas ......................................................................................... 51 Accounting Programs................................................................................. 61
Accounting Examples..................................................................................... 62 Contract........................................................................................................ 62 1. Operating Lease ...................................................................................... 62 2. Operating Lease (Early Termination with Purchase) ........................ 63 3. Direct Finance Lease.............................................................................. 64 4. Direct Finance Lease (Early Termination without Purchase).......... 65 5. Direct Finance Lease (Early Partial Termination without Purchase)66 6. Direct Finance Lease (Rebook from start with increased rent)....... 67 7. Loan.......................................................................................................... 69 8. Variable Rate Loan: Calculate Interest Billing on applicable rates for a loan............................................................................................................. 70
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9. Variable Rate Loan: Calculate Interest Billing on applicable rates for a Revolving Loan ........................................................................................ 71 10. Variable Rate Loan: Calculate Interest Billing on applicable rates for a revolving loan..................................................................................... 72 11. Variable Rate Loan: Bill fixed amount and reduce principal on receipt of cash for a loan ........................................................................... 74 Investor Agreement.................................................................................... 75 1. Securitization of Direct Finance Lease................................................ 75 Contract Fees and Subsidy ........................................................................ 76 1. Financed fee ............................................................................................ 76 2. Absorbed fee ........................................................................................... 76 3. Expense fee ............................................................................................. 76 4. Miscellaneous fee.................................................................................... 77 5. Income fee ............................................................................................... 77 6. Passthrough fee....................................................................................... 77 7. Subsidy (Netting Method) ..................................................................... 78 8. Subsidy (Amortization Method)........................................................... 78
Worksheet......................................................................................................... 79 Detailed Setup Steps ....................................................................................... 80
1.1 Accrual generation to recognize income based on streams ........... 80 1.2 Accrual generation to recognize estimated interest income on scheduled or actual principal balance....................................................... 83 1.3 Accrual generation to recognize actual interest income on scheduled or actual principal balance....................................................... 85 1.4 Accrual generation to recognize actual interest income on actual principal balance.......................................................................................... 86 1.5 Accrual catchup on termination of lease contract ........................... 88 1.6 Accrual acceleration for IDC/Subsidy on termination of lease contract......................................................................................................... 89 1.7 Accrual adjustment on rebook of contract....................................... 90 1.8 Accrual adjustment for Insurance Policy Income ........................... 91 1.9 Accrual adjustment for Insurance Policy Expense.......................... 91 2.1 Adjustment of an invoice .................................................................... 92 3.1 Asset disposal on acceptance of termination quote with purchase93 3.2 Asset disposal on scrapping asset ...................................................... 94 3.3 Asset disposal on repurchase by vendor ........................................... 95 3.4 Asset disposal by sale ........................................................................... 95 5.1 Balance write off on contract termination........................................ 96 6.1 Billing Periodic...................................................................................... 97 6.2 Billing Manual ....................................................................................... 98 6.3 Billing on acceptance of Termination Quote ................................... 99 6.4 Billing on acceptance of Repurchase Quote................................... 100 6.5 Billing asset condition charge ...........................................................101 6.6 Billing sale of asset through iStore...................................................102 6.7 Billing Customer Service Fee............................................................103 6.8 Billing Vendor Cure ...........................................................................103
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6.9 Billing Usage Based ............................................................................104 6.10 Billing Variable Interest and principal payment for contract with Revenue Recognition Method = Estimated and Billed....................... 105 6.11 Billing Loan payment for contract with Revenue Recognition Method = Actual.......................................................................................106 6.12 Billing Interim Interest ....................................................................107 6.13 Billing Late Interest..........................................................................108 6.14 Billing Late Charge...........................................................................109 6.15 Billing Insurance...............................................................................110 6.16 Billing Principal or Loan Paydown................................................111 6.17 Billing Advanced Rent .....................................................................111 6.18 Billing Evergreen Rent ....................................................................112 6.19 Billing Investor Stake.......................................................................113 6.20 Billing Stream type with Revenue Recognition Basis = Cash Receipt ........................................................................................................114 6.21 Billing Property Tax.........................................................................115 6.22 Billing Adjustment on rebook of contract....................................116 7.1 Booking generate draft journal .........................................................116 7.2 Booking activate contract..................................................................118 7.3 Reverse contract .................................................................................119 8.1 Credit memo on acceptance of Termination Quote with negative values ..........................................................................................................120 8.2 Credit memo on acceptance of Repurchase Quote with negative values ..........................................................................................................121 8.3 Credit Memo from Customer Service ............................................. 122 8.4 Credit memo for Vendor Cure Refund Offset .............................. 123 8.5 Credit Memo for Advanced Rent ....................................................123 8.6 Credit Memo for Billing Adjustment ..............................................124 8.7 Credit Memo for billing stream types on rebook .......................... 125 8.8 Credit Memo for Stream type with Revenue Recognition Basis = Cash Receipt ..............................................................................................126 9.1 Debit memo for Negative Pre Funding ..........................................127 9.2 Debit memo for Supplier Retention................................................128 10.1 Disbursement Manual......................................................................129 10.2 Disbursement Pass Through ..........................................................129 10.3 Disbursement Insurance .................................................................130 10.4 Disbursement of Vendor Cure Refund ........................................131 10.5 Disbursement to Investor ...............................................................132 11.1 Conversion of contract to Evergreen status ................................133 12.1 Funding Contract before Activation .............................................133 12.2 Funding Asset on Contract.............................................................134 12.3 Funding Expenses on Contract......................................................135 12.4 Funding Borrower Payment ...........................................................136 13.1 General Loss Provision Creation...................................................137 13.2 General Loss Provision Reversal on new provision ................... 138 13.3 General Loss Provision Reversal on Termination of Contract.138
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14.1 Investor Agreement Activation......................................................139 15.1 Miscellaneous Manual Journal........................................................140 17.1 Adjust Principal balance ..................................................................141 18.1 Rebook generate draft journal ........................................................141 18.2 Rebook contract activation .............................................................144 18.3 Rebook mass contracts....................................................................146 19.1 Allocation of receipt to interest and principal..............................148 20.1 Re-Lease booking draft entries.......................................................149 20.2 Re-Lease activation of contract......................................................151 21.1 Billing to Reverse Credit Memo on contract Release ................. 152 22.1 Credit memo to Reverse Billing on contract Release.................. 153 23.1 Billing to Reverse Credit Memo on acceptance of Rollover Termination quote ....................................................................................154 24.1 Credit Memo to Reverse Billing on acceptance of Rollover Termination quote ....................................................................................155 25.1 Create Specific Loss Provision.......................................................156 25.2 Specific Loss Provision Reversal on new provision.................... 157 25.3 Specific Loss Provision Reversal on Termination of Contract . 157 26.1 Termination of Contract .................................................................158
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Transaction Accounting in Oracle Lease Management
EXECUTIVE OVERVIEW Each lessor accounts for their leases differently based on the nature of their business and geography in which they operate. Oracle Lease Management provides an extremely flexible accounting infrastructure.
INTRODUCTION This document is to assist users in setting up accounting in Oracle Lease Management and may be referred to in addition to the user and implementation guide.
Oracle Lease Management is a transaction processing system in which the user performs transactions on the lease contract. Some of the transactions create accounting entries. Oracle Lease Management creates the accounting entries based on the setups performed during the implementation.
The detailed navigation for setups is available in the implementation guide. This document is divided into the following parts:
• Accounting Setup
• Business Processes that Generate Accounting Events
• Accounting setup for Accounting events
• Accounting Parameters
• Accounting examples
• Worksheet
• Detailed setup steps
ACCOUNTING SETUP Accounting in Oracle Lease Management is impacted by a number of setups and entities within Oracle Applications. The key components are:
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Stream Generation Template Stream Generation Template is collection of primary and dependent stream types, which are available for the contract for down stream processing.
Accounting Template Set An accounting template set is a group of accounting templates defined in Oracle Lease Management. Stream Generation Template is associated with an Accounting Template Set
Example – define separate accounting template sets for operating leases, direct finance leases, loans, and investor agreements.
Financial Product The accounting template set is associated with a financial product in Oracle Lease Management. One accounting template set may be associated to multiple financial products. Book classification, interest calculation Method, revenue recognition method, and tax owner of the product and that of associated Stream Generation Template must match.
Example – the operating lease accounting template set may be associated with the US operating lease product and UK operating lease product.
Accounting Templates An accounting template comprises of the unique parameters to identify the template and the account codes to be applied.
Unique Parameters
Any combinations of the parameters on the accounting template must be unique for a date range. The parameters are:
Transaction Type – seeded events within Oracle Lease Management. Examples – Booking, Billing, Termination etc.
Stream Type– user defined elements associated with one of the seeded Stream purposes to identify the different components within the transaction to be accounted. Examples – Rent, Pre Tax Income, Residual Value.
Memo – valid values “Yes’ and “No”.
Special Accounting – used to enable different accounting for the same transaction when the contract is part of Investor Agreement.
Formulas
Accounting templates may be setup with formulas. The formulas are evaluated to derive the amount to be accounted, if the transaction does not provide the accounting amount.
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Accounting Template Lines
The account codes to be used for accounting are derived based on the setup on accounting template lines. Rules to determine the account codes are as follows.
1. User may define account code on the accounting template line and is used for accounting.
2. User may define account generator rule on the accounting template line, which is evaluated to derive account code.
3. User may define both account code and account generator rule on the accounting template lines. Oracle Lease management evaluates account generator rule first to derive the account code. Account code defined on the accounting template line is used for accounting only if the source transaction does not pass values for all the account generator sources that are required by the account generator rule.
Accounting Template Defaulting Rules
The accounting engine uses defaulting rules to identify the accounting template. The defaulting rules apply to Memo, Investor Flag, and Investor code parameters. The hierarchy of the combination of parameter values to determine the accounting template is given below. For example, an accounting transaction makes an accounting call specifying Memo = Yes for a contract which is associated with an active investor agreement and the investor (special accounting) code.
1. The accounting engine tries to match all three parameters i.e. the combination at 1 below.
2. If no template is available, the match is attempted excluding Investor code i.e. combination at 2 below
3. If no template is available, the match is attempted excluding investor flag and code i.e. combination at 3 below
4. If no template is available, 4 to 6 are attempted in that order
5. If all 1 to 6 fail, the accounting engine returns error
Hierarchy Memo Investor flag Investor code
1 Yes Yes Yes
2 Yes Yes Null
3 Yes Null Null
4 No/Null Yes Yes
5 No/Null Yes Null
6 No/Null Null Null
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Account Generator There are two ways to use Account Generator to derive account codes dynamically.
1) Use configurable rules with seeded sources: When accounting engine determines that the Account generator is to be used to derive the account codes, it identifies the account codes based the account generator rule specified on accounting template lines. User specifies either a source or a constant for each segment of the accounting flexfield in the account generator rule setup. Valid Source screens and the label for each screen is mentioned in the following table. Account Generator raises error if
a. A valid account code is not generated
b. An account generator rule or account generator source is not defined
c. An account code is not defined for transaction supplied source table-primary key value combination
2) Use Workflow for complete configuration: In this case, accounting engine triggers a workflow, which determines account codes based on the logic in the workflow. A sample workflow is seeded and can be customized by the user. Customized workflow may use the account generator setup viz. account generator rule and account generator sources or use any other logic to derive the account codes.
The path the account generator will take is determined by the profile option ‘OKL: Use Account Generator Workflow’. Two paths are mutually exclusive and can not be combined.
Sources
The sources for the account generator are:
Module Screen Label Primary Key
Assets Asset Categories Asset Cost Asset Category + Asset Book
Assets Asset Categories Accumulated Depreciation Asset Category + Asset Book
Assets Asset Categories Bonus Reserve Asset Category + Asset Book
Assets Asset Categories Asset Clearing Asset Category + Asset Book
Payables Financial Options-Accounting
Liability Operating Unit
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Module Screen Label Primary Key
Payables Financial Options-Accounting
Prepayment Operating Unit
Payables Financial Options-Accounting
Discount Taken Operating Unit
Payables Financial Options-Accounting
PO Rate Variance Gain Operating Unit
Payables Financial Options-Accounting
PO Rate Variance Loss Operating Unit
Payables Supplier Site – Accounting
Liability Supplier Site
Payables Supplier Site – Accounting
Prepayment Supplier Site
Payables Supplier Site – Accounting
Future Dated Payment Supplier Site
Receivables Customer Site – Accounts
Receivable Customer Bill To Site
Receivables Customer Site – Accounts
Revenue Customer Bill To Site
Receivables Customer Site – Accounts
Tax Customer Bill To Site
Receivables Customer Site – Accounts
Freight Customer Bill To Site
Receivables Customer Site – Accounts
Clearing Customer Bill To Site
Receivables Customer Site – Accounts
Unbilled Receivable Customer Bill To Site
Receivables Customer Site – Accounts
Unearned Revenue Customer Bill To Site
Receivables Transaction Types Receivable Transaction Type
Receivables Transaction Types Revenue Transaction Type
Receivables Transaction Types Tax Transaction Type
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Module Screen Label Primary Key
Receivables Transaction Types Freight Transaction Type
Receivables Transaction Types Clearing Transaction Type
Receivables Transaction Types Unbilled Receivable Transaction Type
Receivables Transaction Types Unearned Revenue Transaction Type
Foundation Resource Freight Employee
Foundation Resource Revenue Employee
Foundation Resource Receivable Employee
Inventory Master Item - Purchasing
Expense Account Item
Set of Books The set of books in Oracle General Ledger is identified through the setups done in the accounting options screen in Oracle Lease Management. The set of books is associated with the operating unit of the user (responsibility). The user’s operating unit is determined based on the profile option MO: Operating Unit.
The set of books provides the chart of accounts (accounting flexfield), currency and calendar.
Accounting Periods The accounting periods are derived from the calendar associated with the set of books for Oracle Lease Management. The accounting period may be opened or closed in Oracle Lease Management independent of the status in Oracle General Ledger.
Date Default Logic
The accounting date is the provided by the calling transaction. If the accounting period is open or future enterable, the accounting is created with the date provided by the transaction. When the accounting date falls in a prior period to the current open period, it is replaced with the first date of the first open accounting period.
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When the accounting date falls in a future period, it is replaced with the last date of the most recent open or future enterable accounting period.
Asset Accounting The corporate asset book of Oracle Assets is identified by the profile option ‘OKL: Asset Addition Corporate Book’ whereas Reporting asset book (for Multi-GAAP) is determined by the profile option ‘OKL: Reporting Product Asset Book’. Asset accounting is created by Oracle Assets from the corporate asset book into the associated general ledger set of books. Accounting is based on the user configuration for the corporate asset book. The transactions are created directly in Oracle Assets without running the mass additions program.
Examples – creation, cost adjustment, retirement etc.
Receivables Sub Ledger The accounting for receivables transactions – billing, credit memos, balance write offs, receipts etc. are created in receivables sub ledger of Oracle Receivables. Oracle Lease Management creates transactions in the invoice interface of Oracle Receivables with accounting defined in the accounting templates of Oracle Lease Management. Receipts are accounted based on setups defined within Oracle Receivables.
Payables Sub Ledger The accounting for payable transactions – funding, disbursement, debit memo, payments etc. are created in payables sub ledger of Oracle Payables. Oracle Lease Management creates transactions in the invoice interface of Oracle Payables with accounting defined in the accounting templates of Oracle Lease Management. Payments are accounted based on setups defined within Oracle Payables.
Lease Sub Ledger Transactions created in Oracle Assets, Oracle Receivables or Oracle Payables result in accounting through the respective modules and accounting is not available in the Lease Sub Ledger.
All other accounting transactions create accounting entries in the lease sub ledger.
Programs
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The following programs must be run to create accounting from Oracle Lease Management transactions:
Accounting Process – creates accounting in the lease sub ledger. The output file provides detailed information for each transaction accounted by Journal Category and Transaction Type. It also provides error log listing the transactions not processes for any reasons.
Transfer to General Ledger – transfers accounting from the lease sub ledger to the interface of Oracle General Ledger. The output file provides detailed information for each accounting lines transferred to General Ledger by Journal Category and Transaction Type along with the error log of unprocessed accounting lines due to invalid accounts.
Periodic Reversal – reverses accounting for transactions to be reversed in the beginning of the next accounting period. The output file list processed and non-processed accounting entries.
General Ledger The journal entries created by Oracle Assets, Oracle Payables, Oracle Receivables and Oracle Lease Management must be imported and posted in Oracle General Ledger before drawing up any financial statements.
Additional Accounting To support extensions to the available accounting, the accounting sources are recorded in OKL_ACCT_SOURCES table for each accounting line on creation of an accounting distributions. Accounting sources relate to the following:
• Transaction identifier
• Accounting transaction information
• Accounting template identification parameters
• Account generator sources
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Process Flow
Accounting Process in Oracle Lease Management
Ebus
ines
s S
uite
Creates andMaintains Lease
Contracts
Leas
e M
anag
emen
t
Book LeaseContract
Determinewhether Leasetransaction?
RestructureContractBill ContractFund Contract Terminate
Contract Sell Asset
Identifyaccountingtemplate(s)
Identifyaccountingtemplate
Solve Formula
Identify AccountCodes
CreateAccounting
Distributions
CreateAccounting in
Lease SubLedger
Identify AccountCodes
Amountavailable?
CreateTransaction in
Interface Tables
CreateTransaction inReceivables /
Payables module
Account inReceivables /Payables Sub
Ledger
Import Journal inGeneral Ledger
Post Journal inGeneral Ledger
End
Lease
Payables orReceivables
NotAvailable
Available
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BUSINESS PROCESSES THAT GENERATE ACCOUNTING EVENTS
Business Process
Sub Process Accounting Event Setup S. No.
Remarks
Home No Accounting
Marketing No Accounting
Sales No Accounting
Vendors – Operating Agreements
No Accounting
Vendors – Program Agreements
No Accounting
Vendors – Cure Requests
Cure Requests Create cure invoices 6.8
Vendors – Cure Refunds
Cure Refunds Refund cure 8.4, 10.4
Origination - Credit
No Accounting
Origination – Contracts - Booking
Book Contract Generate draft journals during booking process
7.1
Activate contract during booking process
7.2
Re-Lease Assets
Generate draft journals during booking process
20.1
Activate contract during booking process
20.2
Origination – Contracts -
Rebook Generate draft journals during
18.1
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Business Process
Sub Process Accounting Event Setup S. No.
Remarks
Revisions Contract rebook process
Activate contract during rebook process
18.2
Accrual Adjustment on rebook of contract
1.7
Cancel insurance 1.8, 1.9
Reverse Contract
Reverse Contract 7.3
Re-Lease Contract
Generate draft journals during booking process
20.1
Activate contract during booking process
20.2
Acceptance of termination quote – Automatic Release without purchase
6.3, 8.1, 21.1, 22.1, 26.1
Catchup of accruals 1.5
Acceleration of accruals
1.6
Reversal of loss provision
13.3, 25.3
Cancel insurance 1.8, 1.9
Origination – Master Lease Agreements
No Accounting
Origination – Funding - Funding
Funding Request
Approve pre funding
12.1
Approve pre funding adjustment (negative pre
9.1
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Business Process
Sub Process Accounting Event Setup S. No.
Remarks
funding)
Approve asset funding
12.2
Approve expense funding
12.3
Approve loan principal funding (borrower payment)
12.4
Approve Supplier retention
9.2
Approve Manual Disbursement
10.1
Origination – Funding – Funding Request Checklist
No Accounting
Origination – Funding – Credit Line Checklist
No Accounting
Contract Management – Termination Quotes
Termination Quote,Manual Termination Quote, and Rollover Termination Quote with purchase
Acceptance of termination quote
6.3, 8.1, 23.1, 24.1, 26.1
Sale of asset to lessee
3.1
Catchup of accruals 1.5
Acceleration of accruals
1.6
Reversal of loss 13.3
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Business Process
Sub Process Accounting Event Setup S. No.
Remarks
provision 25.3
Cancel insurance 1.8, 1.9
Termination Quote, Manual Termination Quote, and Rollover Termination Quote without purchase
Acceptance of termination quote
6.3, 8.1, 23.1, 24.1, 26.1
Catchup of accruals 1.5
Acceleration of accruals
1.6
Reversal of loss provision
13.3, 25.3
Cancel insurance 1.8, 1.9
Contract Management – Quote Consolidation
No Accounting
Contract Management – Restructure Quote
No Accounting
Contract Management – Contract Termination – Termination Transactions
No Accounting
Contract Management – Contract Termination – Request Termination
Contract Termination
Balance write-off 5.1
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Business Process
Sub Process Accounting Event Setup S. No.
Remarks
Catchup of accruals 1.5
Acceleration of accruals
1.6
Reversal of loss provision
13.3, 25.3
Cancel insurance 1.8, 1.9
Contract termination
6.3, 8.1, 26.1
Contract Management – Mass Rebook
Mass Rebook Activate contract during rebook process
18.3
Accrual adjustment 1.7
Cancel insurance 1.8, 1.9
Billing adjustment 6.22
Operations - Streams
No Accounting
Operations - Invoices
No Accounting
Operations -Manual Bills
Manual Invoices
Generate invoices 6.2
Operations - Counters
No Accounting
Operations -Receipts
Receipts are accounted for in AR
Operations – Transactions – Accounting Transactions
No Accounting
Operations – Transactions – Loss provisions
Create specific loss provision
25.1
Reversal of loss 25.2,
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Business Process
Sub Process Accounting Event Setup S. No.
Remarks
provision 13.2
Operations – Transactions – Accrual Override
No Accounting
Operations – Transactions – Manual Journal
Create manual journal
15.1
Assets –Tracking - Return Requests
Asset Returns Scrap asset 3.2
Assets – Tracking – Location Change
No Accounting
Assets – Tracking - Inspection
Asset Conditioning
Bill for asset repairs 6.5
Assets – Tracking - Shipping Instructions
No Accounting
Assets – Tracking – Fees
No Accounting
Assets – Tracking – Vendor Quote
Repurchase Quote
Acceptance of repurchase quote
6.4, 8.2
Sale of asset to vendor
3.3
Assets – Remarketing
No Accounting
Assets – Transactions - Contract
No Accounting
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Business Process
Sub Process Accounting Event Setup S. No.
Remarks
Portfolio
Assets – Transactions – Off Lease Asset Transactions
No Accounting
Assets – Transactions – Salvage Value Writedown
No Accounting
Assets – Transactions – Residual value Writedown
Residual Write Down
Rebook contract 18.2
Assets – Transactions – Like Kind Exchange
No Accounting
Processing – Request - Schedule/
Lease Administrator – Submit Requests
Master Program -- Process Billable Streams, Advance Billing
Generate periodic invoices
6.1, 6.17, 8.5
Evergreen Billing
Generate evergreen invoices
6.18
Usage Based Billing
Generate UBB invoices
6.9
Service Contracts Billing
Create Receivables Variable Rate Invoices
Generate variable rate invoices
6.10
Generate interim 6.12
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Business Process
Sub Process Accounting Event Setup S. No.
Remarks
interest
Calculate Late Interest
Generate late interest
6.13
Calculate Late Charges
Generate late charge 6.14
Third Party Billing Import
Period Reversal
Periodic Reversal Reverses marked accounting transaction
Generate Accruals Master - Streams
Generate accruals 1.1
Generate Accruals Master - Estimated And Billed
Accrual generation to recognize estimated/actual interest income on scheduled or actual principal balance
1.2, 1.3
Generate Accruals Master - Actual
Accrual generation to recognize actual interest income on actual principal balance
1.4
General Loss Provision
Create general loss provision
13.1
Reversal of loss provision
13.2
Lease Contract Open Interface
Generate draft journals during booking process
7.1
Activate contract during booking process
7.2
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Business Process
Sub Process Accounting Event Setup S. No.
Remarks
Disbursement Invoices
Generate passthroughs
10.2
Generate insurance disbursements
10.3
Create Investor Invoice Disbursements
10.5
Activate Insurance
Activate Insurance 6.15, 10.3
Activation Contract Activation 7.2
Automatic Insurance
Activate Insurance 6.15, 10.3
Balance Writeoff for Terminated and Expired Contracts
Balance Write off on contract termination
5.1
Buyback Investor Agreement
Disbursement to Investor
10.5
Daily Interest Calculation
Allocation of receipt to interest and principal
19.1
Generate Cure Amount
Billing Vendor Cure 6.8
Generate Cure Refund
Disbursement of Vendor cure Refund
10.4
Interest Calculation
Billing Interim Interest
6.12
Pay Invoices Creation of Auto-Disbursement Process
Disbursement passthrough
10.2
Process Rebook contract 18.2
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Business Process
Sub Process Accounting Event Setup S. No.
Remarks
Residual Value Writedown Transactions
Activation
Terminate Expired Contracts
Conversion of contract to Evergreen status
11.1
Processing – Request - Monitor
No Accounting
Processing - Programs
No Accounting
Setup No Accounting
Investor Management -Pools
No Accounting
Investor Management -Investor Agreements
Activation of Investor Agreement
14.1
Investor Management-Transactions -Receivable Invoices
No Accounting
Investor Management –Transactions -Payable Invoices
No Accounting
Investor Management -Transactions-Buy Back Streams
Disbursement to Investor
10.5
Investor Management –
No
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Business Process
Sub Process Accounting Event Setup S. No.
Remarks
Transactions – Accounting Transactions
Accounting
Investor Management -Transactions- Loss provisions
Create specific loss provision
25.1
Reversal of loss provision
25.2
Customer Service – Lease Center
Transactions Bill customer service fees
6.7
Credit for invoices
8.3
Insurance Activate policy 6.15, 10.3
Requests Principal Paydown – Rebook contract
6.16
Principal Paydown – generate Invoice
Transfer and assumption – Rebook contract
iStore Remarketing Billing of asset sold through iStore
6.6
Sale of asset to third party
3.4
Collections Invoice adjustment
Adjustment of invoice
2.1
Customer Self Service
No Accounting
Vendor Self Service
No Accounting
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Business Process
Sub Process Accounting Event Setup S. No.
Remarks
Vendor / Investor Disbursement
No Accounting
ACCOUNTING SETUP FOR ACCOUNTING EVENTS
Setup S. No.
Transaction Type
Accounting Event
Draft Accounting
Applicability Stream Purpose
Formulas
Number of Accounting Templates
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Setup S. No.
Transaction Type
Accounting Event
Draft Accounting
Applicability Stream Purpose
Formulas
Number of Accounting Templates
1.1
Accrual Accrual generation to recognize income based on streams
No Operating Lease, Direct Finance Lease, Sales Type Lease, Loan, or Loan – Revolving contracts
Rental Accrual, Lease Income, Interest Income, Investor Rental Accrual Investor Pre-Tax Income, Interest Catchup, Float factor Adjustment, Service Income, Pass Through Service Expense Accrual, Pass Through Service Revenue Accrual Amortized Fee Income / Expense, Accrued Fee Income / Expense, Pass Through Expense Accrual, Pass Through Revenue Accrual, Subsidy Income
No One for each stream with the memo flag set to No and one for each stream with the memo flag set to Yes, if non-accrual must be accounted separately.
1.2 Accrual Accrual generation to recognize
No Loan or Loan – Revolving with Revenue
Variable Interest
Yes One for each stream with the memo flag set to No and one
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Setup S. No.
Transaction Type
Accounting Event
Draft Accounting
Applicability Stream Purpose
Formulas
Number of Accounting Templates
estimated interest income on scheduled or actual principal balance
Recognition Method = Estimated & Billed
Income for each stream with the memo flag set to Yes, if non-accrual must be accounted separately.
1.3 Accrual Accrual generation to recognize actual interest income on scheduled or actual principal balance
No Loan or
Loan - Revolving with Revenue Recognition Method = Estimated & Billed
Variable Interest
No One for each stream with the memo flag set to No and one for each stream with the memo flag set to Yes, if non-accrual must be accounted separately.
1.4 Accrual Accrual generation to recognize actual interest income on actual principal balance
No Loan or
Loan - Revolving with Revenue Recognition Method = Actual
Actual Income Accrual
Yes One for each stream with the memo flag set to No and one for each stream with the memo flag set to Yes, if non-accrual must be accounted separately.
1.5 Accrual Accrual catchup on termination of lease contract
No Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
Loan – Revolving
Any accrual stream defined on the financial product
No The accounting transaction for non-accrual is reversed. The template defined for any accrual stream is applied for the catch up of accrual.
1.6 Accrual Accrual acceleration for IDC/Subsidy
No Operating Lease
Direct Finance
Any accrual stream for IDC / Subsidy defined on the
No One for each accrual stream type.
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Setup S. No.
Transaction Type
Accounting Event
Draft Accounting
Applicability Stream Purpose
Formulas
Number of Accounting Templates
on termination of lease contract
Lease
Sales Type Lease
Loan
Loan – Revolving
financial product
1.7 Accrual Accrual Adjustment on rebook of contract
No Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
Loan – Revolving
Any accrual stream defined on the financial product
No One for each accrual stream type.
1.8 Accrual Accrual adjustment for Insurance Policy Income
No Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
Loan – Revolving
Insurance Income
No One
1.9 Accrual Accrual adjustment for Insurance Policy Expense
No Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
Loan –
Insurance Expense
No One
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Setup S. No.
Transaction Type
Accounting Event
Draft Accounting
Applicability Stream Purpose
Formulas
Number of Accounting Templates
Revolving
2.1 Adjustments Adjustment of an invoice
No Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
Loan – Revolving
Stream type on an invoice
No One for each stream
3.1 Asset Disposition
Asset disposal on acceptance of termination quote with purchase
No Operating Lease
Direct Finance Lease
Sales Type Lease
Any stream Yes One for each stream type
3.2 Asset Disposition
Asset disposal on scrapping asset
No Operating Lease
Direct Finance Lease
Sales Type Lease
Any stream Yes One for each stream
3.3 Asset Disposition
Asset disposal on repurchase by vendor
No Operating Lease
Direct Finance Lease
Sales Type Lease
Any stream Yes One for each stream
3.4 Asset Disposition
Asset disposal by sale
No Operating Lease
Direct Finance Lease
Sales Type
Any stream Yes One for each stream
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Setup S. No.
Transaction Type
Accounting Event
Draft Accounting
Applicability Stream Purpose
Formulas
Number of Accounting Templates
Lease
4.0 Asset Residual Change
- - - - - Functionality for future release
5.1 Balance Write Off
Balance write off on contract termination
No Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
Loan - Revolving
One for each billable stream
No One for each billable stream type
6.1 Billing Billing Periodic
No Operating Lease, Direct Finance Lease, Sales Type Lease, Loan and Loan-Revolving
Any stream Type with billable attribute set to Yes
No One for each stream type
6.2 Billing Billing Manual No Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
Loan Revolving
Any stream with billable attribute set to Yes
No One for each stream type
6.3 Billing Billing on acceptance of Termination quote
No Operating Lease
Direct Finance Lease
Sales Type
Any stream type defined in the Stream Generation Template for termination
No One for each stream type
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Setup S. No.
Transaction Type
Accounting Event
Draft Accounting
Applicability Stream Purpose
Formulas
Number of Accounting Templates
Lease
Loan
Loan - Revolving
quote billing
6.4 Billing Billing on acceptance of Repurchase quote
No Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
Loan – Revolving
Any stream type defined in the Stream Generation Template for repurchase quote billing
No One for each stream type
6.5
Billing Billing asset condition charge
No Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
Loan – Revolving
Repair Charge No One for each stream type
6.6 Billing
Billing sale of asset through iStore
No Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
Loan – Revolving
Any stream type defined in the Stream Generation Template for billing sale price of an asset
No One for each stream type
6.7 Billing Billing Customer
No Operating Any stream type defined in
No One for each stream
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Setup S. No.
Transaction Type
Accounting Event
Draft Accounting
Applicability Stream Purpose
Formulas
Number of Accounting Templates
Service Fee Lease
Direct Finance Lease
Sales Type Lease
Loan
Loan – Revolving
stream Generation Template for billing customer service fee
type
6.8
Billing Billing Vendor Cure
No Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
Loan – Revolving
Cure No One for each stream type
6.9 Billing Billing Usage Based
No Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
UBB Charge No One for each stream type
6.10 Billing Billing Variable Interest and principal payment for contract with Revenue Recognition Method = Estimated and
No Loan and Revolving loan with Revenue Recognition Method = Estimated & Billed
Principal Payment, Variable Interest
No One for each stream type
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Setup S. No.
Transaction Type
Accounting Event
Draft Accounting
Applicability Stream Purpose
Formulas
Number of Accounting Templates
Billed
6.11 Billing Billing Loan payment for contract with Revenue Recognition Method = Actual
No Loan and Revolving loan with Revenue Recognition Method = Actual
Loan Payment, Variable Loan Payment, Excess Interest Paid, Excess Principal Paid
No One for each stream type
6.12 Billing Billing Interim Interest
No Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
Loan – Revolving
Interim Interest
No One for each stream type
6.13 Billing Billing Late Interest
No Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
Loan – Revolving
Late Interest No One for each stream type
6.14 Billing Billing Late Change
No Operating Lease
Direct Finance Lease
Sales Type Lease
Late Fee No One for each stream type
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Setup S. No.
Transaction Type
Accounting Event
Draft Accounting
Applicability Stream Purpose
Formulas
Number of Accounting Templates
Loan
Loan – Revolving
6.15 Billing Billing Insurance
No Operating Lease
Direct Finance Lease
Sales Type Lease
Insurance Receivable
No One for each stream type
6.16 Billing Billing Principal or Loan Paydown
No Loan
Loan – Revolving
Unscheduled Principal Payment,
Unscheduled Loan Payment
No One for each stream type
6.17
Billing Billing Advanced Rent
No Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
Advanced Rent
No One for each stream type
6.18
Billing Billing Evergreen Rent
No Operating Lease
Direct Finance Lease
Sales Type Lease
Evergreen Rent
Evergreen Fees
Evergreen Service and Maintenance
No One accounting template for each stream type
6.19 Billing Billing Investor Stake
No Investor Agreement
Investor Receivables
No One
6.20 Billing Billing Stream type with Revenue Recognition
No Operating Lease
Any stream type with Revenue Recognition
No Two accounting templates for each stream type
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Setup S. No.
Transaction Type
Accounting Event
Draft Accounting
Applicability Stream Purpose
Formulas
Number of Accounting Templates
Basis = Cash Receipt
Basis = Cash Receipt and Billable = Yes
6.21 Billing Billing property tax
No Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
Loan – Revolving
Any stream type of purposes Actual Property tax, Estimated property tax, Adjusted property tax
No One accounting template for each stream type
6.22 Billing Billing Adjustment on rebook of contract
No Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
Loan – Revolving
Any Billing stream
No One accounting template for each stream type
7.1 Booking Booking generate draft journal
Yes Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
Loan – Revolving
Any Yes Multiple
7.2 Booking Booking activate contract
No Operating Lease
Direct Finance
Any Yes Multiple
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Setup S. No.
Transaction Type
Accounting Event
Draft Accounting
Applicability Stream Purpose
Formulas
Number of Accounting Templates
Lease
Sales Type Lease
Loan
Loan – Revolving
7.3
Booking Reverse contract
No Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
Loan – Revolving
N/a N/a
The accounting transaction for booking is reversed.
8.1 Credit Memo Credit memo on acceptance of termination quote with negative values
No Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
Loan – Revolving
Any stream type defined in the Stream Generation Template for termination quote billing
No One for each stream type
8.2 Credit Memo Credit memo on acceptance of repurchase quote with negative values
No Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
Loan –
Any stream type defined in the Stream Generation Template for repurchase quote billing
No One for each stream type
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Setup S. No.
Transaction Type
Accounting Event
Draft Accounting
Applicability Stream Purpose
Formulas
Number of Accounting Templates
Revolving
8.3 Credit Memo Credit memo from Customer Service
No Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
Loan – Revolving
Any billable stream
No One for each billable stream
8.4 Credit Memo Credit memo for Vendor Cure Refund Offset
No Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
Loan – Revolving
Cure No One
8.5 Credit Memo Credit Memo for Advanced Rent
No Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
Advanced Rent
No One
8.6 Credit Memo Credit Memo for Billing Adjustment
No Operating Lease
Direct Finance Lease
Sales Type Lease
Billing Adjustment
No One
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Setup S. No.
Transaction Type
Accounting Event
Draft Accounting
Applicability Stream Purpose
Formulas
Number of Accounting Templates
Loan
Loan – Revolving
8.7 Credit Memo Credit Memo for billing stream types on rebook
No Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
Loan – Revolving
All billing streams
No One for each stream type
8.8 Credit Memo Credit Memo for Stream type with Revenue Recognition Basis = Cash Receipt
No Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
Loan – Revolving
Invoice stream type with Revenue Recognition Basis = Cash Basis and Billable = Yes
No One accounting template for each cash basis stream type
9.1 Debit Memo Debit memo for Negative Pre Funding
No Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
Pre Funding No One
9.2 Debit Memo Debit memo for Supplier Retention
No Operating Lease
Direct Finance Lease
Sales Type
Funding No One
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Setup S. No.
Transaction Type
Accounting Event
Draft Accounting
Applicability Stream Purpose
Formulas
Number of Accounting Templates
Lease
Loan
10.1 Disbursement Disbursement Manual
No Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
Loan – Revolving
Any No One for each stream
10.2
Disbursement Disbursement Pass Through
No Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
Loan – Revolving
Any No One for each stream
10.3 Disbursement Disbursement Insurance
No Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
Loan - Revolving
Insurance Payable
No One
10.4 Disbursement Disbursement of Vendor Cure Refund
No Operating Lease
Direct Finance
Vendor Cure No One
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Setup S. No.
Transaction Type
Accounting Event
Draft Accounting
Applicability Stream Purpose
Formulas
Number of Accounting Templates
Lease
Sales Type Lease
Loan
Loan - Revolving
10.5 Disbursement Disbursement to Investor
No Investor Agreement
Stream type of sub-class Investor Disbursement
No One for each stream
11.1 Evergreen Conversion of contract to evergreen status
No Operating Lease
Direct Finance Lease
Sales Type Lease
Any stream Yes Multiple
12.1 Funding Funding contract before activation
No Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
Loan - Revolving
Pre Funding No One
12.2 Funding Funding Asset on contract
No Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
Funding No One
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Setup S. No.
Transaction Type
Accounting Event
Draft Accounting
Applicability Stream Purpose
Formulas
Number of Accounting Templates
12.3 Funding Funding Expenses on contract
No Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
Funding No One
12.4 Funding Funding Borrower Payment
No Loan – Revolving contract in booked status
Principal Balance
No One
13.1 General Loss Provision
General Loss Provision Creation
No Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
Loan – Revolving
General Loss Provision
No One for each stream type of purpose General Loss Provisoon
13.2 General Loss Provision
General Loss Provision Reversal on new provision
No Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
Loan – Revolving
General Loss Provision
N/a
The earlier general loss provision transaction is reversed.
13.3
General Loss Provision
General Loss Provision Reversal on Termination
No Operating Lease
Direct Finance Lease
General Loss Provision
N/a
The earlier general loss provision transaction is reversed.
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Setup S. No.
Transaction Type
Accounting Event
Draft Accounting
Applicability Stream Purpose
Formulas
Number of Accounting Templates
of Contract Sales Type Lease
Loan
Loan – Revolving
14.1 Investor Investor agreement activation
No Investor Agreement
Any Yes Multiple
15.1 Miscellaneous Miscellaneous Manual Journal
No Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
Loan – Revolving
Any stream No Not required
16.1
Off Lease Amortization
- - - - - Functionality for future release
17.1 Principal Adjustment
Adjust Principal balance
No Loan with Interest calculation Method = Catchup / Cleanup
Interest Catchup
Yes One for each stream
18.1 Rebook Rebook generate draft journals
Yes Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
Any Yes Multiple
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Setup S. No.
Transaction Type
Accounting Event
Draft Accounting
Applicability Stream Purpose
Formulas
Number of Accounting Templates
Loan – Revolving
18.2 Rebook Rebook contract activation
No Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
Loan – Revolving
Any Yes Multiple
18.3
Rebook Rebook mass contracts
No Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
Loan – Revolving
Any Yes Multiple
19.1 Receipt Application
Allocation of receipt to interest and principal
No Loan and revolving contract with Revenue Recognition Method = Actual
Daily Interest-Interest, Daily Interest-Principal
No One per stream
20.1 Re-Lease Re-Lease booking draft entries
Yes Operating Lease
Direct Finance Lease
Sales Type Lease
Any Yes Multiple
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Setup S. No.
Transaction Type
Accounting Event
Draft Accounting
Applicability Stream Purpose
Formulas
Number of Accounting Templates
Loan
Loan-Revolving
20.2
Re-Lease Re-Lease activation of Contract
No Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
Loan – Revolving
Any Yes Multiple
21.1 Release Billing Billing to Reverse Credit Memo on contract Re-Lease
No Operating Lease
Direct Finance Lease
Sales Type Lease
Stream purposes for termination quote lines
No One for each billable stream type
22.1 Release Credit Memo
Credit memo to Reverse Billing on contract Re-Lease
No Operating Lease
Direct Finance Lease
Sales Type Lease
Stream purposes for termination quote lines
No One for each billable stream type
23.1 Rollover Billing
Billing to Reverse Credit Memo on acceptance of Rollover Termination quote
No Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
Loan – Revolving
Stream purposes for termination quote lines
No One for each billable stream type
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Setup S. No.
Transaction Type
Accounting Event
Draft Accounting
Applicability Stream Purpose
Formulas
Number of Accounting Templates
24.1 Rollover Credit Memo
Credit Memo to Reverse Billing on acceptance of Rollover Termination quote
No Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
Loan – Revolving
Stream purposes for termination quote lines
No One for each billable stream type
25.1
Specific Loss Provision
Create Specific Loss Provision
No Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
Loan - Revolving
Stream type of purpose Specific Loss Provision
No One for each stream type of purpose Specific Loss Provision
25.2 Specific Loss Provision
Specific Loss Provision Reversal on new provision
No Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
Loan - Revolving
Specific Loss Provision
N/a
The earlier specific loss provision transaction is reversed.
25.3
Specific Loss Provision
Specific Loss Provision Reversal on Termination of Contract
No Operating Lease
Direct Finance Lease
Specific Loss Provision
N/a
The earlier specific loss provision transaction is reversed.
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Setup S. No.
Transaction Type
Accounting Event
Draft Accounting
Applicability Stream Purpose
Formulas
Number of Accounting Templates
Sales Type Lease
Loan
Loan – Revolving
26.1 Termination Termination of Contract
No Operating Lease
Direct Finance Lease
Sales Type Lease
Loan
Loan – Revolving
Any streams Yes Multiple
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ACCOUNTING PARAMETER – TRANSACTION TYPES
Transaction type tracking to Sub-ledger and General ledger
Transaction Type
Journal Source
Journal Category Sub Ledger Accounting Setup
Accrual Lease Lease Accrual Lease Lease Adjustments Lease Adjustments Lease Lease Adjustment Receivables Adjustment Receivables Lease Asset Disposition Lease Asset Disposition Lease Lease Asset Residual Change
- - - -
Balance Write Off Receivables Adjustment Receivables Lease Billing Receivables Sales Invoice Receivables Lease Booking Lease Booking Lease Lease Credit Memo Receivables Credit Memos Receivables Lease Debit Memo Payables Purchase Invoice Payables Lease Disbursement Payables Purchase Invoice Payables Lease Evergreen Lease Evergreen Lease Lease Funding Payables Purchase Invoice Payables Lease General Loss Provision
Lease Loss Provision Lease Lease
Insurance Lease Adjustments Lease Lease Investor Lease Booking Lease Lease Miscellaneous Lease Miscellaneous Lease Lease Off Lease Amortization
- - - -
Principal Adjustment
Lease Adjustments Lease Lease
Rebook Lease Rebook Lease Lease Receipt Application
Lease Adjustments Lease Lease
Release Lease Booking Lease Lease Release Billing Receivables Sales Invoice Receivables Lease Release Credit Memo
Receivables Credit Memos Receivables Lease
Renewal - - - - Rollover Billing Receivables Sales Invoice Receivables Lease Rollover Credit Memo
Receivables Credit Memos Receivables Lease
Specific Loss Provision
Lease Loss Provision Lease Lease
Termination Lease Termination Lease Lease
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ACCOUNTING PARAMETER - BASIS OF ACCOUNTING CALL
Transaction
type
Level of
Accounting
Basis of
Amount Account Generator Sources
Accrual Contract Transaction Payables Financial Options, Sales Representative, Receivables Transaction Type, Inventory Item, Receivables Customer Site
Asset Disposition
Asset Formula Receivables Customer Site, Payables Financial Options, Sales Representative, Inventory Item, Asset Categories
Balance Write Off
Asset Transaction Receivables Customer Site, Payables Financial Options, Inventory Item, Sales Representative, Receivables Transaction Type, Asset Categories
Billing Asset Transaction Receivables Customer Site, Payables Financial Options, Inventory Item, Sales Representative, Receivables Transaction Type, Asset Categories
Booking Contract Formula Receivables Customer Site, Payables Financial Options, Sales Representative, Receivables Transaction Type
Credit Memo Asset Transaction Receivables Customer Site, Payables Financial Options, Inventory Item, Sales Representative, Receivables Transaction Type, Asset Categories
Debit Memo Contract Transaction Receivables Customer Site, Payables Financial Options, Inventory Item, Sales Representative, Receivables Transaction Type, Asset Categories
Disbursement Contract Transaction Receivables Customer Site, Payables Financial Options, Inventory Item, Sales Representative, Receivables Transaction Type, Asset Categories
Evergreen Asset Formula None
Funding Contract Transaction Receivables Customer Site, Payables Financial Options, Sales Representative, Receivables Transaction Type
General Loss Provision
Contract Transaction Payables Financial Options, Sales Representative
Insurance Contract Transaction Payables Financial Options, Sales Representative
Investor Investor Agreement
Formula None
Miscellaneous Contract Transaction Receivables Customer Site, Payables Financial Options, Sales
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Transaction
type
Level of
Accounting
Basis of
Amount Account Generator Sources
Representative, Receivables Transaction Type
Principal Adjustment
Asset Transaction
None
Rebook Contract Formula Receivables Customer Site, Payables Financial Options, Sales Representative, Receivables Transaction Type
Receipt Application
Asset Transaction
None
Release Contract Formula Receivables Customer Site, Payables Financial Options, Sales Representative, Receivables Transaction Type
Release Billing Asset Transaction Receivables Customer Site, Payables Financial Options, Inventory Item, Sales Representative, Receivables Transaction Type, Asset Categories
Release Credit Memo
Asset Transaction Receivables Customer Site, Payables Financial Options, Inventory Item, Sales Representative, Receivables Transaction Type, Asset Categories
Rollover Billing
Asset Transaction Receivables Customer Site, Payables Financial Options, Inventory Item, Sales Representative, Receivables Transaction Type, Asset Categories
Rollover Credit Memo
Asset Transaction Receivables Customer Site, Payables Financial Options, Inventory Item, Sales Representative, Receivables Transaction Type, Asset Categories
Specific Loss Provision
Contract Transaction Payables Financial Options, Sales Representative
Termination Asset Formula Payables Financial Options, Sales Representative
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ACCOUNTING PARAMETER – FORMULAS AND PROGRAMS
Seeded Formulas
Formula Name Description Calculation Parameter Operands AMCTOC Principal
balance for a loan
Principal Balance Contract id (mandatory)
AMCTOC
AMCTUR Future dues for a lease
Sum of unbilled rents - advance rent
Contract id (mandatory)
AMCTUR
ASSET VALUE FOR INSURANCE
Asset value for shipping insurance
Net Investment Value of the asset
Contract id (mandatory) + Line id (mandatory)
OP_LINE_ASSET_NET_INVESTMENT
ASSET_DF_TERMINATION_NIV
Formula calculates net investment for the asset line for stream generation
If quote type is ‘with purchase’, the formula returns net investment amount for an asset on the termination quote. If quote type is ‘without purchase’, the formula returns the result of Line_Asset_Net_Investment formula evaluated by the Off-lease amortization transaction.
Contract id (mandatory) + Line id (mandatory)+ Quote id
OP_ASSET_DF_TERMINATION_NIV
ASSET_NET_BILLED_RECEIVABLE
Net Billed Receivable for Assets
Sum of unpaid invoices – sum of unapplied credit memos
Contract id + Line id (mandatory)
OP_SUM_UNPAID_INVOICES-OP_SUM_UNAPPLIED_CREDIT_MEMOS
ASSET_NET_BOOK_VALUE
Determine net book value for DF lease contract for termination quote during the evergreen period
Net book value as determined in FA
Contract id (mandatory) + Line id (mandatory)+ Quote id
OP_ASSET_NET_BOOK_VALUE
ASSET_NET_INVESTMENT_LOAN
Calculates net investment for a loan contract for termination quote during the base period
Actual principle balance
Contract id (mandatory) + Line id (mandatory)+ Quote id
OP_ASSET_NET_INVESTMENT_LOAN
ASSET_NET_INVESTMENT_OP
Determine net book value for OP lease contract for termination quote during the base or
Net book value as determined in FA
Contract id (mandatory) + Line id (mandatory)+ Quote id
OP_ASSET_NET_INVESTMENT_OP
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Formula Name Description Calculation Parameter Operands evergreen period
CHECK_BOOKING_DATE
Validates system date of contract activation
Checks if the contract activation system date is less than or equal to the lease application approval expiration date
Contract id (mandatory) + Line id
OP_LAP_BOOKING_DATE
CHECK_CONTRACT_FIN_AMOUNT
Validate the contract financed amount
Checks if the contract financed amount is less than or equal to the total approved amount for lease application
Contract id (mandatory) + Line id
OP_LAP_FIN_AMOUNT
CHECK_FUND_AMOUNT
Validates the total funding amount
Checks if the total amount funded on contract is less than the total amount approved on the lease application
Contract id (mandatory) + Line id
OP_LAP_FUND_AMOUNT
CHECK_FUNDING_DATE
Validates the funding date
Checks if the funding date is within the effective dates of lease application
Contract id (mandatory) + Line id
OP_LAP_FUNDING_DATE
CHECK_PARTY_CUSTACCT_MATCH
Validates the party and customer account on the contract
Checks if the party and customer account is the same on contract and lease application
Contract id (mandatory) + Line id
OP_LAP_PARTY_CUSTACCT_MATCH
CHECK_VENDOR_PROG_MATCH
Validates the vendor program on contract
Checks if the vendor program is the same on contract and lease application
Contract id (mandatory) + Line id
OP_LAP_VENDOR_PROG_MATCH
CONT_RBK_UNBILL_RECEIVABLES
Formula to calculate unbilled receivables for rebook transaction
Sum of rent not billed for all active assets
Contract id (mandatory) + Line id
OP_CONT_RBK_UNBILL_RECEIVABLES
CONT_RBK_UNEARNED_INCOME
Formula to calculate unearned income for rebook transaction
Sum of pre tax income not accrued for all active assets
Contract id (mandatory) + Line id
OP_CONT_RBK_UNEARNED_INCOME
CONT_TMT_UNBILL_RECEIVABLES
Formula to calculate unbilled receivables for termination transaction
Sum of rent not billed for all terminated assets
Contract id (mandatory) + Line id
OP_CONT_TMT_UNBILL_RECEIVABLES
CONT_TMT_UNEARNED_INCOME
Formula to calculate unearned
Sum of pre tax income not accrued for all terminated assets
Contract id (mandatory) + Line id
OP_CONT_TMT_UNEARNED_INCOME
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Formula Name Description Calculation Parameter Operands income for termination transaction
CONTRACT_ABSORBED_FEE
Formula to calculate sum of absorbed fees for a contract
Sum of all absorbed fee amounts
Contract id (mandatory) + Line id
OP_CONTRACT_ABSORBED_FEE
CONTRACT_ACCUMULATED_DEPRN
Calculate fixed asset accumulated depreciation for all the financial asset lines on a lease contract
Accumulated depreciation as determined in FA
Contract id (mandatory) + Line id
OP_CONTRACT_ACCUMULATED_DEPRN
CONTRACT_ACTUAL_INCOME_ACCRUAL
Calculates actual income for periodic income recognition for contract with Revenue Recognition Method = Actual
Total Actual Interest – Total Accrued interest as on a given date
Contract id (mandatory) + Line id
TOTAL ACTUAL INTEREST-TOTAL ACCRUED INTEREST
CONTRACT_AMNT_PREFNDED
Total positive pre-funding requests
Sum of all approved pre-funding requests with positive amounts for a contract
Contract id (mandatory)
OP_CONTRACT_AMNT_PREFNDED
CONTRACT_ASSET_COST
Calculates current fixed asset cost for all the active financial asset lines on a lease contract
Current asset cost as determined in FA
Contract id (mandatory) + Line id
OP_CONTRACT_ASSET_COST
CONTRACT_CAP_AMNT
Total financed amount
Original Equipment Cost - Trade in - Capital Reduction + capitalized Fees
Contract id (mandatory)
OP_CONTRACT_OEC-OP_CONTRACT_TRADEIN-OP_CONTRACT_CAPREDUCTION+OP_CONTRACT_FEESCAPITALIZED+CAP_INT
CONTRACT_CAP_AMNT_LOAN
Total financed amount for loan contract
Original Equipment Cost - Trade in + capitalized Fees
Contract id (mandatory)
OP_CONTRACT_OEC-OP_CONTRACT_TRADEIN+OP_CONTRACT_FEESCAPITALIZED+CAP_INT
CONTRACT_CAP_AMNT_NOSUBSIDY
Formula returns the value for capital amount for an asset
Original Equipment Cost -Trade in - Capital Reduction + Capitalized Fees + capitalized interest
Line id (mandatory) OP_CONTRACT_OEC-OP_CONTRACT_TRADEIN-OP_CONTRACT_CAPREDUCTION+OP_CONTRACT_FEESCAPITALIZED+OP_CONTRACT_CAPITALIZED_INTEREST-OP_CONTRACT_DISCOUNT-
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Formula Name Description Calculation Parameter Operands OP_ASSET_SUBSIDY_AMOUNT
CONTRACT_CAPITALIZED_INTEREST
Formula to return capitalized interest
Returns the total capitalized interest for the contract
Contract id (mandatory)
OP_CONTRACT_CAPITALIZED_INTEREST
CONTRACT_CAPREDUCTION
Sum of Capital Reduction
Sum of capital reduction of all asset lines
Contract id (mandatory)
OP_CONTRACT_CAPREDUCTION
CONTRACT_CRDT_RMNG
Returns balance of the Credit line
Total credit Limit of a Credit line – total of all approved funding requests for all contracts associated with the credit line
Credit Line Contract id (mandatory)
OP_CONTRACT_CRDT_RMNG
CONTRACT_FEE_AMOUNT
Generic formula used for calculation of fee lines during termination quote creation
Sum of billable streams for all fee lines of specified fee type
Contract id (mandatory) + Line id
OP_CONTRACT_FEE_AMOUNT
CONTRACT_FEESCAPITALIZED
Sum of Capitalized Fees
Sum of capitalized fees lines
Contract id (mandatory)
OP_CONTRACT_FEESCAPITALIZED
CONTRACT_FINANCED_AMOUNT
Formula to get the total financed amount for a contract
Contract capital amount – Contract financed fee
Contract id (mandatory) + Line id
OP_CONTRACT_CAP_AMT OP_CONTRACT_FINANCED_FEE
CONTRACT_FINANCED_AMOUNT_BKG
Total financed amount for display on booking page
Contract capital amount – Contract financed fee
Contract id (mandatory) + Line id
OP_CONTRACT_FIN_AMNT_BKG
CONTRACT_FINANCED_FEE
Returns the sum of financed fee amounts for a contract
Sum of all Financed fee amounts
Contract id (mandatory) + Line id
OP_CONTRACT_FINANCED_FEE
CONTRACT_FULL_CURE_AMOUNT
Cure Formula for Full Cure Amount
Sum of delinquent invoice - Cumulative vendor invoice amount + Short fund amount for contract
Contract id (mandatory)
CONTRACT_DELINQUENT_AMOUNT-CONTRACT_CUMULATIVE_VENDOR_INVOICE_AMOUNT+CONTRACT_SHORT_FUND_AMOUNT
CONTRACT_IDC_AMOUNT
Formula used to calculate the total IDC amount on a contract at booking
Sum of IDC amounts for the expense fee and the miscellaneous fee for contract with status of complete or approved
Contract id (mandatory) + Line id
OP_CONTRACT_IDC_AMOUNT
CONTRACT_NET_INVESTMENT_DF
Net investment for Direct Finance Lease
The formula returns PV of unbilled receivables
Contract id (mandatory) + Line id
OP_CONTRACT_RENT_AMOUNT+OP_CONTRACT_RESIDUAL_AMOUNT-
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Formula Name Description Calculation Parameter Operands OP_CONTRACT_UNEARNED_INCOME
CONTRACT_NET_INVESTMENT_LOAN
Net investment for Loan type contract
The formula returns scheduled principal balance amount for line/contract on system date
Contract id (mandatory) + Line id
OP_CONTRACT_PRINCIPAL_BAL_LOAN
CONTRACT_NET_INVESTMENT_OP
Net investment for operating Lease
Original Equipment Cost -Trade in - Capital Reduction + Capitalized Fees + Capitalized interim Interest - Accumulated depreciation – Subsidy amount
Contract id (mandatory) + Line id
OP_CONTRACT_OEC-OP_CONTRACT_TRADEIN-OP_CONTRACT_CAPREDUCTION+OP_CONTRACT_FEESCAPITALIZED+OP_CONTRACT_CAPITALIZED_INTEREST-OP_CONTRACT_ACC_DEPRECIATION-OP_ASSET_SUBSIDY_AMOUNT
CONTRACT_OEC Contract Capitalized Amount
Sum of capitalized amount of all asset lines
Contract id (mandatory)
OP_CONTRACT_OEC
CONTRACT_PRINCIPAL_BALANCE_LOAN
Principle balance for Loan type contract
The formula returns scheduled principal balance amount for line/contract on system date
Contract id (mandatory) + Line id
OP_CONTRACT_PRINCIPAL_BAL_LOAN
CONTRACT_RESIDUAL_VALUE
Calculates the RV
Residual Value for the contract
Contract id (mandatory)
OP_CONTRACT_RESIDUAL_VALUE
CONTRACT_SUMOF_RENTS
Calculates the sum of Rent stream
Sum of active rent streams
Contract id (mandatory)
OP_CONTRACT_SUMOF_RENTS
CONTRACT_TOT_AMORTIZED_EXPENSES
Formula to calculate total amortized expenses
Sum of amortized expense stream elements amounts
Contract id (mandatory) + Line id
OP_CONTRACT_TOT_AMORTIZED_EXPENSES
CONTRACT_TOT_CRDT_ADDN
Additional credit limit
Sum of all credit line additions
Contract id (mandatory)
OP_CONTRACT_TOT_CRDT_ADDN
CONTRACT_TOT_CRDT_LMT
Credit limit of credit line
Credit limit of a credit line of a contract
Credit Line Contract id (mandatory)
OP_CONTRACT_TOT_CRDT_LMT
CONTRACT_TOT_CRDT_NEW_LMT
New credit limit Sum of all new credit limit lines
Contract id (mandatory)
OP_CONTRACT_TOT_CRDT_NEW_LMT
CONTRACT_TOT_CRDT_REDN
Reduction in credit limit
Sum of all credit reduction lines
Contract id (mandatory)
OP_CONTRACT_TOT_CRDT_REDN
CONTRACT_TOT_DEBITS
Total negative pre-funding requests
Sum of all approved pre-funding requests with negative amounts for a contract
Contract id (mandatory)
OP_CONTRACT_TOT_DEBITS
CONTRACT_TOT_FNDED
Total of funding requests
Sum of all approved funding requests for a specific contract
Contract id (mandatory)
OP_CONTRACT_TOT_FNDED
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Formula Name Description Calculation Parameter Operands excluding supplier retention
CONTRACT_TRADEIN
Sum of Trade Ins
Sum of all trade ins from financial asset lines
Contract id (mandatory)
OP_CONTRACT_TRADEIN
CONTRACT UNEARNED REVENUE
Unearned income for DF/ST lease contract
Sum of all pre-tax incomes streams for all asset lines of a contract
OP_PRE_TAX_INCOME
CREDIT_CHECK Total credit amount remaining on credit line
Total credit line amount – Approved and processed funding requests amounts
Credit line id OP_CREDIT_CHECK
DEFAULT ASSET FLOOR PRICE
Default asset floor price
Line residual + 10 percent
Contract id (mandatory)
OP_LINE_RESIDUAL_VALUE*OP_HUNDRED_TEN_PERCENT
INSURANCE REFUND
Calculate insurance refund
Monthly Insurance Premium * No. of months refunded
Contract id (mandatory) + Line id (mandatory)
OP_INS_REFUNDABLE_MONTHS*OP_INS_MONTHLY_PREMIUM
INVESTOR_ACCOUNT_AMOUNT
investor account amount
Returns the investor account amount for the syndication
Contract id (mandatory)
OP_INVESTOR_ACCOUNT_AMOUNT
INVESTOR_ACCRUAL
Sum of the income streams relating to the streams securitized
Sum of Investor Pre-tax Income, Investor Rental Accrual, and Investor Interest Income
Agreement id (mandatory)
INVESTOR_ACCRUAL
INVESTOR_BUYBACK
The default formula used for calculating the amount payable to Investors for buy back of the streams
If payment event is Billed, formula returns sum of all unbilled stream elements for specified contract, line, and stream type. If payment event is Receipt, formula returns sum of stream elements not received for specified contract, line, and stream type.
Contract id (mandatory) + Line id + Agreement id + stream type id
INVESTOR_ BUYBACK
INVESTOR_GAIN The default formula used to calculate the gain/loss on the securitization
Sum of stakes of all investors – (sum of PV of rent securitized + sum of PV of residual securitized)
Agreement id INVESTOR_INVESTMENT_AMOUNT-PV_INVESTOR_STREAMS
INVESTOR_INVESTMENT
The sum of Investments made by Investors
Sum of stakes of all investors
Agreement id INVESTOR_INVESTMENT
INVESTOR_PRINCIPAL_INVESTMENT
Calculates Principal Investment of investor
Sum of PV of rent securitized + sum of PV of residual securitized
Agreement id PV_INVESTOR_STREAMS
INVESTOR_RENT Calculate Total undisbursed Contract id OP_INVESTOR_RENT_
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Formula Name Description Calculation Parameter Operands _DISBURSEMENT Investor Rent
Factor used to calculate Investor Contract Obligation payable
investor rent disbursement basis stream / Total unbilled rent stream
(mandatory) + Line id
FACTOR
INVESTOR_RV_DISBURSEMENT
Calculate Investor RV Factor used to calculate Investor Residual Payable
Residual value / Residual value
Contract id (mandatory) + Line id
OP_INVESTOR_RV_FACTOR
INVESTOR_STREAM
The sum of streams securitized in a pool
Sum of products of total of revenue share of all investors and Stream amount securitized by subclass
Agreement id INVESTOR_STREAMS
LINE_ACCUMULATED_DEPRN
Calculate fixed asset accumulated depreciation for a financial asset line of contract
Accumulated depreciation as determined in FA
Contract id (mandatory) + Line id
OP_LINE_ACCUMULATED_DEPRN
LINE_ASSET_COST
Calculates current fixed asset cost for a active financial asset line of contract
Current asset cost as determined in FA
Contract id (mandatory) + Line id
OP_LINE_ASSET_COST
LINE_ASSET_NET_INVESTMENT
Net investment used for asset transactions DF lease
Rent + Residual Value - Unearned Income
Contract id (mandatory) + Line id (mandatory)
OP_LINE_FUTURE_RENT+OP_LINE_RESIDUAL_VALUE-OP_LINE_FUTURE_INCOME
LINE_CAP_AMNT Financed amount for line
Original Equipment Cost -Trade in – Capital Reduction + Capitalized Fees
Contract id (mandatory) + Line id (mandatory)
OP_LINE_OEC-OP_LINE_TRADEIN-OP_LINE_CAPREDUCTION+OP_LINE_FEESCAPITALIZED+CAP_INT
LINE_CAP_AMNT_LOAN
Total financed amount for loan contract line
Original Equipment Cost - Trade in + capitalized Fees
Contract id (mandatory)
OP_LINE_OEC-OP_LINE_TRADEIN+OP_LINE_FEESCAPITALIZED+CAP_INT
LINE_CAPITALIZED_INTEREST
Formula to return line capitalized interest
Returns the total capitalized interest for a contract line
Contract id (mandatory) Line id
OP_LINE_CAPITALIZED_INTEREST
LINE_CAPREDUCTION
Capital Reduction of a line
Capital reduction amount for the asset line
Contract id (mandatory) + Line id (mandatory)
OP_LINE_CAPREDUCTION
LINE_DISCOUNT Formula to return discount amount for an
Sum of total subsidy for an asset where accounting method is
Contract id + Line id
OP_LINE_DISCOUNT
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Formula Name Description Calculation Parameter Operands asset ‘Net’
LINE_EXPECTED_ASSET_COST
Calculates net investment value for DF lease and net book value for OP lease for display on asset page for re-lease contract
Future rent – Future unearned income + Future residual value
Contract id (mandatory) + Line id (mandatory)
OP_LINE_FUTURE_RENT+OP_LINE_RESIDUAL_VALUE-OP_LINE_FUTURE_INCOME
LINE_FEESCAPITALIZED
Capitalized Fees for line
Capitalized fees for the asset line
Contract id (mandatory) + Line id (mandatory)
OP_LINE_FEESCAPITALIZED
LINE_OEC Calculates the OEC
Price per unit * no of units
Contract id (mandatory) + Line id (optional)
OP_LINE_OEC
LINE_RESIDUAL_VALUE
Calculates the RV
Residual Value for the line
Contract id (mandatory) + Line id (mandatory)
OP_LINE_RESIDUAL_VALUE
LINE_TRADEIN Trade in amount for a line
Trade in amount for the asset line
Contract id (mandatory) + Line id (mandatory)
OP_LINE_TRADEIN
LINE_UNBILLED_STREAMS
Line unbilled streams
Line Unbilled Streams Contract id (mandatory) + Line id (mandatory) Stream Type id (optional – g par)
OP_LINE_UNBILLED_STREAMS
LP_NET_INVESTMENT_VALUE
Balance investment on contract
Operating Lease - Net Book Value, DF Lease - Net Investment Value and Loan - Principal Balance
Contract id (mandatory)
UNBILLED RECEIVABLES-UNEARNED REVENUE+UNGUARANTEED RESIDUAL-UNACCRUED SUBSIDY
NET_GAIN_LOSS_QUOTE
Formula to calculate gain or loss for a termination quote
Total Quote amount (excluding Tax, outstanding balance, and security deposit quote lines) – Quote net investment
Contract id (mandatory) + Line id (mandatory)+ Quote id
OP_NET_GAIN_LOSS_QUOTE
OKL_LC_NEXT_PAYMENT_AMOUNT
Determines the next Payment Amount
Sum of all billable stream elements which fall due on next payment date
Contract id (mandatory) + Line id (optional)
OP_CONTRACT_NEXT_PAYMENT_AMOUNT
OKL_LC_OUTSTANDING_BALANCE
Calculates Outstanding Receivables
Sum of unpaid invoices + sum of billable but unbilled stream elements
Contract id (mandatory) + Line id (optional)
OP_CONTRACT_UNPAID_INVOICES+ OP_SUM_UNBILLED_STREAMS
OKL_LC_OUTSTANDING_BILLED
Calculated unpaid billed Amount
Sum of unpaid invoices Contract id (mandatory) + Line id (optional)
OP_CONTRACT_UNPAID_INVOICES
OKL_LC_OUTSTANDING_UNBILLED
Calculates unbilled Amount Due
Sum of billable but unbilled stream elements
Contract id (mandatory) + Line id (optional)
OP_SUM_UNBILLED_STREAMS
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Formula Name Description Calculation Parameter Operands ONE_PERCENT_OF_CAPITALIZED_COST
One percent of original capitalized cost
Original Capitalized Cost * (0.01)
Contract id (mandatory)
OP_ONE_PERCENT*OP_CONTRACT_OEC
QUOTE_ESTIMATED_PROPERTY_TAX
Estimated property tax
Estimated Property Tax
Contract id (mandatory)
OP_LINE_ESTIMATED_PROPERTY_TAX
QUOTE_GENERIC_LINE_PRORATION
Proration of contract value to lines
Proration of amounts at a contract level to lines based on Capitalized Cost.
Contract id (mandatory)
OP_LINE_OEC/OP_CONTRACT_OEC
QUOTE_PERDIEM_AMOUNT
Calculates per diem amount for termination quote for loan contract
Outstanding amount * Interest Rate/Number of days in year
Contract id (mandatory) + Quote id
OP_QUOTE_PERDIEM_AMOUNT
QUOTE_REMAINING_SECURITY_DEPOSIT
Security deposit refundable
Balance Security Deposit Amount
Contract id (mandatory)
OP_CONTRACT_REMAINING_SEC_DEP
QUOTE_REPURCHASE
Top formula containing seeded operands
The operands included determine the elements to be computed for the repurchase quote. Operands included are AMBSPR, AMCQDR, and AMCQFE.
Contract id (mandatory) + Line id
AMBSPR+AMCQFE+ AMCQDR
QUOTE_TAX_CALCULATION
Calculation of tax amount
Calculates the tax amount to be displayed on the quote.
Contract id (mandatory)
OP_LINE_ESTIMATED_TAX
QUOTE_TERMINATION
Top formula containing seeded operands
The operands included determine the elements to be computed for the quote
Contract id (mandatory)
AMBCOC+AMCQDR+AMCTPE+AMCSDD+AMCRFE+AMCRIN+AMCQFE+AMPRTX+AMYOUB+AMYSAM+AMYFEE+AMCTAX+AMFFEE+AMAFEE+AMIFEE+AMPFEE+AMEFEE+AMMFEE+AMGFEE+AMRFEE
QUOTE_TERMINATION_MANUAL
Top formula with seeded operands for manual quotes
The operands determine the elements to be computed for a manual termination quote
Contract id (mandatory)
AMYOUB+AMYSAM+AMYFEE+AMCTAX+AMFFEE+AMAFEE+AMIFEE+AMPFEE+AMEFEE+AMMFEE+AMGFEE
QUOTE_UNBILLED_RECEIVABLES
Termination Quote Unbilled Receivables. When this formula is used, quote line ‘Unbilled Receivables’ is created
Sum of unbilled rents - advance rent as on quote effective date
Contract id (mandatory) + Line id (mandatory)
UNBILLED_RECEIVABLES
REFUND_SUBSIDY
Formula to return amount
Sum of amount of subsidy accrual stream
Contract id + Line id (mandatory)
OP_REFUND_SUBSIDY
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Formula Name Description Calculation Parameter Operands of subsidy to be refunded on asset termination
element with date greater than the termination date
ROLLOVER_FEE Derives rollover fee amount for credit line
Amount of rollover fee amount
Contract id OP_ROLLOVER_FEE
SUBSIDY_AMOUNT
Demo subsidy amount formula
If the asset life is 12 months or less, formula calculates the subsidy amount to be 2% of the OEC. If the asset life is more than 12 months, subsidy amount is 1% of OEC
Contract id + Line id (mandatory)
OP_SUBSIDY_AMOUNT
VARIABLE_INCOME_ACCRUAL
Variable Income Amount
Principal * Interest Rate * No of days to accrue / No of days in a year
Contract id (mandatory)
PRINCIPAL BALANCE*INTEREST RATE*DAYS TO ACCRUE/DAYS IN YEAR
VENDOR_RESIDUAL_SHARE
Calculates amount of gain/loss to be shared with all the vendors together
Sales Proceeds – Residual Value
Contract id + Line id (mandatory) + FA Retirement Transaction id
OP_VENDOR_RESIDUAL_SHARE
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Accounting Programs
Program Name Options
Input Parameters
Processing Output parameters
Usage (OKL Transaction Type)
Call 1 OKL_ACCOUNT_DIST_PUB.Get_Template_Info*
1) Product ID 2) Transaction Type ID
All valid Accounting Templates
Termination – to determine the number of transaction lines
Call 2 OKL_ACCOUNT_DIST_PUB.Create_Accounting_Dist*
(1) 1) Product ID 2) Transaction Type ID 3) No Accounting Amount 4) Accounting Date
1) Solve Formula(s) to determine amounts 2) Verify if accounting date is valid. If invalid accounting date, derive a valid GL accounting date 3) Create accounting distributions
1) Templates used for accounting 2) Amount(s) accounted
Asset Disposition, Booking, Investor, Rebook, Re-Lease, Split Contract, Termination
(2) 1) Product ID 2) Transaction Type ID 3) Stream type ID 4) No Accounting Amount 5) Accounting Date
1) Solve Formula(s) to determine amounts 2) Verify if accounting date is valid. If invalid accounting date, derive a valid GL accounting date 3) Create accounting distributions
1) Templates used for accounting 2) Amount(s) accounted
Accrual (Estimation of interest income for variable rate contract)
(3) 1) Product ID 2) Transaction Type ID 3) Stream type ID 4) Amount to be Accounting 5) Accounting Date
1) Verify if accounting date is valid. If invalid accounting date, derive a valid GL accounting date 2) Create accounting distributions
1) Templates used for accounting 2) Amount(s) accounted
Accrual, Balance write off, Billing, Credit Memo, Debit Memo, Disbursement, Evergreen, Funding, General Loss Provision, Insurance, Miscellaneous, Specific Loss Provision
Call 3 OKL_MULTI_GAAP_PVT.Get_Template_Lines*
1) Product ID 2) Stream type ID 3) Accrual Activity
Account Code Combination(s)
Multi GAAP Report
* Not published - Subject to change
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ACCOUNTING EXAMPLES
Contract
1. Operating Lease
Event Accounting For (Setup S. No.)
Amount Module Debit Credit
Booking Asset Cost (7.2) 10,000 Lease Asset Clearing Lease Funding Asset Cost 10,000 Assets Asset Cost Asset Clearing Funding Asset Funding (12.2) 10,000 Payables Lease Funding Liability Payment Pay Invoice 10,000 Payables Liability Bank Billing Rent (6.1) 6,000 Receivables Receivables Revenue Clearing Receipts Receive Funds 6,000 Receivables Bank Receivables Accrual Income Recognition
(1.1) 6,000 Lease Revenue Clearing Rental Income
Depreciation Depreciation 4,000 Assets Depreciation Expense Depreciation Reserve Sale Sale of Asset (6.6) 5,000 Receivables Receivables Sale Proceeds Receive Funds 5,000 Receivables Bank Receivables Sale of Asset 5,000 Assets Sale Proceeds Retirement of Asset 4,000 Assets Depreciation Reserve Retirement of Asset 10,000 Assets Asset Cost Gain / Loss on Sale (1,000) Assets Loss on Sale Gain on Sale
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2. Operating Lease (Early Termination with Purchase)
Event Accounting For (Setup S. No.)
Amount Module Debit Credit
Booking Asset Cost (7.2) 10,000 Lease Asset Clearing Lease Funding Asset Cost 10,000 Assets Asset Cost Asset Clearing Funding Asset Funding (12.2) 10,000 Payables Lease Funding Liability Payment Pay Invoice 10,000 Payables Liability Bank Billing Rent (6.1) 6,000 Receivables Receivables Revenue Clearing Receipts Receive Funds 6,000 Receivables Bank Receivables Accrual Income Recognition
(1.1) 6,000 Lease Revenue Clearing Rental Income
Depreciation Depreciation 4,000 Assets Depreciation Expense Depreciation Reserve Sale Sale of Asset (6.6) 5,000 Receivables Receivables Sale Proceeds Receive Funds 5,000 Receivables Bank Receivables Sale of Asset 5,000 Assets Sale Proceeds Retirement of Asset 4,000 Assets Depreciation Reserve Retirement of Asset 10,000 Assets Asset Cost Gain / Loss on Sale (1,000) Assets Loss on Sale Gain on Sale
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3. Direct Finance Lease
Event Accounting For (Setup S. No.)
Amount Module Debit Credit
Booking Unbilled Receivables
(7.2) 12,000 Lease Unbilled Receivables Lease Funding
Unearned Income (7.2)
2,500 Lease Lease Funding Unearned Income
Residual Value (7.2) 500 Lease Residual Value Lease Funding Asset Cost 10,000 Assets Asset Cost Asset Clearing Asset Cost
Adjustment 10,000 Assets Asset Clearing Asset Cost
Funding Asset Funding (12.2) 10,000 Payables Lease Funding Liability Payment Pay Invoice 10,000 Payables Liability Bank Billing Rent (6.1) 12,000 Receivables Receivables Unbilled Receivables Receipts Receive Funds 12,000 Receivables Bank Receivables Accrual Income Recognition
(1.1) 2,500 Lease Unearned Income Finance Income
Termination Residual Value 500 Assets Asset Cost Asset Clearing Residual Value (26.1) 500 Lease Asset Clearing Residual Value Sale Sale of Asset (6.6) 1,000 Receivables Receivables Sale Proceeds Receive Funds 1,000 Receivables Bank Receivables Sale of Asset 1,000 Assets Sale Proceeds Retirement of Asset 0 Assets Depreciation Reserve Retirement of Asset 500 Assets Asset Cost Gain / Loss on Sale 500 Assets Loss on Sale Gain on Sale
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4. Direct Finance Lease (Early Termination without Purchase)
Event Accounting For (Setup S. No.)
Amount Module Debit Credit
Booking Unbilled Receivables
(7.2) 12,000 Lease Unbilled Receivables Lease Funding
Unearned Income (7.2)
2,500 Lease Lease Funding Unearned Income
Residual Value (7.2) 500 Lease Residual Value Lease Funding Asset Cost 10,000 Assets Asset Cost Asset Clearing Asset Cost
Adjustment 10,000 Assets Asset Clearing Asset Cost
Funding Asset Funding (12.2) 10,000 Payables Lease Funding Liability Payment Pay Invoice 10,000 Payables Liability Bank Billing Rent (6.1) 6,000 Receivables Receivables Unbilled Receivables Receipts Receive Funds 6,000 Receivables Bank Receivables Accrual Income Recognition
(1.1) 1,250 Lease Unearned Income Finance Income
Termination Quote Acceptance
Contract Obligation (6.3)
5,500 Receivables Receivables Termination Clearing
Termination Unbilled Receivables
(26.1) 6,000 Lease Termination Clearing Unbilled Receivables
Unearned Income (26.1)
1,250 Lease Unearned Income Termination Clearing
Gain on Termination (26.1)
750 Lease Termination Clearing Gain on Termination
Residual Value (26.1) 500 Lease Asset Clearing Residual Value Residual Value 500 Assets Asset Cost Asset Clearing
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5. Direct Finance Lease (Early Partial Termination without Purchase)
Event Accounting For (Setup S. No.)
Amount Asset 1
Amount Asset 2
Module Debit Credit
Booking Unbilled Receivables
(7.2) 12,000 12,000 Lease Unbilled
Receivables Lease Funding
Unearned Income (7.2)
2,500 2,500 Lease Lease Funding Unearned Income
Residual Value (7.2) 500 500 Lease Residual Value Lease Funding Asset Cost 10,000 10,000 Assets Asset Cost Asset Clearing Asset Cost
Adjustment 10,000 10,000 Assets Asset Clearing Asset Cost
Funding Asset Funding (12.2) 10,000 10,000 Payables Lease Funding Liability Payment Pay Invoice 10,000 10,000 Payables Liability Bank Billing Rent (6.1) 7,000 8,000 Receivables Receivables Unbilled
Receivables Receipts Receive Funds 7,000 8,000 Receivables Bank Receivables Accrual Income Recognition
(1.1) 1,500 1,600 Lease Unearned Income Finance Income
Termination Quote Acceptance
Contract Obligation (6.3)
5,500 Receivables Receivables Termination Clearing
Termination Unbilled Receivables
(26.1) 5,000 Lease Termination
Clearing Unbilled Receivables
Unearned Income (26.1)
1,000 Lease Unearned Income Termination Clearing
Gain on Termination (26.1)
1,500 Lease Termination Clearing
Gain on Termination
Residual Value (26.1) 500 Lease Asset Clearing Residual Value Off-lease Amortization
Residual Value 500 Assets Asset Cost Asset Clearing
Rebook Unbilled Receivables
(18.2) 6,000 Lease Unbilled
Receivables Lease Funding
Unearned Income (18.2)
900 Lease Lease Funding Unearned Income
Residual Value (18.2) 500 Lease Residual Value Lease Funding Booking Unbilled Receivables
(7.2) 6,000 Lease Unbilled
Receivables Lease Funding
Unearned Income (7.2)
900 Lease Lease Funding Unearned Income
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Residual Value (7.2) 500 Lease Residual Value Lease Funding
6. Direct Finance Lease (Rebook from start with increased rent) Original contract
Rent 1000 X 12 = 12000
Billing done for 3 months.
Billing amount up to rebook date 1000 X 3 = 3000
Accrual run for 3 months.
Accrual amount up to rebook date = 833
Rebook contract
New Rent 1100 X 12 = 13200
Expected billing up to Rebook date 1100 X 3 = 3300
Additional billing required = 300
Expected accrual up to Rebook date = 1233
Additional accrual required = 400
Event Accounting For (Setup S. No.)
Amount Module Debit Credit
Booking Unbilled Receivables
(7.2) 12,000 Lease Unbilled Receivables Lease Funding
Unearned Income (7.2)
2,500 Lease Lease Funding Unearned Income
Residual Value (7.2) 500 Lease Residual Value Lease Funding Asset Cost 10,000 Assets Asset Cost Asset Clearing Asset Cost
Adjustment 10,000 Assets Asset Clearing Asset Cost
Funding Asset Funding (12.2) 10,000 Payables Lease Funding Liability Payment Pay Invoice 10,000 Payables Liability Bank Billing Rent (6.1) 3,000 Receivables Receivables Unbilled Receivables Receipts Receive Funds 3,000 Receivables Bank Receivables Accrual Income Recognition
(1.1) 833 Lease Unearned Income Finance Income
Rebook Unbilled Receivables
(18.2) 9000 Lease Lease Funding Unbilled Receivables
Unearned Income (18.2)
1,667 Lease Unearned Income Lease Funding
Residual Value (18.2) 500 Lease Lease Funding Residual Value
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Booking Unbilled Receivables (7.2)
-10,200 Lease Unbilled Receivables Lease Funding
Unearned Income (7.2)
-2,867 Lease Lease Funding Unearned Income
Residual Value (7.2) 500 Lease Residual Value Lease Funding Billing (as part of Rebook)
Rent (6.1) - 300 Receivables Receivables Unbilled Receivables Accrual (as part of Rebook
Income Recognition (1.1)
-400 Lease Unearned Income Finance Income
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7. Loan
Event Accounting For (Setup S. No.)
Amount Module Debit Credit
Booking Principal (7.2) 10,000 Lease Loan Principal Lease Funding Funding Asset Funding (12.2) 10,000 Payables Lease Funding Liability Payment Pay Invoice 10,000 Payables Liability Bank Billing Principal (6.1) 10,000 Receivables Receivables Loan Principal Interest (6.1) 2,000 Receivables Receivables Revenue Clearing Receipts Receive Funds 12,000 Receivables Bank Receivables Accrual Income Recognition
(1.1) 2,000 Lease Revenue Clearing Interest Income
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8. Variable Rate Loan: Calculate Interest Billing on applicable rates for a loan
Major contract parameters:
• Book Classification = Loan
• Interest Calculation Basis – Float
• Revenue Recognition Method – Estimated and Billed
• Principal basis = Scheduled
• Billing stream = Principal payment, Variable Interest
• Accrual stream = Variable Interest, Variable Interest Income
Event Accounting For (Setup S. No.)
Amount Module Debit Credit
Booking Loan Principal (7.2) 18000 Lease Loan Principal Loan Funding Funding Asset Funding (12.2) 18,000 Payables Lease Funding Liability Payment Pay Invoice 18,000 Payables Liability Bank Accrual Estimated Income
Accrual (1.2) 72 Lease Revenue Clearing Loan Interest Income
Accrual Estimated Income
Accrual Reversal (1.2) 72 Lease Loan Interest Income Revenue Clearing
Billing Bill principal
payment (6.10) 1500 Receivables Receivables Loan Principal
Bill variable interest (6.10)
127.99 Receivables Receivables Revenue Clearing
Receipts Receive Funds 1627.99 Receivables Bank Receivables Accrual Accrue Actual
Interest (1.3) 127.99 Lease Revenue Clearing Loan Interest Income
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9. Variable Rate Loan: Calculate Interest Billing on applicable rates for a Revolving Loan
Major contract parameters:
• Book Classification = Revolving Loan
• Interest Calculation Basis – Float
• Revenue Recognition Method – Estimated and Billed
• Principal basis = Actual
• Billing stream = Variable Interest, Unscheduled Principal payment
• Accrual stream = Variable Interest, Variable Interest Income
Event Accounting For (Setup S. No.)
Amount Module Debit Credit
Booking Not applicable Funding Asset Funding (12.2) 25,000 Payables Loan Principal Liability Payment Pay Invoice 25,000 Payables Liability Bank Accrual Estimated Income
Accrual (1.2) 72 Lease Revenue Clearing Loan Interest Income
Accrual Estimated Income
Accrual Reversal (1.2) 72 Lease Loan Interest Income Revenue Clearing
Billing Bill variable interest
(6.10) 187.50 Receivables Receivables Revenue Clearing
Receipts Receive Funds 187.50 Receivables Bank Receivables Accrual Accrue Actual
Interest (1.3) 187.50 Lease Revenue Clearing Loan Interest Income
Billing Principal Paydown
(6.16) 1000 Receivables Receivables Loan Principal
Receipt Receive Funds 1000 Receivables Bank Receivables
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10. Variable Rate Loan: Calculate Interest Billing on applicable rates for a revolving loan Major contract parameters:
• Book Classification = Loan - Revolving
• Interest Calculation Basis – Catchup / Cleanup
• Revenue Recognition Method – Streams
• Principal basis = Actual
• Billing streams = Interest payment, Principal payment, Interest catchup, Unscheduled Principal payment
• Accrual streams = Interest Income, Interest catchup
Event Accounting For (Setup S. No.)
Amount Module Debit Credit
Booking Loan Principal (7.2) 10000 Lease Loan Principal Loan Funding Funding Asset Funding (12.2) 10,000 Payables Loan Funding Liability Payment Pay Invoice 10,000 Payables Liability Bank Billing Bill catchup interest
(6.1) 1.66 Receivables Receivables Revenue Clearing
Accrual Accrue catchup
interest (1.1) 1.66 Lease Revenue Clearing Loan Interest Income
Accrual Accrue Interest
Income (1.1) 35.67 Lease Revenue Clearing Loan Interest Income
Billing Bill principal
payment (6.1) 803.12 Receivables Receivables Loan Principal
Bill interest payment (6.1)
66.88 Receivables Receivables Revenue clearing
Receipt Receive funds 870 Receivables Bank Receivables Accrual Accrue Interest
Income (1.1) 64.01 Lease Revenue Clearing Loan Interest Income
Billing Bill principal
payment (6.1) 808.5 Receivables Receivables Loan Principal
Bill interest payment (6.1)
61.5 Receivables Receivables Revenue clearing
Receipt Receive funds 870 Receivables Bank Receivables Accrual Accrue Interest 58.62 Lease Revenue Clearing Loan Interest Income
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Income (1.1) Billing Bill principal
payment (6.1) 813.90 Receivables Receivables Loan Principal
Bill interest payment (6.1)
56.10 Receivables Receivables Revenue clearing
Receipt Receive funds 870 Receivables Bank Receivables Billing Bill catchup interest
(6.1) 13.98 Receivables Revenue Clearing Receivables
Accrual Accrue catchup
interest (1.1) 13.98 Lease Loan Interest Income Revenue Clearing
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11. Variable Rate Loan: Bill fixed amount and reduce principal on receipt of cash for a loan Major contract parameters:
• Book Classification = Loan
• Interest Calculation Basis = Fixed
• Revenue Recognition Method = Actual
• Principal basis = Actual
• Billing streams = Variable Loan Payment, Unscheduled loan payment, Excess Interest paid, excess Loan payment paid, Excess Principal paid
• Accrual streams = Actual Income Accrual
Event Accounting For (Setup S. No.)
Amount Module Debit Credit
Booking Loan Principal (7.2) 10000 Lease Loan Principal Loan Funding Funding Asset Funding (12.2) 10,000 Payables Loan Funding Liability Payment Pay Invoice 10,000 Payables Liability Bank Accrual Accrue Actual
Interest (1.4) 44.44 Lease Revenue Clearing Loan Interest Income
Receipt Receive Funds 908 Receivables Bank Receivables Receipt Application
Allocate receipt to principal (19.1)
863.56 Lease Receivables Clearing Loan Principal
Allocate receipt to Interest (19.1)
44.44 Lease Receivables Clearing Revenue Clearing
Billing Bill variable Loan
payment (6.11) 908 Receivables Receivables Receivables Clearing
Accrual Accrue Actual
Interest (1.4) 68.52 Lease Revenue Clearing Loan Interest Income
Receipt Receive Funds 901.75 Receivables Bank Receivables Receipt Application
Allocate receipt to principal (19.1)
833.23 Lease Receivables Clearing Loan Principal
Allocate receipt to Interest (19.1)
68.52 Lease Receivables Clearing Revenue Clearing
Billing Bill variable Loan
payment (6.11) 901.75 Receivables Receivables Receivables Clearing
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Investor Agreement
1. Securitization of Direct Finance Lease
Accounting on the Investor agreement
Event Accounting For (Setup S. No.)
Amount Module Debit Credit
Billing Investor
Billing investor Stake (6.19)
65,000 Receivables Receivables Investor stake
Activation Investor stake (1541) 65,000 Lease Investor stake Investor Clearing Pre-tax income
adjustment (14.1) 5,500 Lease Pre-tax Income Adj. Investor Clearing
Securitized Rent (14.1)
70.000 Lease Investor Clearing Rent Securitized
Gain (14.1) 500 Lease Investor Clearing Gain on securitization Payment Securitized Rent 70,000 Payables Rent Securitized Liability
Accounting on the Lease contract before securitization
Event Accounting For (Setup S. No.)
Amount Module Debit Credit
Billing lessee Rent (6.1) 30,000 Receivables Receivables Unbilled Receivables Accrual Income Recognition
(1.1) 2,500 Lease Unearned Income Financed Income
Income Recognition (1.1)
2,500 Lease Financed Income Pre-tax Income Adj.
Accounting on the Lease contract after securitization
Event Accounting For (Setup S. No.)
Amount Module Debit Credit
Billing lessee Rent (6.1) 70,000 Receivables Investor Receivables Investor Unbilled
Receivables Accrual Income Recognition
(1.1) 5,500 Lease Investor Unearned
Income Investor Financed Income
Income Recognition (1.1)
5,500 Lease Investor Financed Income
Investor Pre-tax Income Adj.
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Contract Fees and Subsidy
1. Financed fee
Event Accounting For (Setup S. No.)
Amount Module Debit Credit
Booking Principal (7.2) 10,000 Lease Loan Principal Lease Funding Funding Expense Funding
(12.3) 10,000 Payables Lease Funding Liability
Payment Pay Invoice 10,000 Payables Liability Bank Billing Principal (6.1) 10,000 Receivables Receivables Loan Principal Interest (6.1) 2,000 Receivables Receivables Revenue Clearing Receipts Receive Funds 12,000 Receivables Bank Receivables Accrual Income Recognition
(1.1) 2,000 Lease Revenue Clearing Interest Income
2. Absorbed fee
Event Accounting For (Setup S. No.)
Amount Module Debit Credit
Booking Principal (7.2) 10,000 Lease Expense clearing Expense account Accrual Income Recognition
(1.1) 10,000 Lease Expense account Expense clearing
3. Expense fee
Event Accounting For (Setup S. No.)
Amount Module Debit Credit
Funding Expense Funding
(12.3) 10,000 Payables Expense clearing Liability
Payment Pay Invoice 10,000 Payables Liability Bank Accrual Income Recognition
(1.1) 10,000 Lease Expense account Expense clearing
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4. Miscellaneous fee
Event Accounting For (Setup S. No.)
Amount Module Debit Credit
Funding Expense Funding
(12.3) 10,000 Payables Expense clearing Liability
Payment Pay Invoice 10,000 Payables Liability Bank Accrual Income Recognition
(1.1) 10,000 Lease Expense account Expense clearing
Billing Fee (6.1) 12,000 Receivables Receivables Revenue Clearing Accrual Income Recognition
(1.1) 12,000 Lease Revenue Clearing Revenue account
5. Income fee
Event Accounting For (Setup S. No.)
Amount Module Debit Credit
Billing Fee (6.1) 12,000 Receivables Receivables Revenue Clearing Accrual Income Recognition
(1.1) 12,000 Lease Revenue Clearing Revenue account
6. Passthrough fee
Event Accounting For (Setup S. No.)
Amount Module Debit Credit
Billing Fee (6.1) 12,000 Receivables Receivables Revenue Clearing Accrual Income Recognition
(1.1) 12,000 Lease Revenue Clearing Revenue account
Accrual Income Recognition
(1.1) 10,000 Lease Expense account Expense clearing
Funding Expense Funding
(12.3) 10,000 Payables Expense clearing Liability
Payment Pay Invoice 10,000 Payables Liability Bank
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7. Subsidy (Netting Method)
Event Accounting For (Setup S. No.)
Amount Module Debit Credit
Booking Subsidy (7.2) 10,000 Lease Subsidies Asset Clearing Asset Cost 10,000 Assets Asset Clearing Asset Cost Asset Cost
Adjustment 10,000 Assets Asset Cost Income
Billing/Funding
Subsidies 10,000 Receivables/Payables
Receivables/Funding Subsidies
8. Subsidy (Amortization Method)
Event Accounting For (Setup S. No.)
Amount Module Debit Credit
Billing/Funding
Subsidies 10,000 Receivables/Payables
Receivables/Funding Subsidies
Accrual Income
Recognition (1.1) 10,000 Lease Subsidies Income
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WORKSHEET This worksheet may assist implementers in planning their accounting setups. Set of Books: Accounting Flexfield Structure: Book Classification: Financial Product(s): Special Accounting: Syndicated / Factored / Securitized Accounting Template Set:
Accounting Event
Transaction Type Stream Type Additional Parameters
Dr Account Cr Account
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DETAILED SETUP STEPS
1.1 Accrual generation to recognize income based on streams Navigation
Processing > Programs > Generate Accruals Master – Streams
Processing > Programs > Generate Accruals Master – Actual
Processing > Programs > Generate Accruals Master – Estimated And Billed
Transaction Type:
Accrual
Accounting Created:
Recognition of income and expenses of the streams identified for accrual on the financial product. The contract is evaluated for meeting the accrual rules and override flag. If the contract passes the accrual rules the streams are accounted as income. If the contract fails the accrual rules the streams are accounted as non-income. Income is reversed for the prior periods if the accrual reversal days are specified in the setups. When a contract that failed accrual rules is current the streams accounted as non-income are reversed and income accounting generated. This process is called catchup of income.
If the contract is securitized, accrual adjustment streams generated on activation of Investor Agreement are also accounted.
Creation Basis:
The stream amounts are accounted. Contracts that pass the accrual rules apply the accounting template with the memo flag set to “No”. Contracts that fail the accrual rules apply the accounting template with the memo set to “Yes”.
Streams must be defined for accrual on the financial product to be processed by the accrual program.
Accounting Date:
Accounting transactions are created as at the date specified by the user while running the generate accruals program.
Applicability:
Generating accounting entries for accrual is applicable to the following book classifications –
• Operating Lease
• Direct Finance Lease
• Sales Type Lease
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• Loan
• Loan – Revolving
Required Setups:
The following setups are required –
• Define accounting templates with the transaction type “Accrual”
• Define one accounting template for each stream associated to the product for accrual with the memo flag set to “No”.
• Define one accounting template for each stream associated to the product for accrual with the memo flag set to “Yes”. This is required only for separate accounting of accrual streams when accrual rules fail for the contract.
• No formula needs to be defined
Prerequisites:
Financial Product –
• Associate all streams including the accrual adjustment streams for securitization of contract that may be accrued as accrual streams on the financial product
Streams –
• Streams must exist for the contract to be accrued
Accrual Rules –
• Define accrual rules for the operating unit
Accrual Reversal Days –
• Define the number of days income to be reversed
Examples:
Operating Lease –
• The income stream is generated for stream type of purpose “Rental Accrual”
• Setup the accounting template with the debit account of the rental accrual accounting template equal to the credit of the billing rent accounting template
Direct Finance Lease / Sales Type Lease –
• The income stream is generated for stream type of purpose “ Lease Income”
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• Setup the accounting template with the debit account of the pre tax income accounting template equal to the credit of the booking pre tax income accounting template
Loan -
• The income stream is generated for stream type of purpose “Interest Income”
• Setup the accounting template with the debit account of the pre tax income accounting template equal to the credit of the billing interest payment accounting template
Setup appropriate accounting templates for accrual streams generated for the following:
Contract with Financed or Rollover fee –
• The income stream is generated for stream type of purpose “Interest Income”
Contract with Absorbed fee -
• The expense stream is generated for stream type of purpose “Amortized Fee Expense”
Contract with Income fee -
• The Income stream is generated for stream type of purpose “Accrued Fee Income”
Contract with Expense fee -
• Expense stream is generated for stream type of purpose “Amortized Fee Expense” for the IDC amount
• Expense stream is generated for stream type of purpose “Accrued Fee Expense” for non-IDC amount
Contract with Miscellaneous fee -
• Expense stream is generated for stream type of purpose “Amortized Fee Expense for the IDC expense
• Expense stream is generated for stream type of purpose “Accrued Fee Expense for the non-IDC expense
• The Income stream is generated for stream type of purpose “Accrued Fee Income”
Contract with Passthrough fee -
• Expense stream is generated for stream type of purpose “Pass Through Expense Accrual’’ for the amount to be passed to the vendor
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• The Income stream is generated for stream type of purpose “Pass Through Revenue Accrual” for the amount to be received from the lessee
Contract with Service Line -
• The Income stream is generated for stream type of purpose “Service Income”, if there is no pass through of service payments
• Expense stream is generated for stream type of purpose “Pass Through Service Expense Accrual’’ for the amount to be passed to the vendor
• The Income stream is generated for stream type of purpose “Pass Through Service Revenue Accrual” for the amount to be received from the lessee
Contract with Subsidy -
• Subsidy amortization income stream is generated for stream type of purpose “Subsidy Income”
Contract associated to Investor Agreements -
• “Investor Pre-Tax Income” accrual stream is generated for the contract of Direct Finance/Sales Type lease book classification
• “Investor Rental Accrual” accrual stream is generated for the contract of Operating lease book classification
1.2 Accrual generation to recognize estimated interest income on scheduled or actual principal balance Navigation
Processing > Programs > Generate Accruals Master – Estimated And Billed
Transaction Type:
Accrual
Accounting Created:
Recognition of estimated interest income for loan or revolving loan contracts when the actual interest is not available. Estimated interest is calculated on actual or scheduled principal using a formula and accrued on periodic basis. The estimated interest income is reversed at the beginning of the next accounting period.
The contract is evaluated for meeting the accrual rules. If the contract passes the accrual rules the streams are accounted as income. If the contract fails the accrual rules the streams are accounted as non-income.
Creation Basis:
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The amount calculated by the formula is accounted. Contracts that pass the accrual rules apply the accounting template with the memo flag set to “No”. Contracts that fail the accrual rules apply the accounting template with the memo set to “Yes”.
Accounting Date:
Accounting transactions are created as at the date specified by the user while running the Generate Accruals Master – Estimated And Billed program.
Applicability:
Generating accounting entries for accrual is applicable to the following book classifications –
• Loan
• Loan – Revolving
Required Setups:
The following setups are required –
• Define accounting templates with the transaction type “Accrual”
• Define one accounting template for stream type of purpose “Variable Interest Income” associated to the product for accrual with the memo flag set to “No”.
• Define one accounting template for stream type of purpose “Variable Interest Income” associated to the product for accrual with the memo flag set to “Yes”. This is required only for separate accounting of accrual streams when accrual rules fail for the contract.
• The seeded formula is “VARIABLE_INCOME_ACCRUAL”.
Prerequisites:
Financial Product –
• Select Interest Calculation Basis = Float and Revenue Recognition Method = Estimated and Billed
• Associate stream type of purpose “Variable Interest Income” as an accrual streams on the financial product
Accrual Rules –
• Define accrual rules for the operating unit
Accrual Reversal Days –
• Define the number of days income to be reversed
Contract –
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• Define interest rate parameters
Examples:
Loan / Loan - Revolving -
• Setup the accounting template with the debit account to income suspense and credit account to income / non-income.
1.3 Accrual generation to recognize actual interest income on scheduled or actual principal balance Navigation
Processing > Programs > Generate Accruals Master – Estimated And Billed
Transaction Type:
Accrual
Accounting Created:
Recognize actual interest income for loan or revolving loan contracts. Actual Interest income is calculated by the Create Receivables Variable Rate Invoices program. The contract is evaluated for meeting the accrual rules. If the contract passes the accrual rules the streams are accounted as income. If the contract fails the accrual rules the streams are accounted as non-income.
Creation Basis:
The interest amount billed is accounted. Contracts that pass the accrual rules apply the accounting template with the memo flag set to “No”. Contracts that fail the accrual rules apply the accounting template with the memo set to “Yes”.
Accounting Date:
Accounting transactions are created as at the date specified by the user while running the generate accruals program.
Applicability:
Generating accounting entries for accrual is applicable to the following book classifications –
• Loan
• Loan – Revolving
Required Setups:
The following setups are required –
• Define accounting templates with the transaction type “Accrual”
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• Define one accounting template for stream type of purpose “Variable Interest” associated to the product for accrual with the memo flag set to “No”.
• Define one accounting template for stream type of purpose “Variable Interest” stream associated to the product for accrual with the memo flag set to “Yes”. This is required only for separate accounting of accrual streams when accrual rules fail for the contract.
• No formulas require to be defined.
Prerequisites:
Financial Product –
• Select Interest Calculation Basis = Float and Revenue Recognition Method = Estimated and Billed
• Associate stream type of purpose Variable Interest as an accrual streams on the financial product
Accrual Rules –
• Define accrual rules for the operating unit
Accrual Reversal Days –
• Define the number of days income to be reversed
Contract –
• Arrears check box should be checked for payments defined on the contract
Processing –
Execute Create Receivables Variable Rate Invoices program
Examples:
Loan / Loan - Revolving -
• Setup the accounting template with the debit account of the variable interest accounting template equal to the credit of the billing variable interest accounting template
1.4 Accrual generation to recognize actual interest income on actual principal balance Navigation
Processing > Programs > Generate Accruals Master – Actual
Transaction Type:
Accrual
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Accounting Created:
Recognize interest income calculated based on the actual principal balance and applicable interest rate for a loan or revolving loan contracts. Interest income is calculated by the formula on the accounting template.
The contract is evaluated for meeting the accrual rules. If the contract passes the accrual rules the streams are accounted as income. If the contract fails the accrual rules the streams are accounted as non-income.
Creation Basis:
The interest amount calculated by formula is accounted. Contracts that pass the accrual rules apply the accounting template with the memo flag set to “No”. Contracts that fail the accrual rules apply the accounting template with the memo set to “Yes”.
Accounting Date:
Accounting transactions are created as at the date specified by the user while running the generate accruals program.
Applicability:
Generating accounting entries for accrual is applicable to the following book classifications –
• Loan
• Loan – Revolving
Required Setups:
The following setups are required –
• Define accounting templates with the transaction type “Accrual”
• Define one accounting template for stream type of purpose “Actual Income Accrual” associated to the product for accrual with the memo flag set to “No”.
• Define one accounting template for stream type of purpose “Actual Income Accrual” stream associated to the product for accrual with the memo flag set to “Yes”. This is required only for separate accounting of accrual streams when accrual rules fail for the contract.
• The seeded formula is “ACTUAL INCOME_ACCRUAL”.
Prerequisites:
Financial Product –
• Select Revenue Recognition Method = Actual
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• Associate stream type of purpose Actual Income Accrual as an accrual streams on the financial product
Accrual Rules –
• Define accrual rules for the operating unit
Accrual Reversal Days –
• Define the number of days income to be reversed
Contract –
• Arrears check box should be checked for payments defined on the contract
Examples:
Loan / Loan - Revolving -
Setup the accounting template with the debit account of the Actual Income Accrual accounting template equal to the credit of the Receipt Application Daily Interest accounting template
1.5 Accrual catchup on termination of lease contract Navigation
Asset Management > Contract Termination > Request Termination
Transaction Type:
Accrual
Accounting Created:
All income in non-accrual accounts is reversed. The contract is treated as good for accrual and all income to be accrued is accounted.
Creation Basis:
The non-accrual transaction is canceled by reversing the debits and credits of the original transaction. The non-accrual income and expenses are accrued.
Accounting Date:
Accounting transactions are created as on the date of termination.
Applicability:
Generating accounting entries for accrual is applicable to the following book classifications –
• Operating Lease
• Direct Finance Lease
• Sales Type Lease
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• Loan
• Loan – Revolving
Required Setups:
No additional setups are required.
Prerequisites:
The contract has created non-accrual accounting transactions.
Examples:
Not applicable
1.6 Accrual acceleration for IDC/Subsidy on termination of lease contract Navigation
Asset Management > Contract Termination > Request Termination
Transaction Type:
Accrual
Accounting Created:
Income or expense not accounted for the Subsidy or IDC is accounted on termination of the contract
Creation Basis:
Income stream amount for subsidy and expense stream amount for IDC are accounted.
Accounting Date:
Accounting transactions are created as on the date of termination.
Applicability:
Generating accounting entries for accrual is applicable to the following book classifications –
• Operating Lease
• Direct Finance Lease
• Sales Type Lease
• Loan
• Loan – Revolving
Required Setups:
Subsidy must have been defined with ‘Accounting Method’ = Amortise
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Prerequisites:
• Subsidy must be associated to an asset on the contract
• IDC must be defined on the fees on a contract
Examples:
Not applicable
1.7 Accrual adjustment on rebook of contract Navigation
Origination > Contracts > Revisions
Transaction Type:
Accrual
Accounting Created:
Accrual adjustment amount is accounted on rebook. Accrual rules are not evaluated to the accrual adjustment transaction.
Creation Basis:
Accrual adjustment amount is determined as difference between amount accrued before rebook and amount that should have been accrued based accrual stream element amounts generated on rebook.
Accounting Date:
The current date of rebook transaction is the accounting date for the accrual adjustment.
Applicability:
Generating accounting entries for accrual is applicable to the following book classifications –
• Operating Lease
• Direct Finance Lease
• Sales Type Lease
• Loan
• Loan – Revolving
Required Setups:
No additional setups are required.
Prerequisites:
The contract has created accrual accounting transactions.
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Contract is rebooked
Examples:
Not applicable
1.8 Accrual adjustment for Insurance Policy Income Navigation
Asset Management > Contract Termination > Request Termination
Transaction Type:
Accrual Accounting Created:
Accrual adjustment amount for insurance policy income is accounted upon cancellation of insurance policy. Creation Basis:
The insurance income account is debited and insurance reserve account is credited. Accounting Date:
Accounting transactions are created on the date the policy is canceled. Applicability:
Generating accounting entries for insurance is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan
Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Accrual” • One template should be defined for stream type of purpose of “Insurance
Income Accrual”. • No formulas require to be defined • The debit account must be the insurance income account. • The credit account must be the insurance reserve account.
Prerequisites:
• An insurance policy must be defined for the contract. Examples:
Not applicable
1.9 Accrual adjustment for Insurance Policy Expense Navigation
Asset Management > Contract Termination > Request Termination
Transaction Type:
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Accrual Accounting Created:
Accrual adjustment amount for insurance policy expense is accounted upon cancellation of insurance policy. Creation Basis:
The insurance reserve account is debited and insurance expense account is credited. Accounting Date:
Accounting transactions are created on the date the policy is canceled. Applicability:
Generating accounting entries for insurance is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan
Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Insurance” • One template should be defined for stream type of purpose of “Insurance
Expense Accrual”. • No formulas require to be defined • The debit account must be the insurance reserve account. • The credit account must be the insurance expense account.
Prerequisites:
• An insurance policy must be defined for the contract. Examples:
Not applicable
2.1 Adjustment of an invoice Navigation
Oracle Collection >
Transaction Type:
Adjustments
Accounting Created:
The account codes are recorded on the invoice adjustment transaction in Oracle Receivables. The accounting is created in the receivables sub ledger.
Creation Basis:
The debit account defined on the accounting template is the revenue account. The credit account applied is the receivables account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables
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Accounting Date:
Accounting transactions are created on the date of adjustment. Applicability:
Generating accounting entries for billing is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan • Loan - Revolving
Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Adjustments” • Templates should be defined for each billable stream • No formulas require to be defined • The debit account must be the revenue or deferred revenue account. • The credit account may be the receivables account.
Prerequisites:
• Contract must be booked • Billable streams must exist for the contract
Examples:
Not applicable
3.1 Asset disposal on acceptance of termination quote with purchase Navigation
Asset Management > Quotes > Termination Quotes
Transaction Type:
Asset Disposition
Accounting Created:
The standard accounting on asset disposal is created by the billing for asset disposal and the retirement of assets in Oracle Assets. Setting up the accounting templates can create additional accounting required during the asset disposition process.
Creation Basis:
The accounting templates are evaluated and accounting created if the amounts are not ‘0’. Evaluating the formulas associated with each accounting template derives the amounts. The financial product associated with the lease contract on which the asset last existed is used to identify the accounting template.
Accounting Date:
Accounting transactions are created on the disposal date. Applicability:
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Generate accounting entries for asset disposition is applicable to the following book classification –
• Operating Lease • Direct Finance Lease • Sales Type Lease
Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Asset Disposal” • Choose a different stream type for each accounting template • Formulas must be associated with each template • Define one template for each accounting entry required
Prerequisites:
None Examples:
Not applicable
3.2 Asset disposal on scrapping asset Navigation
Asset Management > Asset Returns > Asset Returns
Transaction Type:
Asset Disposition Accounting Created:
The standard accounting on asset disposal is created by retirement of assets in Oracle Assets. Setting up the accounting templates can create additional accounting required during the asset disposition process. Creation Basis:
The accounting templates are evaluated and accounting created if the amounts are not ‘0’. Evaluating the formulas associated with each accounting template derives the amounts. The financial product associated with the lease contract on which the asset last existed is used to identify the accounting template. Accounting Date:
Accounting transactions are created on the disposal date. Applicability:
Generating accounting entries for asset disposition is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease
Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Asset Disposal” • Choose a different stream type for each accounting template • Formulas must be associated with each template
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• Define one template for each accounting entry required Prerequisites:
None Examples:
Not applicable
3.3 Asset disposal on repurchase by vendor Navigation
Asset Management > Quotes > Repurchase Quotes
Transaction Type:
Asset Disposition Accounting Created:
The standard accounting on asset disposal is created by the billing for asset disposal and the retirement of assets in Oracle Assets. Setting up the accounting templates can create additional accounting required during the asset disposition process. Creation Basis:
The accounting templates are evaluated and accounting created if the amounts are not ‘0’. Evaluating the formulas associated with each accounting template derives the amounts. The financial product associated with the lease contract on which the asset last existed is used to identify the accounting template. Accounting Date:
Accounting transactions are created on the disposal date. Applicability:
Generating accounting entries for asset disposition is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease
Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Asset Disposal” • Choose a different stream type for each accounting template • Formulas must be associated with each template • Define one template for each accounting entry required
Prerequisites:
None Examples:
Not applicable
3.4 Asset disposal by sale Navigation
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Oracle iStore
Transaction Type:
Asset Disposition Accounting Created:
The standard accounting on asset disposal is created by the billing for asset disposal and the retirement of assets in Oracle Assets. Setting up the accounting templates can create additional accounting required during the asset disposition process. Creation Basis:
The accounting templates are evaluated and accounting created if the amounts are not ‘0’. Evaluating the formulas associated with each accounting template derives the amounts. The financial product associated with the lease contract on which the asset last existed is used to identify the accounting template. Accounting Date:
Accounting transactions are created on the disposal date. Applicability:
Generating accounting entries for asset disposition is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease
Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Asset Disposal” • Choose a different stream type for each accounting template • Formulas must be associated with each template • Define one template for each accounting entry required
Prerequisites:
None Examples:
Not applicable
5.1 Balance write off on contract termination Navigation
Asset Management > Contract Termination > Request Termination
Transaction Type:
Balance Write Off Accounting Created:
The termination process writes off balances for outstanding balances, if the balances are within tolerance. This creates write off transactions in Oracle Receivables against specific invoices. The accounting is created in the receivables sub ledger. Creation Basis:
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The debit account defined on the accounting template is applied in the write off transaction. The credit account applied is the receivables account on the invoice being written off. The invoice accounting is debit receivables and credit clearing accounts. The accrual program debits clearing accounts and credits income accounts. The write off transaction should debit the income accounts and credit receivables account. Accounting Date:
Accounting transactions are created on the termination date of the contract. Applicability:
Generating accounting entries for balances write off is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan • Loan – Revolving
Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Balance Write
Off” • Templates should be defined for each billable stream • No formulas require to be defined • The debit account must be the income account for the specified stream
and not the clearing account. • The credit account defined on this template is not used for accounting.
Prerequisites:
• Outstanding balances exist for the contract terminated • The outstanding balance is within the balance write off tolerance defined
Examples:
Not applicable
6.1 Billing Periodic Navigation
Programs – Process Billable Streams
Advance Billing
Transaction Type:
Billing Accounting Created:
The account codes are recorded on the invoice in Oracle Receivables. The accounting is created in the receivables sub ledger. Creation Basis:
The debit account defined on the accounting template is the receivables account. The credit account applied is the revenue clearing account. The accrual program
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debits revenue clearing accounts and credits income accounts. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables Accounting Date:
Accounting transactions are created on the due date of the stream. Applicability:
Generating accounting entries for billing is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan • Loan - Revolving
Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Billing” • Templates should be defined for each billable stream • No formulas require to be defined • The debit account must be the receivables account. • The credit account may be the revenue clearing account or unbilled
receivables. Prerequisites:
• Contract must be booked • Billable streams must exist for the contract
Examples:
Operating Lease • Debit receivables account and credit revenue clearing account for rent. • The accrual program shall debit revenue clearing and credit rental accrual.
Direct Finance Lease / Sales Type Lease • Debit receivables account and credit unbilled receivables for rent.
Loan, Financed Fee, and Rollover Fee on a contract • Debit receivables account and credit loan principal account for the
principal payment • Debit receivables account and credit revenue clearing account for interest
payment. • The accrual program shall debit revenue clearing and credit interest
income. Contracts with Income Fee, Miscellaneous Fee and Passthrough Fee
• Debit receivables account and credit revenue clearing account for fee payment stream type.
• The accrual program shall debit revenue clearing and credit revenue account.
6.2 Billing Manual Navigation
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Receivables > Billing > Manual Billing
Transaction Type:
Billing Accounting Created:
The account codes are recorded on the invoice in Oracle Receivables. The accounting is created in the receivables sub ledger. Creation Basis:
The debit account defined on the accounting template is the receivables account. The credit account applied is the revenue clearing account. The accrual program debits revenue clearing accounts and credits income accounts. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables Accounting Date:
Accounting transactions are created on the invoice date. Applicability:
Generating accounting entries for billing is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan • Loan - Revolving
Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Billing” • Templates should be defined for each billable stream type • No formulas require to be defined • The debit account must be the receivables account. • The credit account must be the revenue / revenue clearing account.
Prerequisites:
Contract header must exist Examples:
Not applicable
6.3 Billing on acceptance of Termination Quote Navigation
Asset Management > Quotes > Termination Quotes
Transaction Type:
Billing Accounting Created:
The account codes are recorded on the invoice in Oracle Receivables. The accounting is created in the receivables sub ledger.
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Creation Basis:
The debit account defined on the accounting template is the receivables account. The credit account applied is the revenue account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables. The financial product associated with the lease contract on which the asset last existed is used to identify the accounting template. Accounting Date:
Accounting transactions are created on the quote acceptance date. Applicability:
Generating accounting entries for billing is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan • Loan - Revolving
Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Billing” • Templates should be defined for each stream type used for termination
quote line billing. • No formulas require to be defined • The debit account must be the receivables account. • The credit account for contract obligation must be the termination clearing
account to be set off against the debit account defined for termination clearing on accounting template with transaction type of Termination.
• The credit account for any other quote line must be the revenue account. Prerequisites:
• Termination quote exists. Examples:
Not applicable
6.4 Billing on acceptance of Repurchase Quote Navigation
Asset Management > Quotes > Repurchase Quotes
Transaction Type:
Billing Accounting Created:
The account codes are recorded on the invoice in Oracle Receivables. The accounting is created in the receivables sub ledger. Creation Basis:
The debit account defined on the accounting template is the receivables account. The credit account applied is the revenue account. The tax and rounding lines are
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calculated and accounted based on setups within Oracle Receivables. The financial product associated with the lease contract on which the asset last existed is used to identify the accounting template. Accounting Date:
Accounting transactions are created on the quote acceptance date. Applicability:
Generating accounting entries for billing is applicable for any asset available for repurchase. Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Billing” • Templates should be defined for each stream types associated with
termination quote lines . • No formulas require to be defined • The debit account must be the receivables account. • The credit account for contract obligation must be the termination clearing
account to be set off against the debit account defined for termination clearing on accounting template with transaction type of Termination.
• The credit account for any other quote line must be the revenue account. Prerequisites:
Repurchase quote exists. Examples:
Not applicable
6.5 Billing asset condition charge Navigation
Asset Management > Asset Returns > Asset Condition
Transaction Type:
Billing Accounting Created:
The account codes are recorded on the invoice in Oracle Receivables. The accounting is created in the receivables sub ledger. Creation Basis:
The debit account defined on the accounting template is the receivables account. The credit account applied is the revenue account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables. The financial product associated with the lease contract on which the asset last existed is used to identify the accounting template. Accounting Date:
Accounting transactions are created on the transaction date. Applicability:
Generating accounting entries for billing asset condition charges. Required Setups:
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The following setups are required – • Define accounting templates with the transaction type “Billing” • One template should be defined for the stream type of purpose “Repair
Charge”. • No formulas require to be defined • The debit account must be the receivables account. • The credit account must be the revenue / clearing account.
Prerequisites:
• Asset line exists with actual charges updated and approved. Examples:
Not applicable
6.6 Billing sale of asset through iStore Navigation
Log into Oracle iStore responsibility as a customer and confirm an order
Transaction Type:
Billing Accounting Created:
The account codes are recorded on the invoice in Oracle Receivables. The accounting is created in the receivables sub ledger. Creation Basis:
The debit account defined on the accounting template is the receivables account. The credit account applied is the revenue account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables. The financial product associated with the lease contract on which the asset last existed is used to identify the accounting template. Accounting Date:
Accounting transactions are created on the date of sale. Applicability:
Generating accounting entries for billing upon sale of asset. Required Setups:
The following setups are required – • Modify order management workflow to bill through Oracle Lease
Management • Define accounting templates with the transaction type “Billing” • One templates should be defined for the stream type defined for
repurchase quote billing • No formulas require to be defined • The debit account must be the receivables account. • The credit account must be the revenue / clearing account.
Prerequisites:
• Asset must be sold through Oracle iStore Examples:
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Not applicable
6.7 Billing Customer Service Fee Navigation
Lease Center – Bill Fee
Transaction Type:
Billing Accounting Created:
The account codes are recorded on the invoice in Oracle Receivables. The accounting is created in the receivables sub ledger. Creation Basis:
The debit account defined on the accounting template is the receivables account. The credit account applied is the revenue account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables Accounting Date:
Accounting transactions are created on the transaction date. Applicability:
Generating accounting entries for billing is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan • Loan - Revolving
Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Billing” • One templates should be defined for each stream type of service fee
purposes • No formulas require to be defined • The debit account must be the receivables account. • The credit account must be the revenue account.
Prerequisites:
• The fee must be billed through the lease center Examples:
Not applicable
6.8 Billing Vendor Cure Navigation
Receivables > Request Cure
Transaction Type:
Billing
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Accounting Created:
The account codes are recorded on the invoice in Oracle Receivables. The accounting is created in the receivables sub ledger. Creation Basis:
The debit account defined on the accounting template is the receivables account. The credit account applied is the vendor cure account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables Accounting Date:
Accounting transactions are created on the invoice date. Applicability:
Generating accounting entries for billing is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan • Loan - Revolving
Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Billing” • One template should be defined for stream type of purpose “Cure”. • No formulas require to be defined • The debit account must be the receivables account. • The credit account must be the revenue account.
Prerequisites:
A cure request must be accepted to generate the invoice. Examples:
Not applicable
6.9 Billing Usage Based Navigation
Program – Usage Based Billing
Transaction Type:
Billing Accounting Created:
The account codes are recorded on the invoice in Oracle Receivables. The accounting is created in the receivables sub ledger. Creation Basis:
The debit account defined on the accounting template is the receivables account. The credit account applied is the revenue account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables Accounting Date:
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Accounting transactions are created on the scheduled invoice date. Applicability:
Generating accounting entries for billing is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan
Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Billing” • One template should be defined for stream type of purpose “Usage
Payment”. • No formulas require to be defined • The debit account must be the receivables account. • The credit account must be the revenue account.
Prerequisites:
• Contract must have an asset with counters. • The meter reading must be updated. • The billing process for the service contract must be run.
Examples:
Not applicable
6.10 Billing Variable Interest and principal payment for contract with Revenue Recognition Method = Estimated and Billed Navigation
Programs – Process Billable Streams
Transaction Type:
Billing Accounting Created:
The account codes are recorded on the invoice in Oracle Receivables. The accounting is created in the receivables sub ledger. Creation Basis:
Principal payment is accounted based on principal payment stream. Interest is accounted based on the variable interest stream generated by Create Receivables Variable Rate Invoices program. The debit account defined on the accounting template is the receivables account. The credit account applied is the revenue clearing account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables. Accounting Date:
Accounting transactions are created on the stream element date of the principal payment and Variable Interest streams. Applicability:
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Generating accounting entries for billing is applicable to the following book classifications –
• Loan • Loan - Revolving
Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Billing” • One template should be defined for stream type of purpose “Variable
Interest”. • One template should be defined for stream type of purpose “Principal
payment” for loan type contracts only. • One template should be defined for stream type of purpose “Unscheduled
Principal Payment”. • No formulas require to be defined • •
Prerequisites:
• Contract must have the interest rate parameters defined. • Revenue Recognition Method of the financial product should be set to
Estimated and Billed. Examples:
Principal payment • The debit account must be the receivables account. • The credit account must be equal to the debit of the booking loan balance
accounting template. Variable Interest
• The debit account must be the receivables account. • The credit account must be equal to the debit of the accrual variable
interest accounting template.
Unscheduled Principal Payment • The debit account must be the receivables account. • The credit account must be equal to the debit of the booking loan balance
accounting template.
6.11 Billing Loan payment for contract with Revenue Recognition Method = Actual Navigation
Programs – Process Billable Streams
Transaction Type:
Billing Accounting Created:
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The account codes are recorded on the invoice in Oracle Receivables. The accounting is created in the receivables sub ledger. Creation Basis:
The debit account defined on the accounting template is the receivables account. The credit account applied is the revenue clearing account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables. The accrual program accounts for debit revenue clearing and credit income for the actual interest billed. Accounting Date:
Accounting transactions are created on the scheduled billing date for principal. Applicability:
Generating accounting entries for billing is applicable to the following book classifications –
• Loan Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Billing” • One template should be defined for stream type of purpose “Variable Rate
Charge”. • No formulas require to be defined • The debit account must be the receivables account. • The credit account must be the revenue clearing account.
Prerequisites:
• Contract must have the interest rate terms and conditions defined. • The interest rate basis must be “Float”.
Examples:
Not applicable
6.12 Billing Interim Interest Navigation
Program – Interest Calculation
Transaction Type:
Billing Accounting Created:
The account codes are recorded on the invoice in Oracle Receivables. The accounting is created in the receivables sub ledger. Creation Basis:
The debit account defined on the accounting template is the receivables account. The credit account applied is the revenue account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables Accounting Date:
Accounting transactions are created for the end of every accounting period that the program is run.
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Applicability:
Generating accounting entries for billing is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan
Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Billing” • One template should be defined for stream type of purpose “Interim
Interest”. • No formulas require to be defined • The debit account must be the receivables account. • The credit account must be the revenue account.
Prerequisites:
• Contract must be funded before booking (pre funding). • The pre funding must be paid in Oracle Payables. • The interest rate terms and conditions must be defined on the contract • The capitalize interest flag should be unchecked
Examples:
Not applicable
6.13 Billing Late Interest Navigation
Program – Calculate Late Interest
Transaction Type:
Billing Accounting Created:
The account codes are recorded on the invoice in Oracle Receivables. The accounting is created in the receivables sub ledger. Creation Basis:
The debit account defined on the accounting template is the receivables account. The credit account applied is the revenue account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables Accounting Date:
Accounting transactions are created for the date on which the program is run. Applicability:
Generating accounting entries for billing is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease
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• Sales Type Lease • Loan • Loan - Revolving
Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Billing” • One template should be defined for stream type of purpose “Late
Interest”. • No formulas require to be defined • The debit account must be the receivables account. • The credit account must be the revenue account.
Prerequisites:
• Late interest should have been defined for the contract Examples:
Not applicable
6.14 Billing Late Charge Navigation
Program – Calculate Late Charges
Transaction Type:
Billing Accounting Created:
The account codes are recorded on the invoice in Oracle Receivables. The accounting is created in the receivables sub ledger. Creation Basis:
The debit account defined on the accounting template is the receivables account. The credit account applied is the revenue account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables Accounting Date:
Accounting transactions are created for the date on which the program is run. Applicability:
Generating accounting entries for billing is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan • Loan - Revolving
Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Billing” • One template should be defined for stream type of purpose “Late Fee”.
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• No formulas require to be defined • The debit account must be the receivables account. • The credit account must be the revenue account.
Prerequisites:
• Late charge must be defined for the contract Examples:
Not applicable
6.15 Billing Insurance Navigation
Program – Process Billable Streams
Transaction Type:
Billing Accounting Created:
The account codes are recorded on the invoice in Oracle Receivables. The accounting is created in the receivables sub ledger. Creation Basis:
The debit account defined on the accounting template is the receivables account. The credit account applied is the revenue clearing account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables. The accrual program accounts for debit revenue clearing and credit income for the actual interest billed. Accounting Date:
Accounting transactions are created for the due date of the stream. Applicability:
Generating accounting entries for billing is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease
Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Billing” • One template should be defined for stream type of purpose “Insurance
Receivable”. • No formulas require to be defined • The debit account must be the receivables account. • The credit account must be the revenue clearing account.
Prerequisites:
• Insurance policy must have been defined for the contract. Examples:
Not applicable
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6.16 Billing Principal or Loan Paydown Navigation
Lease Center - Requests
Transaction Type:
Billing Accounting Created:
The account codes are recorded on the invoice in Oracle Receivables. The accounting is created in the receivables sub ledger. Creation Basis:
The debit account defined on the accounting template is the receivables account. The credit account applied is the loan principal account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables. Accounting Date:
Accounting transactions are created for the transaction date. Applicability:
Generating accounting entries for billing is applicable to the following book classifications –
• Loan • Loan - Revolving
Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Billing” • One template should be defined for stream type of purpose “Unscheduled
Principal Payment”. • No formulas require to be defined • The debit account must be the receivables account. • The credit account must be the loan principal balance account.
Prerequisites:
None Examples:
Not applicable
6.17 Billing Advanced Rent Navigation
Program – Process Billable Streams
Transaction Type:
Billing Accounting Created:
The account codes are recorded on the invoice in Oracle Receivables. The accounting is created in the receivables sub ledger. Creation Basis:
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The debit account defined on the accounting template is the receivables account. The credit account applied is the advanced rent account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables. Accounting Date:
Accounting transactions are created for the transaction date. Applicability:
Generating accounting entries for billing is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan
Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Billing” • One template should be defined for stream type of purpose “Advanced
Rent”. • No formulas require to be defined • The debit account must be the receivables account. • The credit account must be the advanced rent account.
Prerequisites:
• Advanced rent must be defined for the contract. Examples:
Not applicable
6.18 Billing Evergreen Rent Navigation
Program – Evergreen Billing
Transaction Type:
Billing Accounting Created:
The account codes are recorded on the invoice in Oracle Receivables. The accounting is created in the receivables sub ledger. Creation Basis:
The debit account defined on the accounting template is the receivables account. The credit account applied is the revenue account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables Accounting Date:
Accounting transactions are created on the invoice date. Applicability:
Generating accounting entries for billing is applicable to the following book classifications –
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• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan
Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Billing” • Templates should be defined for streams – Evergreen Rent, Evergreen
Fees and Evergreen Service and Maintenance. • No formulas require to be defined • The debit account must be the receivables account. • The credit account must be the revenue account.
Prerequisites:
• Contract status is Evergreen Examples:
Not applicable
6.19 Billing Investor Stake Navigation
Investor > Investor Agreements > Activation
Transaction Type:
Billing Accounting Created:
Invoice for the Investor stake is generated on activation of the Investor agreement. The account codes are recorded on the invoice in Oracle Receivables. The accounting is created in the receivables sub ledger. Creation Basis:
The debit account defined on the accounting template is the receivables account. The credit account applied is the Investor Stake account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables Accounting Date:
Accounting transaction is created as on the effective date of Investor Agreement. Applicability:
• Investor Agreement Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Billing” • No formulas require to be defined • The debit account must be the receivables account. • The credit account must be the Investor Stake account.
Prerequisites:
• Contract is booked and Pool is created
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Examples:
Not applicable
6.20 Billing Stream type with Revenue Recognition Basis = Cash Receipt Navigation
Program – Process Billable streams
Advance Billing
Transaction Type:
Billing Accounting Created:
The account codes are recorded on the invoice in Oracle Receivables. The accounting is created in the receivables sub ledger. Creation Basis:
When an invoice created in AR, receivables and deferred revenue accounts are used to account the invoice. When a receipt is applied to the invoice, deferred revenue account and revenue account is used to recognize income on the invoice. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables Accounting Date:
Accounting transactions are created on the invoice date. Applicability:
Generating accounting entries for billing is applicable to the following book classifications –
• Operating Lease • Income Fee • Miscellaneous fee • Passthrough fee
Required Setups:
The following setups are required – • Define two accounting templates for each billing stream type with
Revenue Recognition Basis = Cash Receipt • On first accounting template with Memo = No
o The debit account must be the receivables account. o The credit account must be the revenue account.
• On second accounting template with Memo = Yes o The debit account is not used. o The credit account must be the deferred revenue account.
• Three account distributions are passed to AR for accounting • No formulas require to be defined
Prerequisites:
• Contract status is Evergreen
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Examples:
Not applicable
6.21 Billing Property Tax Navigation
Programs – Process Billable Streams
Transaction Type:
Billing Accounting Created:
The account codes are recorded on the invoice in Oracle Receivables. The accounting is created in the receivables sub ledger. Creation Basis:
The debit account defined on the accounting template is the receivables account. The credit account applied is the Income or liability account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables Accounting Date:
Accounting transactions are created on the due date of the stream element. Applicability:
Generating accounting entries for billing is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan • Loan Revolving
Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Billing” • Templates should be defined for each stream type with the purposes of
Actual Property tax, Estimated Property tax or Adjusted property tax • No formulas require to be defined • The debit account must be the receivables account. • The credit account may be income or liability account.
Prerequisites:
• ‘Bill Property Tax’ is set to yes Estimated or Estimated and Actual • Contract must be booked • Payment for stream type with a purpose of Estimated Property Tax is
defined for an asset Examples:
• Debit receivables account and credit income or liability account
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6.22 Billing Adjustment on rebook of contract Navigation
Origination > Contracts > Revisions
Transaction Type:
Billing
Accounting Created:
Billing adjustment amount is accounted on rebook.
Creation Basis:
Billing adjustment amount is determined as difference between amount billed before rebook and amount that should have been billed based billable stream element amounts generated on rebook.
Accounting Date:
The current date of rebook transaction is the accounting date for the billing adjustment.
Applicability:
Generating accounting entries for billing is applicable to the following book classifications –
• Operating Lease
• Direct Finance Lease
• Sales Type Lease
• Loan
• Loan – Revolving
Required Setups:
No additional setups are required.
Prerequisites:
Billing transactions has been generated.
Contract is rebooked
Examples:
Not applicable
7.1 Booking generate draft journal Navigation
Origination > Contracts > Booking
Transaction Type:
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Booking Accounting Created:
Accounting distributions that occur on the establishment of the contract are available for review by the contract administrator. These accounting distributions are not transferred to the general ledger. (Navigation – Financials > Inquiry > Transactions) Creation Basis:
The financial product on the lease contract and the transaction type – booking are sent to the accounting engine. All accounting templates available for the product and transaction type are evaluated for accounting. Accounting is created when the formula returns an amount not ‘0’. If accounting templates with Memo Flag = Yes are defined, they are used to create draft accounting journals. If the accounting templates with Memo flag = Yes are not defined, accounting engine defaults the accounting templates with Memo Flag = No as described under “Accounting Template Defaulting Rules” in Setups and Entities that impact accounting section. This allows the user to create draft accounting that may be different from the actual accounting generated on booking of a contract. Accounting Date:
The accounting date is the start date of the contract. Applicability:
Generating accounting entries for booking is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan • Loan – Revolving
Required Setups:
The following setups are required to achieve accounting for booking – • Define accounting templates with the transaction type “Booking” • Define one accounting template for each accounting entry of the booking
process • Every accounting template must have a formula to derive the amount to
be accounted • New formulas may require to be defined, if the seeded formulas do not
provide the amount to be accounted Prerequisites:
Operating Lease • The asset cost is available on the lease contract
Direct Finance Lease / Sales Type Lease • The rent streams are generated for the lease contract • The income streams are generated for the lease contract • The residual value is available on the lease contract
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Loan / Loan - Revolving • The loan principal is available on the lease contract
Examples:
Operating Lease • One accounting template for asset cost • Debit asset clearing account and credit lease funding account for the asset
cost • Additional templates for fees, service etc.
Direct Finance Lease / Sales Type Lease • Three accounting templates for asset cost • Debit unbilled receivables and credit lease funding for the total rent • Debit lease funding and credit unearned income for the total income • Debit residual value and credit lease funding for the residual • Additional templates for fees, service etc.
Loan / Loan – Revolving • One accounting template for asset cost • Debit loan principal account and credit lease funding account for the asset
cost • Additional templates for fees, service etc.
7.2 Booking activate contract Navigation
Origination > Contracts > Booking
Transaction Type:
Booking Accounting Created:
Accounting distributions that occur on the booking of the contract are available for transfer into the general ledger. (Navigation – Financials > Inquiry > Transactions) Creation Basis:
The financial product on the lease contract and the transaction type – booking are sent to the accounting engine. All accounting templates available for the product and transaction type are evaluated for accounting. The amounts accounted are amounts returned by the formula on the accounting template. Accounting is created when the formula returns an amount not ‘0’. Accounting Date:
The accounting date is the start date of the contract. Applicability:
Generating accounting entries for booking is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan • Loan – Revolving
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Required Setups:
The following setups are required to achieve accounting for booking – • Define accounting templates with the transaction type “Booking” and
Memo Flag = No • Define one accounting template for each accounting entry of the booking
process • Every accounting template must have a formula to derive the amount to
be accounted • New formulas may require to be defined, if the seeded formulas do not
provide the amount to be accounted Prerequisites:
Operating Lease • The asset cost is available on the lease contract
Direct Finance Lease / Sales Type Lease • The rent streams are generated for the lease contract • The income streams are generated for the lease contract • The residual value is available on the lease contract
Loan / Loan - Revolving • The loan principal is available on the lease contract
Examples:
Operating Lease • One accounting template for asset cost • Debit asset clearing account and credit lease funding account for the asset
cost • Additional templates for fees, service etc.
Direct Finance Lease / Sales Type Lease • Three accounting templates for asset cost • Debit unbilled receivables and credit lease funding for the total rent • Debit lease funding and credit unearned income for the total income • Debit residual value and credit lease funding for the residual • Additional templates for fees, service etc.
Loan / Loan – Revolving • One accounting template for asset cost • Debit loan principal account and credit lease funding account for the asset
cost • Additional templates for fees, service etc.
7.3 Reverse contract Navigation
Origination > Contracts > Revisions
Transaction Type:
Booking
Accounting Created:
All accounting created on booking is reversed.
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Creation Basis:
The booking transaction is canceled reversing the debits and credits.
Accounting Date:
Accounting transactions are created on the reversal date.
Applicability:
Generating accounting entries for booking is applicable to the following book classifications –
• Operating Lease
• Direct Finance Lease
• Sales Type Lease
• Loan
• Loan – Revolving
Required Setups:
No additional setups are required.
Prerequisites:
• The contract must be in booked status.
Examples:
• Not applicable
8.1 Credit memo on acceptance of Termination Quote with negative values Navigation
Asset Management > Quotes > Termination Quotes
Transaction Type:
Credit Memo Accounting Created:
The account codes are recorded on the credit memo in Oracle Receivables. The accounting is created in the receivables sub ledger. Creation Basis:
The debit account defined on the accounting template is the expense account. The credit account applied is the receivables account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables. Credit memos are created in Oracle Receivables for all quote lines with negative values. Accounting Date:
Accounting transactions are created on the quote acceptance date. Applicability:
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Generating accounting entries for credit memo is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan • Loan - Revolving
Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Credit Memo” • Templates should be defined for each streams associated with quote line
types. • No formulas require to be defined • The debit account must be the expense account. • The credit account must be the receivables account.
Prerequisites:
• Termination quote exists. Examples:
Not applicable
8.2 Credit memo on acceptance of Repurchase Quote with negative values Navigation
Asset Management > Quotes > Repurchase Quotes
Transaction Type:
Credit Memo Accounting Created:
The account codes are recorded on the credit memo in Oracle Receivables. The accounting is created in the receivables sub ledger. Creation Basis:
The debit account defined on the accounting template is the revenue account. The credit account applied is the receivables account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables. Credit memos are created in Oracle Receivables for all quote lines with negative values. Accounting Date:
Accounting transactions are created on the quote acceptance date. Applicability:
Generating accounting entries for credit memo for assets sold to vendors through the repurchase process. Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Credit Memo”
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• Templates should be defined for each streams associated with quote line types.
• No formulas require to be defined • The debit account must be the revenue account. • The credit account must be the receivables account.
Prerequisites:
• Repurchase quote exists. Examples:
Not applicable
8.3 Credit Memo from Customer Service Navigation
Lease Center - Transactions
Transaction Type:
Credit Memo Accounting Created:
The account codes are recorded on the credit memo in Oracle Receivables. The accounting is created in the receivables sub ledger. Creation Basis:
The debit account defined on the accounting template is the revenue account. The credit account applied is the receivables account of the invoice adjusted. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables. The revenue account should be the account defined for the accrual transaction, if revenue is recognized through the generate accruals process. Accounting Date:
Accounting transactions are created on the credit date. Applicability:
Generating accounting entries for credit memo is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan • Loan - Revolving
Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Credit Memo” • Templates should be defined for each stream type with the billable
attribute set to “Yes”. • No formulas require to be defined • The debit account must be the revenue account. • The credit account must be the receivables account.
Prerequisites:
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• An invoice with an unpaid balance. Examples:
Not applicable
8.4 Credit memo for Vendor Cure Refund Offset Navigation
Receivables > Refund Cure
Transaction Type:
Credit Memo Accounting Created:
The account codes are recorded on the credit memo in Oracle Receivables. The accounting is created in the receivables sub ledger. Creation Basis:
The debit account defined on the accounting template is the cure account. The credit account applied is the receivables account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables. Accounting Date:
Accounting transactions are created on the cure refund date. Applicability:
Generating accounting entries for credit memo is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan • Loan - Revolving
Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Credit Memo” • One template should be defined for stream type of purpose “Cure”. • No formulas require to be defined • The debit account must be the revenue account. • The credit account must be the receivables account.
Prerequisites:
• Vendor cure refund must be offset against subsequent cure claims. Examples:
Not applicable
8.5 Credit Memo for Advanced Rent Navigation
Lease Center - Requests
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Transaction Type:
Credit Memo Accounting Created:
The account codes are recorded on the credit memo in Oracle Receivables. The accounting is created in the receivables sub ledger. Creation Basis:
The debit account defined on the accounting template is the advanced rent account. The credit account applied is the receivables account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables. Accounting Date:
Accounting transactions are created on the transaction date. Applicability:
Generating accounting entries for credit memo is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan
Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Credit Memo” • One template should be defined for stream type of purpose “Advanced
Rent”. • No formulas require to be defined • The debit account must be the advanced rent account. • The credit account must be the receivables account.
Prerequisites:
• Advanced rent must be defined for the contract. Examples:
Not applicable
8.6 Credit Memo for Billing Adjustment Navigation
None
Transaction Type:
Credit Memo Accounting Created:
The account codes are recorded on the credit memo in Oracle Receivables. The accounting is created in the receivables sub ledger. Creation Basis:
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The debit account defined on the accounting template is the billing adjustment account. The credit account applied is the receivables account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables. Accounting Date:
Accounting transactions are created on the transaction date. Applicability:
Generating accounting entries for credit memo is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan
Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Credit Memo” • One template should be defined for stream type of purpose “Billing
Adjustment”. • No formulas require to be defined • The debit account must be the Billing Adjustment account. • The credit account must be the Receivables account.
Prerequisites:
• The rebooking process must create negative streams with the stream type Billing Adjustment
Examples:
Not applicable
8.7 Credit Memo for billing stream types on rebook Navigation
None
Transaction Type:
Credit Memo Accounting Created:
The account codes are recorded on the credit memo in Oracle Receivables. The accounting is created in the receivables sub ledger. Creation Basis:
The debit account defined on the accounting template is the revenue account for the billing streams types. The credit account applied is the receivables account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables. Accounting Date:
Accounting transactions are created on the transaction date. Applicability:
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Generating accounting entries for credit memo is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan
Required Setups:
The following setups are required – • Define accounting templates with the transaction type Credit Memo • One template should be defined for each billing stream type • No formulas require to be defined • The debit account must be the billing stream types account. • The credit account must be the receivables account.
Prerequisites:
• The rebooking process must create negative streams with each billing stream type
Examples:
Not applicable
8.8 Credit Memo for Stream type with Revenue Recognition Basis = Cash Receipt Navigation
Lease Center - Transactions
Transaction Type:
Credit Memo Accounting Created:
The account codes are recorded on the credit memo in Oracle Receivables. The accounting is created in the receivables sub ledger. Creation Basis:
The debit account defined on the accounting template is the deferred revenue account. The credit account applied is the receivables account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables. Accounting Date:
Accounting transactions are created on the credit date. Applicability:
Generating accounting entries for credit memo is applicable to the following book classifications –
• Operating Lease • Income Fee • Miscellaneous fee • Passthrough fee
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Required Setups:
The following setups are required – • Define accounting templates with the transaction type Credit Memo • One template should be defined for each billing stream type with Revenue
Recognition Basis = Cash Receipt • No formulas require to be defined • The debit account must be the deferred revenue account. • The credit account must be the receivables account.
Prerequisites:
• An invoice with an unpaid balance. Examples:
Not applicable
9.1 Debit memo for Negative Pre Funding Navigation
Origination > Funding
Transaction Type:
Debit Memo Accounting Created:
The account codes are recorded on the credit memo with negative amount in Oracle Payables. The accounting is created in the payables sub ledger. Creation Basis:
The debit account defined on the accounting template is the pre funding account. The credit account applied is the liability account. Accounting Date:
Accounting transactions are created on the due date specified on the funding request. Applicability:
Generating accounting entries for credit memo is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan
Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Debit Memo” • One template should be defined for stream type of purpose “Pre
Funding”. • No formula is required to be defined • The debit account must be the pre funding account. • The credit account must be the liability account.
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Prerequisites:
• Funding request of type pre funding must be approved with a negative amount.
Examples:
On creation of accounting for the invoice in Oracle Payables, following accounting is generated.
• Debit liability account and credit pre funding account
9.2 Debit memo for Supplier Retention Navigation
Origination > Funding
Transaction Type:
Debit Memo Accounting Created:
The account codes are recorded on the credit memo with negative amount in Oracle Payables. The accounting is created in the payables sub ledger. Creation Basis:
The debit account defined on the accounting template is the supplier retention account. The credit account applied is the liability account. Accounting Date:
Accounting transactions are created on the due date specified on the funding request. Applicability:
Generating accounting entries for credit memo is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan
Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Debit Memo” • One template should be defined for stream type specified on the funding
request. • No formulas require to be defined • The debit account must be the supplier retention account. • The credit account must be the liability account.
Prerequisites:
• Funding request of type vendor retention must be approved. Examples:
On creation of accounting for the invoice in Oracle Payables, following accounting is generated.
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• Debit liability account and credit supplier retention account
10.1 Disbursement Manual Navigation
Receivables > Disbursements
Transaction Type:
Disbursement Accounting Created:
The account codes are recorded on the invoice in Oracle Payables. The accounting is created in the payables sub ledger. Creation Basis:
The debit account defined on the accounting template is the expense account. The credit account applied is the liability account. Accounting Date:
Accounting transactions are created on the date the disbursement is approved. Applicability:
Generating accounting entries for disbursement is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan • Loan - Revolving
Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Disbursement” • One template should be defined for each stream type with the class
“Expense” • No formulas require to be defined • The debit account must be the expense account. • The credit account must be the liability account.
Prerequisites:
• Manual disbursement must be approved. Examples:
Not applicable
10.2 Disbursement Pass Through Navigation
Program – Pay Invoices Creation of Auto Disbursement Process
Transaction Type:
Disbursement
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Accounting Created:
The account codes are recorded on the invoices in Oracle Payables. The accounting is created in the payables sub ledger. Creation Basis:
The debit account defined on the accounting template is the expense account. The credit account applied is the liability account. Accounting Date:
Accounting transactions are created on the disbursement approval date. Applicability:
Generating accounting entries for disbursement is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan • Loan - Revolving
Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Disbursement” • One template should be defined for each stream type used for pass
through disbursements. • No formulas require to be defined • The debit account must be the expense account. • The credit account must be the liability account.
Prerequisites:
• Pass through must be defined on the contract. Examples:
Not applicable
10.3 Disbursement Insurance Navigation
Program – Insurance Payment Program
Transaction Type:
Disbursement Accounting Created:
The account codes are recorded on the invoices in Oracle Payables. The accounting is created in the payables sub ledger. Creation Basis:
The debit account defined on the accounting template is the expense account. The credit account applied is the liability account. Accounting Date:
Accounting transactions are created on the disbursement date.
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Applicability:
Generating accounting entries for disbursement is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan
Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Disbursement” • One template should be defined for stream type of purpose “Insurance
Payable”. • No formulas require to be defined • The debit account must be the expense account. • The credit account must be the liability account.
Prerequisites:
• Insurance policy exists for the contract. Examples:
Not applicable
10.4 Disbursement of Vendor Cure Refund Navigation
Receivables > Refund Cure
Transaction Type:
Disbursement Accounting Created:
The account codes are recorded on the invoices in Oracle Payables. The accounting is created in the payables sub ledger. Creation Basis:
The debit account defined on the accounting template is the cure account. The credit account applied is the liability account. Accounting Date:
Accounting transactions are created on the refund date. Applicability:
Generating accounting entries for disbursement is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan
Required Setups:
The following setups are required –
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• Define accounting templates with the transaction type “Disbursement” • One template should be defined for stream type of purpose “Cure”. • No formulas require to be defined • The debit account must be the cure account. • The credit account must be the liability account.
Prerequisites:
• The vendor cures the contract. Examples:
Not applicable
10.5 Disbursement to Investor Navigation
Concurrent Programs
1. Create Investor Invoice Disbursement
2. Investor Payables Consolidation
Transaction Type:
Disbursement Accounting Created:
The account codes are recorded on the invoice in Oracle Payables. The accounting is created in the payables sub ledger. Creation Basis:
The debit account defined on the accounting template is the Rent Securitized or an account relevant to stream type of the Subclass “Investor disbursement” and Stream type “Investor Rent Payable”. The credit account applied is the liability account. Accounting Date:
Accounting transactions are created on the due date of stream. Applicability:
• Investor Agreement Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Disbursement” • One template should be defined for each stream type of the Subclass
“Investor Disbursement” and stream type of purpose “Investor Rent Payable”.
• No formulas require to be defined • The debit account must be the relevant investor disbursement stream type
account. • The credit account must be the liability account.
Prerequisites:
• Investor agreement is activated
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• Billing is done on the contract that is part of Investor agreement Examples:
Not applicable
11.1 Conversion of contract to Evergreen status Navigation
Programs – Terminate Expired contract
Transaction Type:
Evergreen Accounting Created:
Accounting distributions that occur on conversion of the contract to Evergreen status are available for transfer into the general ledger. Creation Basis:
The financial product on the lease contract and the transaction type – Evergreen are sent to the accounting engine. All accounting templates available for the product and the transaction type are evaluated for accounting. The amounts accounted are non-zero amounts returned by the formula on the accounting template. Accounting Date:
The accounting date is the contract effective-to date. Applicability:
Generating accounting entries for termination is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease
Required Setups:
The following setups are required to achieve accounting for termination – • Define accounting templates with the transaction type “Evergreen” • Define one accounting template for each accounting entry required for
evergreen processing • Every accounting template must have a formula to derive the amount to
be accounted • New formulas may require to be defined, if the seeded formulas do not
provide the amount to be accounted Prerequisites:
None Examples:
None
12.1 Funding Contract before Activation Navigation
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Origination > Funding
Transaction Type:
Funding Accounting Created:
The account codes are recorded on the invoice in Oracle Payables. The accounting is created in the payables sub ledger. Creation Basis:
The debit account defined on the accounting template is the pre funding account. The credit account applied is the liability account. Accounting Date:
Accounting transactions are created on the due date specified on the funding request. Applicability:
Generating accounting entries for funding is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan • Loan - Revolving
Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Funding” • One template should be defined for stream type of purpose “Pre
Funding”. • No formulas require to be defined • The debit account must be the pre funding account. • The credit account must be the liability account.
Prerequisites:
• Contract must be eligible for pre funding. • Funding request of type pre funding must be approved.
Examples:
Not applicable
12.2 Funding Asset on Contract Navigation
Origination > Funding
Transaction Type:
Funding Accounting Created:
The account codes are recorded on the invoice in Oracle Payables. The accounting is created in the payables sub ledger.
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Creation Basis:
The debit account defined on the accounting template is the lease funding account. The credit account applied is the liability account. Accounting Date:
Accounting transactions are created on the due date specified on the funding request. Applicability:
Generating accounting entries for funding is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan
Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Funding” • One template should be defined for stream type of purpose “Funding”. • No formulas require to be defined • The debit account must be the lease funding account. • The credit account must be the liability account.
Prerequisites:
• Funding request of type asset funding must be approved. Examples:
Not applicable
12.3 Funding Expenses on Contract Navigation
Origination > Funding
Transaction Type:
Funding Accounting Created:
The account codes are recorded on the invoices in Oracle Payables. The accounting is created in the payables sub ledger. Creation Basis:
The debit account defined on the accounting template is the lease funding account. The credit account applied is the liability account. Accounting Date:
Accounting transactions are created on the due date specified on the funding request. Applicability:
Generating accounting entries for funding is applicable to the following book classifications –
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• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan
Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Funding” • One template should be defined for stream type “Funding”. • No formulas require to be defined • The debit account must be the lease funding account. • The credit account must be the liability account.
Prerequisites:
• Funding request of type fee funding must be approved. Examples:
Not applicable
12.4 Funding Borrower Payment Navigation
Origination > Funding
Transaction Type:
Funding Accounting Created:
The account codes are recorded on the invoice in Oracle Payables. The accounting is created in the payables sub ledger. Creation Basis:
The debit account defined on the accounting template is the loan principal account. The credit account applied is the liability account. Accounting Date:
Accounting transactions are created on the due date specified on the funding request. Applicability:
Generating accounting entries for funding is applicable to the following book classifications –
• Loan - Revolving Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Funding” • One template should be defined for stream type of purpose “Principal
Balance”. • No formulas require to be defined • The debit account must be the loan principal account. • The credit account must be the liability account.
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Prerequisites:
• Funding request of type borrower payment must be approved. Examples:
Not applicable
13.1 General Loss Provision Creation Navigation
Processing > Programs > General Loss Provision
Transaction Type:
General Loss Provision Accounting Created:
An accounting transaction is created for each contract against which a general loss provision is computed. The contract is evaluated for loss rates defined and the loss reserve amount is computed. Creation Basis:
The debit account defined on the accounting template is the loss expense account and the credit account is the loss reserve account. Accounting Date:
Accounting transactions is the date specified by the user for creation of the loss provision. Applicability:
Generating accounting entries for general loss provision is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan • Loan - Revolving
Required Setups:
The following setups are required – • Define accounting templates with the transaction type “General Loss
Provision” • One template should be defined for each stream type of purpose “General
Loss Provision” • No formulas require to be defined • The debit account must be the loss expense account. • The credit account must be the loss reserve account.
Prerequisites:
• Loss rates must be defined for aging buckets. Examples:
Not applicable
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13.2 General Loss Provision Reversal on new provision Navigation
Processing > Programs > General Loss Provision
Transaction Type:
General Loss Provision Accounting Created:
The loss provision transaction created is cancelled. Creation Basis:
The loss reserve account is debit and loss expense account credited with the amount of the existing provision. Accounting Date:
Accounting transactions is cancelled on the date of creating the new provision. Applicability:
Generating accounting entries for general loss provision is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan • Loan - Revolving
Required Setups:
None Prerequisites:
• A general loss provision must exist for the contract. Examples:
Not applicable
13.3 General Loss Provision Reversal on Termination of Contract Navigation
Asset Management > Contract Termination > Request Termination
Transaction Type:
General Loss Provision Accounting Created:
The loss provision transaction created is cancelled. Creation Basis:
The loss reserve account is debit and loss expense account credited with the amount of the existing provision. Accounting Date:
Accounting transactions is cancelled on the contract termination date. Applicability:
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Generating accounting entries for general loss provision is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan • Loan - Revolving
Required Setups:
None Prerequisites:
• A general loss provision must exist for the contract. Examples:
Not applicable
14.1 Investor Agreement Activation Navigation
Investor > Investor Agreement > Activation
Transaction Type:
Investor Accounting Created:
Accounting distributions that occur on the activation of Investor agreement are available for transfer into the general ledger. Creation Basis:
The financial product on the Investor Agreement and the transaction type – Investor are sent to the accounting engine. All accounting templates available for the product and transaction type are evaluated for accounting. The amounts accounted are amounts returned by the formula on the accounting template. Accounting is created when the formula returns an amount not ‘0’. Accounting Date:
The accounting date is the effective date of the Investor Agreement. Applicability:
Generating accounting entries on activation is applicable to all investor agreements. Required Setups:
The following setups are required to achieve accounting for Investor Agreement activation –
• Define accounting templates with the transaction type “Investor” • Define one accounting template for each accounting entry of the
activation process • Every accounting template must have a formula to derive the amount to
be accounted • New formulas may require to be defined, if the seeded formulas do not
provide the amount to be accounted Prerequisites:
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• Contact is booked and Pool is created Examples:
Investor agreement for direct finance lease contracts • Debit Investor stake and credit Investor clearing for investor investment • Debit Investor pre-tax income and credit Investor clearing for the total
pre-tax income adjustments • Debit Investor clearing and credit Rent securitized for the total rent
amount securitized • Debit Investor clearing and credit Gain on securitized for the Gain on
securitization transaction
15.1 Miscellaneous Manual Journal Navigation
Financials > Create Transactions
Transaction Type:
Miscellaneous Accounting Created:
Accounting entries are created in the lease sub ledger referring to contracts. These accounting entries must be manually created. Creation Basis:
The account codes may be user specified or defaulted for an accounting template. Accounting template with any transaction type may be used to default the account codes, but accounting for the miscellaneous transaction is created with the transaction type of ‘ Miscellaneous’ Accounting Date:
Accounting transactions are created on the transaction date. Applicability:
Generating accounting entries for miscellaneous is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan • Loan - Revolving
Required Setups:
None Prerequisites:
• Contract header must be created. Examples:
Not applicable
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17.1 Adjust Principal balance Navigation
Program – Create Receivables Variable Rate Invoices
Transaction Type:
Principal Adjustment Accounting Created:
Billing process generates invoices for the original interest payment stream. Create Receivables Variables Rate Invoices program calculates actual interest based on the actual or scheduled outstanding principal balance for catchup of interest. If the interest amount billed is more than the interest calculated by the Create Receivables Variables Rate Invoices program; the excess interest is stored with stream type of purpose principal catchup. Creation Basis:
Principal catchup stream element is accounted to adjust the principal balance. Accounting Date:
The accounting date is the transaction date. Applicability:
Generating accounting entries for principal adjustment is applicable to the following book classifications –
• Loan Required Setups:
The following setups are required to achieve accounting for principal adjustment – • Define accounting templates with the transaction type “Principal
Adjustment” • Define one accounting template for stream type of purpose of Principal
Catchup. • No formula required to be defined • The debit account must be the Interest / clearing account. • The credit account must be the Loan principal account.
Prerequisites:
Loan • Loan contract has financial product with Interest calculation basis =
Catchup/Cleanup and Revenue Recognition Method = Streams • Excess interest amount has been billed
Examples:
None
18.1 Rebook generate draft journal Navigation
Origination > Contracts > Booking
Transaction Type:
Rebook
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Accounting Created:
Accounting distributions reverse the accounting for the contract before the rebook are available for review by the contract administrator. These accounting distributions are not transferred to the general ledger. (Navigation – Financials > Inquiry > Transactions) Creation Basis:
The financial product on the lease contract and the transaction type – rebook are sent to the accounting engine. All accounting templates available for the product and transaction type are evaluated for accounting. The financial product on the lease contract and the transaction type – booking are sent to the accounting engine. All accounting templates available for the product and transaction type are evaluated for accounting. The same formula shall return the values for the original contract when the transaction type is rebook and values for the new contract when the transaction type is booking. Accounting is created when the formula returns an amount not ‘0’. If accounting templates with Memo Flag = Yes are defined, they are used to create draft accounting journals. If the accounting templates with Memo flag = Yes are not defined, accounting engine defaults the accounting templates with Memo Flag = No as described under “Accounting Template Defaulting Rules” in Setups and Entities that impact accounting section. This allows the user to create draft accounting that may be different from the actual accounting generated on booking of a contract. Accounting Date:
The accounting date is the transaction date. Applicability:
Generating accounting entries for rebook is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan • Loan – Revolving
Required Setups:
The following setups are required to achieve accounting for rebook – • Define accounting templates with the transaction type “Rebook” and the
transaction type “Booking”, if not defined under 7.1 • Define one accounting template for each accounting entry of the booking
process • Define one accounting template for each accounting entry of the booking
process • Define the accounting templates for rebook with the same values for
booking but the debit accounts set to credit and credit accounts set to debit.
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• Every accounting template must have a formula to derive the amount to be accounted
• New formulas may require to be defined, if the seeded formulas do not provide the amount to be accounted
Prerequisites:
Operating Lease • The asset cost is available on the rebooked lease contract and original lease
contract Direct Finance Lease / Sales Type Lease
• The rent streams are generated for the rebooked lease contract and original lease contract
• The income streams are generated for the rebooked lease contract and original lease contract
• The residual value is available on the rebooked lease contract and original lease contract
Loan / Loan - Revolving • The loan principal is available on the rebooked lease contract and original
lease contract Examples:
Operating Lease • One accounting template for asset cost for rebook • Debit asset lease funding account and credit asset clearing account for the
original asset cost to be reversed • One accounting template for asset cost for booking • Debit asset clearing account and credit lease funding account for the asset
cost for the new asset cost Direct Finance Lease / Sales Type Lease
• Three accounting templates for asset cost for rebook • Debit lease funding account and credit unbilled receivables account for the
total rent to be reversed • Debit unearned income account and credit lease funding account for the
total income to be reversed • Debit lease funding account and credit residual value account for the
residual to be reversed • Three accounting templates for asset cost for booking • Debit unbilled receivables and credit lease funding for the total rent • Debit lease funding and credit unearned income for the total income • Debit residual value and credit lease funding for the residual
Loan / Loan – Revolving • One accounting template for asset cost for rebook • Debit lease funding account and credit loan principal account for the asset
cost to be reversed • One accounting template for asset cost for booking • Debit loan principal account and credit lease funding account for the asset
cost Financed fee on contract of above book classifications
• One accounting template for loan balance amount for rebook
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• Debit Lease Funding account and credit Loan balance account for total of all financed fees to be reversed
• One accounting template for loan balance amount for booking • Debit Loan balance account and credit Lease Funding account for total of
all financed fees Absorbed fee on contract of above book classifications
• One accounting template for absorbed fee amount for rebook • Debit expense account and credit Expense clearing account for total of all
absorbed fees to be reversed • One accounting template for absorbed fee amount • Debit Expense clearing account and credit expense account for total of all
absorbed fees
18.2 Rebook contract activation Navigation
Origination > Contracts > Booking
Transaction Type:
Rebook Accounting Created:
Accounting distributions that reverse the accounting for the contract before the rebook and create accounting for the contract after the rebook are available for transfer into the general ledger. (Navigation – Financials > Inquiry > Transactions) Creation Basis:
The financial product on the lease contract and the transaction type – rebook are sent to the accounting engine. All accounting templates available for the product and transaction type are evaluated for accounting. The financial product on the lease contract and the transaction type – booking are sent to the accounting engine. All accounting templates available for the product and transaction type are evaluated for accounting. The same formula shall return the values for the original contract when the transaction type is rebook and values for the new contract when the transaction type is booking. Accounting is created when the formula returns an amount not ‘0’. Accounting Date:
The accounting date is the rebook date of the contract. Applicability:
Generating accounting entries for rebook is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan • Loan – Revolving
Required Setups:
The following setups are required to achieve accounting for booking –
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• Define accounting templates with the transaction type “Rebook” and the transaction type “Booking”, if not defined under 7.2
• Define one accounting template for each accounting entry of the booking process
• Define the accounting templates for rebook with the same values for booking but the debit accounts set to credit and credit accounts set to debit.
• Every accounting template must have a formula to derive the amount to be accounted
• New formulas may require to be defined, if the seeded formulas do not provide the amount to be accounted
Prerequisites:
Operating Lease • The asset cost is available on the rebooked lease contract and original lease
contract Direct Finance Lease / Sales Type Lease
• The rent streams are generated for the rebooked lease contract and original lease contract
• The income streams are generated for the rebooked lease contract and original lease contract
• The residual value is available on the rebooked lease contract and original lease contract
Loan / Loan - Revolving • The loan principal is available on the rebooked lease contract and original
lease contract Examples:
Operating Lease • One accounting template for asset cost for rebook • Debit asset lease funding account and credit asset clearing account for the
original asset cost to be reversed • One accounting template for asset cost for booking • Debit asset clearing account and credit lease funding account for the asset
cost for the new asset cost • Additional templates for fees, service etc.
Direct Finance Lease / Sales Type Lease • Three accounting templates for asset cost for rebook • Debit lease funding account and credit unbilled receivables account for the
total rent to be reversed • Debit unearned income account and credit lease funding account for the
total income to be reversed • Debit lease funding account and credit residual value account for the
residual to be reversed • Three accounting templates for asset cost for booking • Debit unbilled receivables and credit lease funding for the total rent • Debit lease funding and credit unearned income for the total income • Debit residual value and credit lease funding for the residual • Additional templates for fees, service etc.
Loan / Loan – Revolving
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• One accounting template for asset cost for rebook • Debit lease funding account and credit loan principal account for the asset
cost to be reversed • One accounting template for asset cost for booking • Debit loan principal account and credit lease funding account for the asset
cost • Additional templates for fees, service etc.
Financed fee on contract of above book classifications • One accounting template for loan balance amount for rebook • Debit Lease Funding account and credit Loan balance account for total of
all financed fees to be reversed • One accounting template for loan balance amount for booking • Debit Loan balance account and credit Lease Funding account for total of
all financed fees Absorbed fee on contract of above book classifications
• One accounting template for absorbed fee amount for rebook • Debit expense account and credit Expense clearing account for total of all
absorbed fees to be reversed • One accounting template for absorbed fee amount • Debit Expense clearing account and credit expense account for total of all
absorbed fees
18.3 Rebook mass contracts Navigation
Program – Mass Rebooks
Transaction Type:
Rebook Accounting Created:
Accounting distributions that reverse the accounting for the contract before the rebook and create accounting for the contract after the rebook are available for transfer into the general ledger. (Navigation – Financials > Inquiry > Transactions) Creation Basis:
The financial product on the lease contract and the transaction type – rebook are sent to the accounting engine. All accounting templates available for the product and transaction type are evaluated for accounting. The financial product on the lease contract and the transaction type – booking are sent to the accounting engine. All accounting templates available for the product and transaction type are evaluated for accounting. The same formula shall return the values for the original contract when the transaction type is rebook and values for the new contract when the transaction type is booking. Accounting is created when the formula returns an amount not ‘0’. Accounting Date:
The accounting date is the rebook date of the contract. Applicability:
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Generating accounting entries for rebook is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan • Loan – Revolving
Required Setups:
The following setups are required to achieve accounting for booking – • Define accounting templates with the transaction type “Rebook” and the
transaction type “Booking”, if not defined under 7.2 • Define one accounting template for each accounting entry of the booking
process • Define the accounting templates for rebook with the same values for
booking but the debit accounts set to credit and credit accounts set to debit.
• Every accounting template must have a formula to derive the amount to be accounted
• New formulas may require to be defined, if the seeded formulas do not provide the amount to be accounted
Prerequisites:
Operating Lease • The asset cost is available on the rebooked lease contract and original lease
contract Direct Finance Lease / Sales Type Lease
• The rent streams are generated for the rebooked lease contract and original lease contract
• The income streams are generated for the rebooked lease contract and original lease contract
• The residual value is available on the rebooked lease contract and original lease contract
Loan / Loan - Revolving • The loan principal is available on the rebooked lease contract and original
lease contract Examples:
Operating Lease • One accounting template for asset cost for rebook • Debit asset lease funding account and credit asset clearing account for the
original asset cost to be reversed • One accounting template for asset cost for booking • Debit asset clearing account and credit lease funding account for the asset
cost for the new asset cost • Additional templates for fees, service etc.
Direct Finance Lease / Sales Type Lease • Three accounting templates for asset cost for rebook • Debit lease funding account and credit unbilled receivables account for the
total rent to be reversed
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• Debit unearned income account and credit lease funding account for the total income to be reversed
• Debit lease funding account and credit residual value account for the residual to be reversed
• Three accounting templates for asset cost for booking • Debit unbilled receivables and credit lease funding for the total rent • Debit lease funding and credit unearned income for the total income • Debit residual value and credit lease funding for the residual • Additional templates for fees, service etc.
Loan / Loan – Revolving • One accounting template for asset cost for rebook • Debit lease funding account and credit loan principal account for the asset
cost to be reversed • One accounting template for asset cost for booking • Debit loan principal account and credit lease funding account for the asset
cost • Additional templates for fees, service etc.
Financed fee on contract of above book classifications • One accounting template for loan balance amount for rebook • Debit Lease Funding account and credit Loan balance account for total of
all financed fees to be reversed • One accounting template for loan balance amount for booking • Debit Loan balance account and credit Lease Funding account for total of
all financed fees Absorbed fee on contract of above book classifications
• One accounting template for absorbed fee amount for rebook • Debit expense account and credit Expense clearing account for total of all
absorbed fees to be reversed • One accounting template for absorbed fee amount • Debit Expense clearing account and credit expense account for total of all
absorbed fees
19.1 Allocation of receipt to interest and principal Navigation
Program – Daily Interest Calculation
Transaction Type:
Receipt Application Accounting Created:
Loan payment is billed on the contract payment schedule. Cash applied to the loan payment invoices. Daily Interest Calculation program calculates first the amount of interest based on the actual principal outstanding on the date of receipt and remaining balance on the receipt is treated as principal. The program creates stream elements with the stream type of purpose of Daily Interest – Interest for interest amount and with the stream type of purpose of Daily Interest – Principal for principal amount Creation Basis:
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Accounting is created for the amount of Daily Interest – Interest and Daily Interest – Principal stream type purposes. Accounting Date:
The accounting date is the transaction date. Applicability:
Generating accounting entries for rebook is applicable to the following book classifications –
• Loan • Loan - Revolving
Required Setups:
The following setups are required to achieve accounting for principal adjustment – • Define accounting templates with the transaction type “Receipt
Application” • Define one accounting template for stream type of purpose Daily Interest
- Interest. • Define one accounting template for stream type of purpose Daily Interest
- Principal. • No formula required to be defined • The debit account must be the Loan payment / clearing account. • The credit account must be the Loan Interest income and Loan principal
account. Prerequisites:
Loan • Loan or Loan - Revolving contract has financial product with Interest
calculation basis = Fixed, Float or Reamort and Revenue Recognition Method = Actual
• Receipt has been applied to invoices. Examples:
None
20.1 Re-Lease booking draft entries Navigation
Origination > Contracts > Booking
Transaction Type:
Release Accounting Created:
Accounting distributions that occur on the establishment of the contract are available for review by the contract administrator. These accounting distributions are not transferred to the general ledger. (Navigation – Financials > Inquiry > Transactions) Creation Basis:
The financial product on the lease contract and the transaction type – release are sent to the accounting engine. All accounting templates available for the product
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and transaction type are evaluated for accounting. Accounting is created when the formula returns an amount not ‘0’. Accounting Date:
The accounting date is the start date of the contract. Applicability:
Release transaction type is used to create accounting in following situations: • Contract re-lease when a contract is released by changing the customer or
financial product on the contract from Revisions page. • Contract re-lease when a contract is released for an approved transfer and
assumption transaction • Asset re-lease when a contract with a released asset is booked
Generating accounting entries for release is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan • Loan – Revolving
Required Setups:
The following setups are required to achieve accounting for release – • Define accounting templates with the transaction type “release” • Define one accounting template for each accounting entry of the booking
process of re-lease contract • Every accounting template must have a formula to derive the amount to
be accounted • New formulas may require to be defined, if the seeded formulas do not
provide the amount to be accounted Prerequisites:
Re-Lease Asset • Select the check box on the contract header screen – release assets
Re-Lease Contract • The source for creating the contract must be an existing contract that is
released. Examples:
Operating Lease • No accounting required for asset cost • Additional templates for fees, service etc.
Direct Finance Lease / Sales Type Lease • Four accounting templates for asset cost • Debit unbilled receivables and credit lease funding for the total rent • Debit lease funding and credit unearned income for the total income • Debit residual value and credit lease funding for the residual • Debit lease funding and credit asset clearing for the asset cost • Additional templates for fees, service etc.
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Loan / Loan – Revolving • One accounting template for asset cost • Debit loan principal account and credit asset clearing account for the asset
cost • Additional templates for fees, service etc.
20.2 Re-Lease activation of contract Navigation
Origination > Contracts > Booking
Transaction Type:
Release Accounting Created:
Accounting distributions that occur on the establishment of the contract are available for review by the contract administrator. (Navigation – Financials > Inquiry > Transactions) Creation Basis:
The financial product on the lease contract and the transaction type – release are sent to the accounting engine. All accounting templates available for the product and transaction type are evaluated for accounting. Accounting is created when the formula returns an amount not ‘0’. Accounting Date:
The accounting date is the start date of the contract. Applicability:
Release transaction type is used to create accounting in following situations: • Contract re-lease when a contract is released by changing the customer or
financial product on the contract from Revisions page. • Contract re-lease when a contract is released for an approved transfer and
assumption transaction • Asset release when a contract with a released asset is booked
Generating accounting entries for release is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan • Loan – Revolving
Required Setups:
The following setups are required to achieve accounting for release – • Define accounting templates with the transaction type “release” • Define one accounting template for each accounting entry of the booking
process for release contract • Every accounting template must have a formula to derive the amount to
be accounted
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• New formulas may require to be defined, if the seeded formulas do not provide the amount to be accounted
Prerequisites:
Re-Lease Asset • Select the check box on the contract header screen – release assets
Re-Lease Contract • The source for creating the contract must be an existing contract that is
released. Examples:
Operating Lease • No accounting required for asset cost • Additional templates for fees, service etc.
Direct Finance Lease / Sales Type Lease • Four accounting templates for asset cost • Debit unbilled receivables and credit lease funding for the total rent • Debit lease funding and credit unearned income for the total income • Debit residual value and credit lease funding for the residual • Debit lease funding and credit asset clearing for the asset cost • Additional templates for fees, service etc.
Loan / Loan – Revolving • One accounting template for asset cost • Debit loan principal account and credit asset clearing account for the asset
cost • Additional templates for fees, service etc.
21.1 Billing to Reverse Credit Memo on contract Release Navigation
Programs – Prepare Receivables Bills
Transaction Type:
Release Billing Accounting Created:
The account codes are recorded on the invoice in Oracle Receivables. The accounting is created in the receivables sub ledger. Creation Basis:
The debit account defined on the accounting template is the receivables account. The credit account applied is the revenue / clearing account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables Accounting Date:
Accounting transactions are created on the transaction date. Applicability:
Generating accounting entries for billing is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease
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• Sales Type Lease Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Release Billing” • Templates should be defined for each billable stream type used for the
termination quote line billing. • No formula required to be defined • Define an accounting template with the same values as the template with
the transaction type of credit memo and stream type of termination quote line but the debit account set to credit account and credit account set to debit account.
Prerequisites:
• Termination quote must be accepted on booking of release contract Examples:
• Debit receivables account and credit revenue / clearing account for termination quote line stream type.
22.1 Credit memo to Reverse Billing on contract Release Navigation
Programs – Prepare Receivables Bills
Transaction Type:
Release Credit Memo Accounting Created:
The account codes are recorded on the invoice in Oracle Receivables. The accounting is created in the receivables sub ledger. Creation Basis:
The debit account defined on the accounting template is the revenue account. The credit account applied is the receivables account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables Accounting Date:
Accounting transactions are created on the transaction date. Applicability:
Generating accounting entries for billing is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease
Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Release Credit
Memo”
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• Templates should be defined for each billable stream type used for the termination quote line billing.
• No formula required to be defined • Define an accounting template with the same values as the template with
the transaction type of billing and stream type of termination quote line but the debit account set to credit account and credit account set to debit account.
Prerequisites:
• Termination quote must be accepted on booking of release contract Examples:
• Debit revenue / clearing account and credit receivables account for termination quote line stream type.
23.1 Billing to Reverse Credit Memo on acceptance of Rollover Termination quote Navigation
Asset Management > Quotes > Termination Quotes
Transaction Type:
Rollover Billing Accounting Created:
The account codes are recorded on the invoice in Oracle Receivables. The accounting is created in the receivables sub ledger. Creation Basis:
The debit account defined on the accounting template is the receivables account. The credit account applied is the revenue/clearing account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables. Accounting Date:
Accounting transactions are created on the quote acceptance date. Applicability:
Generating accounting entries for reversing invoices created on termination of contract is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan • Loan - Revolving
Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Rollover Billing” • Templates should be defined for each stream type associated with
termination quote line. • No formula required to be defined
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• Define an accounting template with the same values as the template with the transaction type of credit memo and stream type of termination quote line stream type but the debit account set to credit account and credit account set to debit account.
Prerequisites:
• Rollover Termination quote exists. Examples:
Not applicable
24.1 Credit Memo to Reverse Billing on acceptance of Rollover Termination quote Navigation
Asset Management > Quotes > Termination Quotes
Transaction Type:
Rollover Credit Memo Accounting Created:
The account codes are recorded on the credit memo in Oracle Receivables. The accounting is created in the receivables sub ledger. Creation Basis:
The credit account defined on the accounting template is the expense/clearing account. The debit account applied is the receivables account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables. Credit memos are created in Oracle Receivables for all quote lines with negative values. Accounting Date:
Accounting transactions are created on the quote acceptance date. Applicability:
Generating accounting entries for credit memo is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan • Loan - Revolving
Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Rollover Credit
Memo” • Templates should be defined for each stream type associated with
termination quote line. • No formula required to be defined • Define an accounting template with the same values as the template with
the transaction type of Billing and stream type of termination quote line
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stream type but the debit account set to credit account and credit account set to debit account.
• Prerequisites:
• Termination quote exists. Examples:
Not applicable
25.1 Create Specific Loss Provision Navigation
Financials > Specific Loss
Transaction Type:
Specific Loss Provision Accounting Created:
An accounting transaction is created for each contract against which a specific loss provision is defined. If a general loss provision exists for the contract, it is reversed. Creation Basis:
The debit account defined on the accounting template is the loss expense account and the credit account is the loss reserve account. Accounting Date:
Accounting transactions is the date specified by the user for creation of the loss provision. Applicability:
Generating accounting entries for specific loss provision is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan • Loan - Revolving
Required Setups:
The following setups are required – • Define accounting templates with the transaction type “Specific Loss
Provision” • One template should be defined for each stream type of purpose Specific
Loss Provision • No formulas require to be defined • The debit account must be the loss expense account. • The credit account must be the loss reserve account.
Prerequisites:
None Examples:
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Not applicable
25.2 Specific Loss Provision Reversal on new provision Navigation
Financials > Specific Loss
Transaction Type:
Specific Loss Provision Accounting Created:
The loss provision transaction created is cancelled. Creation Basis:
The loss reserve account is debit and loss expense account credited with the amount of the existing provision. Accounting Date:
Accounting transactions is cancelled on the date of creating the new provision. Applicability:
Generating accounting entries for specific loss provision is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan • Loan - Revolving
Required Setups:
None Prerequisites:
• A specific loss provision must exist for the contract. Examples:
Not applicable
25.3 Specific Loss Provision Reversal on Termination of Contract Navigation
Asset Management > Contract Termination > Request Termination
Transaction Type:
Specific Loss Provision Accounting Created:
The loss provision transaction created is cancelled. Creation Basis:
The loss reserve account is debit and loss expense account credited with the amount of the existing provision. Accounting Date:
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Accounting transactions is cancelled on the contract termination date. Applicability:
Generating accounting entries for specific loss provision is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan • Loan - Revolving
Required Setups:
None Prerequisites:
A specific loss provision must exist for the contract. Examples:
Not applicable
26.1 Termination of Contract Navigation
Asset Management > Contract Termination > Request Termination
Transaction Type:
Termination Accounting Created:
Accounting distributions that occur on the termination of the contract are available for transfer into the general ledger. Creation Basis:
The financial product on the lease contract and the transaction type – termination are sent to the accounting engine. All accounting templates available for the product and transaction type are evaluated for accounting. The amounts accounted are amounts returned by the formula on the accounting template. Accounting Date:
The accounting date is the contract termination date. Applicability:
Generating accounting entries for termination is applicable to the following book classifications –
• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan • Loan – Revolving
Required Setups:
The following setups are required to achieve accounting for termination – • Define accounting templates with the transaction type “Termination”
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• Define one accounting template for each accounting entry of the termination process
• Every accounting template must have a formula to derive the amount to be accounted
• New formulas may require to be defined, if the seeded formulas do not provide the amount to be accounted
Prerequisites:
None Examples:
None
Transaction Accounting in Oracle Lease Management v. 11.5.10.H
Transaction Accounting in Oracle Lease Management v. 11.5.10.H October 2006 Author: Mukul K Mittal, Vikas Phanse Contributing Authors: Oracle Corporation World Headquarters 500 Oracle Parkway Redwood Shores, CA 94065 U.S.A. Worldwide Inquiries: Phone: +1.650.506.7000 Fax: +1.650.506.7200 www.oracle.com Oracle Corporation provides the software that powers the internet. Oracle is a registered trademark of Oracle Corporation. Various product and service names referenced herein may be trademarks of Oracle Corporation. All other product and service names mentioned may be trademarks of their respective owners. Copyright © 2000 Oracle Corporation All rights reserved.