PeopleSoft Asset Management and PeopleSoft Lease … · 2019-06-04 · –If auto-approval is...

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. |

PeopleSoft Asset Management and PeopleSoft Lease Administration: Adapting to Change

Loida ChezPeopleSoft Product Strategy

James Quijas Boise Cascade Company

July 18, 2018

Session Number 102640


Safe Harbor Statement

The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

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Copyright © 2018, Oracle and/or its affiliates. All rights reserved. | 4

Legislative Versatile Contemporary


Lease Accounting Development Approach

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Phased Enhancement Rollout (9.2 Only)

Phase 1 Phase 2

Phase 4Phase 3

• Phase 1 (Foundation)

– Extend enterprise-wide frameworks to Real Estate Management

– Tighter integration with Asset Management

• Phase 2 (Foundation)

– Accounting for finance and operating payables leases for all asset types (property and equipment)

– Lease Accounting Hierarchy

– Enhanced amendment processing


Lease Accounting Development Approach

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Phased Enhancement Rollout (9.2 Only)

Phase 1 Phase 2

Phase 4Phase 3

• Phase 3 (Lessee Accounting)

– Multi-asset leases

– Dynamic lease classification at asset level

– More precise data capture of financial terms

– Allocation of lease payments

• Phase 4 (Migration and Transition)

– Introduction of Asset Management’s shared product functionality with Lease Administration

– Activity Guide

• Migrate Asset Management leases to common lease data structure

• Transition to new FASB and IASB leasing guidance


Shared Product Functionality

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Single Data Structure and UI for Payables Leases

Asset Repository

• Track leased assets in Asset Management’s asset repository

Finance and Operating Leases

• Manage both operating and finance leases for all asset types (property and equipment)

Depreciation &Straightlining

• Depreciation and straightlining enable the subsequent measurement and recognition of leased assets

Lease Payments

• Integration with Accounts Payable for lease payments

Asset Management

Lease Administration


Asset Management

• Core accounting requirements for payables leases (lessee agreements)

– Single-asset leases (finance and operating)

– Multiple Financial Terms

– Integration with PeopleSoft Accounts Payable

– Straightline Accounting

– Amendment Processing

– Manual Fees

Lease Administration

• Core accounting requirements for payables leases plus advanced leasing requirements

– Leasing functionality available to Asset Management-only customers

– Multi-asset leases (finance or operating)

– Clauses

– Options and Critical Dates

– Operating Expenses (CAM)

– Percent Rent

– Security Deposits

– Lessor (operating leases only)

– Site Selection and Acquisition

– My Lease Portfolio

– Lease Administration Reports (i.e. Lease Abstract, Property Occupants, Rent Variance, etc.)

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Asset Management Lease Administration

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Lease Administration > Payables Leases > Create New LeaseAsset Management > Asset Transactions > Leased Assets > Create New Lease


Asset Management Lease Administration

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Lease Administration > Payables Leases > Create New LeaseAsset Management > Asset Transactions > Leased Assets > Create New Lease


Migration of Asset Management Leases to Shared Lease Data Structure

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Activity Guide

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Migration Tasks


Activity Guide

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Initial Assessment of Asset Management


Activity Guide

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Pre-Migration Configuration


Activity Guide

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Activity Guide

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Transaction Routing Codes

• Define default taxation rules for lease-related transactions

• Establish unique accounting rules

• Associated with one or more transaction types or transaction groups

• Required for LA Business Unit configuration

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What are they? How are they used?


Activity Guide

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• Asset Management Business Unit Mapping

– One AM BU-to-Many LA BU allowed but MUST map to the same GL BU

– GL BU selected for LA BU drives AM BUs available for selection

• Contracts BU applies to receivables leases

• Journal Template

• Use AM Accounting Templates Option

• Limits, Measures, Calendars

– Unit of Measure

– Base Currency and Currency Rate Type

– Lease Calendar and Proration Method

• Thresholds for Lease Classification

• Transaction Settings

– Lead Time (Days)

– Transaction Routing Codes

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Lease Administration Business UnitsWhat to Consider…


Activity Guide

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Role Types• Define lease contacts

– External Contact

– Internal Administrator

– Internal Manager

– Lease Principal

• Establish who can activate leases

– If auto-approval is enabled, Internal Administrator or Internal Manager can activate leases

– If auto-approval is disabled, only Internal Managers can activate leases

• Minimum configuration required is one Internal Administrator and one Internal Manager

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What are they? How are they used?


Activity Guide

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Lease Administration Roles

• Organize leases by Lease Administrator and Portfolio Manager

• Required for lease entry

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Lease Administrator and Portfolio Manager


Activity Guide

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Activity Guide

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Activity Guide

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• Lease Type

• Region Code

• Interim Rent

• Lease Administrator

• Portfolio Manager


Activity Guide

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• Lease Type

• Region Code

• Interim Rent

• Lease Administrator

• Portfolio Manager

• Lessor (if not populated)


Activity Guide

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Migration Process


Activity Guide

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Migration Process


Activity Guide

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Migration Process


Activity Guide

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Migration Process


Pre-Migration Post-Migration

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Lease Data Migration

Asset Management > Asset Transactions > Leased Assets > Update Lease Information

Navigation for Customers Licensed Only for AM:Asset Management > Asset Transactions > Leased Assets > Maintain LeaseLA Navigation:Lease Administration > Payables Leases > Maintain Lease


Transition of Leases to New Leasing Guidance

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Activity Guide

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Transition Tasks


Activity Guide

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Transition Tasks

• Adoption date

• Lease payments dated on or after the transition date are included in the present value of lease payments (PVLP) and right-of-use (ROU) asset cost


Activity Guide

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Preparing for Transition to New Leasing Guidance


Activity Guide

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Review Leases

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Multiple Operating Expense Categories

• Operating Expense Categories are configured to be either included in lease payments or not included in lease payments

• Amend leases to create distinct operating expense schedules for amounts included in lease payments and amounts not included in lease payments


Review Leases

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Overlapping Payment Dates Within a Payment Group

• Overlapping payment dates are not allowed for a single payment group and financial term

• Amend leases by adjusting the Payment Group for the overlapping payment dates


Review Leases

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Gaps in Payments

• Payment Group 1 must span the entire lease term.

• Amend leases to adjust the gaps in payment dates (i.e. free rent periods)


Activity Guide

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Activity Guide

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Activity Guide

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Activity Guide

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Activity Guide

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Activity Guide

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Activity Guide

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Activity Guide

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Transition to New Leasing Guidance


New Accounting = New Transaction Type

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Lease Expense


Activity Guide

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Activity Guide

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Activity Guide

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PeopleSoft ALM Roadmap & Features Under Review

• GASB 87 for Lessees

• Accounting for Variable Lease Expenses

• Recognition of non-monthly lease expense

• Lease Rent Holidays

• Lease Data Import

www.peoplesoftpfe.com


For More Information: • For General Information, go to:

– www.peoplesoftinfo.com

• PeopleSoft Online Hosted Help (Asset Management and Lease Administration):

– www.peoplesoftonlinehelp.com

• Lease Administration Red Paper and FAQ Documents:

– My Oracle Support Doc ID 2372739.1

• Lease Accounting Video Feature Overview:

– YouTube https://youtu.be/zGU1QynLbuQ

• Lease Accounting Spotlight Video:

– https://docs.oracle.com/cd/E52319_01/infoportal/spotlight.html

• PeopleSoft Apps Strategy Blog:

– https://blogs.oracle.com/peoplesoft/peoplesoft-asset-management-and-lease-administration%3a-transitioning-to-the-new-fasb-and-iasb-leasing-guidance

http://www.peoplesoftinfo.com/

http://www.peoplesoftonlinehelp.com/

https://youtu.be/zGU1QynLbuQ

https://docs.oracle.com/cd/E52319_01/infoportal/spotlight.html

https://blogs.oracle.com/peoplesoft/peoplesoft-asset-management-and-lease-administration:-transitioning-to-the-new-fasb-and-iasb-leasing-guidance


Questions?

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Get Connected and Stay InformedKey PeopleSoft Information Sources

@PeopleSoft_Info Oracle PeopleSoft Development Group

Oracle PeopleSoft Page Blogs

Social Media

PeopleSoft Information Portal PeopleSoft YouTube Channel

https://twitter.com/PeopleSoft_Info

https://twitter.com/PeopleSoft_Info

https://www.facebook.com/pages/Oracle-PeopleSoft/220476464680933?ref=ts

https://www.facebook.com/pages/Oracle-PeopleSoft/220476464680933?ref=ts

http://www.linkedin.com/groups/Oracle-PeopleSoft-Development-4530781?goback=.gan_4530781.gna_4530781

http://www.linkedin.com/groups/Oracle-PeopleSoft-Development-4530781?goback=.gan_4530781.gna_4530781

https://blogs.oracle.com/peoplesoft/

https://blogs.oracle.com/peoplesoft/

http://docs.oracle.com/cd/E52319_01/infoportal/index.html

http://docs.oracle.com/cd/E52319_01/infoportal/index.html

https://www.youtube.com/user/PSFTOracle

https://www.youtube.com/user/PSFTOracle


Engage with Oracle’s PeopleSoft Sales Team

• Interested in purchasing PeopleSoft?

• Want to expand your PeopleSoft usage?

• Need PeopleSoft licensing help?

Contact the Oracle Digital team

[email protected]

Oracle Digital License Sales Team

mailto:[email protected]

PeopleSoft Asset Management and PeopleSoft Lease … · 2019-06-04 · –If auto-approval is...

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