Purpose
The following guide is intended for Lease Accountants to perform monthly closing steps, which includes performing lease payment approval, running monthly lease accruals, and running Create Accounting.
Note: Like the Procurement and Cash Management modules, Lease Accounting does not have a formal close. There are no actions required by the Lease Accountant to open/close a subledger period, though failure to perform lease-related steps (include Create Accounting) will prevent General Ledger closure.
Action
· Process Lease Accounting Close
Terminology
· Account Monitor: provides Oracle Fusion General Ledger users with a list of selected accounts and balances, with defined deviations from standards for those balances. It allows efficient monitoring and tracking balances of key accounts in real time.
· Payables Invoice: is a request for payment sent from a supplier to the appropriate department. In this example, a payables invoice is received to an active over threshold lease in our inventory.
· Clearing Lease Liability Account: used to hold funds necessary for paying incoming invoices. Liability clearing accounts can hold these funds before receiving the invoices or processing payments.
· Payment Approval: approve payments of a lease by selecting Approve. This will change the approval status from Draft to Approved. The approval status of the lease determines what actions you can take regarding two areas of the lease abstraction process: making changes to the lease and generating payments and billings.
Process a Lease
1. Select the OKTA Single-Sign-On button and then complete the sign-in steps.
2. Select General Accounting.
3. Select General Accounting Dashboard.
4. Under Account Monitor, select View and then Account Group.
5. Select Lease Accounting Account Monitor.
6. Change to the recent Period to see recently created activity.
7. Scroll to the right and select the Period Activity hyperlinked value.
a. Note: In this example, we are looking to verify we have received an invoice related to an active over threshold lease in our inventory. When an invoice is received, we will see a debit to Account 30100 – Clearing Lease Liability LT.
8. View that Inquires on Detail Balances inputs are populated based on the prior selection.
9. Scroll to the right and select the hyperlinked Period Activity amount to drill further.
10. Select into the hyperlinked Entered amounts.
a. Note: This line represents a Payables invoice transaction.
11. View the Subledger Journal Lines including Transaction Number and Information.
12. Select View Transaction to see Invoice details.
a. Note: View the Transaction to verify that we have received an invoice related to our Lease.
13. Invoice Lines and Payments are displayed.
a. Note: Supplier or Party Number is the same as the Lessor Number.
14. Toggle to the Payments tab to view payment details.
15. Return to the home page and select Lease Accounting.
16. Select Leases.
17. In the Lease work area select the Taskbar.
18. Under Expense Lease Payments, select Manage Expense Payments.
19. Search for a lease to approve the Lease Payment.
20. Select the payment line.
21. Select Actions, then Approve to move the approval status from Draft to Approved.
a. Note: This payment approval is irrespective of actions occurring in Payables. This approval action will debit the Lease Liability LT and credit Account 30100 – Clearing Lease Liability LT.
22. View the payment line Approval Status.
23. Scroll to the top of the page and select Done.
24. In the Lease work area and select the Taskbar.
25. Under Accounting, select Process Expense Lease Accruals to run accounting for Lease Payments.
26. Enter Process Type, Business Unit, Lease Number, Period, and Payments Processing.
27. Select Submit.
28. Return to the home page and select Lease Accounting.
29. Select Leases.
30. In the Lease work area and select the Taskbar.
31. Under Accounting, select Process Expense Lease Accruals to run accounting for Accruals.
32. Enter Process Type, Business Unit, Lease Number, Period, and Payments Processing.
33. Select Submit.
34. Return to the home page and select Lease Accounting.
35. Select Leases.
36. Return to Lease work area and select the Taskbar.
37. Under Accounting, select Create Accounting.
38. Enter Subledger Application, Ledger, End Date, Accounting Mode, Process Events, Report Style, Transfer to General Ledger, Post in General Ledger, and Include User Transaction Identifiers.
39. Select Submit.
40. Select OK.
41. Return to the home page and select Tools.
42. Select Scheduled Processes.
43. Select the Refresh icon.
44. Keep refreshing until the Create Accounting Execution Report kicks off.
45. Select the line of the Create Accounting Execution Report job.
46. Scroll down until you see a tab labeled Process Details. In the gray box, select the Republish icon (paper and glasses icon).
47. Select the Cog Wheel icon
48. Select Export, then either PDF or Excel (whichever format is preferred).
49. View the Create Accounting Execution Report.
50. You have now completed the process of Process Lease Accounting Close.