Purpose

The following guide is intended for Lease Accountant to Amend a Lease.

Action

· Amend a Lease

Terminology

· Lease Accounting: Oracle Lease Accounting is a financial application that helps create and maintain leases in a single repository. Lease Accounting provides the ability to capture information such as lease details, assets, payments, and options. A lease validation process ensures quality data before activation.

· Subtype of Amendments:

· Scope Increase - In this amendment, you can add assets, update or change payment details (example: include free rent months retroactively), change discount rate, or options or extend the asset term.

· Scope Decrease - In this amendment, you can reduce the life of the lease or an asset, make changes to payments, add termination, and purchase options. Oracle Lease Accounting calculates the gain or loss for the Scope Decrease amendment and generates the accounting part of the Lease Revision Accounting event.

· No Scope Change - In this amendment, you can change the related asset information that doesn't change the scope of the lease.

· Edit Non-Financial Data - In this amendment, you can change the nonfinancial data of the asset. For example, you can change the code combinations for a few Accounting Classes on the payments.

Prerequisites

· Create a Lease

Amend a Lease

1. Select the OKTA Single-Sign-On button and then complete the sign-in steps.

2. Select Lease Accounting.

3. Select Leases.

4. Select Taskbar.

5. Select Manage Payments.

a. Note: All payments up to the Amendment Date must be in Approved or Hold status prior to performing the amendment.

6. Enter the Business Unit, Supplier, and Lease Number and select Search.

7. Select Actions.

8. Select Approve.

a. Note: You can only amend a lease if it is in Active status. You can edit leases at any point when they are in Draft status.

9. Select OK.

a. Note: In this example, the Amendment Date of the lease is 1/08/2024. All payments up until this date need to have an Approval Status of Hold or Approved. This does not impact the vendor payments; if approved, this step will debit Lease Liability and credit Lease Clearing.

10. Select either Business Unit, Lease Type, Lease Number, Party Name, or Lease Start Date and select Search.

11. Highlight the Lease.

12. Select Actions.

13. Select Amend a Lease.

14. Enter Amendment Name. Select Subtype of Amendment and Amendment Commencement Date then select Save and Continue.

a. Note: You cannot create payments prior to Amendment Commencement Date. Back dating this field may be required.

15. Change the Lease End Date.

a. Note: In this example, the Lease End Date is changed to 10/31/2034 which is part of our Scope Increase.

16. Select Assets.

17. Select “+” icon to add a new asset to the lease.

a. Note: In this example, we are also modeling the process of adding an additional floor (via a new asset) to our original lease.

18. Enter the Asset Number and Location. Select Asset Start Date and Asset End Date then select Save and Close.

a. Note: Location is populated based on the list of available HR Locations. For example, Location A06 will generate the location 5730 S. Ellis Ave (John Crerar Library Building).

19. Select Payments.

20. Select “+” icon to create the payment header for the new asset.

21. Select Payment Template, Supplier, Supplier Site, Asset Number, Start Date, Amount, Payment Purpose, Payment Type, Frequency, Number of Payments, and Currency, then select Save and Close.

22. Payment Header Line has been created of the new asset. Highlight the Payment Header Line and scroll to the bottom of the page.

23. Select “+” icon to add Payment Lines up to the Lease End Date (10/31/2034).

a. Note: In Step 21 the system generated a Stub payment for the partial month (Jan 8th – 31st). For the subsequent full months, the system generated Recurring payments.

24. Scroll to the top of the page and select Save to populate the Line Start and End Dates.

25. Select Actions and then select Validate.

26. Lease was Validated. Select OK.

27. Select Actions and then select Generate Schedules.

28. Payment Schedules have been generated. Select OK.

29. Select Actions and then select Activate.

30. Lease has been successfully amended. Select OK.

31. Select Payment Schedules from the dropdown.

32. Select Attach Lease Details Report.

33. Select OK.

34. Toggle to another tab and then back to Schedules; the Lease Details Report will be generated. Select the link to download and view the Lease Details Report.

35. Select Done.

36. Select Taskbar.

37. Select Create Accounting.

38. Select 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. 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 preferred).

49. You have now completed the process of Amending a Lease.