The following reference guide is intended for units involved with external leases, in which the University of Chicago is the lessee/tenant. While the focus is primarily on leases that meet the ASC842 criteria for long-term space and equipment leases, it will also contain information about short-term leases.

 

These processes should be performed in conjunction with steps taken in the Lease Accounting module by the Lease Accountant. This module will generate accounting related to lease booking, accrual, amendment, and termination entries. Please reach out the Central Accounting team via genaccounts@lists.uchicago.edu for additional guidance.

 

This guide contains four (4) processes and an appendix; please refer to the process respective to the lease type:

• Create Payment Request – Space Leases
• Create Non-Catalog Requisition – Equipment Leases
• Activate a COA Combination
• View Life Cycle
• Appendix

 

Please note that internal leases between two entities within Oracle will be managed through the Internal Billing process. Refer to the Create an Internal Invoice QRG for more information.

 

Purchase Requisition: A request to order goods or services from a supplier.

Non-Catalog Requisition: A requisition that is created via an Oracle SmartForm for goods or services not included in a catalog.

Procurement Category: Categories are used to classify goods or services on a requisition. The procurement category selected by the requester drives the "Account" segment of the chart of accounts COA for that transaction. Users can find the "Account" value associated to each procurement category in the category description. Please see relevant procurement categories in the Appendix.

Lease Accounting: Oracle Lease Accounting is a financial application that helps create and maintain leases in a single repository.

ASC 842: A lease accounting standard by the Financial Accounting Standards Board (FASB), requiring all leases longer than 12 months to be reflected on a company's balance sheet.

 

1. Select Company Single Sign-On in to access your Oracle account.    

2. Navigate and select the Procurement module
3. Select Purchase Requisitions (New).         

4. Select See more.

5. Users can also utilize the Search Bar at the top of the screen and type in Payment Request.     

 

6. Select Payment Request.      

7. Enter the Item Description. Select Category from the dropdown. Enter Amount.

• Note: Anything that is outside your contracted base rent should be classified as variable expenses.

8. Select Supplier and Supplier Site from the dropdown.

Note: The Supplier must exist in Oracle prior to completing a payment. To add a Supplier complete the supply request form.

Supplier Site Naming Conventions:

• PAYMENT REQUEST ONLY: Should only be used when creating a requisition for a supplier using a payment request SmartForm. Should not be used for non-catalog orders.
• PUNCHOUT ONLY: Supplier site associated with cXML PO communication setups. Should not be used for non-catalog orders.
• Contract – Contract Description: Supplier site associated with a contract purchase agreement. When a requester selects this supplier/supplier site combination, the agreement will auto-populate on the requisition.
• SUBAWARDS: Supplier site associated to a subaward. Should not be used for non-subaward purchase orders.

9. Add Invoice Number (if applicable).   Add Attachments. Select the Certifying Checkbox from the dropdown.      

10. Select Add to Cart.      

11. Repeat steps seven (7) through 10 for Line Two of the Payment Request. Enter the Item Description. Select Category from the dropdown. Enter Amount.
12. Select Add to Cart.

13. Select View Cart.          

14. Select the pencil icon for the Requisition Summary page.          

15. Add a Description for the Requisition.
16. Select Update.  

17. Select the pencil icon to update/verify distributions related to Line One.          

18. Update the Charge Account details for Line One.

• Note: 30100 – Lease Clearing LT is the appropriate natural account and should not be updated, but other segments such as Entity, Org, etc. may need to be.

 

19. Select Update.  

 

20. Select the pencil icon to update/verify distributions related to Line Two.          

21. Update the Charge Account details for Line Two.

• Note: 76002 – Space Variable LT Exp is subject to budgetary control and should budgeted appropriately.

22. Select Update.  

23. Select Submit.  

You have now completed the process of creating a payment request related to a lease.

 

1. Input your username and password. Select Sign In to access your Oracle account.   

2. Navigate and select the Procurement module.
3. Select Purchase Requisitions (New).

4. Select See more.          

5. Select Non – Catalog Goods & Services. 

6. Select Goods - Non-Catalog or Services - Non-Catalog.          

7. Enter Item Description, Category Name*, Quantity, UOM Name, Price , and Currency.

8. Select Supplier and Supplier Site from the dropdown.   

9. Add Attachments (if applicable).

• Note: Attach executed lease agreement with payment schedules.  Make sure attachment is "To Approver."

10. Select Add to Cart.      

11. Repeat steps seven through 10 for Line Two of the requisition. Select Add to Cart

• Note: This is your best estimate for yearly variable expenses. Anything that is outside your contracted base rent should be classified as variable expenses. Process a change order when entering a new Fiscal Year in order to incorporate the new fiscal year's variable expense estimate, which may include annual percentage increase.

12. Select View Cart.

13. Select the pencil icon for the Requisition Summary page.          

14. Add a Description for the Requisition.
15. Select Update.  

16. Select the pencil icon to update/verify distributions related to Line One.          

17. Update the Charge Account details for Line One.

• Note: 30100 – Lease Clearing LT is the appropriate natural account and should not be updated, but other segments such as Entity, Org, etc. may need to be.

18. Select Update.  

19. Select the pencil icon to update/verify distributions related to Line Two.          

20. Update the Charge Account details for Line Two.

• Note: 76102 – Equipment Variable LT Exp is subject to budgetary control and should budgeted appropriately.

21. Select Update.  

22. Select Submit.  

 

 

You have now completed the process of requisitioning a lease. Please reach out to the Central Accounting team after the Requisition is approved with the Purchase Order number available.

 

1. Explanation: Oracle's new architecture requires end-users to enter COA combinations that have never been used before directly in the Charge To field. After the COA combination has been submitted, it will be available in the search window for future requisitions. The COA activation applies enterprise-wide.
2. Example: In the following example, a requester will try to find and apply COA combination 600-98003-73000-100000-530-9999-99999-999-999-9999 in the search window; they receive the message "No matches found." The COA combination is valid; the requester must enter the COA combination directly in the Charge To field and submit the requisition. After the requisition has been submitted, COA combination 600-98003-73000-100000-530-9999-99999-999-999-9999 will be available in the search window for future requisitions, and it will be applied enterprise-wide.
3. Select the Edit pencil.

4. Select Enter charge account number.         

5. Open Search for combination.            

6. Enter COA combination 600-98003-73000-100000-530-9999-99999-999-999-9999.

7. Pause - The requester received "No matches found." Enter the COA combination directly in the Charge To field to activate the combination.
8. Enter COA combination directly in the Charge To field; 600-98003-73000-100000-530-9999-99999-999-999-9999.   

9. Select Update.  

10. Select Submit.  

11. COA combination available in search window for future requisitions      

You have now completed the process of activating a COA combination.

 

 

1. Explanation: Oracle's View Life Cycle page allows you to view the status of your Purchase Order and related Invoice.
2. Select My Requisitions.

3. Select the three dots.
4. Select View Life Cycle.

5. Select View Purchase Order to see the Purchase Order page.   

6. Select Invoice Number to see the invoice page.     

You have now completed the process of viewing a document life cycle.

 

 

There are eight Procurement Categories directly related to Leases. Please reach out the Central Accounting team via genaccounts@lists.uchicago.edu for additional guidance on account usage.

 

The following is a list of Procurement Categories:

 

LEASE LT EQUIPMENT BASE RENT (OVER THRESHOLD)           

• Usage: ASC842 qualifying long-term leases (over 1 year) that have annual base rent payments over $20K for at least one year of the lease term.
• Corresponding Account: Clearing Lease Liability (30100)

LEASE LT EQUIPMENT BASE RENT (UNDER THRESHOLD)        

• Usage: Long-term leases (over 1 year) that have annual base rent payments under $20K.
• Corresponding Account: Equipment Base Rent LT Expense (76101)

LEASE LT EQUIPMENT VARIABLE LEASE EXPENSES     

• Usage: Expenses associated to the ASC842 Equipment lease that do not depend on an index or rate. 
• Corresponding Account:  Equipment Variable LT Expenses (76102)

LEASE LT SPACE BASE RENT (OVER THRESHOLD)         

• Usage: ASC842 qualifying long-term leases (over 1 year) that have annual base rent payments over $100K for at least one year of the lease term.
• Corresponding Account: Clearing Lease Liability (30100)

LEASE LT SPACE BASE RENT (UNDER THRESHOLD)      

• Usage: Long-term leases (over 1 year) that have annual base rent payments under $100K.
• Corresponding Account: Space Base Rent LT Expense (76001)

LEASE LT SPACE VARIABLE LEASE EXPENSES    

• Usage: Expenses associated to the ASC842 Space lease that do not depend on an index or rate.
• Corresponding Account: Space Variable LT Expenses (76002)

LEASE ST EQUIPMENT RENT   

• Usage: Short-term equipment leases (under 1 year).  
• Corresponding Account: Equipment Short Term Expense (76103)

LEASE ST SPACE RENT 

• Usage: Short-term space leases (under 1 year). This may includes Event Rentals, Grad Student Leases, etc.           
• Corresponding Account: Space Short Term Rental Expense (76003)