Author: Zunair Aziz, ERP Consultant, Namos Solutions
Hot on the heels of a cracking 23B release, Oracle are keeping up the pace of new features and functionality. In this blog we’ll deep dive into some new features that are set to substantially enhance the Fixed Assets Lease Accounting functionality, both in terms of process efficiency and statutory compliance.
1. Revenue Lease creation and Lease accounting Integration with Receivables
After introducing in 23B the long awaited functionality which allowed the organisations to account for the Short-term and Long-term lease liability which was a pain point for many organizations, Oracle has taken a further step in 23C into making the Oracle lease function more Compliant with IFRS16 and ASC842 by introducing lease accounting for revenue leases, and providing integration with Receivables.
These features will increase productivity and reduce the risk of error by reducing effort to bill and collect from lessees through automated integration with the Oracle Receivables module. Also, It will improve transparency with Receivables invoices initiated from Lease Accounting visible on the lease.
The following screenshots describe the process of creating a revenue lease.
Create Revenue Lease page
Lease Details page
Asset Details page
Payment Details page
Payment Details Accounting tab
Lease Schedules
Lease Revenue Recognition
Lease Invoice Processing
2. Accounting Configuration for Lease Accounting Invoices in Payables Based on Lease and Property Details
Release 23C has provided the flexibility for companies to configure accounting rules for lease accounting invoices in Payables based on the lease and property details.
In my opinion, by using these attributes Companies can ensure that Payables invoice accounting entries are consistent with the upstream Lease Accounting transactions.
The following lease accounting sources are available on Payables invoices:
- Lease Number
- Lease Type
- Accounting Classification
- Asset Type
- Party Name
- Property Name
- Property Code
- Property Location
- Property Type
- Property Hierarchical Code
- Property Number
- Asset Number
- Asset Category
- Payment Purpose
- Payment Type
- Option Type
- Transaction Type
- Schedule Type
- ROU Flag Value
- Liability Flag Value
- Install Site
- Item Category
- DFF values on Payment Tab
- DFF values on Assets Tab
- DFF values on Lease Overview Tab
3. Lease Property Definition Using File-Based Data Import
File-Based Data Import is one of the key tools which helps companies reduce data entry effort. Release 23C has now provided the capability to define and upload the property information using File-Based Data Import, and associating the properties with the assets on a lease.
It will be beneficial for companies having many leases that include properties such as buildings, floors, and offices. Including the specific property information on the lease and related lease invoices would reduce the time to pay the lease invoices. Now, it will help Lease accountants reduce their reconciliation and period close time by knowing which expenses are associated with which specific property.
In summary, businesses can take full advantage of Lease functions offered by Oracle which can efficiently solve their compliance issues and increase their productivity by reducing effort to bill and collect from lessees. It also improves transparency and provides more flexibility to configure Lease and Lease Accounting.
If you’re as excited as we are about new functionalities, or any other new 23C features, please get in touch to discuss how Namos Managed Services can support you in enabling and utilising this feature.
