16 Whitepaper - Transaction Accounting Lease Management

Strictly Oracle Confidential, subject to Non-Disclosure Agreement

Transaction Accounting in Oracle Lease Management v. 11.5.10.H An Oracle White Paper October 2006

Transaction Accounting in Oracle Lease Management v. 11.5.10.H

Strictly Oracle Confidential, subject to Non-Disclosure Agreement Page 2 of 160

Transaction Accounting in Oracle Lease Management

Executive Overview.......................................................................................... 6 Introduction ....................................................................................................... 6 Accounting Setup .............................................................................................. 6

Stream Generation Template ...................................................................... 7 Accounting Template Set ............................................................................ 7 Financial Product .......................................................................................... 7 Accounting Templates ................................................................................. 7 Account Generator....................................................................................... 9 Set of Books ................................................................................................ 11 Accounting Periods .................................................................................... 11 Date Default Logic ..................................................................................... 11 Asset Accounting ........................................................................................ 12 Receivables Sub Ledger ............................................................................. 12 Payables Sub Ledger................................................................................... 12 Lease Sub Ledger ........................................................................................ 12 General Ledger............................................................................................ 13 Additional Accounting ............................................................................... 13 Process Flow................................................................................................ 14

Business Processes that Generate Accounting Events .............................. 15 Accounting Setup for Accounting Events................................................... 26 Accounting Parameter – Transaction Types ............................................... 48 Accounting Parameter - Basis of Accounting Call ..................................... 49 Accounting Parameter – Formulas and Programs ..................................... 51

Seeded Formulas ......................................................................................... 51 Accounting Programs................................................................................. 61

Accounting Examples..................................................................................... 62 Contract........................................................................................................ 62 1. Operating Lease ...................................................................................... 62 2. Operating Lease (Early Termination with Purchase) ........................ 63 3. Direct Finance Lease.............................................................................. 64 4. Direct Finance Lease (Early Termination without Purchase).......... 65 5. Direct Finance Lease (Early Partial Termination without Purchase)66 6. Direct Finance Lease (Rebook from start with increased rent)....... 67 7. Loan.......................................................................................................... 69 8. Variable Rate Loan: Calculate Interest Billing on applicable rates for a loan............................................................................................................. 70



9. Variable Rate Loan: Calculate Interest Billing on applicable rates for a Revolving Loan ........................................................................................ 71 10. Variable Rate Loan: Calculate Interest Billing on applicable rates for a revolving loan..................................................................................... 72 11. Variable Rate Loan: Bill fixed amount and reduce principal on receipt of cash for a loan ........................................................................... 74 Investor Agreement.................................................................................... 75 1. Securitization of Direct Finance Lease................................................ 75 Contract Fees and Subsidy ........................................................................ 76 1. Financed fee ............................................................................................ 76 2. Absorbed fee ........................................................................................... 76 3. Expense fee ............................................................................................. 76 4. Miscellaneous fee.................................................................................... 77 5. Income fee ............................................................................................... 77 6. Passthrough fee....................................................................................... 77 7. Subsidy (Netting Method) ..................................................................... 78 8. Subsidy (Amortization Method)........................................................... 78

Worksheet......................................................................................................... 79 Detailed Setup Steps ....................................................................................... 80

1.1 Accrual generation to recognize income based on streams ........... 80 1.2 Accrual generation to recognize estimated interest income on scheduled or actual principal balance....................................................... 83 1.3 Accrual generation to recognize actual interest income on scheduled or actual principal balance....................................................... 85 1.4 Accrual generation to recognize actual interest income on actual principal balance.......................................................................................... 86 1.5 Accrual catchup on termination of lease contract ........................... 88 1.6 Accrual acceleration for IDC/Subsidy on termination of lease contract......................................................................................................... 89 1.7 Accrual adjustment on rebook of contract....................................... 90 1.8 Accrual adjustment for Insurance Policy Income ........................... 91 1.9 Accrual adjustment for Insurance Policy Expense.......................... 91 2.1 Adjustment of an invoice .................................................................... 92 3.1 Asset disposal on acceptance of termination quote with purchase93 3.2 Asset disposal on scrapping asset ...................................................... 94 3.3 Asset disposal on repurchase by vendor ........................................... 95 3.4 Asset disposal by sale ........................................................................... 95 5.1 Balance write off on contract termination........................................ 96 6.1 Billing Periodic...................................................................................... 97 6.2 Billing Manual ....................................................................................... 98 6.3 Billing on acceptance of Termination Quote ................................... 99 6.4 Billing on acceptance of Repurchase Quote................................... 100 6.5 Billing asset condition charge ...........................................................101 6.6 Billing sale of asset through iStore...................................................102 6.7 Billing Customer Service Fee............................................................103 6.8 Billing Vendor Cure ...........................................................................103



6.9 Billing Usage Based ............................................................................104 6.10 Billing Variable Interest and principal payment for contract with Revenue Recognition Method = Estimated and Billed....................... 105 6.11 Billing Loan payment for contract with Revenue Recognition Method = Actual.......................................................................................106 6.12 Billing Interim Interest ....................................................................107 6.13 Billing Late Interest..........................................................................108 6.14 Billing Late Charge...........................................................................109 6.15 Billing Insurance...............................................................................110 6.16 Billing Principal or Loan Paydown................................................111 6.17 Billing Advanced Rent .....................................................................111 6.18 Billing Evergreen Rent ....................................................................112 6.19 Billing Investor Stake.......................................................................113 6.20 Billing Stream type with Revenue Recognition Basis = Cash Receipt ........................................................................................................114 6.21 Billing Property Tax.........................................................................115 6.22 Billing Adjustment on rebook of contract....................................116 7.1 Booking generate draft journal .........................................................116 7.2 Booking activate contract..................................................................118 7.3 Reverse contract .................................................................................119 8.1 Credit memo on acceptance of Termination Quote with negative values ..........................................................................................................120 8.2 Credit memo on acceptance of Repurchase Quote with negative values ..........................................................................................................121 8.3 Credit Memo from Customer Service ............................................. 122 8.4 Credit memo for Vendor Cure Refund Offset .............................. 123 8.5 Credit Memo for Advanced Rent ....................................................123 8.6 Credit Memo for Billing Adjustment ..............................................124 8.7 Credit Memo for billing stream types on rebook .......................... 125 8.8 Credit Memo for Stream type with Revenue Recognition Basis = Cash Receipt ..............................................................................................126 9.1 Debit memo for Negative Pre Funding ..........................................127 9.2 Debit memo for Supplier Retention................................................128 10.1 Disbursement Manual......................................................................129 10.2 Disbursement Pass Through ..........................................................129 10.3 Disbursement Insurance .................................................................130 10.4 Disbursement of Vendor Cure Refund ........................................131 10.5 Disbursement to Investor ...............................................................132 11.1 Conversion of contract to Evergreen status ................................133 12.1 Funding Contract before Activation .............................................133 12.2 Funding Asset on Contract.............................................................134 12.3 Funding Expenses on Contract......................................................135 12.4 Funding Borrower Payment ...........................................................136 13.1 General Loss Provision Creation...................................................137 13.2 General Loss Provision Reversal on new provision ................... 138 13.3 General Loss Provision Reversal on Termination of Contract.138



14.1 Investor Agreement Activation......................................................139 15.1 Miscellaneous Manual Journal........................................................140 17.1 Adjust Principal balance ..................................................................141 18.1 Rebook generate draft journal ........................................................141 18.2 Rebook contract activation .............................................................144 18.3 Rebook mass contracts....................................................................146 19.1 Allocation of receipt to interest and principal..............................148 20.1 Re-Lease booking draft entries.......................................................149 20.2 Re-Lease activation of contract......................................................151 21.1 Billing to Reverse Credit Memo on contract Release ................. 152 22.1 Credit memo to Reverse Billing on contract Release.................. 153 23.1 Billing to Reverse Credit Memo on acceptance of Rollover Termination quote ....................................................................................154 24.1 Credit Memo to Reverse Billing on acceptance of Rollover Termination quote ....................................................................................155 25.1 Create Specific Loss Provision.......................................................156 25.2 Specific Loss Provision Reversal on new provision.................... 157 25.3 Specific Loss Provision Reversal on Termination of Contract . 157 26.1 Termination of Contract .................................................................158



Transaction Accounting in Oracle Lease Management

EXECUTIVE OVERVIEW Each lessor accounts for their leases differently based on the nature of their business and geography in which they operate. Oracle Lease Management provides an extremely flexible accounting infrastructure.

INTRODUCTION This document is to assist users in setting up accounting in Oracle Lease Management and may be referred to in addition to the user and implementation guide.

Oracle Lease Management is a transaction processing system in which the user performs transactions on the lease contract. Some of the transactions create accounting entries. Oracle Lease Management creates the accounting entries based on the setups performed during the implementation.

The detailed navigation for setups is available in the implementation guide. This document is divided into the following parts:

• Accounting Setup

• Business Processes that Generate Accounting Events

• Accounting setup for Accounting events

• Accounting Parameters

• Accounting examples

• Worksheet

• Detailed setup steps

ACCOUNTING SETUP Accounting in Oracle Lease Management is impacted by a number of setups and entities within Oracle Applications. The key components are:



Stream Generation Template Stream Generation Template is collection of primary and dependent stream types, which are available for the contract for down stream processing.

Accounting Template Set An accounting template set is a group of accounting templates defined in Oracle Lease Management. Stream Generation Template is associated with an Accounting Template Set

Example – define separate accounting template sets for operating leases, direct finance leases, loans, and investor agreements.

Financial Product The accounting template set is associated with a financial product in Oracle Lease Management. One accounting template set may be associated to multiple financial products. Book classification, interest calculation Method, revenue recognition method, and tax owner of the product and that of associated Stream Generation Template must match.

Example – the operating lease accounting template set may be associated with the US operating lease product and UK operating lease product.

Accounting Templates An accounting template comprises of the unique parameters to identify the template and the account codes to be applied.

Unique Parameters

Any combinations of the parameters on the accounting template must be unique for a date range. The parameters are:

Transaction Type – seeded events within Oracle Lease Management. Examples – Booking, Billing, Termination etc.

Stream Type– user defined elements associated with one of the seeded Stream purposes to identify the different components within the transaction to be accounted. Examples – Rent, Pre Tax Income, Residual Value.

Memo – valid values “Yes’ and “No”.

Special Accounting – used to enable different accounting for the same transaction when the contract is part of Investor Agreement.

Formulas

Accounting templates may be setup with formulas. The formulas are evaluated to derive the amount to be accounted, if the transaction does not provide the accounting amount.



Accounting Template Lines

The account codes to be used for accounting are derived based on the setup on accounting template lines. Rules to determine the account codes are as follows.

1. User may define account code on the accounting template line and is used for accounting.

2. User may define account generator rule on the accounting template line, which is evaluated to derive account code.

3. User may define both account code and account generator rule on the accounting template lines. Oracle Lease management evaluates account generator rule first to derive the account code. Account code defined on the accounting template line is used for accounting only if the source transaction does not pass values for all the account generator sources that are required by the account generator rule.

Accounting Template Defaulting Rules

The accounting engine uses defaulting rules to identify the accounting template. The defaulting rules apply to Memo, Investor Flag, and Investor code parameters. The hierarchy of the combination of parameter values to determine the accounting template is given below. For example, an accounting transaction makes an accounting call specifying Memo = Yes for a contract which is associated with an active investor agreement and the investor (special accounting) code.

1. The accounting engine tries to match all three parameters i.e. the combination at 1 below.

2. If no template is available, the match is attempted excluding Investor code i.e. combination at 2 below

3. If no template is available, the match is attempted excluding investor flag and code i.e. combination at 3 below

4. If no template is available, 4 to 6 are attempted in that order

5. If all 1 to 6 fail, the accounting engine returns error

Hierarchy Memo Investor flag Investor code

1 Yes Yes Yes

2 Yes Yes Null

3 Yes Null Null

4 No/Null Yes Yes

5 No/Null Yes Null

6 No/Null Null Null



Account Generator There are two ways to use Account Generator to derive account codes dynamically.

1) Use configurable rules with seeded sources: When accounting engine determines that the Account generator is to be used to derive the account codes, it identifies the account codes based the account generator rule specified on accounting template lines. User specifies either a source or a constant for each segment of the accounting flexfield in the account generator rule setup. Valid Source screens and the label for each screen is mentioned in the following table. Account Generator raises error if

a. A valid account code is not generated

b. An account generator rule or account generator source is not defined

c. An account code is not defined for transaction supplied source table-primary key value combination

2) Use Workflow for complete configuration: In this case, accounting engine triggers a workflow, which determines account codes based on the logic in the workflow. A sample workflow is seeded and can be customized by the user. Customized workflow may use the account generator setup viz. account generator rule and account generator sources or use any other logic to derive the account codes.

The path the account generator will take is determined by the profile option ‘OKL: Use Account Generator Workflow’. Two paths are mutually exclusive and can not be combined.

Sources

The sources for the account generator are:

Module Screen Label Primary Key

Assets Asset Categories Asset Cost Asset Category + Asset Book

Assets Asset Categories Accumulated Depreciation Asset Category + Asset Book

Assets Asset Categories Bonus Reserve Asset Category + Asset Book

Assets Asset Categories Asset Clearing Asset Category + Asset Book

Payables Financial Options-Accounting

Liability Operating Unit





Prepayment Operating Unit


Discount Taken Operating Unit


PO Rate Variance Gain Operating Unit


PO Rate Variance Loss Operating Unit

Payables Supplier Site – Accounting

Liability Supplier Site


Prepayment Supplier Site


Future Dated Payment Supplier Site

Receivables Customer Site – Accounts

Receivable Customer Bill To Site


Revenue Customer Bill To Site


Tax Customer Bill To Site


Freight Customer Bill To Site


Clearing Customer Bill To Site


Unbilled Receivable Customer Bill To Site


Unearned Revenue Customer Bill To Site

Receivables Transaction Types Receivable Transaction Type

Receivables Transaction Types Revenue Transaction Type

Receivables Transaction Types Tax Transaction Type




Receivables Transaction Types Freight Transaction Type

Receivables Transaction Types Clearing Transaction Type

Receivables Transaction Types Unbilled Receivable Transaction Type

Receivables Transaction Types Unearned Revenue Transaction Type

Foundation Resource Freight Employee

Foundation Resource Revenue Employee

Foundation Resource Receivable Employee

Inventory Master Item - Purchasing

Expense Account Item

Set of Books The set of books in Oracle General Ledger is identified through the setups done in the accounting options screen in Oracle Lease Management. The set of books is associated with the operating unit of the user (responsibility). The user’s operating unit is determined based on the profile option MO: Operating Unit.

The set of books provides the chart of accounts (accounting flexfield), currency and calendar.

Accounting Periods The accounting periods are derived from the calendar associated with the set of books for Oracle Lease Management. The accounting period may be opened or closed in Oracle Lease Management independent of the status in Oracle General Ledger.

Date Default Logic

The accounting date is the provided by the calling transaction. If the accounting period is open or future enterable, the accounting is created with the date provided by the transaction. When the accounting date falls in a prior period to the current open period, it is replaced with the first date of the first open accounting period.



When the accounting date falls in a future period, it is replaced with the last date of the most recent open or future enterable accounting period.

Asset Accounting The corporate asset book of Oracle Assets is identified by the profile option ‘OKL: Asset Addition Corporate Book’ whereas Reporting asset book (for Multi-GAAP) is determined by the profile option ‘OKL: Reporting Product Asset Book’. Asset accounting is created by Oracle Assets from the corporate asset book into the associated general ledger set of books. Accounting is based on the user configuration for the corporate asset book. The transactions are created directly in Oracle Assets without running the mass additions program.

Examples – creation, cost adjustment, retirement etc.

Receivables Sub Ledger The accounting for receivables transactions – billing, credit memos, balance write offs, receipts etc. are created in receivables sub ledger of Oracle Receivables. Oracle Lease Management creates transactions in the invoice interface of Oracle Receivables with accounting defined in the accounting templates of Oracle Lease Management. Receipts are accounted based on setups defined within Oracle Receivables.

Payables Sub Ledger The accounting for payable transactions – funding, disbursement, debit memo, payments etc. are created in payables sub ledger of Oracle Payables. Oracle Lease Management creates transactions in the invoice interface of Oracle Payables with accounting defined in the accounting templates of Oracle Lease Management. Payments are accounted based on setups defined within Oracle Payables.

Lease Sub Ledger Transactions created in Oracle Assets, Oracle Receivables or Oracle Payables result in accounting through the respective modules and accounting is not available in the Lease Sub Ledger.

All other accounting transactions create accounting entries in the lease sub ledger.

Programs



The following programs must be run to create accounting from Oracle Lease Management transactions:

Accounting Process – creates accounting in the lease sub ledger. The output file provides detailed information for each transaction accounted by Journal Category and Transaction Type. It also provides error log listing the transactions not processes for any reasons.

Transfer to General Ledger – transfers accounting from the lease sub ledger to the interface of Oracle General Ledger. The output file provides detailed information for each accounting lines transferred to General Ledger by Journal Category and Transaction Type along with the error log of unprocessed accounting lines due to invalid accounts.

Periodic Reversal – reverses accounting for transactions to be reversed in the beginning of the next accounting period. The output file list processed and non-processed accounting entries.

General Ledger The journal entries created by Oracle Assets, Oracle Payables, Oracle Receivables and Oracle Lease Management must be imported and posted in Oracle General Ledger before drawing up any financial statements.

Additional Accounting To support extensions to the available accounting, the accounting sources are recorded in OKL_ACCT_SOURCES table for each accounting line on creation of an accounting distributions. Accounting sources relate to the following:

• Transaction identifier

• Accounting transaction information

• Accounting template identification parameters

• Account generator sources



Process Flow

Accounting Process in Oracle Lease Management

Ebus

ines

s S

uite

Creates andMaintains Lease

Contracts

Leas

e M

anag

emen

t

Book LeaseContract

Determinewhether Leasetransaction?

RestructureContractBill ContractFund Contract Terminate

Contract Sell Asset

Identifyaccountingtemplate(s)

Identifyaccountingtemplate

Solve Formula

Identify AccountCodes

CreateAccounting

Distributions

CreateAccounting in

Lease SubLedger

Identify AccountCodes

Amountavailable?

CreateTransaction in

Interface Tables

CreateTransaction inReceivables /

Payables module

Account inReceivables /Payables Sub

Ledger

Import Journal inGeneral Ledger

Post Journal inGeneral Ledger

End

Lease

Payables orReceivables

NotAvailable

Available



BUSINESS PROCESSES THAT GENERATE ACCOUNTING EVENTS

Business Process

Sub Process Accounting Event Setup S. No.

Remarks

Home No Accounting

Marketing No Accounting

Sales No Accounting

Vendors – Operating Agreements

No Accounting

Vendors – Program Agreements

No Accounting

Vendors – Cure Requests

Cure Requests Create cure invoices 6.8

Vendors – Cure Refunds

Cure Refunds Refund cure 8.4, 10.4

Origination - Credit

No Accounting

Origination – Contracts - Booking

Book Contract Generate draft journals during booking process

7.1

Activate contract during booking process

7.2

Re-Lease Assets

Generate draft journals during booking process

20.1


20.2

Origination – Contracts -

Rebook Generate draft journals during

18.1



Business Process


Remarks

Revisions Contract rebook process

Activate contract during rebook process

18.2

Accrual Adjustment on rebook of contract

1.7

Cancel insurance 1.8, 1.9

Reverse Contract

Reverse Contract 7.3

Re-Lease Contract


20.1


20.2

Acceptance of termination quote – Automatic Release without purchase

6.3, 8.1, 21.1, 22.1, 26.1

Catchup of accruals 1.5

Acceleration of accruals

1.6

Reversal of loss provision

13.3, 25.3


Origination – Master Lease Agreements

No Accounting

Origination – Funding - Funding

Funding Request

Approve pre funding

12.1

Approve pre funding adjustment (negative pre

9.1



Business Process


Remarks

funding)

Approve asset funding

12.2

Approve expense funding

12.3

Approve loan principal funding (borrower payment)

12.4

Approve Supplier retention

9.2

Approve Manual Disbursement

10.1

Origination – Funding – Funding Request Checklist

No Accounting

Origination – Funding – Credit Line Checklist

No Accounting

Contract Management – Termination Quotes

Termination Quote,Manual Termination Quote, and Rollover Termination Quote with purchase

Acceptance of termination quote

6.3, 8.1, 23.1, 24.1, 26.1

Sale of asset to lessee

3.1



1.6

Reversal of loss 13.3



Business Process


Remarks

provision 25.3


Termination Quote, Manual Termination Quote, and Rollover Termination Quote without purchase

Acceptance of termination quote

6.3, 8.1, 23.1, 24.1, 26.1



1.6


13.3, 25.3


Contract Management – Quote Consolidation

No Accounting

Contract Management – Restructure Quote

No Accounting

Contract Management – Contract Termination – Termination Transactions

No Accounting

Contract Management – Contract Termination – Request Termination

Contract Termination

Balance write-off 5.1



Business Process


Remarks



1.6


13.3, 25.3


Contract termination

6.3, 8.1, 26.1

Contract Management – Mass Rebook

Mass Rebook Activate contract during rebook process

18.3

Accrual adjustment 1.7


Billing adjustment 6.22

Operations - Streams

No Accounting

Operations - Invoices

No Accounting

Operations -Manual Bills

Manual Invoices

Generate invoices 6.2

Operations - Counters

No Accounting

Operations -Receipts

Receipts are accounted for in AR

Operations – Transactions – Accounting Transactions

No Accounting

Operations – Transactions – Loss provisions

Create specific loss provision

25.1

Reversal of loss 25.2,



Business Process


Remarks

provision 13.2

Operations – Transactions – Accrual Override

No Accounting

Operations – Transactions – Manual Journal

Create manual journal

15.1

Assets –Tracking - Return Requests

Asset Returns Scrap asset 3.2

Assets – Tracking – Location Change

No Accounting

Assets – Tracking - Inspection

Asset Conditioning

Bill for asset repairs 6.5

Assets – Tracking - Shipping Instructions

No Accounting

Assets – Tracking – Fees

No Accounting

Assets – Tracking – Vendor Quote

Repurchase Quote

Acceptance of repurchase quote

6.4, 8.2

Sale of asset to vendor

3.3

Assets – Remarketing

No Accounting

Assets – Transactions - Contract

No Accounting



Business Process


Remarks

Portfolio

Assets – Transactions – Off Lease Asset Transactions

No Accounting

Assets – Transactions – Salvage Value Writedown

No Accounting

Assets – Transactions – Residual value Writedown

Residual Write Down

Rebook contract 18.2

Assets – Transactions – Like Kind Exchange

No Accounting

Processing – Request - Schedule/

Lease Administrator – Submit Requests

Master Program -- Process Billable Streams, Advance Billing

Generate periodic invoices

6.1, 6.17, 8.5

Evergreen Billing

Generate evergreen invoices

6.18

Usage Based Billing

Generate UBB invoices

6.9

Service Contracts Billing

Create Receivables Variable Rate Invoices

Generate variable rate invoices

6.10

Generate interim 6.12



Business Process


Remarks

interest

Calculate Late Interest

Generate late interest

6.13

Calculate Late Charges

Generate late charge 6.14

Third Party Billing Import

Period Reversal

Periodic Reversal Reverses marked accounting transaction

Generate Accruals Master - Streams

Generate accruals 1.1

Generate Accruals Master - Estimated And Billed

Accrual generation to recognize estimated/actual interest income on scheduled or actual principal balance

1.2, 1.3

Generate Accruals Master - Actual

Accrual generation to recognize actual interest income on actual principal balance

1.4

General Loss Provision

Create general loss provision

13.1


13.2

Lease Contract Open Interface


7.1


7.2



Business Process


Remarks

Disbursement Invoices

Generate passthroughs

10.2

Generate insurance disbursements

10.3

Create Investor Invoice Disbursements

10.5

Activate Insurance

Activate Insurance 6.15, 10.3

Activation Contract Activation 7.2

Automatic Insurance

Activate Insurance 6.15, 10.3

Balance Writeoff for Terminated and Expired Contracts

Balance Write off on contract termination

5.1

Buyback Investor Agreement

Disbursement to Investor

10.5

Daily Interest Calculation

Allocation of receipt to interest and principal

19.1

Generate Cure Amount

Billing Vendor Cure 6.8

Generate Cure Refund

Disbursement of Vendor cure Refund

10.4

Interest Calculation

Billing Interim Interest

6.12

Pay Invoices Creation of Auto-Disbursement Process

Disbursement passthrough

10.2

Process Rebook contract 18.2



Business Process


Remarks

Residual Value Writedown Transactions

Activation

Terminate Expired Contracts

Conversion of contract to Evergreen status

11.1

Processing – Request - Monitor

No Accounting

Processing - Programs

No Accounting

Setup No Accounting

Investor Management -Pools

No Accounting

Investor Management -Investor Agreements

Activation of Investor Agreement

14.1

Investor Management-Transactions -Receivable Invoices

No Accounting

Investor Management –Transactions -Payable Invoices

No Accounting

Investor Management -Transactions-Buy Back Streams

Disbursement to Investor

10.5

Investor Management –

No



Business Process


Remarks

Transactions – Accounting Transactions

Accounting

Investor Management -Transactions- Loss provisions

Create specific loss provision

25.1


25.2

Customer Service – Lease Center

Transactions Bill customer service fees

6.7

Credit for invoices

8.3

Insurance Activate policy 6.15, 10.3

Requests Principal Paydown – Rebook contract

6.16

Principal Paydown – generate Invoice

Transfer and assumption – Rebook contract

iStore Remarketing Billing of asset sold through iStore

6.6

Sale of asset to third party

3.4

Collections Invoice adjustment

Adjustment of invoice

2.1

Customer Self Service

No Accounting

Vendor Self Service

No Accounting



Business Process


Remarks

Vendor / Investor Disbursement

No Accounting

ACCOUNTING SETUP FOR ACCOUNTING EVENTS

Setup S. No.

Transaction Type

Accounting Event

Draft Accounting

Applicability Stream Purpose

Formulas

Number of Accounting Templates



Setup S. No.

Transaction Type

Accounting Event

Draft Accounting


Formulas


1.1

Accrual Accrual generation to recognize income based on streams

No Operating Lease, Direct Finance Lease, Sales Type Lease, Loan, or Loan – Revolving contracts

Rental Accrual, Lease Income, Interest Income, Investor Rental Accrual Investor Pre-Tax Income, Interest Catchup, Float factor Adjustment, Service Income, Pass Through Service Expense Accrual, Pass Through Service Revenue Accrual Amortized Fee Income / Expense, Accrued Fee Income / Expense, Pass Through Expense Accrual, Pass Through Revenue Accrual, Subsidy Income

No One for each stream with the memo flag set to No and one for each stream with the memo flag set to Yes, if non-accrual must be accounted separately.

1.2 Accrual Accrual generation to recognize

No Loan or Loan – Revolving with Revenue

Variable Interest

Yes One for each stream with the memo flag set to No and one



Setup S. No.

Transaction Type

Accounting Event

Draft Accounting


Formulas


estimated interest income on scheduled or actual principal balance

Recognition Method = Estimated & Billed

Income for each stream with the memo flag set to Yes, if non-accrual must be accounted separately.

1.3 Accrual Accrual generation to recognize actual interest income on scheduled or actual principal balance

No Loan or

Loan - Revolving with Revenue Recognition Method = Estimated & Billed

Variable Interest

No One for each stream with the memo flag set to No and one for each stream with the memo flag set to Yes, if non-accrual must be accounted separately.

1.4 Accrual Accrual generation to recognize actual interest income on actual principal balance

No Loan or

Loan - Revolving with Revenue Recognition Method = Actual

Actual Income Accrual

Yes One for each stream with the memo flag set to No and one for each stream with the memo flag set to Yes, if non-accrual must be accounted separately.

1.5 Accrual Accrual catchup on termination of lease contract

No Operating Lease

Direct Finance Lease

Sales Type Lease

Loan

Loan – Revolving

Any accrual stream defined on the financial product

No The accounting transaction for non-accrual is reversed. The template defined for any accrual stream is applied for the catch up of accrual.

1.6 Accrual Accrual acceleration for IDC/Subsidy

No Operating Lease

Direct Finance

Any accrual stream for IDC / Subsidy defined on the

No One for each accrual stream type.



Setup S. No.

Transaction Type

Accounting Event

Draft Accounting


Formulas


on termination of lease contract

Lease

Sales Type Lease

Loan

Loan – Revolving

financial product

1.7 Accrual Accrual Adjustment on rebook of contract

No Operating Lease


Sales Type Lease

Loan

Loan – Revolving

Any accrual stream defined on the financial product

No One for each accrual stream type.

1.8 Accrual Accrual adjustment for Insurance Policy Income

No Operating Lease


Sales Type Lease

Loan

Loan – Revolving

Insurance Income

No One

1.9 Accrual Accrual adjustment for Insurance Policy Expense

No Operating Lease


Sales Type Lease

Loan

Loan –

Insurance Expense

No One



Setup S. No.

Transaction Type

Accounting Event

Draft Accounting


Formulas


Revolving

2.1 Adjustments Adjustment of an invoice

No Operating Lease


Sales Type Lease

Loan

Loan – Revolving

Stream type on an invoice

No One for each stream

3.1 Asset Disposition

Asset disposal on acceptance of termination quote with purchase

No Operating Lease


Sales Type Lease

Any stream Yes One for each stream type


Asset disposal on scrapping asset

No Operating Lease


Sales Type Lease

Any stream Yes One for each stream


Asset disposal on repurchase by vendor

No Operating Lease


Sales Type Lease



Asset disposal by sale

No Operating Lease


Sales Type




Setup S. No.

Transaction Type

Accounting Event

Draft Accounting


Formulas


Lease

4.0 Asset Residual Change

- - - - - Functionality for future release

5.1 Balance Write Off

Balance write off on contract termination

No Operating Lease


Sales Type Lease

Loan

Loan - Revolving

One for each billable stream

No One for each billable stream type

6.1 Billing Billing Periodic

No Operating Lease, Direct Finance Lease, Sales Type Lease, Loan and Loan-Revolving

Any stream Type with billable attribute set to Yes

No One for each stream type

6.2 Billing Billing Manual No Operating Lease


Sales Type Lease

Loan

Loan Revolving

Any stream with billable attribute set to Yes


6.3 Billing Billing on acceptance of Termination quote

No Operating Lease


Sales Type

Any stream type defined in the Stream Generation Template for termination




Setup S. No.

Transaction Type

Accounting Event

Draft Accounting


Formulas


Lease

Loan

Loan - Revolving

quote billing

6.4 Billing Billing on acceptance of Repurchase quote

No Operating Lease


Sales Type Lease

Loan

Loan – Revolving

Any stream type defined in the Stream Generation Template for repurchase quote billing


6.5

Billing Billing asset condition charge

No Operating Lease


Sales Type Lease

Loan

Loan – Revolving

Repair Charge No One for each stream type

6.6 Billing

Billing sale of asset through iStore

No Operating Lease


Sales Type Lease

Loan

Loan – Revolving

Any stream type defined in the Stream Generation Template for billing sale price of an asset


6.7 Billing Billing Customer

No Operating Any stream type defined in




Setup S. No.

Transaction Type

Accounting Event

Draft Accounting


Formulas


Service Fee Lease


Sales Type Lease

Loan

Loan – Revolving

stream Generation Template for billing customer service fee

type

6.8

Billing Billing Vendor Cure

No Operating Lease


Sales Type Lease

Loan

Loan – Revolving

Cure No One for each stream type

6.9 Billing Billing Usage Based

No Operating Lease


Sales Type Lease

Loan

UBB Charge No One for each stream type

6.10 Billing Billing Variable Interest and principal payment for contract with Revenue Recognition Method = Estimated and

No Loan and Revolving loan with Revenue Recognition Method = Estimated & Billed

Principal Payment, Variable Interest




Setup S. No.

Transaction Type

Accounting Event

Draft Accounting


Formulas


Billed

6.11 Billing Billing Loan payment for contract with Revenue Recognition Method = Actual

No Loan and Revolving loan with Revenue Recognition Method = Actual

Loan Payment, Variable Loan Payment, Excess Interest Paid, Excess Principal Paid


6.12 Billing Billing Interim Interest

No Operating Lease


Sales Type Lease

Loan

Loan – Revolving

Interim Interest


6.13 Billing Billing Late Interest

No Operating Lease


Sales Type Lease

Loan

Loan – Revolving

Late Interest No One for each stream type

6.14 Billing Billing Late Change

No Operating Lease


Sales Type Lease

Late Fee No One for each stream type



Setup S. No.

Transaction Type

Accounting Event

Draft Accounting


Formulas


Loan

Loan – Revolving

6.15 Billing Billing Insurance

No Operating Lease


Sales Type Lease

Insurance Receivable


6.16 Billing Billing Principal or Loan Paydown

No Loan

Loan – Revolving

Unscheduled Principal Payment,

Unscheduled Loan Payment


6.17

Billing Billing Advanced Rent

No Operating Lease


Sales Type Lease

Loan

Advanced Rent


6.18

Billing Billing Evergreen Rent

No Operating Lease


Sales Type Lease

Evergreen Rent

Evergreen Fees

Evergreen Service and Maintenance

No One accounting template for each stream type

6.19 Billing Billing Investor Stake

No Investor Agreement

Investor Receivables

No One

6.20 Billing Billing Stream type with Revenue Recognition

No Operating Lease

Any stream type with Revenue Recognition

No Two accounting templates for each stream type



Setup S. No.

Transaction Type

Accounting Event

Draft Accounting


Formulas


Basis = Cash Receipt

Basis = Cash Receipt and Billable = Yes

6.21 Billing Billing property tax

No Operating Lease


Sales Type Lease

Loan

Loan – Revolving

Any stream type of purposes Actual Property tax, Estimated property tax, Adjusted property tax


6.22 Billing Billing Adjustment on rebook of contract

No Operating Lease


Sales Type Lease

Loan

Loan – Revolving

Any Billing stream


7.1 Booking Booking generate draft journal

Yes Operating Lease


Sales Type Lease

Loan

Loan – Revolving

Any Yes Multiple

7.2 Booking Booking activate contract

No Operating Lease

Direct Finance

Any Yes Multiple



Setup S. No.

Transaction Type

Accounting Event

Draft Accounting


Formulas


Lease

Sales Type Lease

Loan

Loan – Revolving

7.3

Booking Reverse contract

No Operating Lease


Sales Type Lease

Loan

Loan – Revolving

N/a N/a

The accounting transaction for booking is reversed.

8.1 Credit Memo Credit memo on acceptance of termination quote with negative values

No Operating Lease


Sales Type Lease

Loan

Loan – Revolving

Any stream type defined in the Stream Generation Template for termination quote billing


8.2 Credit Memo Credit memo on acceptance of repurchase quote with negative values

No Operating Lease


Sales Type Lease

Loan

Loan –

Any stream type defined in the Stream Generation Template for repurchase quote billing




Setup S. No.

Transaction Type

Accounting Event

Draft Accounting


Formulas


Revolving

8.3 Credit Memo Credit memo from Customer Service

No Operating Lease


Sales Type Lease

Loan

Loan – Revolving

Any billable stream

No One for each billable stream

8.4 Credit Memo Credit memo for Vendor Cure Refund Offset

No Operating Lease


Sales Type Lease

Loan

Loan – Revolving

Cure No One

8.5 Credit Memo Credit Memo for Advanced Rent

No Operating Lease


Sales Type Lease

Loan

Advanced Rent

No One

8.6 Credit Memo Credit Memo for Billing Adjustment

No Operating Lease


Sales Type Lease

Billing Adjustment

No One



Setup S. No.

Transaction Type

Accounting Event

Draft Accounting


Formulas


Loan

Loan – Revolving

8.7 Credit Memo Credit Memo for billing stream types on rebook

No Operating Lease


Sales Type Lease

Loan

Loan – Revolving

All billing streams


8.8 Credit Memo Credit Memo for Stream type with Revenue Recognition Basis = Cash Receipt

No Operating Lease


Sales Type Lease

Loan

Loan – Revolving

Invoice stream type with Revenue Recognition Basis = Cash Basis and Billable = Yes

No One accounting template for each cash basis stream type

9.1 Debit Memo Debit memo for Negative Pre Funding

No Operating Lease


Sales Type Lease

Loan

Pre Funding No One

9.2 Debit Memo Debit memo for Supplier Retention

No Operating Lease


Sales Type

Funding No One



Setup S. No.

Transaction Type

Accounting Event

Draft Accounting


Formulas


Lease

Loan

10.1 Disbursement Disbursement Manual

No Operating Lease


Sales Type Lease

Loan

Loan – Revolving

Any No One for each stream

10.2

Disbursement Disbursement Pass Through

No Operating Lease


Sales Type Lease

Loan

Loan – Revolving

Any No One for each stream

10.3 Disbursement Disbursement Insurance

No Operating Lease


Sales Type Lease

Loan

Loan - Revolving

Insurance Payable

No One

10.4 Disbursement Disbursement of Vendor Cure Refund

No Operating Lease

Direct Finance

Vendor Cure No One



Setup S. No.

Transaction Type

Accounting Event

Draft Accounting


Formulas


Lease

Sales Type Lease

Loan

Loan - Revolving

10.5 Disbursement Disbursement to Investor


Stream type of sub-class Investor Disbursement


11.1 Evergreen Conversion of contract to evergreen status

No Operating Lease


Sales Type Lease

Any stream Yes Multiple

12.1 Funding Funding contract before activation

No Operating Lease


Sales Type Lease

Loan

Loan - Revolving

Pre Funding No One

12.2 Funding Funding Asset on contract

No Operating Lease


Sales Type Lease

Loan

Funding No One



Setup S. No.

Transaction Type

Accounting Event

Draft Accounting


Formulas


12.3 Funding Funding Expenses on contract

No Operating Lease


Sales Type Lease

Loan

Funding No One

12.4 Funding Funding Borrower Payment

No Loan – Revolving contract in booked status

Principal Balance

No One

13.1 General Loss Provision

General Loss Provision Creation

No Operating Lease


Sales Type Lease

Loan

Loan – Revolving


No One for each stream type of purpose General Loss Provisoon

13.2 General Loss Provision

General Loss Provision Reversal on new provision

No Operating Lease


Sales Type Lease

Loan

Loan – Revolving


N/a

The earlier general loss provision transaction is reversed.

13.3


General Loss Provision Reversal on Termination

No Operating Lease



N/a

The earlier general loss provision transaction is reversed.



Setup S. No.

Transaction Type

Accounting Event

Draft Accounting


Formulas


of Contract Sales Type Lease

Loan

Loan – Revolving

14.1 Investor Investor agreement activation


Any Yes Multiple

15.1 Miscellaneous Miscellaneous Manual Journal

No Operating Lease


Sales Type Lease

Loan

Loan – Revolving

Any stream No Not required

16.1

Off Lease Amortization

- - - - - Functionality for future release

17.1 Principal Adjustment

Adjust Principal balance

No Loan with Interest calculation Method = Catchup / Cleanup

Interest Catchup

Yes One for each stream

18.1 Rebook Rebook generate draft journals

Yes Operating Lease


Sales Type Lease

Loan

Any Yes Multiple



Setup S. No.

Transaction Type

Accounting Event

Draft Accounting


Formulas


Loan – Revolving

18.2 Rebook Rebook contract activation

No Operating Lease


Sales Type Lease

Loan

Loan – Revolving

Any Yes Multiple

18.3

Rebook Rebook mass contracts

No Operating Lease


Sales Type Lease

Loan

Loan – Revolving

Any Yes Multiple

19.1 Receipt Application

Allocation of receipt to interest and principal

No Loan and revolving contract with Revenue Recognition Method = Actual

Daily Interest-Interest, Daily Interest-Principal

No One per stream

20.1 Re-Lease Re-Lease booking draft entries

Yes Operating Lease


Sales Type Lease

Any Yes Multiple



Setup S. No.

Transaction Type

Accounting Event

Draft Accounting


Formulas


Loan

Loan-Revolving

20.2

Re-Lease Re-Lease activation of Contract

No Operating Lease


Sales Type Lease

Loan

Loan – Revolving

Any Yes Multiple

21.1 Release Billing Billing to Reverse Credit Memo on contract Re-Lease

No Operating Lease


Sales Type Lease

Stream purposes for termination quote lines


22.1 Release Credit Memo

Credit memo to Reverse Billing on contract Re-Lease

No Operating Lease


Sales Type Lease



23.1 Rollover Billing

Billing to Reverse Credit Memo on acceptance of Rollover Termination quote

No Operating Lease


Sales Type Lease

Loan

Loan – Revolving





Setup S. No.

Transaction Type

Accounting Event

Draft Accounting


Formulas


24.1 Rollover Credit Memo

Credit Memo to Reverse Billing on acceptance of Rollover Termination quote

No Operating Lease


Sales Type Lease

Loan

Loan – Revolving



25.1

Specific Loss Provision

Create Specific Loss Provision

No Operating Lease


Sales Type Lease

Loan

Loan - Revolving

Stream type of purpose Specific Loss Provision

No One for each stream type of purpose Specific Loss Provision

25.2 Specific Loss Provision

Specific Loss Provision Reversal on new provision

No Operating Lease


Sales Type Lease

Loan

Loan - Revolving


N/a

The earlier specific loss provision transaction is reversed.

25.3


Specific Loss Provision Reversal on Termination of Contract

No Operating Lease



N/a

The earlier specific loss provision transaction is reversed.



Setup S. No.

Transaction Type

Accounting Event

Draft Accounting


Formulas


Sales Type Lease

Loan

Loan – Revolving

26.1 Termination Termination of Contract

No Operating Lease


Sales Type Lease

Loan

Loan – Revolving

Any streams Yes Multiple



ACCOUNTING PARAMETER – TRANSACTION TYPES

Transaction type tracking to Sub-ledger and General ledger

Transaction Type

Journal Source

Journal Category Sub Ledger Accounting Setup

Accrual Lease Lease Accrual Lease Lease Adjustments Lease Adjustments Lease Lease Adjustment Receivables Adjustment Receivables Lease Asset Disposition Lease Asset Disposition Lease Lease Asset Residual Change

- - - -

Balance Write Off Receivables Adjustment Receivables Lease Billing Receivables Sales Invoice Receivables Lease Booking Lease Booking Lease Lease Credit Memo Receivables Credit Memos Receivables Lease Debit Memo Payables Purchase Invoice Payables Lease Disbursement Payables Purchase Invoice Payables Lease Evergreen Lease Evergreen Lease Lease Funding Payables Purchase Invoice Payables Lease General Loss Provision

Lease Loss Provision Lease Lease

Insurance Lease Adjustments Lease Lease Investor Lease Booking Lease Lease Miscellaneous Lease Miscellaneous Lease Lease Off Lease Amortization

- - - -

Principal Adjustment

Lease Adjustments Lease Lease

Rebook Lease Rebook Lease Lease Receipt Application

Lease Adjustments Lease Lease

Release Lease Booking Lease Lease Release Billing Receivables Sales Invoice Receivables Lease Release Credit Memo

Receivables Credit Memos Receivables Lease

Renewal - - - - Rollover Billing Receivables Sales Invoice Receivables Lease Rollover Credit Memo

Receivables Credit Memos Receivables Lease


Lease Loss Provision Lease Lease

Termination Lease Termination Lease Lease



ACCOUNTING PARAMETER - BASIS OF ACCOUNTING CALL

Transaction

type

Level of

Accounting

Basis of

Amount Account Generator Sources

Accrual Contract Transaction Payables Financial Options, Sales Representative, Receivables Transaction Type, Inventory Item, Receivables Customer Site

Asset Disposition

Asset Formula Receivables Customer Site, Payables Financial Options, Sales Representative, Inventory Item, Asset Categories

Balance Write Off

Asset Transaction Receivables Customer Site, Payables Financial Options, Inventory Item, Sales Representative, Receivables Transaction Type, Asset Categories

Billing Asset Transaction Receivables Customer Site, Payables Financial Options, Inventory Item, Sales Representative, Receivables Transaction Type, Asset Categories

Booking Contract Formula Receivables Customer Site, Payables Financial Options, Sales Representative, Receivables Transaction Type

Credit Memo Asset Transaction Receivables Customer Site, Payables Financial Options, Inventory Item, Sales Representative, Receivables Transaction Type, Asset Categories

Debit Memo Contract Transaction Receivables Customer Site, Payables Financial Options, Inventory Item, Sales Representative, Receivables Transaction Type, Asset Categories

Disbursement Contract Transaction Receivables Customer Site, Payables Financial Options, Inventory Item, Sales Representative, Receivables Transaction Type, Asset Categories

Evergreen Asset Formula None

Funding Contract Transaction Receivables Customer Site, Payables Financial Options, Sales Representative, Receivables Transaction Type


Contract Transaction Payables Financial Options, Sales Representative

Insurance Contract Transaction Payables Financial Options, Sales Representative

Investor Investor Agreement

Formula None

Miscellaneous Contract Transaction Receivables Customer Site, Payables Financial Options, Sales



Transaction

type

Level of

Accounting

Basis of

Amount Account Generator Sources

Representative, Receivables Transaction Type

Principal Adjustment

Asset Transaction

None

Rebook Contract Formula Receivables Customer Site, Payables Financial Options, Sales Representative, Receivables Transaction Type

Receipt Application

Asset Transaction

None

Release Contract Formula Receivables Customer Site, Payables Financial Options, Sales Representative, Receivables Transaction Type

Release Billing Asset Transaction Receivables Customer Site, Payables Financial Options, Inventory Item, Sales Representative, Receivables Transaction Type, Asset Categories

Release Credit Memo


Rollover Billing


Rollover Credit Memo



Contract Transaction Payables Financial Options, Sales Representative

Termination Asset Formula Payables Financial Options, Sales Representative



ACCOUNTING PARAMETER – FORMULAS AND PROGRAMS

Seeded Formulas

Formula Name Description Calculation Parameter Operands AMCTOC Principal

balance for a loan

Principal Balance Contract id (mandatory)

AMCTOC

AMCTUR Future dues for a lease

Sum of unbilled rents - advance rent

Contract id (mandatory)

AMCTUR

ASSET VALUE FOR INSURANCE

Asset value for shipping insurance

Net Investment Value of the asset

Contract id (mandatory) + Line id (mandatory)

OP_LINE_ASSET_NET_INVESTMENT

ASSET_DF_TERMINATION_NIV

Formula calculates net investment for the asset line for stream generation

If quote type is ‘with purchase’, the formula returns net investment amount for an asset on the termination quote. If quote type is ‘without purchase’, the formula returns the result of Line_Asset_Net_Investment formula evaluated by the Off-lease amortization transaction.

Contract id (mandatory) + Line id (mandatory)+ Quote id

OP_ASSET_DF_TERMINATION_NIV

ASSET_NET_BILLED_RECEIVABLE

Net Billed Receivable for Assets

Sum of unpaid invoices – sum of unapplied credit memos

Contract id + Line id (mandatory)

OP_SUM_UNPAID_INVOICES-OP_SUM_UNAPPLIED_CREDIT_MEMOS

ASSET_NET_BOOK_VALUE

Determine net book value for DF lease contract for termination quote during the evergreen period

Net book value as determined in FA


OP_ASSET_NET_BOOK_VALUE

ASSET_NET_INVESTMENT_LOAN

Calculates net investment for a loan contract for termination quote during the base period

Actual principle balance


OP_ASSET_NET_INVESTMENT_LOAN

ASSET_NET_INVESTMENT_OP

Determine net book value for OP lease contract for termination quote during the base or

Net book value as determined in FA


OP_ASSET_NET_INVESTMENT_OP



Formula Name Description Calculation Parameter Operands evergreen period

CHECK_BOOKING_DATE

Validates system date of contract activation

Checks if the contract activation system date is less than or equal to the lease application approval expiration date

Contract id (mandatory) + Line id

OP_LAP_BOOKING_DATE

CHECK_CONTRACT_FIN_AMOUNT

Validate the contract financed amount

Checks if the contract financed amount is less than or equal to the total approved amount for lease application


OP_LAP_FIN_AMOUNT

CHECK_FUND_AMOUNT

Validates the total funding amount

Checks if the total amount funded on contract is less than the total amount approved on the lease application


OP_LAP_FUND_AMOUNT

CHECK_FUNDING_DATE

Validates the funding date

Checks if the funding date is within the effective dates of lease application


OP_LAP_FUNDING_DATE

CHECK_PARTY_CUSTACCT_MATCH

Validates the party and customer account on the contract

Checks if the party and customer account is the same on contract and lease application


OP_LAP_PARTY_CUSTACCT_MATCH

CHECK_VENDOR_PROG_MATCH

Validates the vendor program on contract

Checks if the vendor program is the same on contract and lease application


OP_LAP_VENDOR_PROG_MATCH

CONT_RBK_UNBILL_RECEIVABLES

Formula to calculate unbilled receivables for rebook transaction

Sum of rent not billed for all active assets


OP_CONT_RBK_UNBILL_RECEIVABLES

CONT_RBK_UNEARNED_INCOME

Formula to calculate unearned income for rebook transaction

Sum of pre tax income not accrued for all active assets


OP_CONT_RBK_UNEARNED_INCOME

CONT_TMT_UNBILL_RECEIVABLES

Formula to calculate unbilled receivables for termination transaction

Sum of rent not billed for all terminated assets


OP_CONT_TMT_UNBILL_RECEIVABLES

CONT_TMT_UNEARNED_INCOME

Formula to calculate unearned

Sum of pre tax income not accrued for all terminated assets


OP_CONT_TMT_UNEARNED_INCOME



Formula Name Description Calculation Parameter Operands income for termination transaction

CONTRACT_ABSORBED_FEE

Formula to calculate sum of absorbed fees for a contract

Sum of all absorbed fee amounts


OP_CONTRACT_ABSORBED_FEE

CONTRACT_ACCUMULATED_DEPRN

Calculate fixed asset accumulated depreciation for all the financial asset lines on a lease contract

Accumulated depreciation as determined in FA


OP_CONTRACT_ACCUMULATED_DEPRN

CONTRACT_ACTUAL_INCOME_ACCRUAL

Calculates actual income for periodic income recognition for contract with Revenue Recognition Method = Actual

Total Actual Interest – Total Accrued interest as on a given date


TOTAL ACTUAL INTEREST-TOTAL ACCRUED INTEREST

CONTRACT_AMNT_PREFNDED

Total positive pre-funding requests

Sum of all approved pre-funding requests with positive amounts for a contract


OP_CONTRACT_AMNT_PREFNDED

CONTRACT_ASSET_COST

Calculates current fixed asset cost for all the active financial asset lines on a lease contract

Current asset cost as determined in FA


OP_CONTRACT_ASSET_COST

CONTRACT_CAP_AMNT

Total financed amount

Original Equipment Cost - Trade in - Capital Reduction + capitalized Fees


OP_CONTRACT_OEC-OP_CONTRACT_TRADEIN-OP_CONTRACT_CAPREDUCTION+OP_CONTRACT_FEESCAPITALIZED+CAP_INT

CONTRACT_CAP_AMNT_LOAN

Total financed amount for loan contract

Original Equipment Cost - Trade in + capitalized Fees


OP_CONTRACT_OEC-OP_CONTRACT_TRADEIN+OP_CONTRACT_FEESCAPITALIZED+CAP_INT

CONTRACT_CAP_AMNT_NOSUBSIDY

Formula returns the value for capital amount for an asset

Original Equipment Cost -Trade in - Capital Reduction + Capitalized Fees + capitalized interest

Line id (mandatory) OP_CONTRACT_OEC-OP_CONTRACT_TRADEIN-OP_CONTRACT_CAPREDUCTION+OP_CONTRACT_FEESCAPITALIZED+OP_CONTRACT_CAPITALIZED_INTEREST-OP_CONTRACT_DISCOUNT-



Formula Name Description Calculation Parameter Operands OP_ASSET_SUBSIDY_AMOUNT

CONTRACT_CAPITALIZED_INTEREST

Formula to return capitalized interest

Returns the total capitalized interest for the contract


OP_CONTRACT_CAPITALIZED_INTEREST

CONTRACT_CAPREDUCTION

Sum of Capital Reduction

Sum of capital reduction of all asset lines


OP_CONTRACT_CAPREDUCTION

CONTRACT_CRDT_RMNG

Returns balance of the Credit line

Total credit Limit of a Credit line – total of all approved funding requests for all contracts associated with the credit line

Credit Line Contract id (mandatory)

OP_CONTRACT_CRDT_RMNG

CONTRACT_FEE_AMOUNT

Generic formula used for calculation of fee lines during termination quote creation

Sum of billable streams for all fee lines of specified fee type


OP_CONTRACT_FEE_AMOUNT

CONTRACT_FEESCAPITALIZED

Sum of Capitalized Fees

Sum of capitalized fees lines


OP_CONTRACT_FEESCAPITALIZED

CONTRACT_FINANCED_AMOUNT

Formula to get the total financed amount for a contract

Contract capital amount – Contract financed fee


OP_CONTRACT_CAP_AMT OP_CONTRACT_FINANCED_FEE

CONTRACT_FINANCED_AMOUNT_BKG

Total financed amount for display on booking page

Contract capital amount – Contract financed fee


OP_CONTRACT_FIN_AMNT_BKG

CONTRACT_FINANCED_FEE

Returns the sum of financed fee amounts for a contract

Sum of all Financed fee amounts


OP_CONTRACT_FINANCED_FEE

CONTRACT_FULL_CURE_AMOUNT

Cure Formula for Full Cure Amount

Sum of delinquent invoice - Cumulative vendor invoice amount + Short fund amount for contract


CONTRACT_DELINQUENT_AMOUNT-CONTRACT_CUMULATIVE_VENDOR_INVOICE_AMOUNT+CONTRACT_SHORT_FUND_AMOUNT

CONTRACT_IDC_AMOUNT

Formula used to calculate the total IDC amount on a contract at booking

Sum of IDC amounts for the expense fee and the miscellaneous fee for contract with status of complete or approved


OP_CONTRACT_IDC_AMOUNT

CONTRACT_NET_INVESTMENT_DF

Net investment for Direct Finance Lease

The formula returns PV of unbilled receivables


OP_CONTRACT_RENT_AMOUNT+OP_CONTRACT_RESIDUAL_AMOUNT-



Formula Name Description Calculation Parameter Operands OP_CONTRACT_UNEARNED_INCOME

CONTRACT_NET_INVESTMENT_LOAN

Net investment for Loan type contract

The formula returns scheduled principal balance amount for line/contract on system date


OP_CONTRACT_PRINCIPAL_BAL_LOAN

CONTRACT_NET_INVESTMENT_OP

Net investment for operating Lease

Original Equipment Cost -Trade in - Capital Reduction + Capitalized Fees + Capitalized interim Interest - Accumulated depreciation – Subsidy amount


OP_CONTRACT_OEC-OP_CONTRACT_TRADEIN-OP_CONTRACT_CAPREDUCTION+OP_CONTRACT_FEESCAPITALIZED+OP_CONTRACT_CAPITALIZED_INTEREST-OP_CONTRACT_ACC_DEPRECIATION-OP_ASSET_SUBSIDY_AMOUNT

CONTRACT_OEC Contract Capitalized Amount

Sum of capitalized amount of all asset lines


OP_CONTRACT_OEC

CONTRACT_PRINCIPAL_BALANCE_LOAN

Principle balance for Loan type contract

The formula returns scheduled principal balance amount for line/contract on system date


OP_CONTRACT_PRINCIPAL_BAL_LOAN

CONTRACT_RESIDUAL_VALUE

Calculates the RV

Residual Value for the contract


OP_CONTRACT_RESIDUAL_VALUE

CONTRACT_SUMOF_RENTS

Calculates the sum of Rent stream

Sum of active rent streams


OP_CONTRACT_SUMOF_RENTS

CONTRACT_TOT_AMORTIZED_EXPENSES

Formula to calculate total amortized expenses

Sum of amortized expense stream elements amounts


OP_CONTRACT_TOT_AMORTIZED_EXPENSES

CONTRACT_TOT_CRDT_ADDN

Additional credit limit

Sum of all credit line additions


OP_CONTRACT_TOT_CRDT_ADDN

CONTRACT_TOT_CRDT_LMT

Credit limit of credit line

Credit limit of a credit line of a contract

Credit Line Contract id (mandatory)

OP_CONTRACT_TOT_CRDT_LMT

CONTRACT_TOT_CRDT_NEW_LMT

New credit limit Sum of all new credit limit lines


OP_CONTRACT_TOT_CRDT_NEW_LMT

CONTRACT_TOT_CRDT_REDN

Reduction in credit limit

Sum of all credit reduction lines


OP_CONTRACT_TOT_CRDT_REDN

CONTRACT_TOT_DEBITS

Total negative pre-funding requests

Sum of all approved pre-funding requests with negative amounts for a contract


OP_CONTRACT_TOT_DEBITS

CONTRACT_TOT_FNDED

Total of funding requests

Sum of all approved funding requests for a specific contract


OP_CONTRACT_TOT_FNDED



Formula Name Description Calculation Parameter Operands excluding supplier retention

CONTRACT_TRADEIN

Sum of Trade Ins

Sum of all trade ins from financial asset lines


OP_CONTRACT_TRADEIN

CONTRACT UNEARNED REVENUE

Unearned income for DF/ST lease contract

Sum of all pre-tax incomes streams for all asset lines of a contract

OP_PRE_TAX_INCOME

CREDIT_CHECK Total credit amount remaining on credit line

Total credit line amount – Approved and processed funding requests amounts

Credit line id OP_CREDIT_CHECK

DEFAULT ASSET FLOOR PRICE

Default asset floor price

Line residual + 10 percent


OP_LINE_RESIDUAL_VALUE*OP_HUNDRED_TEN_PERCENT

INSURANCE REFUND

Calculate insurance refund

Monthly Insurance Premium * No. of months refunded


OP_INS_REFUNDABLE_MONTHS*OP_INS_MONTHLY_PREMIUM

INVESTOR_ACCOUNT_AMOUNT

investor account amount

Returns the investor account amount for the syndication


OP_INVESTOR_ACCOUNT_AMOUNT

INVESTOR_ACCRUAL

Sum of the income streams relating to the streams securitized

Sum of Investor Pre-tax Income, Investor Rental Accrual, and Investor Interest Income

Agreement id (mandatory)

INVESTOR_ACCRUAL

INVESTOR_BUYBACK

The default formula used for calculating the amount payable to Investors for buy back of the streams

If payment event is Billed, formula returns sum of all unbilled stream elements for specified contract, line, and stream type. If payment event is Receipt, formula returns sum of stream elements not received for specified contract, line, and stream type.

Contract id (mandatory) + Line id + Agreement id + stream type id

INVESTOR_ BUYBACK

INVESTOR_GAIN The default formula used to calculate the gain/loss on the securitization

Sum of stakes of all investors – (sum of PV of rent securitized + sum of PV of residual securitized)

Agreement id INVESTOR_INVESTMENT_AMOUNT-PV_INVESTOR_STREAMS

INVESTOR_INVESTMENT

The sum of Investments made by Investors

Sum of stakes of all investors

Agreement id INVESTOR_INVESTMENT

INVESTOR_PRINCIPAL_INVESTMENT

Calculates Principal Investment of investor

Sum of PV of rent securitized + sum of PV of residual securitized

Agreement id PV_INVESTOR_STREAMS

INVESTOR_RENT Calculate Total undisbursed Contract id OP_INVESTOR_RENT_



Formula Name Description Calculation Parameter Operands _DISBURSEMENT Investor Rent

Factor used to calculate Investor Contract Obligation payable

investor rent disbursement basis stream / Total unbilled rent stream

(mandatory) + Line id

FACTOR

INVESTOR_RV_DISBURSEMENT

Calculate Investor RV Factor used to calculate Investor Residual Payable

Residual value / Residual value


OP_INVESTOR_RV_FACTOR

INVESTOR_STREAM

The sum of streams securitized in a pool

Sum of products of total of revenue share of all investors and Stream amount securitized by subclass

Agreement id INVESTOR_STREAMS

LINE_ACCUMULATED_DEPRN

Calculate fixed asset accumulated depreciation for a financial asset line of contract

Accumulated depreciation as determined in FA


OP_LINE_ACCUMULATED_DEPRN

LINE_ASSET_COST

Calculates current fixed asset cost for a active financial asset line of contract

Current asset cost as determined in FA


OP_LINE_ASSET_COST

LINE_ASSET_NET_INVESTMENT

Net investment used for asset transactions DF lease

Rent + Residual Value - Unearned Income


OP_LINE_FUTURE_RENT+OP_LINE_RESIDUAL_VALUE-OP_LINE_FUTURE_INCOME

LINE_CAP_AMNT Financed amount for line

Original Equipment Cost -Trade in – Capital Reduction + Capitalized Fees


OP_LINE_OEC-OP_LINE_TRADEIN-OP_LINE_CAPREDUCTION+OP_LINE_FEESCAPITALIZED+CAP_INT

LINE_CAP_AMNT_LOAN

Total financed amount for loan contract line

Original Equipment Cost - Trade in + capitalized Fees


OP_LINE_OEC-OP_LINE_TRADEIN+OP_LINE_FEESCAPITALIZED+CAP_INT

LINE_CAPITALIZED_INTEREST

Formula to return line capitalized interest

Returns the total capitalized interest for a contract line

Contract id (mandatory) Line id

OP_LINE_CAPITALIZED_INTEREST

LINE_CAPREDUCTION

Capital Reduction of a line

Capital reduction amount for the asset line


OP_LINE_CAPREDUCTION

LINE_DISCOUNT Formula to return discount amount for an

Sum of total subsidy for an asset where accounting method is

Contract id + Line id

OP_LINE_DISCOUNT



Formula Name Description Calculation Parameter Operands asset ‘Net’

LINE_EXPECTED_ASSET_COST

Calculates net investment value for DF lease and net book value for OP lease for display on asset page for re-lease contract

Future rent – Future unearned income + Future residual value


OP_LINE_FUTURE_RENT+OP_LINE_RESIDUAL_VALUE-OP_LINE_FUTURE_INCOME

LINE_FEESCAPITALIZED

Capitalized Fees for line

Capitalized fees for the asset line


OP_LINE_FEESCAPITALIZED

LINE_OEC Calculates the OEC

Price per unit * no of units

Contract id (mandatory) + Line id (optional)

OP_LINE_OEC

LINE_RESIDUAL_VALUE

Calculates the RV

Residual Value for the line


OP_LINE_RESIDUAL_VALUE

LINE_TRADEIN Trade in amount for a line

Trade in amount for the asset line


OP_LINE_TRADEIN

LINE_UNBILLED_STREAMS

Line unbilled streams

Line Unbilled Streams Contract id (mandatory) + Line id (mandatory) Stream Type id (optional – g par)

OP_LINE_UNBILLED_STREAMS

LP_NET_INVESTMENT_VALUE

Balance investment on contract

Operating Lease - Net Book Value, DF Lease - Net Investment Value and Loan - Principal Balance


UNBILLED RECEIVABLES-UNEARNED REVENUE+UNGUARANTEED RESIDUAL-UNACCRUED SUBSIDY

NET_GAIN_LOSS_QUOTE

Formula to calculate gain or loss for a termination quote

Total Quote amount (excluding Tax, outstanding balance, and security deposit quote lines) – Quote net investment


OP_NET_GAIN_LOSS_QUOTE

OKL_LC_NEXT_PAYMENT_AMOUNT

Determines the next Payment Amount

Sum of all billable stream elements which fall due on next payment date


OP_CONTRACT_NEXT_PAYMENT_AMOUNT

OKL_LC_OUTSTANDING_BALANCE

Calculates Outstanding Receivables

Sum of unpaid invoices + sum of billable but unbilled stream elements


OP_CONTRACT_UNPAID_INVOICES+ OP_SUM_UNBILLED_STREAMS

OKL_LC_OUTSTANDING_BILLED

Calculated unpaid billed Amount

Sum of unpaid invoices Contract id (mandatory) + Line id (optional)

OP_CONTRACT_UNPAID_INVOICES

OKL_LC_OUTSTANDING_UNBILLED

Calculates unbilled Amount Due

Sum of billable but unbilled stream elements


OP_SUM_UNBILLED_STREAMS



Formula Name Description Calculation Parameter Operands ONE_PERCENT_OF_CAPITALIZED_COST

One percent of original capitalized cost

Original Capitalized Cost * (0.01)


OP_ONE_PERCENT*OP_CONTRACT_OEC

QUOTE_ESTIMATED_PROPERTY_TAX

Estimated property tax

Estimated Property Tax


OP_LINE_ESTIMATED_PROPERTY_TAX

QUOTE_GENERIC_LINE_PRORATION

Proration of contract value to lines

Proration of amounts at a contract level to lines based on Capitalized Cost.


OP_LINE_OEC/OP_CONTRACT_OEC

QUOTE_PERDIEM_AMOUNT

Calculates per diem amount for termination quote for loan contract

Outstanding amount * Interest Rate/Number of days in year

Contract id (mandatory) + Quote id

OP_QUOTE_PERDIEM_AMOUNT

QUOTE_REMAINING_SECURITY_DEPOSIT

Security deposit refundable

Balance Security Deposit Amount


OP_CONTRACT_REMAINING_SEC_DEP

QUOTE_REPURCHASE

Top formula containing seeded operands

The operands included determine the elements to be computed for the repurchase quote. Operands included are AMBSPR, AMCQDR, and AMCQFE.


AMBSPR+AMCQFE+ AMCQDR

QUOTE_TAX_CALCULATION

Calculation of tax amount

Calculates the tax amount to be displayed on the quote.


OP_LINE_ESTIMATED_TAX

QUOTE_TERMINATION

Top formula containing seeded operands

The operands included determine the elements to be computed for the quote


AMBCOC+AMCQDR+AMCTPE+AMCSDD+AMCRFE+AMCRIN+AMCQFE+AMPRTX+AMYOUB+AMYSAM+AMYFEE+AMCTAX+AMFFEE+AMAFEE+AMIFEE+AMPFEE+AMEFEE+AMMFEE+AMGFEE+AMRFEE

QUOTE_TERMINATION_MANUAL

Top formula with seeded operands for manual quotes

The operands determine the elements to be computed for a manual termination quote


AMYOUB+AMYSAM+AMYFEE+AMCTAX+AMFFEE+AMAFEE+AMIFEE+AMPFEE+AMEFEE+AMMFEE+AMGFEE

QUOTE_UNBILLED_RECEIVABLES

Termination Quote Unbilled Receivables. When this formula is used, quote line ‘Unbilled Receivables’ is created

Sum of unbilled rents - advance rent as on quote effective date


UNBILLED_RECEIVABLES

REFUND_SUBSIDY

Formula to return amount

Sum of amount of subsidy accrual stream


OP_REFUND_SUBSIDY



Formula Name Description Calculation Parameter Operands of subsidy to be refunded on asset termination

element with date greater than the termination date

ROLLOVER_FEE Derives rollover fee amount for credit line

Amount of rollover fee amount

Contract id OP_ROLLOVER_FEE

SUBSIDY_AMOUNT

Demo subsidy amount formula

If the asset life is 12 months or less, formula calculates the subsidy amount to be 2% of the OEC. If the asset life is more than 12 months, subsidy amount is 1% of OEC


OP_SUBSIDY_AMOUNT

VARIABLE_INCOME_ACCRUAL

Variable Income Amount

Principal * Interest Rate * No of days to accrue / No of days in a year


PRINCIPAL BALANCE*INTEREST RATE*DAYS TO ACCRUE/DAYS IN YEAR

VENDOR_RESIDUAL_SHARE

Calculates amount of gain/loss to be shared with all the vendors together

Sales Proceeds – Residual Value

Contract id + Line id (mandatory) + FA Retirement Transaction id

OP_VENDOR_RESIDUAL_SHARE



Accounting Programs

Program Name Options

Input Parameters

Processing Output parameters

Usage (OKL Transaction Type)

Call 1 OKL_ACCOUNT_DIST_PUB.Get_Template_Info*

1) Product ID 2) Transaction Type ID

All valid Accounting Templates

Termination – to determine the number of transaction lines

Call 2 OKL_ACCOUNT_DIST_PUB.Create_Accounting_Dist*

(1) 1) Product ID 2) Transaction Type ID 3) No Accounting Amount 4) Accounting Date

1) Solve Formula(s) to determine amounts 2) Verify if accounting date is valid. If invalid accounting date, derive a valid GL accounting date 3) Create accounting distributions

1) Templates used for accounting 2) Amount(s) accounted

Asset Disposition, Booking, Investor, Rebook, Re-Lease, Split Contract, Termination

(2) 1) Product ID 2) Transaction Type ID 3) Stream type ID 4) No Accounting Amount 5) Accounting Date

1) Solve Formula(s) to determine amounts 2) Verify if accounting date is valid. If invalid accounting date, derive a valid GL accounting date 3) Create accounting distributions


Accrual (Estimation of interest income for variable rate contract)

(3) 1) Product ID 2) Transaction Type ID 3) Stream type ID 4) Amount to be Accounting 5) Accounting Date

1) Verify if accounting date is valid. If invalid accounting date, derive a valid GL accounting date 2) Create accounting distributions


Accrual, Balance write off, Billing, Credit Memo, Debit Memo, Disbursement, Evergreen, Funding, General Loss Provision, Insurance, Miscellaneous, Specific Loss Provision

Call 3 OKL_MULTI_GAAP_PVT.Get_Template_Lines*

1) Product ID 2) Stream type ID 3) Accrual Activity

Account Code Combination(s)

Multi GAAP Report

* Not published - Subject to change



ACCOUNTING EXAMPLES

Contract

1. Operating Lease

Event Accounting For (Setup S. No.)

Amount Module Debit Credit

Booking Asset Cost (7.2) 10,000 Lease Asset Clearing Lease Funding Asset Cost 10,000 Assets Asset Cost Asset Clearing Funding Asset Funding (12.2) 10,000 Payables Lease Funding Liability Payment Pay Invoice 10,000 Payables Liability Bank Billing Rent (6.1) 6,000 Receivables Receivables Revenue Clearing Receipts Receive Funds 6,000 Receivables Bank Receivables Accrual Income Recognition

(1.1) 6,000 Lease Revenue Clearing Rental Income

Depreciation Depreciation 4,000 Assets Depreciation Expense Depreciation Reserve Sale Sale of Asset (6.6) 5,000 Receivables Receivables Sale Proceeds Receive Funds 5,000 Receivables Bank Receivables Sale of Asset 5,000 Assets Sale Proceeds Retirement of Asset 4,000 Assets Depreciation Reserve Retirement of Asset 10,000 Assets Asset Cost Gain / Loss on Sale (1,000) Assets Loss on Sale Gain on Sale



2. Operating Lease (Early Termination with Purchase)



Booking Asset Cost (7.2) 10,000 Lease Asset Clearing Lease Funding Asset Cost 10,000 Assets Asset Cost Asset Clearing Funding Asset Funding (12.2) 10,000 Payables Lease Funding Liability Payment Pay Invoice 10,000 Payables Liability Bank Billing Rent (6.1) 6,000 Receivables Receivables Revenue Clearing Receipts Receive Funds 6,000 Receivables Bank Receivables Accrual Income Recognition

(1.1) 6,000 Lease Revenue Clearing Rental Income

Depreciation Depreciation 4,000 Assets Depreciation Expense Depreciation Reserve Sale Sale of Asset (6.6) 5,000 Receivables Receivables Sale Proceeds Receive Funds 5,000 Receivables Bank Receivables Sale of Asset 5,000 Assets Sale Proceeds Retirement of Asset 4,000 Assets Depreciation Reserve Retirement of Asset 10,000 Assets Asset Cost Gain / Loss on Sale (1,000) Assets Loss on Sale Gain on Sale



3. Direct Finance Lease



Booking Unbilled Receivables

(7.2) 12,000 Lease Unbilled Receivables Lease Funding

Unearned Income (7.2)

2,500 Lease Lease Funding Unearned Income

Residual Value (7.2) 500 Lease Residual Value Lease Funding Asset Cost 10,000 Assets Asset Cost Asset Clearing Asset Cost

Adjustment 10,000 Assets Asset Clearing Asset Cost

Funding Asset Funding (12.2) 10,000 Payables Lease Funding Liability Payment Pay Invoice 10,000 Payables Liability Bank Billing Rent (6.1) 12,000 Receivables Receivables Unbilled Receivables Receipts Receive Funds 12,000 Receivables Bank Receivables Accrual Income Recognition

(1.1) 2,500 Lease Unearned Income Finance Income

Termination Residual Value 500 Assets Asset Cost Asset Clearing Residual Value (26.1) 500 Lease Asset Clearing Residual Value Sale Sale of Asset (6.6) 1,000 Receivables Receivables Sale Proceeds Receive Funds 1,000 Receivables Bank Receivables Sale of Asset 1,000 Assets Sale Proceeds Retirement of Asset 0 Assets Depreciation Reserve Retirement of Asset 500 Assets Asset Cost Gain / Loss on Sale 500 Assets Loss on Sale Gain on Sale



4. Direct Finance Lease (Early Termination without Purchase)










(1.1) 1,250 Lease Unearned Income Finance Income

Termination Quote Acceptance

Contract Obligation (6.3)

5,500 Receivables Receivables Termination Clearing

Termination Unbilled Receivables

(26.1) 6,000 Lease Termination Clearing Unbilled Receivables


1,250 Lease Unearned Income Termination Clearing

Gain on Termination (26.1)

750 Lease Termination Clearing Gain on Termination

Residual Value (26.1) 500 Lease Asset Clearing Residual Value Residual Value 500 Assets Asset Cost Asset Clearing



5. Direct Finance Lease (Early Partial Termination without Purchase)


Amount Asset 1

Amount Asset 2

Module Debit Credit


(7.2) 12,000 12,000 Lease Unbilled

Receivables Lease Funding


2,500 2,500 Lease Lease Funding Unearned Income

Residual Value (7.2) 500 500 Lease Residual Value Lease Funding Asset Cost 10,000 10,000 Assets Asset Cost Asset Clearing Asset Cost

Adjustment 10,000 10,000 Assets Asset Clearing Asset Cost

Funding Asset Funding (12.2) 10,000 10,000 Payables Lease Funding Liability Payment Pay Invoice 10,000 10,000 Payables Liability Bank Billing Rent (6.1) 7,000 8,000 Receivables Receivables Unbilled

Receivables Receipts Receive Funds 7,000 8,000 Receivables Bank Receivables Accrual Income Recognition

(1.1) 1,500 1,600 Lease Unearned Income Finance Income

Termination Quote Acceptance

Contract Obligation (6.3)

5,500 Receivables Receivables Termination Clearing

Termination Unbilled Receivables

(26.1) 5,000 Lease Termination

Clearing Unbilled Receivables


1,000 Lease Unearned Income Termination Clearing

Gain on Termination (26.1)

1,500 Lease Termination Clearing

Gain on Termination

Residual Value (26.1) 500 Lease Asset Clearing Residual Value Off-lease Amortization

Residual Value 500 Assets Asset Cost Asset Clearing

Rebook Unbilled Receivables

(18.2) 6,000 Lease Unbilled



900 Lease Lease Funding Unearned Income

Residual Value (18.2) 500 Lease Residual Value Lease Funding Booking Unbilled Receivables

(7.2) 6,000 Lease Unbilled



900 Lease Lease Funding Unearned Income



Residual Value (7.2) 500 Lease Residual Value Lease Funding

6. Direct Finance Lease (Rebook from start with increased rent) Original contract

Rent 1000 X 12 = 12000

Billing done for 3 months.

Billing amount up to rebook date 1000 X 3 = 3000

Accrual run for 3 months.

Accrual amount up to rebook date = 833

Rebook contract

New Rent 1100 X 12 = 13200

Expected billing up to Rebook date 1100 X 3 = 3300

Additional billing required = 300

Expected accrual up to Rebook date = 1233

Additional accrual required = 400










(1.1) 833 Lease Unearned Income Finance Income

Rebook Unbilled Receivables

(18.2) 9000 Lease Lease Funding Unbilled Receivables


1,667 Lease Unearned Income Lease Funding

Residual Value (18.2) 500 Lease Lease Funding Residual Value



Booking Unbilled Receivables (7.2)

-10,200 Lease Unbilled Receivables Lease Funding


-2,867 Lease Lease Funding Unearned Income

Residual Value (7.2) 500 Lease Residual Value Lease Funding Billing (as part of Rebook)

Rent (6.1) - 300 Receivables Receivables Unbilled Receivables Accrual (as part of Rebook

Income Recognition (1.1)

-400 Lease Unearned Income Finance Income



7. Loan



Booking Principal (7.2) 10,000 Lease Loan Principal Lease Funding Funding Asset Funding (12.2) 10,000 Payables Lease Funding Liability Payment Pay Invoice 10,000 Payables Liability Bank Billing Principal (6.1) 10,000 Receivables Receivables Loan Principal Interest (6.1) 2,000 Receivables Receivables Revenue Clearing Receipts Receive Funds 12,000 Receivables Bank Receivables Accrual Income Recognition

(1.1) 2,000 Lease Revenue Clearing Interest Income



8. Variable Rate Loan: Calculate Interest Billing on applicable rates for a loan

Major contract parameters:

• Book Classification = Loan

• Interest Calculation Basis – Float

• Revenue Recognition Method – Estimated and Billed

• Principal basis = Scheduled

• Billing stream = Principal payment, Variable Interest

• Accrual stream = Variable Interest, Variable Interest Income



Booking Loan Principal (7.2) 18000 Lease Loan Principal Loan Funding Funding Asset Funding (12.2) 18,000 Payables Lease Funding Liability Payment Pay Invoice 18,000 Payables Liability Bank Accrual Estimated Income

Accrual (1.2) 72 Lease Revenue Clearing Loan Interest Income

Accrual Estimated Income

Accrual Reversal (1.2) 72 Lease Loan Interest Income Revenue Clearing

Billing Bill principal

payment (6.10) 1500 Receivables Receivables Loan Principal

Bill variable interest (6.10)

127.99 Receivables Receivables Revenue Clearing

Receipts Receive Funds 1627.99 Receivables Bank Receivables Accrual Accrue Actual

Interest (1.3) 127.99 Lease Revenue Clearing Loan Interest Income



9. Variable Rate Loan: Calculate Interest Billing on applicable rates for a Revolving Loan

Major contract parameters:

• Book Classification = Revolving Loan

• Interest Calculation Basis – Float

• Revenue Recognition Method – Estimated and Billed

• Principal basis = Actual

• Billing stream = Variable Interest, Unscheduled Principal payment

• Accrual stream = Variable Interest, Variable Interest Income



Booking Not applicable Funding Asset Funding (12.2) 25,000 Payables Loan Principal Liability Payment Pay Invoice 25,000 Payables Liability Bank Accrual Estimated Income

Accrual (1.2) 72 Lease Revenue Clearing Loan Interest Income

Accrual Estimated Income

Accrual Reversal (1.2) 72 Lease Loan Interest Income Revenue Clearing

Billing Bill variable interest

(6.10) 187.50 Receivables Receivables Revenue Clearing

Receipts Receive Funds 187.50 Receivables Bank Receivables Accrual Accrue Actual


Billing Principal Paydown

(6.16) 1000 Receivables Receivables Loan Principal

Receipt Receive Funds 1000 Receivables Bank Receivables



10. Variable Rate Loan: Calculate Interest Billing on applicable rates for a revolving loan Major contract parameters:

• Book Classification = Loan - Revolving

• Interest Calculation Basis – Catchup / Cleanup

• Revenue Recognition Method – Streams


• Billing streams = Interest payment, Principal payment, Interest catchup, Unscheduled Principal payment

• Accrual streams = Interest Income, Interest catchup



Booking Loan Principal (7.2) 10000 Lease Loan Principal Loan Funding Funding Asset Funding (12.2) 10,000 Payables Loan Funding Liability Payment Pay Invoice 10,000 Payables Liability Bank Billing Bill catchup interest

(6.1) 1.66 Receivables Receivables Revenue Clearing

Accrual Accrue catchup

interest (1.1) 1.66 Lease Revenue Clearing Loan Interest Income

Accrual Accrue Interest

Income (1.1) 35.67 Lease Revenue Clearing Loan Interest Income


payment (6.1) 803.12 Receivables Receivables Loan Principal

Bill interest payment (6.1)

66.88 Receivables Receivables Revenue clearing

Receipt Receive funds 870 Receivables Bank Receivables Accrual Accrue Interest

Income (1.1) 64.01 Lease Revenue Clearing Loan Interest Income





Receipt Receive funds 870 Receivables Bank Receivables Accrual Accrue Interest 58.62 Lease Revenue Clearing Loan Interest Income



Income (1.1) Billing Bill principal




Receipt Receive funds 870 Receivables Bank Receivables Billing Bill catchup interest

(6.1) 13.98 Receivables Revenue Clearing Receivables

Accrual Accrue catchup

interest (1.1) 13.98 Lease Loan Interest Income Revenue Clearing



11. Variable Rate Loan: Bill fixed amount and reduce principal on receipt of cash for a loan Major contract parameters:

• Book Classification = Loan

• Interest Calculation Basis = Fixed

• Revenue Recognition Method = Actual


• Billing streams = Variable Loan Payment, Unscheduled loan payment, Excess Interest paid, excess Loan payment paid, Excess Principal paid

• Accrual streams = Actual Income Accrual



Booking Loan Principal (7.2) 10000 Lease Loan Principal Loan Funding Funding Asset Funding (12.2) 10,000 Payables Loan Funding Liability Payment Pay Invoice 10,000 Payables Liability Bank Accrual Accrue Actual


Receipt Receive Funds 908 Receivables Bank Receivables Receipt Application

Allocate receipt to principal (19.1)

863.56 Lease Receivables Clearing Loan Principal

Allocate receipt to Interest (19.1)

44.44 Lease Receivables Clearing Revenue Clearing

Billing Bill variable Loan

payment (6.11) 908 Receivables Receivables Receivables Clearing

Accrual Accrue Actual


Receipt Receive Funds 901.75 Receivables Bank Receivables Receipt Application

Allocate receipt to principal (19.1)

833.23 Lease Receivables Clearing Loan Principal

Allocate receipt to Interest (19.1)

68.52 Lease Receivables Clearing Revenue Clearing

Billing Bill variable Loan

payment (6.11) 901.75 Receivables Receivables Receivables Clearing



Investor Agreement

1. Securitization of Direct Finance Lease

Accounting on the Investor agreement



Billing Investor

Billing investor Stake (6.19)

65,000 Receivables Receivables Investor stake

Activation Investor stake (1541) 65,000 Lease Investor stake Investor Clearing Pre-tax income

adjustment (14.1) 5,500 Lease Pre-tax Income Adj. Investor Clearing

Securitized Rent (14.1)

70.000 Lease Investor Clearing Rent Securitized

Gain (14.1) 500 Lease Investor Clearing Gain on securitization Payment Securitized Rent 70,000 Payables Rent Securitized Liability

Accounting on the Lease contract before securitization



Billing lessee Rent (6.1) 30,000 Receivables Receivables Unbilled Receivables Accrual Income Recognition

(1.1) 2,500 Lease Unearned Income Financed Income


2,500 Lease Financed Income Pre-tax Income Adj.

Accounting on the Lease contract after securitization



Billing lessee Rent (6.1) 70,000 Receivables Investor Receivables Investor Unbilled

Receivables Accrual Income Recognition

(1.1) 5,500 Lease Investor Unearned

Income Investor Financed Income


5,500 Lease Investor Financed Income

Investor Pre-tax Income Adj.



Contract Fees and Subsidy

1. Financed fee



Booking Principal (7.2) 10,000 Lease Loan Principal Lease Funding Funding Expense Funding

(12.3) 10,000 Payables Lease Funding Liability

Payment Pay Invoice 10,000 Payables Liability Bank Billing Principal (6.1) 10,000 Receivables Receivables Loan Principal Interest (6.1) 2,000 Receivables Receivables Revenue Clearing Receipts Receive Funds 12,000 Receivables Bank Receivables Accrual Income Recognition

(1.1) 2,000 Lease Revenue Clearing Interest Income

2. Absorbed fee



Booking Principal (7.2) 10,000 Lease Expense clearing Expense account Accrual Income Recognition

(1.1) 10,000 Lease Expense account Expense clearing

3. Expense fee



Funding Expense Funding

(12.3) 10,000 Payables Expense clearing Liability

Payment Pay Invoice 10,000 Payables Liability Bank Accrual Income Recognition




4. Miscellaneous fee





Payment Pay Invoice 10,000 Payables Liability Bank Accrual Income Recognition


Billing Fee (6.1) 12,000 Receivables Receivables Revenue Clearing Accrual Income Recognition

(1.1) 12,000 Lease Revenue Clearing Revenue account

5. Income fee





6. Passthrough fee





Accrual Income Recognition




Payment Pay Invoice 10,000 Payables Liability Bank



7. Subsidy (Netting Method)



Booking Subsidy (7.2) 10,000 Lease Subsidies Asset Clearing Asset Cost 10,000 Assets Asset Clearing Asset Cost Asset Cost

Adjustment 10,000 Assets Asset Cost Income

Billing/Funding

Subsidies 10,000 Receivables/Payables

Receivables/Funding Subsidies

8. Subsidy (Amortization Method)



Billing/Funding

Subsidies 10,000 Receivables/Payables

Receivables/Funding Subsidies

Accrual Income

Recognition (1.1) 10,000 Lease Subsidies Income



WORKSHEET This worksheet may assist implementers in planning their accounting setups. Set of Books: Accounting Flexfield Structure: Book Classification: Financial Product(s): Special Accounting: Syndicated / Factored / Securitized Accounting Template Set:

Accounting Event

Transaction Type Stream Type Additional Parameters

Dr Account Cr Account



DETAILED SETUP STEPS

1.1 Accrual generation to recognize income based on streams Navigation

Processing > Programs > Generate Accruals Master – Streams

Processing > Programs > Generate Accruals Master – Actual

Processing > Programs > Generate Accruals Master – Estimated And Billed

Transaction Type:

Accrual

Accounting Created:

Recognition of income and expenses of the streams identified for accrual on the financial product. The contract is evaluated for meeting the accrual rules and override flag. If the contract passes the accrual rules the streams are accounted as income. If the contract fails the accrual rules the streams are accounted as non-income. Income is reversed for the prior periods if the accrual reversal days are specified in the setups. When a contract that failed accrual rules is current the streams accounted as non-income are reversed and income accounting generated. This process is called catchup of income.

If the contract is securitized, accrual adjustment streams generated on activation of Investor Agreement are also accounted.

Creation Basis:

The stream amounts are accounted. Contracts that pass the accrual rules apply the accounting template with the memo flag set to “No”. Contracts that fail the accrual rules apply the accounting template with the memo set to “Yes”.

Streams must be defined for accrual on the financial product to be processed by the accrual program.

Accounting Date:

Accounting transactions are created as at the date specified by the user while running the generate accruals program.

Applicability:

Generating accounting entries for accrual is applicable to the following book classifications –

• Operating Lease

• Direct Finance Lease

• Sales Type Lease



• Loan

• Loan – Revolving

Required Setups:

The following setups are required –

• Define accounting templates with the transaction type “Accrual”

• Define one accounting template for each stream associated to the product for accrual with the memo flag set to “No”.

• Define one accounting template for each stream associated to the product for accrual with the memo flag set to “Yes”. This is required only for separate accounting of accrual streams when accrual rules fail for the contract.

• No formula needs to be defined

Prerequisites:

Financial Product –

• Associate all streams including the accrual adjustment streams for securitization of contract that may be accrued as accrual streams on the financial product

Streams –

• Streams must exist for the contract to be accrued

Accrual Rules –

• Define accrual rules for the operating unit

Accrual Reversal Days –

• Define the number of days income to be reversed

Examples:

Operating Lease –

• The income stream is generated for stream type of purpose “Rental Accrual”

• Setup the accounting template with the debit account of the rental accrual accounting template equal to the credit of the billing rent accounting template

Direct Finance Lease / Sales Type Lease –

• The income stream is generated for stream type of purpose “ Lease Income”



• Setup the accounting template with the debit account of the pre tax income accounting template equal to the credit of the booking pre tax income accounting template

Loan -

• The income stream is generated for stream type of purpose “Interest Income”

• Setup the accounting template with the debit account of the pre tax income accounting template equal to the credit of the billing interest payment accounting template

Setup appropriate accounting templates for accrual streams generated for the following:

Contract with Financed or Rollover fee –

• The income stream is generated for stream type of purpose “Interest Income”

Contract with Absorbed fee -

• The expense stream is generated for stream type of purpose “Amortized Fee Expense”

Contract with Income fee -

• The Income stream is generated for stream type of purpose “Accrued Fee Income”

Contract with Expense fee -

• Expense stream is generated for stream type of purpose “Amortized Fee Expense” for the IDC amount

• Expense stream is generated for stream type of purpose “Accrued Fee Expense” for non-IDC amount

Contract with Miscellaneous fee -

• Expense stream is generated for stream type of purpose “Amortized Fee Expense for the IDC expense

• Expense stream is generated for stream type of purpose “Accrued Fee Expense for the non-IDC expense

• The Income stream is generated for stream type of purpose “Accrued Fee Income”

Contract with Passthrough fee -

• Expense stream is generated for stream type of purpose “Pass Through Expense Accrual’’ for the amount to be passed to the vendor



• The Income stream is generated for stream type of purpose “Pass Through Revenue Accrual” for the amount to be received from the lessee

Contract with Service Line -

• The Income stream is generated for stream type of purpose “Service Income”, if there is no pass through of service payments

• Expense stream is generated for stream type of purpose “Pass Through Service Expense Accrual’’ for the amount to be passed to the vendor

• The Income stream is generated for stream type of purpose “Pass Through Service Revenue Accrual” for the amount to be received from the lessee

Contract with Subsidy -

• Subsidy amortization income stream is generated for stream type of purpose “Subsidy Income”

Contract associated to Investor Agreements -

• “Investor Pre-Tax Income” accrual stream is generated for the contract of Direct Finance/Sales Type lease book classification

• “Investor Rental Accrual” accrual stream is generated for the contract of Operating lease book classification

1.2 Accrual generation to recognize estimated interest income on scheduled or actual principal balance Navigation


Transaction Type:

Accrual

Accounting Created:

Recognition of estimated interest income for loan or revolving loan contracts when the actual interest is not available. Estimated interest is calculated on actual or scheduled principal using a formula and accrued on periodic basis. The estimated interest income is reversed at the beginning of the next accounting period.

The contract is evaluated for meeting the accrual rules. If the contract passes the accrual rules the streams are accounted as income. If the contract fails the accrual rules the streams are accounted as non-income.

Creation Basis:



The amount calculated by the formula is accounted. Contracts that pass the accrual rules apply the accounting template with the memo flag set to “No”. Contracts that fail the accrual rules apply the accounting template with the memo set to “Yes”.

Accounting Date:

Accounting transactions are created as at the date specified by the user while running the Generate Accruals Master – Estimated And Billed program.

Applicability:


• Loan


Required Setups:



• Define one accounting template for stream type of purpose “Variable Interest Income” associated to the product for accrual with the memo flag set to “No”.

• Define one accounting template for stream type of purpose “Variable Interest Income” associated to the product for accrual with the memo flag set to “Yes”. This is required only for separate accounting of accrual streams when accrual rules fail for the contract.

• The seeded formula is “VARIABLE_INCOME_ACCRUAL”.

Prerequisites:


• Select Interest Calculation Basis = Float and Revenue Recognition Method = Estimated and Billed

• Associate stream type of purpose “Variable Interest Income” as an accrual streams on the financial product

Accrual Rules –




Contract –



• Define interest rate parameters

Examples:

Loan / Loan - Revolving -

• Setup the accounting template with the debit account to income suspense and credit account to income / non-income.

1.3 Accrual generation to recognize actual interest income on scheduled or actual principal balance Navigation


Transaction Type:

Accrual

Accounting Created:

Recognize actual interest income for loan or revolving loan contracts. Actual Interest income is calculated by the Create Receivables Variable Rate Invoices program. The contract is evaluated for meeting the accrual rules. If the contract passes the accrual rules the streams are accounted as income. If the contract fails the accrual rules the streams are accounted as non-income.

Creation Basis:

The interest amount billed is accounted. Contracts that pass the accrual rules apply the accounting template with the memo flag set to “No”. Contracts that fail the accrual rules apply the accounting template with the memo set to “Yes”.

Accounting Date:


Applicability:


• Loan


Required Setups:





• Define one accounting template for stream type of purpose “Variable Interest” associated to the product for accrual with the memo flag set to “No”.

• Define one accounting template for stream type of purpose “Variable Interest” stream associated to the product for accrual with the memo flag set to “Yes”. This is required only for separate accounting of accrual streams when accrual rules fail for the contract.

• No formulas require to be defined.

Prerequisites:


• Select Interest Calculation Basis = Float and Revenue Recognition Method = Estimated and Billed

• Associate stream type of purpose Variable Interest as an accrual streams on the financial product

Accrual Rules –




Contract –

• Arrears check box should be checked for payments defined on the contract

Processing –

Execute Create Receivables Variable Rate Invoices program

Examples:


• Setup the accounting template with the debit account of the variable interest accounting template equal to the credit of the billing variable interest accounting template

1.4 Accrual generation to recognize actual interest income on actual principal balance Navigation

Processing > Programs > Generate Accruals Master – Actual

Transaction Type:

Accrual



Accounting Created:

Recognize interest income calculated based on the actual principal balance and applicable interest rate for a loan or revolving loan contracts. Interest income is calculated by the formula on the accounting template.

The contract is evaluated for meeting the accrual rules. If the contract passes the accrual rules the streams are accounted as income. If the contract fails the accrual rules the streams are accounted as non-income.

Creation Basis:

The interest amount calculated by formula is accounted. Contracts that pass the accrual rules apply the accounting template with the memo flag set to “No”. Contracts that fail the accrual rules apply the accounting template with the memo set to “Yes”.

Accounting Date:


Applicability:


• Loan


Required Setups:



• Define one accounting template for stream type of purpose “Actual Income Accrual” associated to the product for accrual with the memo flag set to “No”.

• Define one accounting template for stream type of purpose “Actual Income Accrual” stream associated to the product for accrual with the memo flag set to “Yes”. This is required only for separate accounting of accrual streams when accrual rules fail for the contract.

• The seeded formula is “ACTUAL INCOME_ACCRUAL”.

Prerequisites:


• Select Revenue Recognition Method = Actual



• Associate stream type of purpose Actual Income Accrual as an accrual streams on the financial product

Accrual Rules –




Contract –

• Arrears check box should be checked for payments defined on the contract

Examples:


Setup the accounting template with the debit account of the Actual Income Accrual accounting template equal to the credit of the Receipt Application Daily Interest accounting template

1.5 Accrual catchup on termination of lease contract Navigation

Asset Management > Contract Termination > Request Termination

Transaction Type:

Accrual

Accounting Created:

All income in non-accrual accounts is reversed. The contract is treated as good for accrual and all income to be accrued is accounted.

Creation Basis:

The non-accrual transaction is canceled by reversing the debits and credits of the original transaction. The non-accrual income and expenses are accrued.

Accounting Date:

Accounting transactions are created as on the date of termination.

Applicability:


• Operating Lease





• Loan


Required Setups:

No additional setups are required.

Prerequisites:

The contract has created non-accrual accounting transactions.

Examples:

Not applicable

1.6 Accrual acceleration for IDC/Subsidy on termination of lease contract Navigation


Transaction Type:

Accrual

Accounting Created:

Income or expense not accounted for the Subsidy or IDC is accounted on termination of the contract

Creation Basis:

Income stream amount for subsidy and expense stream amount for IDC are accounted.

Accounting Date:

Accounting transactions are created as on the date of termination.

Applicability:


• Operating Lease



• Loan


Required Setups:

Subsidy must have been defined with ‘Accounting Method’ = Amortise



Prerequisites:

• Subsidy must be associated to an asset on the contract

• IDC must be defined on the fees on a contract

Examples:

Not applicable

1.7 Accrual adjustment on rebook of contract Navigation

Origination > Contracts > Revisions

Transaction Type:

Accrual

Accounting Created:

Accrual adjustment amount is accounted on rebook. Accrual rules are not evaluated to the accrual adjustment transaction.

Creation Basis:

Accrual adjustment amount is determined as difference between amount accrued before rebook and amount that should have been accrued based accrual stream element amounts generated on rebook.

Accounting Date:

The current date of rebook transaction is the accounting date for the accrual adjustment.

Applicability:


• Operating Lease



• Loan


Required Setups:


Prerequisites:

The contract has created accrual accounting transactions.



Contract is rebooked

Examples:

Not applicable

1.8 Accrual adjustment for Insurance Policy Income Navigation


Transaction Type:

Accrual Accounting Created:

Accrual adjustment amount for insurance policy income is accounted upon cancellation of insurance policy. Creation Basis:

The insurance income account is debited and insurance reserve account is credited. Accounting Date:

Accounting transactions are created on the date the policy is canceled. Applicability:

Generating accounting entries for insurance is applicable to the following book classifications –

• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan

Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Accrual” • One template should be defined for stream type of purpose of “Insurance

Income Accrual”. • No formulas require to be defined • The debit account must be the insurance income account. • The credit account must be the insurance reserve account.

Prerequisites:

• An insurance policy must be defined for the contract. Examples:

Not applicable

1.9 Accrual adjustment for Insurance Policy Expense Navigation


Transaction Type:



Accrual Accounting Created:

Accrual adjustment amount for insurance policy expense is accounted upon cancellation of insurance policy. Creation Basis:

The insurance reserve account is debited and insurance expense account is credited. Accounting Date:

Accounting transactions are created on the date the policy is canceled. Applicability:

Generating accounting entries for insurance is applicable to the following book classifications –


Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Insurance” • One template should be defined for stream type of purpose of “Insurance

Expense Accrual”. • No formulas require to be defined • The debit account must be the insurance reserve account. • The credit account must be the insurance expense account.

Prerequisites:

• An insurance policy must be defined for the contract. Examples:

Not applicable

2.1 Adjustment of an invoice Navigation

Oracle Collection >

Transaction Type:

Adjustments

Accounting Created:

The account codes are recorded on the invoice adjustment transaction in Oracle Receivables. The accounting is created in the receivables sub ledger.

Creation Basis:

The debit account defined on the accounting template is the revenue account. The credit account applied is the receivables account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables



Accounting Date:

Accounting transactions are created on the date of adjustment. Applicability:

Generating accounting entries for billing is applicable to the following book classifications –

• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan • Loan - Revolving

Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Adjustments” • Templates should be defined for each billable stream • No formulas require to be defined • The debit account must be the revenue or deferred revenue account. • The credit account may be the receivables account.

Prerequisites:

• Contract must be booked • Billable streams must exist for the contract

Examples:

Not applicable

3.1 Asset disposal on acceptance of termination quote with purchase Navigation

Asset Management > Quotes > Termination Quotes

Transaction Type:

Asset Disposition

Accounting Created:

The standard accounting on asset disposal is created by the billing for asset disposal and the retirement of assets in Oracle Assets. Setting up the accounting templates can create additional accounting required during the asset disposition process.

Creation Basis:

The accounting templates are evaluated and accounting created if the amounts are not ‘0’. Evaluating the formulas associated with each accounting template derives the amounts. The financial product associated with the lease contract on which the asset last existed is used to identify the accounting template.

Accounting Date:

Accounting transactions are created on the disposal date. Applicability:



Generate accounting entries for asset disposition is applicable to the following book classification –

• Operating Lease • Direct Finance Lease • Sales Type Lease

Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Asset Disposal” • Choose a different stream type for each accounting template • Formulas must be associated with each template • Define one template for each accounting entry required

Prerequisites:

None Examples:

Not applicable

3.2 Asset disposal on scrapping asset Navigation

Asset Management > Asset Returns > Asset Returns

Transaction Type:

Asset Disposition Accounting Created:

The standard accounting on asset disposal is created by retirement of assets in Oracle Assets. Setting up the accounting templates can create additional accounting required during the asset disposition process. Creation Basis:

The accounting templates are evaluated and accounting created if the amounts are not ‘0’. Evaluating the formulas associated with each accounting template derives the amounts. The financial product associated with the lease contract on which the asset last existed is used to identify the accounting template. Accounting Date:


Generating accounting entries for asset disposition is applicable to the following book classifications –


Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Asset Disposal” • Choose a different stream type for each accounting template • Formulas must be associated with each template



• Define one template for each accounting entry required Prerequisites:

None Examples:

Not applicable

3.3 Asset disposal on repurchase by vendor Navigation

Asset Management > Quotes > Repurchase Quotes

Transaction Type:


The standard accounting on asset disposal is created by the billing for asset disposal and the retirement of assets in Oracle Assets. Setting up the accounting templates can create additional accounting required during the asset disposition process. Creation Basis:





Required Setups:


Prerequisites:

None Examples:

Not applicable

3.4 Asset disposal by sale Navigation



Oracle iStore

Transaction Type:


The standard accounting on asset disposal is created by the billing for asset disposal and the retirement of assets in Oracle Assets. Setting up the accounting templates can create additional accounting required during the asset disposition process. Creation Basis:





Required Setups:


Prerequisites:

None Examples:

Not applicable

5.1 Balance write off on contract termination Navigation


Transaction Type:

Balance Write Off Accounting Created:

The termination process writes off balances for outstanding balances, if the balances are within tolerance. This creates write off transactions in Oracle Receivables against specific invoices. The accounting is created in the receivables sub ledger. Creation Basis:



The debit account defined on the accounting template is applied in the write off transaction. The credit account applied is the receivables account on the invoice being written off. The invoice accounting is debit receivables and credit clearing accounts. The accrual program debits clearing accounts and credits income accounts. The write off transaction should debit the income accounts and credit receivables account. Accounting Date:

Accounting transactions are created on the termination date of the contract. Applicability:

Generating accounting entries for balances write off is applicable to the following book classifications –

• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan • Loan – Revolving

Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Balance Write

Off” • Templates should be defined for each billable stream • No formulas require to be defined • The debit account must be the income account for the specified stream

and not the clearing account. • The credit account defined on this template is not used for accounting.

Prerequisites:

• Outstanding balances exist for the contract terminated • The outstanding balance is within the balance write off tolerance defined

Examples:

Not applicable

6.1 Billing Periodic Navigation

Programs – Process Billable Streams

Advance Billing

Transaction Type:

Billing Accounting Created:

The account codes are recorded on the invoice in Oracle Receivables. The accounting is created in the receivables sub ledger. Creation Basis:

The debit account defined on the accounting template is the receivables account. The credit account applied is the revenue clearing account. The accrual program



debits revenue clearing accounts and credits income accounts. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables Accounting Date:

Accounting transactions are created on the due date of the stream. Applicability:



Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Billing” • Templates should be defined for each billable stream • No formulas require to be defined • The debit account must be the receivables account. • The credit account may be the revenue clearing account or unbilled

receivables. Prerequisites:

• Contract must be booked • Billable streams must exist for the contract

Examples:

Operating Lease • Debit receivables account and credit revenue clearing account for rent. • The accrual program shall debit revenue clearing and credit rental accrual.

Direct Finance Lease / Sales Type Lease • Debit receivables account and credit unbilled receivables for rent.

Loan, Financed Fee, and Rollover Fee on a contract • Debit receivables account and credit loan principal account for the

principal payment • Debit receivables account and credit revenue clearing account for interest

payment. • The accrual program shall debit revenue clearing and credit interest

income. Contracts with Income Fee, Miscellaneous Fee and Passthrough Fee

• Debit receivables account and credit revenue clearing account for fee payment stream type.

• The accrual program shall debit revenue clearing and credit revenue account.

6.2 Billing Manual Navigation



Receivables > Billing > Manual Billing

Transaction Type:



The debit account defined on the accounting template is the receivables account. The credit account applied is the revenue clearing account. The accrual program debits revenue clearing accounts and credits income accounts. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables Accounting Date:

Accounting transactions are created on the invoice date. Applicability:



Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Billing” • Templates should be defined for each billable stream type • No formulas require to be defined • The debit account must be the receivables account. • The credit account must be the revenue / revenue clearing account.

Prerequisites:

Contract header must exist Examples:

Not applicable

6.3 Billing on acceptance of Termination Quote Navigation


Transaction Type:


The account codes are recorded on the invoice in Oracle Receivables. The accounting is created in the receivables sub ledger.



Creation Basis:

The debit account defined on the accounting template is the receivables account. The credit account applied is the revenue account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables. The financial product associated with the lease contract on which the asset last existed is used to identify the accounting template. Accounting Date:

Accounting transactions are created on the quote acceptance date. Applicability:



Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Billing” • Templates should be defined for each stream type used for termination

quote line billing. • No formulas require to be defined • The debit account must be the receivables account. • The credit account for contract obligation must be the termination clearing

account to be set off against the debit account defined for termination clearing on accounting template with transaction type of Termination.

• The credit account for any other quote line must be the revenue account. Prerequisites:

• Termination quote exists. Examples:

Not applicable

6.4 Billing on acceptance of Repurchase Quote Navigation


Transaction Type:



The debit account defined on the accounting template is the receivables account. The credit account applied is the revenue account. The tax and rounding lines are



calculated and accounted based on setups within Oracle Receivables. The financial product associated with the lease contract on which the asset last existed is used to identify the accounting template. Accounting Date:


Generating accounting entries for billing is applicable for any asset available for repurchase. Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Billing” • Templates should be defined for each stream types associated with

termination quote lines . • No formulas require to be defined • The debit account must be the receivables account. • The credit account for contract obligation must be the termination clearing

account to be set off against the debit account defined for termination clearing on accounting template with transaction type of Termination.

• The credit account for any other quote line must be the revenue account. Prerequisites:

Repurchase quote exists. Examples:

Not applicable

6.5 Billing asset condition charge Navigation

Asset Management > Asset Returns > Asset Condition

Transaction Type:




Accounting transactions are created on the transaction date. Applicability:

Generating accounting entries for billing asset condition charges. Required Setups:



The following setups are required – • Define accounting templates with the transaction type “Billing” • One template should be defined for the stream type of purpose “Repair

Charge”. • No formulas require to be defined • The debit account must be the receivables account. • The credit account must be the revenue / clearing account.

Prerequisites:

• Asset line exists with actual charges updated and approved. Examples:

Not applicable

6.6 Billing sale of asset through iStore Navigation

Log into Oracle iStore responsibility as a customer and confirm an order

Transaction Type:




Accounting transactions are created on the date of sale. Applicability:

Generating accounting entries for billing upon sale of asset. Required Setups:

The following setups are required – • Modify order management workflow to bill through Oracle Lease

Management • Define accounting templates with the transaction type “Billing” • One templates should be defined for the stream type defined for

repurchase quote billing • No formulas require to be defined • The debit account must be the receivables account. • The credit account must be the revenue / clearing account.

Prerequisites:

• Asset must be sold through Oracle iStore Examples:



Not applicable

6.7 Billing Customer Service Fee Navigation

Lease Center – Bill Fee

Transaction Type:



The debit account defined on the accounting template is the receivables account. The credit account applied is the revenue account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables Accounting Date:




Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Billing” • One templates should be defined for each stream type of service fee

purposes • No formulas require to be defined • The debit account must be the receivables account. • The credit account must be the revenue account.

Prerequisites:

• The fee must be billed through the lease center Examples:

Not applicable

6.8 Billing Vendor Cure Navigation

Receivables > Request Cure

Transaction Type:

Billing



Accounting Created:


The debit account defined on the accounting template is the receivables account. The credit account applied is the vendor cure account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables Accounting Date:




Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Billing” • One template should be defined for stream type of purpose “Cure”. • No formulas require to be defined • The debit account must be the receivables account. • The credit account must be the revenue account.

Prerequisites:

A cure request must be accepted to generate the invoice. Examples:

Not applicable

6.9 Billing Usage Based Navigation

Program – Usage Based Billing

Transaction Type:






Accounting transactions are created on the scheduled invoice date. Applicability:



Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Billing” • One template should be defined for stream type of purpose “Usage

Payment”. • No formulas require to be defined • The debit account must be the receivables account. • The credit account must be the revenue account.

Prerequisites:

• Contract must have an asset with counters. • The meter reading must be updated. • The billing process for the service contract must be run.

Examples:

Not applicable

6.10 Billing Variable Interest and principal payment for contract with Revenue Recognition Method = Estimated and Billed Navigation


Transaction Type:



Principal payment is accounted based on principal payment stream. Interest is accounted based on the variable interest stream generated by Create Receivables Variable Rate Invoices program. The debit account defined on the accounting template is the receivables account. The credit account applied is the revenue clearing account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables. Accounting Date:

Accounting transactions are created on the stream element date of the principal payment and Variable Interest streams. Applicability:




• Loan • Loan - Revolving

Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Billing” • One template should be defined for stream type of purpose “Variable

Interest”. • One template should be defined for stream type of purpose “Principal

payment” for loan type contracts only. • One template should be defined for stream type of purpose “Unscheduled

Principal Payment”. • No formulas require to be defined • •

Prerequisites:

• Contract must have the interest rate parameters defined. • Revenue Recognition Method of the financial product should be set to

Estimated and Billed. Examples:

Principal payment • The debit account must be the receivables account. • The credit account must be equal to the debit of the booking loan balance

accounting template. Variable Interest

• The debit account must be the receivables account. • The credit account must be equal to the debit of the accrual variable

interest accounting template.

Unscheduled Principal Payment • The debit account must be the receivables account. • The credit account must be equal to the debit of the booking loan balance

accounting template.

6.11 Billing Loan payment for contract with Revenue Recognition Method = Actual Navigation


Transaction Type:





The debit account defined on the accounting template is the receivables account. The credit account applied is the revenue clearing account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables. The accrual program accounts for debit revenue clearing and credit income for the actual interest billed. Accounting Date:

Accounting transactions are created on the scheduled billing date for principal. Applicability:


• Loan Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Billing” • One template should be defined for stream type of purpose “Variable Rate

Charge”. • No formulas require to be defined • The debit account must be the receivables account. • The credit account must be the revenue clearing account.

Prerequisites:

• Contract must have the interest rate terms and conditions defined. • The interest rate basis must be “Float”.

Examples:

Not applicable

6.12 Billing Interim Interest Navigation

Program – Interest Calculation

Transaction Type:




Accounting transactions are created for the end of every accounting period that the program is run.



Applicability:



Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Billing” • One template should be defined for stream type of purpose “Interim

Interest”. • No formulas require to be defined • The debit account must be the receivables account. • The credit account must be the revenue account.

Prerequisites:

• Contract must be funded before booking (pre funding). • The pre funding must be paid in Oracle Payables. • The interest rate terms and conditions must be defined on the contract • The capitalize interest flag should be unchecked

Examples:

Not applicable

6.13 Billing Late Interest Navigation

Program – Calculate Late Interest

Transaction Type:




Accounting transactions are created for the date on which the program is run. Applicability:


• Operating Lease • Direct Finance Lease



• Sales Type Lease • Loan • Loan - Revolving

Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Billing” • One template should be defined for stream type of purpose “Late

Interest”. • No formulas require to be defined • The debit account must be the receivables account. • The credit account must be the revenue account.

Prerequisites:

• Late interest should have been defined for the contract Examples:

Not applicable

6.14 Billing Late Charge Navigation

Program – Calculate Late Charges

Transaction Type:




Accounting transactions are created for the date on which the program is run. Applicability:



Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Billing” • One template should be defined for stream type of purpose “Late Fee”.



• No formulas require to be defined • The debit account must be the receivables account. • The credit account must be the revenue account.

Prerequisites:

• Late charge must be defined for the contract Examples:

Not applicable

6.15 Billing Insurance Navigation

Program – Process Billable Streams

Transaction Type:



The debit account defined on the accounting template is the receivables account. The credit account applied is the revenue clearing account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables. The accrual program accounts for debit revenue clearing and credit income for the actual interest billed. Accounting Date:

Accounting transactions are created for the due date of the stream. Applicability:



Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Billing” • One template should be defined for stream type of purpose “Insurance

Receivable”. • No formulas require to be defined • The debit account must be the receivables account. • The credit account must be the revenue clearing account.

Prerequisites:

• Insurance policy must have been defined for the contract. Examples:

Not applicable



6.16 Billing Principal or Loan Paydown Navigation

Lease Center - Requests

Transaction Type:



The debit account defined on the accounting template is the receivables account. The credit account applied is the loan principal account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables. Accounting Date:

Accounting transactions are created for the transaction date. Applicability:



Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Billing” • One template should be defined for stream type of purpose “Unscheduled

Principal Payment”. • No formulas require to be defined • The debit account must be the receivables account. • The credit account must be the loan principal balance account.

Prerequisites:

None Examples:

Not applicable

6.17 Billing Advanced Rent Navigation

Program – Process Billable Streams

Transaction Type:





The debit account defined on the accounting template is the receivables account. The credit account applied is the advanced rent account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables. Accounting Date:

Accounting transactions are created for the transaction date. Applicability:



Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Billing” • One template should be defined for stream type of purpose “Advanced

Rent”. • No formulas require to be defined • The debit account must be the receivables account. • The credit account must be the advanced rent account.

Prerequisites:

• Advanced rent must be defined for the contract. Examples:

Not applicable

6.18 Billing Evergreen Rent Navigation

Program – Evergreen Billing

Transaction Type:









Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Billing” • Templates should be defined for streams – Evergreen Rent, Evergreen

Fees and Evergreen Service and Maintenance. • No formulas require to be defined • The debit account must be the receivables account. • The credit account must be the revenue account.

Prerequisites:

• Contract status is Evergreen Examples:

Not applicable

6.19 Billing Investor Stake Navigation

Investor > Investor Agreements > Activation

Transaction Type:


Invoice for the Investor stake is generated on activation of the Investor agreement. The account codes are recorded on the invoice in Oracle Receivables. The accounting is created in the receivables sub ledger. Creation Basis:

The debit account defined on the accounting template is the receivables account. The credit account applied is the Investor Stake account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables Accounting Date:

Accounting transaction is created as on the effective date of Investor Agreement. Applicability:

• Investor Agreement Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Billing” • No formulas require to be defined • The debit account must be the receivables account. • The credit account must be the Investor Stake account.

Prerequisites:

• Contract is booked and Pool is created



Examples:

Not applicable

6.20 Billing Stream type with Revenue Recognition Basis = Cash Receipt Navigation

Program – Process Billable streams

Advance Billing

Transaction Type:



When an invoice created in AR, receivables and deferred revenue accounts are used to account the invoice. When a receipt is applied to the invoice, deferred revenue account and revenue account is used to recognize income on the invoice. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables Accounting Date:



• Operating Lease • Income Fee • Miscellaneous fee • Passthrough fee

Required Setups:

The following setups are required – • Define two accounting templates for each billing stream type with

Revenue Recognition Basis = Cash Receipt • On first accounting template with Memo = No

o The debit account must be the receivables account. o The credit account must be the revenue account.

• On second accounting template with Memo = Yes o The debit account is not used. o The credit account must be the deferred revenue account.

• Three account distributions are passed to AR for accounting • No formulas require to be defined

Prerequisites:

• Contract status is Evergreen



Examples:

Not applicable

6.21 Billing Property Tax Navigation


Transaction Type:



The debit account defined on the accounting template is the receivables account. The credit account applied is the Income or liability account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables Accounting Date:

Accounting transactions are created on the due date of the stream element. Applicability:


• Operating Lease • Direct Finance Lease • Sales Type Lease • Loan • Loan Revolving

Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Billing” • Templates should be defined for each stream type with the purposes of

Actual Property tax, Estimated Property tax or Adjusted property tax • No formulas require to be defined • The debit account must be the receivables account. • The credit account may be income or liability account.

Prerequisites:

• ‘Bill Property Tax’ is set to yes Estimated or Estimated and Actual • Contract must be booked • Payment for stream type with a purpose of Estimated Property Tax is

defined for an asset Examples:

• Debit receivables account and credit income or liability account



6.22 Billing Adjustment on rebook of contract Navigation


Transaction Type:

Billing

Accounting Created:

Billing adjustment amount is accounted on rebook.

Creation Basis:

Billing adjustment amount is determined as difference between amount billed before rebook and amount that should have been billed based billable stream element amounts generated on rebook.

Accounting Date:

The current date of rebook transaction is the accounting date for the billing adjustment.

Applicability:


• Operating Lease



• Loan


Required Setups:


Prerequisites:

Billing transactions has been generated.

Contract is rebooked

Examples:

Not applicable

7.1 Booking generate draft journal Navigation

Origination > Contracts > Booking

Transaction Type:



Booking Accounting Created:

Accounting distributions that occur on the establishment of the contract are available for review by the contract administrator. These accounting distributions are not transferred to the general ledger. (Navigation – Financials > Inquiry > Transactions) Creation Basis:

The financial product on the lease contract and the transaction type – booking are sent to the accounting engine. All accounting templates available for the product and transaction type are evaluated for accounting. Accounting is created when the formula returns an amount not ‘0’. If accounting templates with Memo Flag = Yes are defined, they are used to create draft accounting journals. If the accounting templates with Memo flag = Yes are not defined, accounting engine defaults the accounting templates with Memo Flag = No as described under “Accounting Template Defaulting Rules” in Setups and Entities that impact accounting section. This allows the user to create draft accounting that may be different from the actual accounting generated on booking of a contract. Accounting Date:

The accounting date is the start date of the contract. Applicability:

Generating accounting entries for booking is applicable to the following book classifications –


Required Setups:

The following setups are required to achieve accounting for booking – • Define accounting templates with the transaction type “Booking” • Define one accounting template for each accounting entry of the booking

process • Every accounting template must have a formula to derive the amount to

be accounted • New formulas may require to be defined, if the seeded formulas do not

provide the amount to be accounted Prerequisites:

Operating Lease • The asset cost is available on the lease contract

Direct Finance Lease / Sales Type Lease • The rent streams are generated for the lease contract • The income streams are generated for the lease contract • The residual value is available on the lease contract



Loan / Loan - Revolving • The loan principal is available on the lease contract

Examples:

Operating Lease • One accounting template for asset cost • Debit asset clearing account and credit lease funding account for the asset

cost • Additional templates for fees, service etc.

Direct Finance Lease / Sales Type Lease • Three accounting templates for asset cost • Debit unbilled receivables and credit lease funding for the total rent • Debit lease funding and credit unearned income for the total income • Debit residual value and credit lease funding for the residual • Additional templates for fees, service etc.

Loan / Loan – Revolving • One accounting template for asset cost • Debit loan principal account and credit lease funding account for the asset


7.2 Booking activate contract Navigation


Transaction Type:

Booking Accounting Created:

Accounting distributions that occur on the booking of the contract are available for transfer into the general ledger. (Navigation – Financials > Inquiry > Transactions) Creation Basis:

The financial product on the lease contract and the transaction type – booking are sent to the accounting engine. All accounting templates available for the product and transaction type are evaluated for accounting. The amounts accounted are amounts returned by the formula on the accounting template. Accounting is created when the formula returns an amount not ‘0’. Accounting Date:






Required Setups:

The following setups are required to achieve accounting for booking – • Define accounting templates with the transaction type “Booking” and

Memo Flag = No • Define one accounting template for each accounting entry of the booking

process • Every accounting template must have a formula to derive the amount to



Operating Lease • The asset cost is available on the lease contract

Direct Finance Lease / Sales Type Lease • The rent streams are generated for the lease contract • The income streams are generated for the lease contract • The residual value is available on the lease contract

Loan / Loan - Revolving • The loan principal is available on the lease contract

Examples:

Operating Lease • One accounting template for asset cost • Debit asset clearing account and credit lease funding account for the asset


Direct Finance Lease / Sales Type Lease • Three accounting templates for asset cost • Debit unbilled receivables and credit lease funding for the total rent • Debit lease funding and credit unearned income for the total income • Debit residual value and credit lease funding for the residual • Additional templates for fees, service etc.

Loan / Loan – Revolving • One accounting template for asset cost • Debit loan principal account and credit lease funding account for the asset


7.3 Reverse contract Navigation


Transaction Type:

Booking

Accounting Created:

All accounting created on booking is reversed.



Creation Basis:

The booking transaction is canceled reversing the debits and credits.

Accounting Date:

Accounting transactions are created on the reversal date.

Applicability:


• Operating Lease



• Loan


Required Setups:


Prerequisites:

• The contract must be in booked status.

Examples:

• Not applicable

8.1 Credit memo on acceptance of Termination Quote with negative values Navigation


Transaction Type:

Credit Memo Accounting Created:

The account codes are recorded on the credit memo in Oracle Receivables. The accounting is created in the receivables sub ledger. Creation Basis:

The debit account defined on the accounting template is the expense account. The credit account applied is the receivables account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables. Credit memos are created in Oracle Receivables for all quote lines with negative values. Accounting Date:




Generating accounting entries for credit memo is applicable to the following book classifications –


Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Credit Memo” • Templates should be defined for each streams associated with quote line

types. • No formulas require to be defined • The debit account must be the expense account. • The credit account must be the receivables account.

Prerequisites:


Not applicable

8.2 Credit memo on acceptance of Repurchase Quote with negative values Navigation


Transaction Type:



The debit account defined on the accounting template is the revenue account. The credit account applied is the receivables account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables. Credit memos are created in Oracle Receivables for all quote lines with negative values. Accounting Date:


Generating accounting entries for credit memo for assets sold to vendors through the repurchase process. Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Credit Memo”



• Templates should be defined for each streams associated with quote line types.

• No formulas require to be defined • The debit account must be the revenue account. • The credit account must be the receivables account.

Prerequisites:

• Repurchase quote exists. Examples:

Not applicable

8.3 Credit Memo from Customer Service Navigation

Lease Center - Transactions

Transaction Type:



The debit account defined on the accounting template is the revenue account. The credit account applied is the receivables account of the invoice adjusted. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables. The revenue account should be the account defined for the accrual transaction, if revenue is recognized through the generate accruals process. Accounting Date:

Accounting transactions are created on the credit date. Applicability:



Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Credit Memo” • Templates should be defined for each stream type with the billable

attribute set to “Yes”. • No formulas require to be defined • The debit account must be the revenue account. • The credit account must be the receivables account.

Prerequisites:



• An invoice with an unpaid balance. Examples:

Not applicable

8.4 Credit memo for Vendor Cure Refund Offset Navigation

Receivables > Refund Cure

Transaction Type:



The debit account defined on the accounting template is the cure account. The credit account applied is the receivables account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables. Accounting Date:

Accounting transactions are created on the cure refund date. Applicability:



Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Credit Memo” • One template should be defined for stream type of purpose “Cure”. • No formulas require to be defined • The debit account must be the revenue account. • The credit account must be the receivables account.

Prerequisites:

• Vendor cure refund must be offset against subsequent cure claims. Examples:

Not applicable

8.5 Credit Memo for Advanced Rent Navigation

Lease Center - Requests



Transaction Type:



The debit account defined on the accounting template is the advanced rent account. The credit account applied is the receivables account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables. Accounting Date:




Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Credit Memo” • One template should be defined for stream type of purpose “Advanced

Rent”. • No formulas require to be defined • The debit account must be the advanced rent account. • The credit account must be the receivables account.

Prerequisites:

• Advanced rent must be defined for the contract. Examples:

Not applicable

8.6 Credit Memo for Billing Adjustment Navigation

None

Transaction Type:





The debit account defined on the accounting template is the billing adjustment account. The credit account applied is the receivables account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables. Accounting Date:




Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Credit Memo” • One template should be defined for stream type of purpose “Billing

Adjustment”. • No formulas require to be defined • The debit account must be the Billing Adjustment account. • The credit account must be the Receivables account.

Prerequisites:

• The rebooking process must create negative streams with the stream type Billing Adjustment

Examples:

Not applicable

8.7 Credit Memo for billing stream types on rebook Navigation

None

Transaction Type:



The debit account defined on the accounting template is the revenue account for the billing streams types. The credit account applied is the receivables account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables. Accounting Date:






Required Setups:

The following setups are required – • Define accounting templates with the transaction type Credit Memo • One template should be defined for each billing stream type • No formulas require to be defined • The debit account must be the billing stream types account. • The credit account must be the receivables account.

Prerequisites:

• The rebooking process must create negative streams with each billing stream type

Examples:

Not applicable

8.8 Credit Memo for Stream type with Revenue Recognition Basis = Cash Receipt Navigation

Lease Center - Transactions

Transaction Type:



The debit account defined on the accounting template is the deferred revenue account. The credit account applied is the receivables account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables. Accounting Date:

Accounting transactions are created on the credit date. Applicability:


• Operating Lease • Income Fee • Miscellaneous fee • Passthrough fee



Required Setups:

The following setups are required – • Define accounting templates with the transaction type Credit Memo • One template should be defined for each billing stream type with Revenue

Recognition Basis = Cash Receipt • No formulas require to be defined • The debit account must be the deferred revenue account. • The credit account must be the receivables account.

Prerequisites:

• An invoice with an unpaid balance. Examples:

Not applicable

9.1 Debit memo for Negative Pre Funding Navigation

Origination > Funding

Transaction Type:

Debit Memo Accounting Created:

The account codes are recorded on the credit memo with negative amount in Oracle Payables. The accounting is created in the payables sub ledger. Creation Basis:

The debit account defined on the accounting template is the pre funding account. The credit account applied is the liability account. Accounting Date:

Accounting transactions are created on the due date specified on the funding request. Applicability:



Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Debit Memo” • One template should be defined for stream type of purpose “Pre

Funding”. • No formula is required to be defined • The debit account must be the pre funding account. • The credit account must be the liability account.



Prerequisites:

• Funding request of type pre funding must be approved with a negative amount.

Examples:

On creation of accounting for the invoice in Oracle Payables, following accounting is generated.

• Debit liability account and credit pre funding account

9.2 Debit memo for Supplier Retention Navigation


Transaction Type:

Debit Memo Accounting Created:

The account codes are recorded on the credit memo with negative amount in Oracle Payables. The accounting is created in the payables sub ledger. Creation Basis:

The debit account defined on the accounting template is the supplier retention account. The credit account applied is the liability account. Accounting Date:




Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Debit Memo” • One template should be defined for stream type specified on the funding

request. • No formulas require to be defined • The debit account must be the supplier retention account. • The credit account must be the liability account.

Prerequisites:

• Funding request of type vendor retention must be approved. Examples:

On creation of accounting for the invoice in Oracle Payables, following accounting is generated.



• Debit liability account and credit supplier retention account

10.1 Disbursement Manual Navigation

Receivables > Disbursements

Transaction Type:

Disbursement Accounting Created:

The account codes are recorded on the invoice in Oracle Payables. The accounting is created in the payables sub ledger. Creation Basis:

The debit account defined on the accounting template is the expense account. The credit account applied is the liability account. Accounting Date:

Accounting transactions are created on the date the disbursement is approved. Applicability:

Generating accounting entries for disbursement is applicable to the following book classifications –


Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Disbursement” • One template should be defined for each stream type with the class

“Expense” • No formulas require to be defined • The debit account must be the expense account. • The credit account must be the liability account.

Prerequisites:

• Manual disbursement must be approved. Examples:

Not applicable

10.2 Disbursement Pass Through Navigation

Program – Pay Invoices Creation of Auto Disbursement Process

Transaction Type:

Disbursement



Accounting Created:

The account codes are recorded on the invoices in Oracle Payables. The accounting is created in the payables sub ledger. Creation Basis:


Accounting transactions are created on the disbursement approval date. Applicability:



Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Disbursement” • One template should be defined for each stream type used for pass

through disbursements. • No formulas require to be defined • The debit account must be the expense account. • The credit account must be the liability account.

Prerequisites:

• Pass through must be defined on the contract. Examples:

Not applicable

10.3 Disbursement Insurance Navigation

Program – Insurance Payment Program

Transaction Type:




Accounting transactions are created on the disbursement date.



Applicability:



Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Disbursement” • One template should be defined for stream type of purpose “Insurance

Payable”. • No formulas require to be defined • The debit account must be the expense account. • The credit account must be the liability account.

Prerequisites:

• Insurance policy exists for the contract. Examples:

Not applicable

10.4 Disbursement of Vendor Cure Refund Navigation

Receivables > Refund Cure

Transaction Type:



The debit account defined on the accounting template is the cure account. The credit account applied is the liability account. Accounting Date:

Accounting transactions are created on the refund date. Applicability:



Required Setups:




• Define accounting templates with the transaction type “Disbursement” • One template should be defined for stream type of purpose “Cure”. • No formulas require to be defined • The debit account must be the cure account. • The credit account must be the liability account.

Prerequisites:

• The vendor cures the contract. Examples:

Not applicable

10.5 Disbursement to Investor Navigation

Concurrent Programs

1. Create Investor Invoice Disbursement

2. Investor Payables Consolidation

Transaction Type:



The debit account defined on the accounting template is the Rent Securitized or an account relevant to stream type of the Subclass “Investor disbursement” and Stream type “Investor Rent Payable”. The credit account applied is the liability account. Accounting Date:

Accounting transactions are created on the due date of stream. Applicability:

• Investor Agreement Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Disbursement” • One template should be defined for each stream type of the Subclass

“Investor Disbursement” and stream type of purpose “Investor Rent Payable”.

• No formulas require to be defined • The debit account must be the relevant investor disbursement stream type

account. • The credit account must be the liability account.

Prerequisites:

• Investor agreement is activated



• Billing is done on the contract that is part of Investor agreement Examples:

Not applicable

11.1 Conversion of contract to Evergreen status Navigation

Programs – Terminate Expired contract

Transaction Type:

Evergreen Accounting Created:

Accounting distributions that occur on conversion of the contract to Evergreen status are available for transfer into the general ledger. Creation Basis:

The financial product on the lease contract and the transaction type – Evergreen are sent to the accounting engine. All accounting templates available for the product and the transaction type are evaluated for accounting. The amounts accounted are non-zero amounts returned by the formula on the accounting template. Accounting Date:

The accounting date is the contract effective-to date. Applicability:

Generating accounting entries for termination is applicable to the following book classifications –


Required Setups:

The following setups are required to achieve accounting for termination – • Define accounting templates with the transaction type “Evergreen” • Define one accounting template for each accounting entry required for

evergreen processing • Every accounting template must have a formula to derive the amount to



None Examples:

None

12.1 Funding Contract before Activation Navigation




Transaction Type:

Funding Accounting Created:


The debit account defined on the accounting template is the pre funding account. The credit account applied is the liability account. Accounting Date:


Generating accounting entries for funding is applicable to the following book classifications –


Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Funding” • One template should be defined for stream type of purpose “Pre

Funding”. • No formulas require to be defined • The debit account must be the pre funding account. • The credit account must be the liability account.

Prerequisites:

• Contract must be eligible for pre funding. • Funding request of type pre funding must be approved.

Examples:

Not applicable

12.2 Funding Asset on Contract Navigation


Transaction Type:


The account codes are recorded on the invoice in Oracle Payables. The accounting is created in the payables sub ledger.



Creation Basis:

The debit account defined on the accounting template is the lease funding account. The credit account applied is the liability account. Accounting Date:




Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Funding” • One template should be defined for stream type of purpose “Funding”. • No formulas require to be defined • The debit account must be the lease funding account. • The credit account must be the liability account.

Prerequisites:

• Funding request of type asset funding must be approved. Examples:

Not applicable

12.3 Funding Expenses on Contract Navigation


Transaction Type:



The debit account defined on the accounting template is the lease funding account. The credit account applied is the liability account. Accounting Date:






Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Funding” • One template should be defined for stream type “Funding”. • No formulas require to be defined • The debit account must be the lease funding account. • The credit account must be the liability account.

Prerequisites:

• Funding request of type fee funding must be approved. Examples:

Not applicable

12.4 Funding Borrower Payment Navigation


Transaction Type:



The debit account defined on the accounting template is the loan principal account. The credit account applied is the liability account. Accounting Date:



• Loan - Revolving Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Funding” • One template should be defined for stream type of purpose “Principal

Balance”. • No formulas require to be defined • The debit account must be the loan principal account. • The credit account must be the liability account.



Prerequisites:

• Funding request of type borrower payment must be approved. Examples:

Not applicable

13.1 General Loss Provision Creation Navigation

Processing > Programs > General Loss Provision

Transaction Type:

General Loss Provision Accounting Created:

An accounting transaction is created for each contract against which a general loss provision is computed. The contract is evaluated for loss rates defined and the loss reserve amount is computed. Creation Basis:

The debit account defined on the accounting template is the loss expense account and the credit account is the loss reserve account. Accounting Date:

Accounting transactions is the date specified by the user for creation of the loss provision. Applicability:

Generating accounting entries for general loss provision is applicable to the following book classifications –


Required Setups:

The following setups are required – • Define accounting templates with the transaction type “General Loss

Provision” • One template should be defined for each stream type of purpose “General

Loss Provision” • No formulas require to be defined • The debit account must be the loss expense account. • The credit account must be the loss reserve account.

Prerequisites:

• Loss rates must be defined for aging buckets. Examples:

Not applicable



13.2 General Loss Provision Reversal on new provision Navigation

Processing > Programs > General Loss Provision

Transaction Type:


The loss provision transaction created is cancelled. Creation Basis:

The loss reserve account is debit and loss expense account credited with the amount of the existing provision. Accounting Date:

Accounting transactions is cancelled on the date of creating the new provision. Applicability:



Required Setups:

None Prerequisites:

• A general loss provision must exist for the contract. Examples:

Not applicable

13.3 General Loss Provision Reversal on Termination of Contract Navigation


Transaction Type:




Accounting transactions is cancelled on the contract termination date. Applicability:





Required Setups:

None Prerequisites:

• A general loss provision must exist for the contract. Examples:

Not applicable

14.1 Investor Agreement Activation Navigation

Investor > Investor Agreement > Activation

Transaction Type:

Investor Accounting Created:

Accounting distributions that occur on the activation of Investor agreement are available for transfer into the general ledger. Creation Basis:

The financial product on the Investor Agreement and the transaction type – Investor are sent to the accounting engine. All accounting templates available for the product and transaction type are evaluated for accounting. The amounts accounted are amounts returned by the formula on the accounting template. Accounting is created when the formula returns an amount not ‘0’. Accounting Date:

The accounting date is the effective date of the Investor Agreement. Applicability:

Generating accounting entries on activation is applicable to all investor agreements. Required Setups:

The following setups are required to achieve accounting for Investor Agreement activation –

• Define accounting templates with the transaction type “Investor” • Define one accounting template for each accounting entry of the

activation process • Every accounting template must have a formula to derive the amount to





• Contact is booked and Pool is created Examples:

Investor agreement for direct finance lease contracts • Debit Investor stake and credit Investor clearing for investor investment • Debit Investor pre-tax income and credit Investor clearing for the total

pre-tax income adjustments • Debit Investor clearing and credit Rent securitized for the total rent

amount securitized • Debit Investor clearing and credit Gain on securitized for the Gain on

securitization transaction

15.1 Miscellaneous Manual Journal Navigation

Financials > Create Transactions

Transaction Type:

Miscellaneous Accounting Created:

Accounting entries are created in the lease sub ledger referring to contracts. These accounting entries must be manually created. Creation Basis:

The account codes may be user specified or defaulted for an accounting template. Accounting template with any transaction type may be used to default the account codes, but accounting for the miscellaneous transaction is created with the transaction type of ‘ Miscellaneous’ Accounting Date:


Generating accounting entries for miscellaneous is applicable to the following book classifications –


Required Setups:

None Prerequisites:

• Contract header must be created. Examples:

Not applicable



17.1 Adjust Principal balance Navigation

Program – Create Receivables Variable Rate Invoices

Transaction Type:

Principal Adjustment Accounting Created:

Billing process generates invoices for the original interest payment stream. Create Receivables Variables Rate Invoices program calculates actual interest based on the actual or scheduled outstanding principal balance for catchup of interest. If the interest amount billed is more than the interest calculated by the Create Receivables Variables Rate Invoices program; the excess interest is stored with stream type of purpose principal catchup. Creation Basis:

Principal catchup stream element is accounted to adjust the principal balance. Accounting Date:

The accounting date is the transaction date. Applicability:

Generating accounting entries for principal adjustment is applicable to the following book classifications –

• Loan Required Setups:

The following setups are required to achieve accounting for principal adjustment – • Define accounting templates with the transaction type “Principal

Adjustment” • Define one accounting template for stream type of purpose of Principal

Catchup. • No formula required to be defined • The debit account must be the Interest / clearing account. • The credit account must be the Loan principal account.

Prerequisites:

Loan • Loan contract has financial product with Interest calculation basis =

Catchup/Cleanup and Revenue Recognition Method = Streams • Excess interest amount has been billed

Examples:

None

18.1 Rebook generate draft journal Navigation


Transaction Type:

Rebook



Accounting Created:

Accounting distributions reverse the accounting for the contract before the rebook are available for review by the contract administrator. These accounting distributions are not transferred to the general ledger. (Navigation – Financials > Inquiry > Transactions) Creation Basis:

The financial product on the lease contract and the transaction type – rebook are sent to the accounting engine. All accounting templates available for the product and transaction type are evaluated for accounting. The financial product on the lease contract and the transaction type – booking are sent to the accounting engine. All accounting templates available for the product and transaction type are evaluated for accounting. The same formula shall return the values for the original contract when the transaction type is rebook and values for the new contract when the transaction type is booking. Accounting is created when the formula returns an amount not ‘0’. If accounting templates with Memo Flag = Yes are defined, they are used to create draft accounting journals. If the accounting templates with Memo flag = Yes are not defined, accounting engine defaults the accounting templates with Memo Flag = No as described under “Accounting Template Defaulting Rules” in Setups and Entities that impact accounting section. This allows the user to create draft accounting that may be different from the actual accounting generated on booking of a contract. Accounting Date:


Generating accounting entries for rebook is applicable to the following book classifications –


Required Setups:

The following setups are required to achieve accounting for rebook – • Define accounting templates with the transaction type “Rebook” and the

transaction type “Booking”, if not defined under 7.1 • Define one accounting template for each accounting entry of the booking

process • Define one accounting template for each accounting entry of the booking

process • Define the accounting templates for rebook with the same values for

booking but the debit accounts set to credit and credit accounts set to debit.



• Every accounting template must have a formula to derive the amount to be accounted

• New formulas may require to be defined, if the seeded formulas do not provide the amount to be accounted

Prerequisites:

Operating Lease • The asset cost is available on the rebooked lease contract and original lease

contract Direct Finance Lease / Sales Type Lease

• The rent streams are generated for the rebooked lease contract and original lease contract

• The income streams are generated for the rebooked lease contract and original lease contract

• The residual value is available on the rebooked lease contract and original lease contract

Loan / Loan - Revolving • The loan principal is available on the rebooked lease contract and original

lease contract Examples:

Operating Lease • One accounting template for asset cost for rebook • Debit asset lease funding account and credit asset clearing account for the

original asset cost to be reversed • One accounting template for asset cost for booking • Debit asset clearing account and credit lease funding account for the asset

cost for the new asset cost Direct Finance Lease / Sales Type Lease

• Three accounting templates for asset cost for rebook • Debit lease funding account and credit unbilled receivables account for the

total rent to be reversed • Debit unearned income account and credit lease funding account for the

total income to be reversed • Debit lease funding account and credit residual value account for the

residual to be reversed • Three accounting templates for asset cost for booking • Debit unbilled receivables and credit lease funding for the total rent • Debit lease funding and credit unearned income for the total income • Debit residual value and credit lease funding for the residual

Loan / Loan – Revolving • One accounting template for asset cost for rebook • Debit lease funding account and credit loan principal account for the asset

cost to be reversed • One accounting template for asset cost for booking • Debit loan principal account and credit lease funding account for the asset

cost Financed fee on contract of above book classifications

• One accounting template for loan balance amount for rebook



• Debit Lease Funding account and credit Loan balance account for total of all financed fees to be reversed

• One accounting template for loan balance amount for booking • Debit Loan balance account and credit Lease Funding account for total of

all financed fees Absorbed fee on contract of above book classifications

• One accounting template for absorbed fee amount for rebook • Debit expense account and credit Expense clearing account for total of all

absorbed fees to be reversed • One accounting template for absorbed fee amount • Debit Expense clearing account and credit expense account for total of all

absorbed fees

18.2 Rebook contract activation Navigation


Transaction Type:

Rebook Accounting Created:

Accounting distributions that reverse the accounting for the contract before the rebook and create accounting for the contract after the rebook are available for transfer into the general ledger. (Navigation – Financials > Inquiry > Transactions) Creation Basis:

The financial product on the lease contract and the transaction type – rebook are sent to the accounting engine. All accounting templates available for the product and transaction type are evaluated for accounting. The financial product on the lease contract and the transaction type – booking are sent to the accounting engine. All accounting templates available for the product and transaction type are evaluated for accounting. The same formula shall return the values for the original contract when the transaction type is rebook and values for the new contract when the transaction type is booking. Accounting is created when the formula returns an amount not ‘0’. Accounting Date:

The accounting date is the rebook date of the contract. Applicability:



Required Setups:

The following setups are required to achieve accounting for booking –



• Define accounting templates with the transaction type “Rebook” and the transaction type “Booking”, if not defined under 7.2

• Define one accounting template for each accounting entry of the booking process

• Define the accounting templates for rebook with the same values for booking but the debit accounts set to credit and credit accounts set to debit.



Prerequisites:










cost for the new asset cost • Additional templates for fees, service etc.

Direct Finance Lease / Sales Type Lease • Three accounting templates for asset cost for rebook • Debit lease funding account and credit unbilled receivables account for the

total rent to be reversed • Debit unearned income account and credit lease funding account for the

total income to be reversed • Debit lease funding account and credit residual value account for the

residual to be reversed • Three accounting templates for asset cost for booking • Debit unbilled receivables and credit lease funding for the total rent • Debit lease funding and credit unearned income for the total income • Debit residual value and credit lease funding for the residual • Additional templates for fees, service etc.

Loan / Loan – Revolving



• One accounting template for asset cost for rebook • Debit lease funding account and credit loan principal account for the asset



Financed fee on contract of above book classifications • One accounting template for loan balance amount for rebook • Debit Lease Funding account and credit Loan balance account for total of

all financed fees to be reversed • One accounting template for loan balance amount for booking • Debit Loan balance account and credit Lease Funding account for total of




absorbed fees

18.3 Rebook mass contracts Navigation

Program – Mass Rebooks

Transaction Type:

Rebook Accounting Created:

Accounting distributions that reverse the accounting for the contract before the rebook and create accounting for the contract after the rebook are available for transfer into the general ledger. (Navigation – Financials > Inquiry > Transactions) Creation Basis:

The financial product on the lease contract and the transaction type – rebook are sent to the accounting engine. All accounting templates available for the product and transaction type are evaluated for accounting. The financial product on the lease contract and the transaction type – booking are sent to the accounting engine. All accounting templates available for the product and transaction type are evaluated for accounting. The same formula shall return the values for the original contract when the transaction type is rebook and values for the new contract when the transaction type is booking. Accounting is created when the formula returns an amount not ‘0’. Accounting Date:

The accounting date is the rebook date of the contract. Applicability:





Required Setups:

The following setups are required to achieve accounting for booking – • Define accounting templates with the transaction type “Rebook” and the

transaction type “Booking”, if not defined under 7.2 • Define one accounting template for each accounting entry of the booking

process • Define the accounting templates for rebook with the same values for

booking but the debit accounts set to credit and credit accounts set to debit.



Prerequisites:










cost for the new asset cost • Additional templates for fees, service etc.

Direct Finance Lease / Sales Type Lease • Three accounting templates for asset cost for rebook • Debit lease funding account and credit unbilled receivables account for the

total rent to be reversed



• Debit unearned income account and credit lease funding account for the total income to be reversed

• Debit lease funding account and credit residual value account for the residual to be reversed

• Three accounting templates for asset cost for booking • Debit unbilled receivables and credit lease funding for the total rent • Debit lease funding and credit unearned income for the total income • Debit residual value and credit lease funding for the residual • Additional templates for fees, service etc.

Loan / Loan – Revolving • One accounting template for asset cost for rebook • Debit lease funding account and credit loan principal account for the asset



Financed fee on contract of above book classifications • One accounting template for loan balance amount for rebook • Debit Lease Funding account and credit Loan balance account for total of

all financed fees to be reversed • One accounting template for loan balance amount for booking • Debit Loan balance account and credit Lease Funding account for total of




absorbed fees

19.1 Allocation of receipt to interest and principal Navigation

Program – Daily Interest Calculation

Transaction Type:

Receipt Application Accounting Created:

Loan payment is billed on the contract payment schedule. Cash applied to the loan payment invoices. Daily Interest Calculation program calculates first the amount of interest based on the actual principal outstanding on the date of receipt and remaining balance on the receipt is treated as principal. The program creates stream elements with the stream type of purpose of Daily Interest – Interest for interest amount and with the stream type of purpose of Daily Interest – Principal for principal amount Creation Basis:



Accounting is created for the amount of Daily Interest – Interest and Daily Interest – Principal stream type purposes. Accounting Date:




Required Setups:

The following setups are required to achieve accounting for principal adjustment – • Define accounting templates with the transaction type “Receipt

Application” • Define one accounting template for stream type of purpose Daily Interest

- Interest. • Define one accounting template for stream type of purpose Daily Interest

- Principal. • No formula required to be defined • The debit account must be the Loan payment / clearing account. • The credit account must be the Loan Interest income and Loan principal

account. Prerequisites:

Loan • Loan or Loan - Revolving contract has financial product with Interest

calculation basis = Fixed, Float or Reamort and Revenue Recognition Method = Actual

• Receipt has been applied to invoices. Examples:

None

20.1 Re-Lease booking draft entries Navigation


Transaction Type:

Release Accounting Created:

Accounting distributions that occur on the establishment of the contract are available for review by the contract administrator. These accounting distributions are not transferred to the general ledger. (Navigation – Financials > Inquiry > Transactions) Creation Basis:

The financial product on the lease contract and the transaction type – release are sent to the accounting engine. All accounting templates available for the product



and transaction type are evaluated for accounting. Accounting is created when the formula returns an amount not ‘0’. Accounting Date:


Release transaction type is used to create accounting in following situations: • Contract re-lease when a contract is released by changing the customer or

financial product on the contract from Revisions page. • Contract re-lease when a contract is released for an approved transfer and

assumption transaction • Asset re-lease when a contract with a released asset is booked

Generating accounting entries for release is applicable to the following book classifications –


Required Setups:

The following setups are required to achieve accounting for release – • Define accounting templates with the transaction type “release” • Define one accounting template for each accounting entry of the booking

process of re-lease contract • Every accounting template must have a formula to derive the amount to



Re-Lease Asset • Select the check box on the contract header screen – release assets

Re-Lease Contract • The source for creating the contract must be an existing contract that is

released. Examples:

Operating Lease • No accounting required for asset cost • Additional templates for fees, service etc.

Direct Finance Lease / Sales Type Lease • Four accounting templates for asset cost • Debit unbilled receivables and credit lease funding for the total rent • Debit lease funding and credit unearned income for the total income • Debit residual value and credit lease funding for the residual • Debit lease funding and credit asset clearing for the asset cost • Additional templates for fees, service etc.



Loan / Loan – Revolving • One accounting template for asset cost • Debit loan principal account and credit asset clearing account for the asset


20.2 Re-Lease activation of contract Navigation


Transaction Type:

Release Accounting Created:

Accounting distributions that occur on the establishment of the contract are available for review by the contract administrator. (Navigation – Financials > Inquiry > Transactions) Creation Basis:

The financial product on the lease contract and the transaction type – release are sent to the accounting engine. All accounting templates available for the product and transaction type are evaluated for accounting. Accounting is created when the formula returns an amount not ‘0’. Accounting Date:


Release transaction type is used to create accounting in following situations: • Contract re-lease when a contract is released by changing the customer or

financial product on the contract from Revisions page. • Contract re-lease when a contract is released for an approved transfer and

assumption transaction • Asset release when a contract with a released asset is booked

Generating accounting entries for release is applicable to the following book classifications –


Required Setups:

The following setups are required to achieve accounting for release – • Define accounting templates with the transaction type “release” • Define one accounting template for each accounting entry of the booking

process for release contract • Every accounting template must have a formula to derive the amount to

be accounted




Prerequisites:

Re-Lease Asset • Select the check box on the contract header screen – release assets

Re-Lease Contract • The source for creating the contract must be an existing contract that is

released. Examples:

Operating Lease • No accounting required for asset cost • Additional templates for fees, service etc.

Direct Finance Lease / Sales Type Lease • Four accounting templates for asset cost • Debit unbilled receivables and credit lease funding for the total rent • Debit lease funding and credit unearned income for the total income • Debit residual value and credit lease funding for the residual • Debit lease funding and credit asset clearing for the asset cost • Additional templates for fees, service etc.

Loan / Loan – Revolving • One accounting template for asset cost • Debit loan principal account and credit asset clearing account for the asset


21.1 Billing to Reverse Credit Memo on contract Release Navigation

Programs – Prepare Receivables Bills

Transaction Type:

Release Billing Accounting Created:


The debit account defined on the accounting template is the receivables account. The credit account applied is the revenue / clearing account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables Accounting Date:



• Operating Lease • Direct Finance Lease



• Sales Type Lease Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Release Billing” • Templates should be defined for each billable stream type used for the

termination quote line billing. • No formula required to be defined • Define an accounting template with the same values as the template with

the transaction type of credit memo and stream type of termination quote line but the debit account set to credit account and credit account set to debit account.

Prerequisites:

• Termination quote must be accepted on booking of release contract Examples:

• Debit receivables account and credit revenue / clearing account for termination quote line stream type.

22.1 Credit memo to Reverse Billing on contract Release Navigation

Programs – Prepare Receivables Bills

Transaction Type:

Release Credit Memo Accounting Created:


The debit account defined on the accounting template is the revenue account. The credit account applied is the receivables account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables Accounting Date:




Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Release Credit

Memo”



• Templates should be defined for each billable stream type used for the termination quote line billing.

• No formula required to be defined • Define an accounting template with the same values as the template with

the transaction type of billing and stream type of termination quote line but the debit account set to credit account and credit account set to debit account.

Prerequisites:

• Termination quote must be accepted on booking of release contract Examples:

• Debit revenue / clearing account and credit receivables account for termination quote line stream type.

23.1 Billing to Reverse Credit Memo on acceptance of Rollover Termination quote Navigation


Transaction Type:

Rollover Billing Accounting Created:


The debit account defined on the accounting template is the receivables account. The credit account applied is the revenue/clearing account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables. Accounting Date:


Generating accounting entries for reversing invoices created on termination of contract is applicable to the following book classifications –


Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Rollover Billing” • Templates should be defined for each stream type associated with

termination quote line. • No formula required to be defined



• Define an accounting template with the same values as the template with the transaction type of credit memo and stream type of termination quote line stream type but the debit account set to credit account and credit account set to debit account.

Prerequisites:

• Rollover Termination quote exists. Examples:

Not applicable

24.1 Credit Memo to Reverse Billing on acceptance of Rollover Termination quote Navigation


Transaction Type:

Rollover Credit Memo Accounting Created:


The credit account defined on the accounting template is the expense/clearing account. The debit account applied is the receivables account. The tax and rounding lines are calculated and accounted based on setups within Oracle Receivables. Credit memos are created in Oracle Receivables for all quote lines with negative values. Accounting Date:




Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Rollover Credit

Memo” • Templates should be defined for each stream type associated with

termination quote line. • No formula required to be defined • Define an accounting template with the same values as the template with

the transaction type of Billing and stream type of termination quote line



stream type but the debit account set to credit account and credit account set to debit account.

• Prerequisites:


Not applicable

25.1 Create Specific Loss Provision Navigation

Financials > Specific Loss

Transaction Type:

Specific Loss Provision Accounting Created:

An accounting transaction is created for each contract against which a specific loss provision is defined. If a general loss provision exists for the contract, it is reversed. Creation Basis:

The debit account defined on the accounting template is the loss expense account and the credit account is the loss reserve account. Accounting Date:

Accounting transactions is the date specified by the user for creation of the loss provision. Applicability:

Generating accounting entries for specific loss provision is applicable to the following book classifications –


Required Setups:

The following setups are required – • Define accounting templates with the transaction type “Specific Loss

Provision” • One template should be defined for each stream type of purpose Specific

Loss Provision • No formulas require to be defined • The debit account must be the loss expense account. • The credit account must be the loss reserve account.

Prerequisites:

None Examples:



Not applicable

25.2 Specific Loss Provision Reversal on new provision Navigation

Financials > Specific Loss

Transaction Type:




Accounting transactions is cancelled on the date of creating the new provision. Applicability:



Required Setups:

None Prerequisites:

• A specific loss provision must exist for the contract. Examples:

Not applicable

25.3 Specific Loss Provision Reversal on Termination of Contract Navigation


Transaction Type:






Accounting transactions is cancelled on the contract termination date. Applicability:



Required Setups:

None Prerequisites:

A specific loss provision must exist for the contract. Examples:

Not applicable

26.1 Termination of Contract Navigation


Transaction Type:

Termination Accounting Created:

Accounting distributions that occur on the termination of the contract are available for transfer into the general ledger. Creation Basis:

The financial product on the lease contract and the transaction type – termination are sent to the accounting engine. All accounting templates available for the product and transaction type are evaluated for accounting. The amounts accounted are amounts returned by the formula on the accounting template. Accounting Date:

The accounting date is the contract termination date. Applicability:

Generating accounting entries for termination is applicable to the following book classifications –


Required Setups:

The following setups are required to achieve accounting for termination – • Define accounting templates with the transaction type “Termination”



• Define one accounting template for each accounting entry of the termination process



Prerequisites:

None Examples:

None


Transaction Accounting in Oracle Lease Management v. 11.5.10.H October 2006 Author: Mukul K Mittal, Vikas Phanse Contributing Authors: Oracle Corporation World Headquarters 500 Oracle Parkway Redwood Shores, CA 94065 U.S.A. Worldwide Inquiries: Phone: +1.650.506.7000 Fax: +1.650.506.7200 www.oracle.com Oracle Corporation provides the software that powers the internet. Oracle is a registered trademark of Oracle Corporation. Various product and service names referenced herein may be trademarks of Oracle Corporation. All other product and service names mentioned may be trademarks of their respective owners. Copyright © 2000 Oracle Corporation All rights reserved.

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16 Whitepaper - Transaction Accounting Lease Management