The following guide is intended for a Lease Accountant who is looking to view or complete any of the following action:

Action

• Create a Lease
  • This process is inclusive of Space and Equipment leases that meets ASC842 criteria for long-term leases. This is inclusive of both Finance and Operating lease types.
  • Short-term leases, Affiliate leases, and internal leases will not be created in the Lease Accounting module.

Terminology

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

Create a Lease

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

2. Select Lease Accounting.
3. Select Leases.

4. Select the Taskbar,
5. Select Create Lease.

6. In the Create Lease form enter the Business Unit, Lease Type, Legal Entity, Lease Number, Lease Start Date, Lease End Date, Party Name, Asset Type, Accounting Classification, and Discount Rate Index.
7. Select Save and Continue.

8. Review the Lease Details.

9. See that the Amortization Start Date is the same as the Lease Start Date because it is a non-migrated lease.
10. Input Chart of Account values under Additional Information. This should mirror the requisition/payment request COA string for base rent payments.

11. Navigate to the Assets tab.
12. Select the “+” icon to add an asset.

13. Enter Asset Number, Location, Asset Start Date, and Asset End Date, and select Save and Close
    1. Note: Location is populated based on the list of available HR Locations integrated from Archibus. For example, Location A06 will generate the location 5730 S. Ellis Ave (John Crerar Library Building). If a detailed location does not exist in Oracle choose default location and initiate a request in Archibus.
    2. Note: This is an example of a property lease. Inputs for equipment lease include Item, Model, and Units.

14. Review Asset Details. Optionally input Area Units/Units of Measure (i.e. square footage) and Employee (i.e. contact person for the lease).

15. Select the Payments tab.
16. Select “+” icon to add header payment.

17. Select Payment Template, Supplier, Supplier Site, Asset Number, Start Date, End Date or Number of Payments, Amount, Payment Purpose, Payment Type, Frequency, and Currency.
18. Select Save and Close.

19. See payment header line has been added.

20. Review Payment Details and enter corresponding Purchase Order Number, if applicable.

21. Add new payment lines to the existing payment header by selecting “+”.

22. Once finished adding all the payment lines, select Save in upper right-hand corner of the screen to see Line Start and End Dates automatically populate.

23. Optionally view Accounting section. Account and Purpose values will be derived from the Payment Template default. All other values will be derived from inputs from the Additional Information section in Step 10.

24. Add any required attachment(s) under the Attachments tab. This could include the original lease contract and amendment documentation.

25. Select Actions and then select Validate.

26. Lease is Validated.

27. Select Actions and then select Generate Schedules.

28. Verify the Generated Schedules under the Schedules tab. See the Status of Draft and Version Status of Completed.

29. Select Actions and then select Activate.

30. Select Attach Lease Details Report. See Status of Active and Version Status of Booked.

31. The request for Attach Lease Details has been submitted.

32. Lease Details Report has been attached to the lease. See Status of Active and Version Status of Finalized.
    3. Note: After this point, any changes to the lease will require an amendment.

33. You have now completed the process of Creating a Lease.