X

Review EBS product's new releases & features, troubleshooting tips & tricks, best practices, upcoming webcasts

Equipment Lease - A New functionality in Property Manager

The Equipment lease-for Lessee is a new feature and part of Oracle Property Management systems. This Oracle Equipment lease-for Lessee provides the Lessee to manage their equipment lease portfolio in an effective and efficient manner and this feature also helps the lessee to meet the compliance requirement of IFRS and US GAAP.

The simple and most logic reason behind the introduction of equipment leasing –lessee accounting module is the crying need for equipment leasing industry-lessee. The current oracle E business suite support the Lessor transactions and contract management through Oracle lease and financial management in which equipment leasing in terms of Lessors view point, but doesn’t have the wings for Lessee accounting and operations.

The Property Manager (PN) already have the framework for the tenant accounting and operation captured with lease by defining real-estate properties and associate them with the lease contract, not Equipment’s. So it would be easier to use the same framework by extending the utilities to accommodate the equipment lease arm too.

Equipment Lease entities (Lessee) will need to change certain lease accounting practices when implementing the new leases standard, IFRS 16, issued by the International Accounting Standards Board (IASB) and ASC 842, issued by the Financial Accounting Standards Board (FASB). These new standards significantly impact the accounting for lessees for real estate lessee, equipment lease requiring them to recognize most leases (i.e., rental contracts) on their balance sheets as lease liabilities with corresponding right-of-use-assets.

For more information on equipment lease functionality, setup involved while implementing it etc, please refer Doc ID 2432815.1

Join the discussion

Comments ( 5 )
  • Ahsan Thursday, November 22, 2018
    Hi Vaishali. Thanks for the sharing.
    what I understand that, this Equipment Lease feature will be available after implementing IRFS 16 patches? is this true?
    Please advice.
    regards
    Ahsan
  • Vaishali Monday, December 31, 2018
    Hi Ahsan

    Yes you are right. To get the equipment lease functionality, you need to apply the IFRS patches

    Regards
  • Ineke Go Wednesday, January 9, 2019
    Hi Vaishali, when i finalise equipment asset, it says asset xxx requires payment term.but the associated template has the information. Is there any online/onsite training Sydney based for this particular lessee module ? Thank you.
  • Vaishali Wednesday, January 9, 2019
    Hi

    The error message indicates some missing setup. I suggest log a service request with Oracle support for this.

    With regards to training, we have many functional white papers published on this topic. You can reach out to us via Oracle community to get more details about this.

    Regards
    Vaishali
  • Andrea Thursday, January 10, 2019
    Hello Ineke,
    The specific community Vaishali is referencing is : Property Manager - EBS (MOSC)listed here: https://community.oracle.com/community/support/oracle_e-business_suite
Please enter your name.Please provide a valid email address.Please enter a comment.CAPTCHA challenge response provided was incorrect. Please try again.Captcha
Oracle

Integrated Cloud Applications & Platform Services