As a part of new IFRS & ASC842 lease accounting requirement enhancement, we have released a new Cumulative patch. Patch Details are
12.1.3 – 32169559:R12.PN.B
12.2.X – 32169559:R12.PN.C
The above cumulative patch not only has few critical bug fixes, it also has a major product enhancement being included in it. The major enhancement that are released as a part of this cumulative patch is
Lease Expense Straight Lining On Payment Term Contraction : Currently when a payment term is contracted via UI, system considers this action to have been performed to end the life of the related asset/property for the payment term, and thereby stops amortization and lease expense calculation on the new end date of the payment term. Now, in case of the leases having multiple payment terms, due to an individual payment term’s amortization and lease expense calculation being halted midway of the lease tenure, the total lease expense for the lease becomes uneven post the ACD of the payment term contraction.
With this enhancement, users will be provided with a profile option – “PN: Lease expense straight line on payment contraction”. If this profile option is set to ‘Y’, the contracted payment term’s amortization and lease expense calculation will continue till the lease end date instead of the new end date of the payment.
For more details on the latest CU and updates regarding IFRS please refer Doc id: 2482062.2