Lease Accounting

This section contains enhancements in Infor Financials and Supply Management.

Option to change Lease Fund

A new option is now available to allow a user to change Lease Funds if they have not yet created assets for the lease.

When the assets are added, the lease fund can only be updated during the lease modification process. Prior to assets being created on the lease, the user will have the ability to change the lease funds.

Testing notes:

  1. Create a lease with Lease Funds.
  2. Verify that prior to adding assets to the lease that you have updated the lease fund components and percentage. When the assets are added you are not allowed to change the lease fund unless you are doing a modification.
  3. Verify that during the modification you can update, deleted or add lease funds.

JR-3389775

Scheduling the amortization

Users can now view the amortization schedule on a lease prior to releasing the lease.

When we run the Test or Present Value action on a Lease the Amortization Schedule will be created. This will allow the user to view the lease amortization prior to releasing the lease.

If after the amortization schedule is created the user changes any of the fields that will affect the lease amortization, the amortization will be deleted and the user will need to rerun the Test or Present Value action.

Testing notes:

Test both ASC842 and GASB87 leases:

  1. Create a Lease and run the Test or Present Value action.
  2. Verify that the lease amortization is correctly created.
  3. Verify that changes to any financial field affects the lease amortization. Results in the amortization should be deleted and the NetPresentValue, LeaseObligation and LeaseROUAssetAmount are cleared. The message "DueToTheChangesTheTestActionMustBeReran" or "DueToTheChangesThePresentValueActionMustBeReran" should appear.
  4. Editing these fields will result in a change to the lease amortization:
    • Term changed
    • LeaseTerm changed
    • BeginDate changed
    • EndDate changed
    • PaymentTiming changed
    • ImplicitInterestRate changed
    • InterestRate changed
    • FairMarketValue.TransactionAmount changed
    • InitialDirectCost.TransactionAmount changed
    • IncentiveAmount.TransactionAmount changed
    • DownPayment.TransactionAmount changed
    • Currency changed
    • BaseCurrencyRate changed
    • Simulated changed
    • Ownership changed
    • SpecializedAsset changed
    Note: Any changes to the Lease Payments, any deletion, addition or change amount to the lease payments will result in the need to rerun the Test or Present Value action. Verify that changes to the non-lease component payments to do result in the deletion of the amortization.

JR-3309445

Short term lease liability

Lease Type flag - Amortize Short Term Leases - to allow short term operating leases to be amortized over the life of the lease has been added.

Users can now create a lease type that allows the amortization of short term operating leases. This also allows the leases to be grouped together for reporting by selecting their lease type.

Testing notes:

  1. Create a lease type with Amortize Short Term Leases selected. When the lease is selected, classify by term cannot be selected.
  2. Add the lease type to a short term operating lease and release the lease. The lease should have an amortization schedule created instead of a straight line schedule.

JR-3309414

Option for Reasonable Certain Termination

Added a reasonably certain option for lease terminations.

Leases with a reasonably certain termination should end on the termination date. This ticket forces leases to terminate. This change impacts the ROU and obligation of leases with this option selected.

Testing notes:

Create a lease with a reasonably certain termination. Test these options:

  1. Verify that the end date of the lease matches the early termination date. The amortization schedule should match the termination date when released.
  2. The early termination date should be displayed on the main tab of the lease.
  3. The number of payments should match the number of periods between the early termination date and the begin date.
  4. Create a lease with a termination option that is not reasonably certain. The end date of the lease can be different from the early termination date. The amortization schedule should go through the end date of the lease.

JR-3309442