Lease creation and testing

When you set up a lease, you specify the payment schedule and determine the lease classification using the classification test.

You can interface leases and lease payments into Lease Accounting.

Before adding leases in Lease Accounting, you must do the preliminary set up of Lease Accounting and set up Payables, Asset Accounting, and Global Ledger. For setup, the Receivables setup is needed for Sublease processing. For more details, see the Financials Setup and Administration Guide.

Theses are the types of leases that can be created for each lease accounting method.

  1. Operating Leases (ASC 842)
  2. Finance Leases (ASC 842, GASB 87, and GASB 96)
  3. Short Term Leases (ASC 842, GASB 87, and GASB 96)