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Configure lease parameters

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Several configuration settings affect how Asset leasing behaves. These settings include journal names, general parameters, and posting profile settings.

  1. Go to Asset leasing > Setup > Asset leasing parameters.

  2. On the Leases tab, select the General FastTab.

    The Allow manual classification override parameter determines whether the lease classification can be overridden before the payment schedule is confirmed.

    The Cross entity batch parameter determines whether you can post to other legal entities from the current legal entity. If this parameter is turned on, you can create journal entries for the legal entities that you have access to.

  3. Set the Allow deletion of confirmed leases option to Yes to allow leases that have confirmed payment schedules to be deleted. Leases can't be deleted if posted or unposted transactions are associated with them, regardless of the setting of this option. You can't restore a lease record after it's deleted. If you upload any records for a deleted lease, either manually or through data entities, the uploaded information is treated as new, not as an update to an existing lease.

    If you set this option to Yes, and the transition type of the book is Cumulative Catchup Option A or B, the system sets the Incremental borrowing rate field to the value of the Incremental borrowing rate at transition field on the Book setup page. If this option is set to No, the rate on the head lease is set to the value of the Incremental borrowing rate field on the Book details page, regardless of the transition type of the book.

  4. Set the Allow depreciation reversals on closed book option to Yes to allow depreciation expense transactions to be reversed. Expense transactions can be reversed even when the book version is closed.

    Note

    We recommend that you keep this option set to No. The setting of this option is used as a validation and control to prevent a closed book version from being accidently depreciated. By keeping the option set to No, you help keep the net book value and future depreciation calculations accurate.

  5. Set the Allow payment amount breakdown option to Yes to allow a breakdown of the payment amounts on the Payment schedule lines FastTab of the Lease page. The payment breakdown types are defined under Setup on the Payment amount types page.