Hello,
I would like to know if it is possible to use IFS Lease Contract to cater Accounting Requirements for Lessor perspective?
If Lease Contract cannot be used for this purpose, is there any other solution available in IFS to meet the Accounting Demands on Lease Accounting on Lessor perspective?
Thanks!
Sachith
Hi Sachith,
I tried this recently for Sub Leases (Lessor’s perspective) with Automatic Posting Rules on the existing Posting Types of Lease Accounting and I was able to post most of the Accounting Entries automatically for the required Accounts.
I have sent my reconciliation to you as well since this was raised by one of the customers that you are dealing with. We may work it out and share in the community if it resolves your requirement.
Kind Regards,
Rajith
Hi Sachith,
I tried this recently for Sub Leases (Lessor’s perspective) with Automatic Posting Rules on the existing Posting Types of Lease Accounting and I was able to post most of the Accounting Entries automatically for the required Accounts.
I have sent my reconciliation to you as well since this was raised by one of the customers that you are dealing with. We may work it out and share in the community if it resolves your requirement.
Kind Regards,
Rajith
Hi Rajith,
Hope you are doing well?
Thank you for taking time and sending us a workable solution. I evaluated your reconciliation and I have a few follow up questions.
I can do more investigations once I get to know the answer on the above questions.
Best Regards,
Sachith
Hi Sachith,
Do you have any update on this?
Kind Regards,
Rajith
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From: Sachith Bandara <sachith.bandara@hgts.tech>
Sent: Monday, May 11, 2020 6:28 PM
Hi Rajith,
Thank you for the prompt response.
Have a nice day!
From: Rajith Ekanayake <rajith.ekanayake@ifs.com>
Sent: May 11, 2020 6:08 PM
Hi Sachith,
Please find my answers given below in Green.
• Did you use two Lease Contracts, one for Head Contract (Lessee) and one for Sub Lease Contract (Lessor)?
Yes, I have used 2 contracts.
• If you did, did you connect the lease asset as two assets; one for Head Contract and one for Sub Lease Contract?
Yes, I have used 2 assets and have created Recognition postings too.
Kind Regards,
Rajith
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Hi Rajith,
Sorry for the delayed response. We have tried the suggested solution and it has few practical issues. We are hoping to resolve these using Business Reporter. I will let you know if the solution can be made an alternative for Lessor Perspective.
Best Regards,
Sachith
Hello Sachith and Rajith,
I am going to start lease accounting implementation for one of my customers next week. My customer has a few lease contracts that they sublease (as lessor). Can you please send me your recommendation on how to setup the sublease, as well as details of automatic posting rule reconciliation and business reporter?
Thank you for the help!
Hi all
In one customer project we also would like to introduce lease accounting for operational leasing of fixed assets. One company has the role of the lessor and another company of the same company group is on the receiving end (lessee's perspective).
Does anyone have experience in setting this process up or a recommendation how to solve this requirement? I would also appreciate the documents mentioned above.
Many thanks in advance.
Best Regards,
Lukas
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