Question

Running Lease Periodic Accounting for Periods Already Closed

  • 20 September 2023
  • 2 replies
  • 30 views
A
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Userlevel 5
Badge +7

Hello.

 

Is it possible to run periodic lease accounting for periods already closed?

 

For example, assume period 1 to 11, 2023 is already closed.

 

We want to implement operating lease accounting in IFS. The lease contract has payments at the beginning of each period. First payment occurred at the beginning of period 1. All payments have been made already for period 1 to 11.

 

We want to enter the full lease contract in IFS, generate the amortization schedule, then create the recognition posting for the ROU asset and lease liability and have it post at the beginning of period 12. Then we want to run lease payable accounting and periodic lease accounting for P01-P11 and post to beginning of period 12. Is this possible even if period 1-11 is already closed?

 

Would appreciate any input/insight. Thank you.

2 replies

S
Rank
Userlevel 2
Badge +7

Hi,

I haven’t tried to run the proposal on already closed period. However, to my understanding the system should not do anything on the proposal for historic periods. It should only use these periods to calculate the interest rates and then the proposal posting date would be on the chosen date on the one voucher created based on the proposal. Maybe you could test this in your test environment.

Another option is to use the import balances function. With this you are able to bring in balances of older lease accounting assets (used normally for moving contracts from legacy systems). With the import balances option you are able to enter the historic transactions before creating any accounting in the system. With this you should be able to do what you explained above, but in here you wouldn’t create any proposals as they have been created in ‘’history’’.

Br, Samuel | www.linkedin.com/in/samuel-jokinen
A
Rank
Userlevel 5
Badge +7

Hi,

I haven’t tried to run the proposal on already closed period. However, to my understanding the system should not do anything on the proposal for historic periods. It should only use these periods to calculate the interest rates and then the proposal posting date would be on the chosen date on the one voucher created based on the proposal. Maybe you could test this in your test environment.

Another option is to use the import balances function. With this you are able to bring in balances of older lease accounting assets (used normally for moving contracts from legacy systems). With the import balances option you are able to enter the historic transactions before creating any accounting in the system. With this you should be able to do what you explained above, but in here you wouldn’t create any proposals as they have been created in ‘’history’’.

Thank you Samuel. I have been able to resolve the issue.

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