Introduction and benefits of Oracle Fusion Lease Accounting Cloud
Oracle Lease Accounting is a financial application that helps create and maintain leases in a single repository.
Lease Accounting covers both expense and revenue lease creation, generation of payment and revenue schedules, and transfer of accounting information seamlessly to Oracle Payables and Oracle Receivables.
Lease Accounting provides the ability to capture information such as lease details, assets, payments, and options. Calculations of accounting schedules, creation of milestones, rights, and obligations are also available. A lease validation process ensures quality data before activation. The amortization engine calculates the present value of the leases.
Lease Accounting also calculates the amortization of the right-of-use and the lease liability balances according to IFRS16 and ASC842 for expense leases.
The new accounting standards introduced in the past few years have transformed accounting rules that lessees must follow to comply. Lease Accounting has the following features:
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To help you manage and process leases to comply with IFRS16, ASC842, or both these accounting standards in a touch-free and seamless manner.
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To improve planning with a single repository of all lease obligations.
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To generate calculations for balance sheet balances and expenses.
Key Features
Oracle Lease Accounting has the key features of lease creation, generating amortization schedules, and maintaining accounting balances.
Lease Accounting helps you do the following activities:
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Create expense and revenue leases.
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Capture cash schedules needed for the generation of balances and invoices.
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Generate balances required as specified by IFRS16 and ASC842 guidelines for expense leases.
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Generate amortization schedules using daily compounding interest and daily amortizations for expense leases.
Lease Accounting creates the cash schedules with amortizations when you opt to generate schedules in expense leases. With this information, Lease Accounting generates the balances for right-of-use and lease liability balances based on different periods.
Lease Accounting calculates the balances and amortizations by discounting the cash flows using the discount rates on the lease.
Using this information on the cash flows, Lease Accounting calculates the initial measurement amounts, which the standards require.