ASC 842 Configuration Changes

Finance/Capital Leases

General Ledger/GL

• Create a Secondary Ledger COA structure

• Create new GL accounts as needed (ROU Asset, Lease Liability, Amortization Expense) - assigning these accounts to the Secondary Ledger COA

Accounting Setup Manager

• Create a Secondary Ledger

• Create a new SLAM for the Secondary Ledger

• Alter the custom SLAM for changes needed in Fixed Assets

Assets

• Identity the Leased Assets as either Finance or Operating.

• Create new Asset Categories for Finance and Operating ROU Assets (pointing to Secondary Ledger); with the new GL Accounts.

• If they are not already in Oracle Assets; enter Finance Leases into the new Asset Categories created. For each Lease:

o Enter Lease information

o Define a Payment Schedule

o Create an Amortization Schedule

OPERATING Leases

General Ledger/GL

Create a Secondary Ledger COA structure

Create new GL accounts as needed (ROU Asset, Lease Liability, Amortization Expense) - assigning these accounts to the Secondary Ledger COA

Accounting Setup Manager

Create a Secondary Ledger

Create a new SLAM for the Secondary Ledger

Alter the custom SLAM for changes needed in Fixed Assets

Assets

Identity the Leased Assets as either Finance or Operating.

Create new Asset Categories for Finance and Operating ROU Assets (pointing to Secondary Ledger); with the new GL Accounts.

Create a DFF for Operating Lease identification

Enter in Operating Leases into the new Asset Categories created. For each Lease:

Enter Lease information

Oracle Reporting using SLA and FSG Reporting

General Ledger/GL

Copy Row Sets used for the current Balance Sheet and P&L reports

2 new FSG’s, for (1) Comparative Balance Sheet and (2) Comparative Income Statement Reporting using the copied Row and Column Sets

Alter the reports as needed to add the new GL Accounts.

Run the reports using the Secondary Ledger.