Create Recognition Posting

Explanation

This activity is used to recognize (post) right-of-use asset and a lease liability in the lease accounting process. These postings can be created only in the instances where if an amortization schedule line in the Amortization Schedule tab of the Lease Accounting Contract window is the first schedule line (in the case of initial recognition) or there is a value in the Difference in Liability column for any schedule line in the same tab (in the case of a lease modification).

Prerequisites

Before a recognition posting can be posted, the following must have been completed:

• An Amortization Schedule should have been created for a lease contract.
• Status of the lease contract should be in the status Active.
• Posting Types FAP 74, Lease Accounting, Recognition, Right-of-use Asset and FAP75, Lease Accounting, Recognition, Lease Liability must have been defined in Posting Control window.
• A voucher type with Function Group A must have been defined in Voucher Type window.

System Effects

As a result of this activity a voucher is created and transferred to the hold table in IFS/Accounting Rules. The posting of the right-of-use asset account is posted according to the posting type FAP 74, Lease Accounting, Recognition, Right-of-use Asset. The posting of the lease liability account is posted according to the posting type FAP75, Lease Accounting, Recognition, Lease Liability.

Window

Lease Accounting Contract
Lease Contract Modification Detail

Related Window Descriptions

Lease Accounting Contract/Amortization Schedule
Lease Contract Modification Detail

Procedure

Use the following procedure to post a lease Payable accounting proposal:

1. Open the Lease Accounting Contract window and query for the lease contract for which you want to create a recognition posting.
2. Click on right mouse button option Create Recognition Posting on the Amortization Schedule tab of the same window.
   
Note: If the Exclude From Postings check box column in the Amortization Schedule tab of the Lease Accounting window is selected for the initial line or any modified line, recognition postings will not be created for those lines.
3. Click OK to confirm the voucher information.

Note: The same procedure can be carried out for multiple contracts from Lease Contracts Modification Details window