Processing contract journal entries

After the prerequisites for journal entry are set up, you can process the journal entries and correct segment errors.

Procedure

  1. Go to Contracts > Financials > Process Contract Journal Entries and click Add.
  2. In the General section, specify Name, Business Unit, Contract Search Scope, Process Type, and Accounting Type.
    Note: If the lease currency and functional currency differ, it is recommended to select the Process Type = Period and Lease Event JE(s) so that both periodic and lease events JEs use the same current conversion rate to calculate the JEs in functional currency. Now, it will filter the leases based on the Accounting Type selected on the General section.
  3. Click the Create Draft action.
  4. Click the Retrieve action.
    The Process Contract Journal Entries form closes and retrieves the Contract Event Journal Entries for the leases resulted from selected search criteria. You can see them listed under the Contract Event Journal Entries subtab. The Periodic Journal Entries are also created and shown under Periodic Journal Entries subtab. Under Leases section, all the leases that will process the JEs are seen.
    Note: If the Month End Rate is available on the date of the JE processing, Maximo® Real Estate and Facilities will use the rate, otherwise, it will use the latest Daily conversion rate available on that date. Also, the draft periodic contract summary balance will be created and summarize all the functional currency amounts of lease event and periodic JEs for the processing period. Any adjustment on the contract summary balance can be added. The periodic contract summary balance records will be used to process the contract disclosure reports. The contract summary balance record can be accessed on the Contract Summary Balance section of the History tab of a lease.
  5. Review all the journal entries and click Issue. If there is a journal entry with the character !, see the section Correcting Segment Errors on journal entry.
    Note: If a journal entry is deleted, the Contract Summary Balance for the processing period will be re-calculated/re-created through the Retrieve journal entries.
  6. Click Complete. This updates the status of the journal entries to be posted. Additionally, the Journal Entry DTO (Data Transfer Object) is created for each of the journal entries.
    Both lease event and periodic contract summary balance will be transitioned to Active state. The Previous FX Rate on the Schedule Summary section of a lease will be updated with the Current FX Rate. The Current FX Rate will then be set to 0. Therefore, it is recommended to process JEs and close periods chronologically, else the incorrect FX rates will be used to calculate journal entries and later disclosure reports.
  7. Click Find in the Debit Account section.
  8. To view the Journal Entry DTO records, go to Contracts > Financials > Journal Entry DTO.
    Journal Entry DTO records are used for integration with the customer's ERP system.
  9. Close the current open period. See Setting up Contract Accounting Period Close for a business unit.