Setting up local reporting and adoption from the Lease Process form

You can set up local reporting and adoption using the Lease Process Record form.

About this task

The lease Process Record utility is designed for the leases where local reporting may or may not be enabled on the initial lease activation, however, at a later point, there is a need for local reporting schedules and reporting. The utility would create a replica of the original lease; a mirror lease and based on the local reporting look back period set on the application settings record the system may or may not perform local reporting standard adoption on the mirror lease. Next, all the modifications performed on the original lease of type Amendment, Change In Assessment, and Contractual Factors would be applied to the mirror lease in the same sequence. Once all the modifications are updated to the mirror leases and lease schedules recalculated, in the end, all the details from the lease local reporting tab of the mirror lease would be copied over to the original lease on which the utility was run.

Optionally, change the value of the Polling Interval field on the General tab. The default value is 4 minutes. This value sets the amount of time the system will wait for each event to be processed, for example, Adoption on leases, sequentially processing retrospective modifications on mirror leases.

Procedure

  1. To set up local reporting and adoption, open the Lease Process Record from Home > Contracts > Contract Set Up > Data Utilities > Lease Local Reporting Utility, or from the Lease Accounting Manager portal.
  2. Click Add from the Real Estate & Asset Lease Local Reporting landing page.
    A blank Lease Process record opens.
  3. Provide name and verification, and click Create.
    A record is created with an auto-populated ID. The record’s status is updated to Draft.
  4. Set the value for Verification.
    • If set to Verify, generated mirror leases must be verified by a Lease Accountant before copying the details from the mirror lease to the Local Reporting tab of the main lease.
    • If set to Do Not Verify, all the details from the generated mirror leases are copied to the Local Reporting tab of the main lease automatically. The existing details on the local reporting tab of the main lease will be replaced completely with mirror leases requiring no verification.
  5. Any RE or Asset leases which do not have the Local Reporting Standard adopted, will be available to select on Identify > Find. To add leases to be processed, click Find in the Identify RE Leases and/or Identify Asset Leases section. A query is displayed.
  6. Select one or more leases and click OK.
    All selected leases will be populated in the Identify RE Leases and/or Identify Asset Leases section.
  7. If you need to remove any leases that you have added, select the check-box associated with the leases to be removed from the Identify RE Leases and/or Identify Asset Leases section and click Remove.
  8. Once you have identified the leases for Local Reporting, click Enable Local Reporting.
    All the GAAP leases from the Identify RE Leases and/or Identify Asset Leases section will be moved to the Ready To Process section. All the IFRS leases from Identify RE Leases and/or Identify Asset Leases section will be moved to the Local GAAP – Pending for Accountant section.
  9. If there are leases in the Local GAAP – Pending for Accountant section, a Lease Accountant must open each record, provide responses to the questions for GAAP classification, and calculate lease treatment before processing can continue. Once this is completed, the leases will appear in the Ready To Process section.
  10. Click Process to move all of the leases from the Ready To Process section to the Leases Processing section. The Lease Process record is now read-only, and the status is updated to Processing.
    If there is an issue or value mismatch during processing, the failed leases will appear in the Failed Mirror Leases section with the reason for the failure.
    • After the mirror leases are created, the Lease Process record will again be editable and the status will be updated to Processed. Mirror leases now appear in the Mirror Leases section.
    • If Verification is set to Do Not Verify, the mirror leases are automatically approved and appear in the Approved Mirror Leases section.
    • If Verification is set to Verify, a Lease Accountant must verify the Local Reporting details of each mirror lease. Then Lease Accountant must click on Approve or Reject in the Mirror Leases section.
    • Mirror leases that are approved appear in the Approved Mirror Leases section. All the existing schedules from main lease will be removed and schedules from mirror lease will be added to main lease and then the main lease is moved to the Completed RE or Asset Leases section.
    • Mirror leases that are rejected appear in the Rejected Mirror Leases section. No data from the rejected mirror leases are copied to main lease. The main lease is moved to the Rejected RE or Asset Leases section.
  11. Once all leases are moved from the Mirror Leases section to either the Approved Mirror Leases section or the Rejected Mirror Leases section, select all the mirror leases and click Delete before you continue. This would ensure the system doesn’t have any unnecessary mirror lease data as the mirror lease data for the approved mirror leases is already moved to the main lease.
    Note: Using the Find action, you can reuse all the leases available in the Rejected RE Leases or Rejected Asset Leases section in other Lease Process records.

    However, you cannot reuse all the leases available in the Completed RE Leases or Completed Asset Leases section, as both, Local Reporting and Adoption have already been applied for those leases.

  12. Click the Complete action. The Lease Process record becomes read-only and its status is updated to Active.