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    Pritish Ramlugun
    IFRS 16
    Topic posted May 14, 2019 by Pritish RamlugunBlue Ribbon: 750+ Points, tagged Assets, Financials, General Ledger 
    276 Views, 7 Comments
    Title:
    IFRS 16
    Summary:
    Implementation of IFRS 16 in oracle fusion r13
    Content:

    Hello Friends,

    I have a request and I need to implement the IFRS 16 on oracle Financials fusion r13. Anybody has any idea or experience on same please?

     

    Thanks

    Pritish

    Version:
    r13

    Comment

     

    • Suresh Kumarasamy

      You can find complete accounting entry for Asset lease based on IFRS 16

       

      Leases feature in Fusion Assets designed to meet IFRS 16 requirements.

      Fusion Assets IFRS 16 accounting are as follows:


      Inception of a lease in Assets
      Dr Right of use asset 1000 EUR
      Cr Lease liability 900 EUR
      Cr Lease Clearing 100 EUR

      AP: Lease invoices are generated in FA and transferred to AP

      AP Invoice:
      Dr Lease Clearing 100 EUR
      Cr Supplier liability 100 EUR

      Invoice Payment:
      Dr Supplier liability 100 EUR
      Cr Cash 100 EUR

      Future monthly journal entries in Assets

      Interest on Lease Liability:
      Dr Interest expense 5 EUR
      Cr Lease liability 5 EUR
      Dr Lease liability 100 EUR
      Cr Lease Clearing 100 EUR

      Depreciation Expense:
      Dr Depreciation expense 10 EUR
      Cr Right of use asset 10 EUR

      AP: Lease invoices are generated in FA and transferred to AP

      AP Invoice:
      Dr Lease Clearing 100 EUR
      Cr Supplier liability 100 EUR

      Invoice Payment:
      Dr Supplier liability 100 EUR
      Cr Cash 100 EUR

      If one has secondary ledger for local reporting, one can convert the AP invoice accounting using SLA mapping set and charge it to expense account in AP. The accounting in secondary ledger for AP invoice will be:
      AP Invoice:
      Dr Expense 100 EUR
      Cr Supplier liability 100 EUR

      Invoice Payment:
      Dr Supplier liability 100 EUR
      Cr Cash 100 EUR

      https://support.oracle.com/epmos/faces/DocumentDisplay?id=2495257.1&displayIndex=1

    • Alan Rowland

      We're currently implementing this functionality; we have a 5/31 fiscal year-end.  We have a couple of gaps; we can't make lease payments in advance and we can't use the lessor number when uploading leases using FBDI.  You might find this whitepaper helpful - White Paper: Oracle Fusion Asset Leases(Doc ID 2411222.1) . 

    • Pritish Ramlugun

      Hello Friends,

      Thanks. I have already done the setups on Asset categories and default rules.

      Am going through the white Paper. very helpful indeed 

      Thanks

      Pritish

    • Pritish Ramlugun

      Hello Friends,

      For the Lessor and Lessor Site, when I click in the drop down, I don't get any suppliers. Is there any other setup that we need to perform on supplier?

      Thanks for the support

      Pritish

    • Tarninder Sondhi

      Hi Pritish, You have to set up the lessors as suppliers in Payables. Thanks

    • Pritish Ramlugun

      Hello Friends,

      I have been able to create the Lease in Fixed Assets. It has been saved and the Generate Lease Schedule has completed successfully. 
      Now what is the next step? I tried to GENERATE INVOICE and all the jobs completed successfully. But I can't query the invoice in AP module.

      What is the step that am missing?

      Thanks

      Pritish