Automatically Split Principal and Interest on Lease Payments

You can now use a client extension API to split the Payables invoice line for lease payments into the lessee's lease liability (which is the principal portion) and the accrued interest portion. This provides improved visibility of principal and interest components on the Payables invoice and simplifies the accounting to reduce the lessee's lease liability and accrued interest liability when making lease payments. Prior to Release 12.2.15, you were able to account for the split of Payables invoice line amounts by configuring custom Oracle Subledger Accounting sources in Oracle Payables.

This document describes the process you must follow for both Property and Equipment Leases. You can write the custom code and run it using the Client extension to split Payables invoice line for lease payments into the principal payment and the interest payment lines.

  1. Create Lease with all the required information. Enter property or asset details and Save.
  2. Enter all payment terms and the applicable information.
  3. Generate Balances and Finalize the Lease.
  4. Approve schedules.
  5. Manage invoice processing and export schedules to Payables.
  6. Import these schedules into Payables.
  7. Verify Payables invoices in AP. Based on the custom logic in the Client Extension, you can view the lines on the Payables invoice.

Steps to Enable

This package lets you control the behavior of invoice export from Property Manager to Payables. Ensure the following procedures are modified and compiled successfully

Client Extension Package PN_AP_EXP_CLIENT_EXTN

  1. Method Name:          is_client_extn_enabled

Action: Ensure that this function returns 'Y' if custom logic must be triggered during the AP invoice export process.

  1. Method Name:          nullify_po_at_inv_header

Action: If the PO details should be cleared at the header level, then return 'Y', otherwise return 'N'.

This method should be used based on business requirement to populate or not populate PO details at the Invoice header which in turn defaults to all the Invoice lines thereon.

  1. Method Name:         get_invoice_line_split

Action: Implement custom business logic to split the amount into multiple valid invoice lines. Ensure that:

  • The sum of split line amounts equals the original invoice line amount.
  • All mandatory attributes (Supplier info, Line type, Accounts, etc.) are populated with valid values.

Any additional attributes that are modified (for example, supplier site and distribution information) should be consistent with AP interface requirements.