PeopleSoft Lease Administration Case Studies For Higher

Session 7215PeopleSoft Lease AdministrationCase Studies for Higher Ed andPublic Sector (GASB 87)

Agenda Presenter Introductions About SpearMC Lease Admin For Public Sector Configuration ConsiderationsModule IntegrationsGASB 87 vs. IFRS 16 vs ASC 842Light Product DemonstrationConcluding Thoughts

PRESENTERSOver 20 years consulting experience focusedpredominantly in PeopleSoftimplementations and upgrades covering allstages of the Project Life Cycle.Randall JohnsonVice PresidentSpearMCSystem Business Process Analysis,Requirements Study, Fit-Gap Analysis, HighLevel Design, ChartField and CodeblockDesign, Application Development, Testing,Configuration, Training, Deployment andPost-Implementation Support

About SpearMCFounded in 2004, SpearMC specializes in: PeopleSoft FSCM, HCM, SCM, Grants Management PeopleSoft Reseller since 2008 PeopleSoft Hosting on Oracle Cloud Infrastructure PTF and Test Automation PeopleSoft & Tools Training Oracle Hyperion and PBCS Testing as a Service (‘TaaS’) Oracle Business Intelligence PeopleSoft Managed Services

About SpearMC

About SpearMCRegister for SpearMC’s Virtual Training: Three days dedicated to LAImplementations Virtual sessions June 29-July 1 Targeted for Full GASB 87Compliance Discount Codes available forAlliance Members and SessionAttendees Find Training Details here:https://spearmc.com/apps/psft-training/

PeopleSoft LeaseAdministration

PeopleSoft Lease AdministrationConfiguration Considerations

ConfigurationConsiderationsLease Administration is a separatelicensed module available within thePeopleSoft Asset Lifecycle Managementsuite.“Some” limited use from the AssetManagement Module.Significant integrations and functionalityis delivered through the LA module.Heavily relies upon AM configurationwhich likely already exists within yourorganization. Installation Options Business Unit Configuration Region Codes Lease Types Locations Asset Categories Cost Types Asset Lease Profiles Accounting Entry Template

Installation Options – Lease AdministrationApply adoption with the apply boxSelect transition date

Installation Options – Asset ManagementAccept all Transaction typedefaultsSelect features to matchrequirements

LA Business Unit DefinitionsAccept all Transaction typedefaultsSelect features to matchrequirements

LA Business Unit Definitions (Continued)Payables classificationthresholdsOption to select IFRS orGASB. By default systemis in ASC-840 or ASC-842mode

AM Business Unit DefinitionsAdd books to BUExisting AM configurationmay have these defined

AM Business Unit DefinitionsSet Book options such asenabling online reportingfeatures

AM Business Unit DefinitionsSet lease interfaceprocessingEnables lease paymentsBilling Interface in AMSetup is NOT for LeaseAdmin

Accounting Entry TemplatesAccounting Entry Templatesneeded for each combinationof Asset Category &Transaction Types. At aminimum AE Templates areneeded for Add, Transfer,Adjust, Retire, Recat, LeaseExpense, Depreciation, PriorPeriod Depreciation and LeasePayment/Prior Period LeasePayment.

Asset ProfilesProfile – Book DepreciationAttributesDepr Status should be‘Depreciable’ for GASB-87& IFRS-16 and ASC-842Finance Leases.For FASB-842 OperatingLeases it should be ‘NonDepreciable’

Dates in Lease AdministrationCommencement Date is the start date of the lease payment streamTermination Date is the end date of the lease payment streamLease Signed is the date the lease is signedAccounting Date is the date when the transaction will record to the GL, i.e.accounted for. This date must fall within the open Accounting Period.In Service Date: New ROU Asset ADD transactions will also have a In Service Dateon each book that determines when the asset is placed in service (financially) anddrives the start of depreciation, along with Convention.The difference between commencement date and accounting date determines whatprior period lease payments the system will generate

PeopleSoft Lease AdministrationModule Integrations

PeopleSoft FSCM Integrations with Lease Admin

PeopleSoft Lease AdministrationGASB 87 vs. ASC 842 vs. IFRS 16

Accounting Basis ComparisonASC-842IFRS-16GASB-87Finance Leases * Operating Leases **Right of Use (ROU) Asset Lease Obligation Lease Receivable/Deferred Inflows Lease Receivable Amortization Depreciation Expense * Interest Expense * Exemption from leaseROU Amortization* Applicable for FASB ASC-842 Finance Leases** Applicable for FASB ASC-842 Operating Leases **

GASB 87 GapsPeopleSoft LA is fully complaint for Payable LeasesPeopleSoft LA is not complaint for Receivable Lease where LeaseReceivable needs to be accounted based on future Lease Bills whichgets amortized over a period of time.Oracle has not provided this functionality as of this Training sessionsTo make PSFT LA fully complaint with GASB-87 for Receivable Leasethen there is a need for customized accounting for Lease ReceivablesSpearMC has been commissioned to develop this solution, and willbe ready in June 2020!

PeopleSoft Lease AdministrationLight Product Demonstration

CONCLUDING THOUGHTS

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Dates in Lease Administration Commencement Date is the start date of the lease payment stream Termination Date is the end date of the lease payment stream Lease Signed is the date the lease is signed Accounting Date is the date when the transaction will record to the GL, i.e. accounted fo