Lease Advance Payments for first 5 years for expense class leases

@Rekha Pilay-Oracle

Hi @Rekha Pilay-Oracle,

1. How to handle the advance payments made to a lease before the stat of the lease?
Test case:
Lease duration: 10 years
Payment purpose: O&M (Operations & Maintenance)
Payment: 5 years advance payment before the start of the lease
Frequency: Recurring (As its a monthly Payment)

ROU Flag: Yes
Liability Flag: No (as advance payment is done for 5 years)

If ROU flag is Yes, it is my lease operating exps but how will the system know that I have made the upfront payment for 5 years in advance?

2. How to handle if the ROU & PV of liabilities are different?

Regards,