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Straight-Line Amortization Issue – Periodic Method in Oracle Lease Accounting

in Lease Accounting

Hello ,

I am currently implementing Oracle Lease Accounting and facing an issue related to the amortization calculation.

Business Requirement:
For Equipment Finance leases, the client requires the amortization to be calculated using the Straight-Line method, meaning the amortization expense should remain constant over the entire lease term.

Current Setup:
The Amortization Method is set to Periodic.

Issue:
When the lease start date is in the middle of the month (for example 20-Oct-2025), Oracle still calculates the first period using proration based on the number of days. As a result, the amortization amounts are not constant across all periods, which does not match the client's requirement for a strict straight-line calculation.

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