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Interest calculation for lease starting mid month

in Lease Accounting 1 comment

Summary:

Hi @Rekha Pillay-Oracle @Navin Gadidala-Oracle - Could you please help me for the below question.

For the lease that is starting from mid of the month, amortization is calculated for partial period.

Content (please ensure you mask any confidential information):

Lease is starting from 15-Dec-22 to 14-May-24 for 17 periods. Payment will be done on 15th of every month. Proration method is 360 Days/Year and no partial payment (no Stub only recurring). Why 1st month amortization is calculated for partial period whereas Oracle doc mentioned that the Interest calculation is Liability Outstanding X (1+DC)^(n)-Liability Outstanding. N= number of days till end of the period or next Liability change date. Liability changes when a payment is applied to the Liability balance

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