How to handle scenarios of Security Deposits in Lease Accounting
We have few scenarios and queries that apply for Security Deposits in Lease Accounting module. We want to know what should be the standard practice to handle such situations in Oracle Lease Accounting?
Question 1: How to create a lease with Security Deposit (with Balance Sheet A/C - Pre-Payment)?
Scenario 1: In this case, security deposit is given to the lessor at the starting of the lease as one-time payment (not part of ROU/Liability Calc), this will be refunded to the lessee when the lease is complete.
Scenario 2: In other case, security deposit is given to the lessor at the starting of the lease as one-time payment (not part of ROU/Liability Calc), this will not be refunded to the lessee if the lease is terminated before the lease end date. In this scenario, the security deposit should become the part of lease ROU and Liability calculation.