Asset Lifecycle Management - PSFT (MOSC)

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Does anyone used the shared functionality from Lease Admin to handle financed purchases?

edited Jul 19, 2021 7:34PM in Asset Lifecycle Management - PSFT (MOSC) 2 commentsQuestion

We are on V 9.2, Image 36. We license AM, but do not license LA. We operate under the GASB 87 accounting standards beginning in 2022, at least we're trying to. We were planning on administering our normal leases that don't transfer ownership as well as our financed purchases that do transfer ownership in the Lease Administration pages. However, I have run into issues that Oracle Support can't seem to help me with, so I'm hoping to find someone that has found a solution to these problems.

1) How do you handle salvage value on a leased asset that transfers ownership? We normally set a 10% salvage value on our purchased assets such as buildings. In the case of a lease where the building transfers ownership, we still need that salvage value because we only want to depreciate 90% of the cost. Oracle support said to enter the amount into the Guaranteed Residual Value field. However, that causes your liability to be misstated because it ADDs that amount into the lease obligation amount. Guaranteed residual amount is something you MAY

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