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PeopleSoft Lessee Accounting: Tools for Complying with GASB Statement 87

PSFT-Lessee-Accounting

PeopleSoft Asset Management and PeopleSoft Lease Administration enable your organization to measure and recognize payables leases. In PeopleSoft FSCM Image 31, PeopleSoft introduced enhancements that are specific to Statement 87 from the Governmental Accounting Standards Board (GASB). These enhancements included business unit configuration options and the recognition of a financed purchase for contracts with a transfer of ownership.

Migration and Transition Activity Guide

In FSCM Image 32, GASB customers can leverage the Migration and Transition Activity Guide to adopt the new leasing guidance. The Migration and Transition Activity Guide helps customers organize the tasks for migrating Asset Management leases to the shared Lease Administration data structure. It also provides you with the steps for preparing and transition to the new lease accounting guidance.

Migration-and-Transition-Activity-Guide

The tasks required for Asset Management lease data migration are classified into three sections:

  1. Initial Assessment of Asset Management
  2. Pre-Migration Configuration
  3. Migration Process

Migration-Tasks

These tasks allow Asset Management’s shared product functionality with Lease Administration, which was delivered in Image 27. A common lease data structure serves as the foundation for the core accounting requirements for payables leases.

Start with an initial Asset Management assessment that allows you to review your existing leased assets.

Next, the tasks in the Pre-Migration Configuration section will guide you through the configuration that you need to successfully migrate your Asset Management leases to the Lease Administration data structure. You’ll need to:

  • Create amendment types
  • Create payment schedules
  • Create routing codes
  • Create LA business units
  • Create role types
  • Assign lease administration roles
  • Complete processing for AM leased assets that process
  • Assign LA business units to your AM leases
  • Identify defaults for the new lease attributes
  • Update new lease attributes en masse

After that, you’ll be ready to migrate your Asset Management leases to the shared lease data structure.

The Migration Process section of the activity guide lists the tasks that you’ll need to follow in order to migrate your Asset Management leases to the Lease Administration data structure. If also includes tasks for reviewing your leases online after migration.

The activity guide also serves as the central point for executing the tasks that complete the transition to the new accounting guidance. Migration tasks are split into two sections:

  1. Preparing to Transition to the New Standard
  2. Transition to the New Standard

Guided-Migration-Process

The Preparing to Transition section includes tasks for you to review and update lease configuration so that your leases are ready to be accounted for under the new leasing guidance. This is also the point where you’ll review pivot grids detailing the expected cost amount of your operating leased assets on your transition date. FSCM Image 32 added a new step to this section of the activity guide to help identify leases that were exempt from capitalization, such as short-term leases. Use the search criteria to narrow your search for leases exempt from capitalization.

The Transition to the New Standard section is that the final section of the activity guide that completes the transition to the new accounting guidance. This is when you transition your leases to the new accounting guidance by capitalizing your operating leases and generating the corresponding straightline schedules for those leases.

PeopleSoft Asset Management and PeopleSoft Lease Administration can both help you effectively manage your payables leases. For more information, visit www.peoplesoftinfo.com, My Oracle Support, the video and additional Quest resources below.

Additional Resources

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