Create Recognition Posting

Explanation

This activity is used to recognize (post) right-of-use asset and a lease liability in the lease accounting process. These postings can be created only in the instances where a schedule line in the Amortization Schedule tab of the Lease Accounting Contract page is the first schedule line (in the case of initial recognition) or if there is a value in the Difference in Liability column for any schedule line in the same tab (in the case of a lease modification).

If the Exclude From Postings in the Amortization Schedule tab of the Lease Accounting Contract page is enabled for the initial line or any modified line, recognition postings will not be created for those lines.

Prerequisites

Before a recognition posting can be posted, the following must have been completed:

System Effects

As a result of this activity a voucher is created and transferred to the hold table in IFS/Accounting Rules. The posting of the right-of-use asset account is posted according to the posting type FAP 74, Lease Accounting, Recognition, Right-of-use Asset. The posting of the lease liability account is posted according to the posting type FAP75, Lease Accounting, Recognition, Lease Liability.