IJ15199: ISSUE WITH LONG TERM AND SHORT TERM LIABILITY RECLASSIFICATION,IMPACTING JOURNAL ENTRIES,ALSO AFFECTS FINANCIALS & ITS CLOSINGS

10.6.0-TIV-PDM-FP004-README
10.6.0-TIV-PDM-FP004

APAR status

• Closed as fixed if next.

Error description

• Problem type:
  Application -> Real Estate Module -> Lease -> Accounting
  Schedules and Journal Entry
  Found In Product Version:
  Found in 10.5.3.5 and replicated in 10.6.0.1
   Problem Title:
  Issue with long term and short term liability reclassification,
  impacting Journal Entries.  When Journal entries are not
  accurate it can affect the financials and financial closings.
  Symptom/Description:
  Accounting Schedule (Operating or Finance schedule) does not
  have the capacity to split between long term/short term
  liability but would rely on Journal Entry to do the calculation.
  But in periods where free rent are offered or net rent payment
  is not high enough to cover the interest expense, JE is not
  going to able to capture the correct value due to the limitation
  that accounting schedule has no logic to perform calculation of
  the interest reduction vs principal reduction in this scenario.
  Current design can still calculate interest expense which is
  interest accrued for the period correctly, but just not able to
  calculate what portion of payment would be allocated to interest
  vs principal. And if principal reduction cannot be accurately
  calculated, long term/short term reclassification cannot be
  accurate either, which could raise a compliance concern to
  financial presentation.
  Steps To Reproduce (If Any):
  Enter a lease, generate the Accounting Schedule for a Long-term
  lease, there is only one Liability Value column in Accounting
  Schedule.  There needs to be two Liability Value columns, one
  for the Short-term portion of the Liability and one for the
  Long-term portion of the Liability.
  Expected Fix In Version:
  This was reported in 1Q2019. A target date for release has not
  yet been determined.
   Expected Fix Description:
  Add another Liability Value column to the Accounting Schedules,
  there will be one for the Short-term portion of the Liability
  and one for the Long-term portion of the Liability.  To
  accommodate this, there will be five new fields added to the
  Accounting Tab called: Interest Reduction, Accrued Interest
  Balance, Principal Reduction, Short Term Liability, Long Term
  Liability.
  Work Around:
  None
  Key Words:
  Accounting Schedule, JE
  

Local fix

Problem summary

• The Interest Reduction, Principal Reduction and Accrued Interest
  Balance are added to capture the payment to be able to calculate
  the short vs. long term liability for both Operating and Finance
  Schedules. TRIRIGA is now able to calculate the short and long
  term liability. This issue will be resolved in our next major
  release version, which is tentatively planned for 1H 2019.
  

Problem conclusion

Temporary fix

Comments

APAR Information

• APAR is sysrouted FROM one or more of the following:

• APAR is sysrouted TO one or more of the following:

Fix information

Applicable component levels