Lease functionality starts with two determinates: the Major Type of Lease and the Lessor/Lessee Indicator. These two fields result in four different sub type combinations for leases, which are delivered as Debt Type codes (parenthetical codes below). These four can be cloned to create variants for each to satisfy reporting, workflow and accounting control needs. Not displayed below is an internal choice for leasing an asset between parties on the same CGI Advantage Financial application. That functionality is part of the Internal Costing feature in Cost Accounting. Refer to the Internal Costing User Guide for more information.
Sub Type (Debt Type) |
Description |
Operating Lease as Lessor (OPR-LSR) |
An operating lease where you are the lessor and the lessee is a customer account. |
Operating Lease as Lessee (OPR-LSE) |
An operating lease where you are the lessee and the lessor is a vendor. |
Capital Lease as Lessor (CAP-LSR) |
A capital lease where you are the lessor and the lessee is a customer account. |
Capital Lease as Lessee (CAP-LSE) |
A capital lease where you are the lessee and the lessor is a vendor. |
When creating a Lease Setup (LEASES) or Lease Modification (LEASEM) transaction, the lease sub type determines which tabs of the transactions are required and which are prohibited for an active lease. The table below details those rules. When required, the system will automatically insert a line on the setup transaction and (if creating a new lease) on a modification transaction.
Transaction Tab |
Lessor |
Lessee |
Debt Instrument |
Required |
Required |
Lender/Lessor Information |
Required but information is optional |
Required |
Lender/Lessor COA |
Required |
Prohibited |
Borrower/Lessee Information |
Required |
Required but information is optional |
Borrower/Lessee COA |
Prohibited |
Required |
Schedule |
Required |
Required |
Schedule Details |
Required |
Required |
Debt Costs |
Optional |
Optional |
Debt Instrument Alerts |
Optional |
Optional |
Leases have several features and restrictions that are not applicable to Loans or Bonds:
For a full explanation of the delivered accounting events for leases, please see the "Leases" topic under Accounting Model Delivered Configuration > Debt - Accounting Model in the Financial Administration User Guide.