Activation Group Accounting Information

Lease Administrators and Accountants must complete the accounting information for each activation group.

The Financing Terms section shows the information defined in the contract (that cannot be modified), including the Contract Rate and the Incremental Borrowing Rate (IBR). Note that the IBR indicates the interest rate a lessee would have to pay if, instead of leasing, the lessee had to purchase the same asset. The rate is set automatically based on IBR values configured the in the Nakisa AdminConsole by company code, valid standard term start and end dates, and the date of the activation group creation. If provided, the Contract Rate is used to generate the financial schedules as well as to calculate the PVMLP. Otherwise, the application uses the IBR.

Note: Both the Contract Rate and IBR may be modified during contract modifications and reassessments. In this case, the fields on this page will reflect the new values.

The Cost Objects and Payable sections show the information defined in the contract, and certain fields can be modified for the activation group. These fields will be pushed down to all of the units, but can also be overridden at the unit level. Note that if any changes were made at the unit level first, and the same fields were then modified in the activation group, the activation group changes will override the unit ones. Once the activation group is active, these fields will only be editable at the unit level.

At contract inception, this page can be modified when the Contract Phase is "Setup" and the Activation Group Status is "Define".

To modify accounting information:

  1. Open the activation group, and click Accounting in the left-panel.
  2. In the Cost Objects section, the following fields can be modified, if required:
    • Cost Center
    • WBS
    • Functional Area
    • Liability Business Area
    • Responsible Cost Center
    • Allocate Cost Center (this field only appears if the system is operating in standalone mode and Cost Center Allocation Rules has been enabled in the Nakisa AdminConsole)
      • When this checkbox is unchecked, the field indicates that it is "Inherited", which means that amounts going to P&L accounts will be split across Cost Centers using the same rules defined on the contract Accounting page.
      • To define a new set of rules for the activation group, select the Allocate Cost Center checkbox. (Note that "Inherited" disappears from the field name at this point.) By default, the same rules from the contract level are copied down to the Cost Center Allocation Rule section. Edit or delete an existing rule, or click Add Rule to add a new row. The Allocation Percentage for all the rules must add up to 100%.

        Tip: Once Cost Center splitting has been set up at a higher level, it cannot be turned off. To no longer split amounts to multiple Cost Centers, simply define one rule that sends 100% of the amount to a single Cost Center.

      • Alternatively, rules can be imported via Excel at the activation group level or at application level if Excel imports and exports have been enabled in the Nakisa AdminConsole.

    Note: The fields Company Code and Internal Order cannot be edited. The field Trading Partner can only be used if it is enabled in the Nakisa AdminConsole. Contract your system administrator if the field is required.

  3. In the Payable section, the following information can be modified, if required:
    • Lessor Payment Reference
    • The Purchase Order Reference can only be set in the activation group. Select an existing PO number.

    Note: The fields Vendor, Payment Terms, and Contract Currency cannot be edited.

  4. In the Company Tax section, the following information can be modified, if required:
    • Tax Code
    • Tax Jurisdiction Code

See also:  

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