Activation Group Accounting

On the activation group Accounting page, you can define activation group accounting information.

To define activation group accounting information:

1. Open the activation group.
2. At the top of the activation group, navigate to the Accounting page.
3. The Financing Terms section displays information previously defined in the contract Accounting page, but can be modified if required.
4. The Indexations section allows you to define indexation fields separately for lease and non-lease terms.
   • If required, set the Consumer Price Index CPI (Lease) and/or CPI (Non-Lease) fields, which determine the type of indexation used. This field will be used for future indexation events. If CPI is set to:
     • "None": The activation group does not use CPI indexation rates.
     • "CPI Local": The indexation values (CPI) will be defined manually by the user.
       • The fields Current Index Level (Lease) and Current Index Level (Non-Lease) are used to calculate the difference with the new rate when an indexation event is added. It is typically 100 at contract inception, but you can set it to any value.
     • "CPI Global": The Current Index Level is set according to configured indexation dates.
       • The fields Reference Date (Lease) and Reference Date (Non-Lease) become enabled. Select the date that the application will use to filter the Indexation drop-down. Only the configured indexations that are valid for the Reference Date will be shown.

         Note: If you select a Reference Date that is different from the ROU Start Date, the application performs an indexation at inception (when the activation group is activated).

       • The fields CPI Category (Lease) and CPI Category (Non-Lease) become enabled. Select a configured indexation.
       • The fields Current Index Level (Lease) and Current Index Level (Non-Lease) are set to the value configured (based on the Reference Date).
       • If the Reference Date is different than the ROU Start Date to trigger an indexation at inception and the activation group is classified under ASC 842, select the USGAAP Indexation Treatment Type for all indexation for this activation group: 
         • Company Default: Use the setting configured in the Company Financial Setting "Default Indexation Treatment Type for GAAP" in Financial Organization Structure.
         • Standard: The application records the index amount under Index Non-Lease Payment, and only capitalizes index payments in subsequent non-indexation/non-impairment events.
         • Enforce Non-Lease: The indexed amount is recorded under Index Non-Lease Payment, and is never capitalized.
         • Enforce Lease: The indexed amount is immediately capitalized and recorded under Index Lease Payment.

     Note: If you are using indexation events to maintain an indexed currency, see Using Indexed Currencies for more information.

   • Conditional indexation allows you to set limits on CPI rate changes. To enable conditional indexation, click the Conditional Indexation checkbox. The following fields become enabled:
     • The Applicable Current Index Level (Lease)and Applicable Current Index Level (Non-lease) fields are automatically set to the values defined in the Current Index Level (Lease) and Current Index Level (Non-lease) fields, respectively.
     • The Minimum Percentage Change (Lease) and Minimum Percentage Change (Non-lease) fields become enabled. If desired, enter the minimum percentage that the Applicable Current Index Level can be increased by (relative to its value from the most recent active revision) in an indexation event. These fields can be updated in an indexation event, or a terms and conditions reassessment.
     • The Maximum Percentage Change (Lease) and Maximum Percentage Change (Non-lease) fields become enabled. If desired, enter the maximum percentage that the Applicable Current Index Level can be increased by (relative to its value from the most recent active revision) in an indexation event. These fields can be updated in an indexation event, or a terms and conditions reassessment.
5. In the Primary Cost Objects section, one of the following sets of fields can be modified, if required:
   • WBS and related Profit Center
   • Cost Center and related Profit Center
6. In the Other Cost Objects section, the following fields can be modified, if required: 
   • Functional Area
   • Segment
   • Network
7. In the Payable section, the Lessor Payment Reference can be modified, if required.