Events after ROU End Date

If all of the documents have been posted up to the ROU End Date in an active activation group, you can perform an activation group event to set "likely to exercise" for a term that starts after the ROU End Date.

The available Modification Date depends on the existing terms and conditions: 

  • If the existing term's Payment Term End Date is before the ROU End Date, the application allows you to select one day after the ROU End Date, but all documents must be posted and there must be a term that starts after the ROU End Date.
  • If there is a term that has payments that continue beyond the ROU End Date, the application allows you to select any day up to the last payment date in an unposted period.

Note: In general, the ROU asset is depreciated based on the shorter of the lease duration or the useful life, unless there is a transfer of ownership or purchase option that is reasonably certain to exercise. If you add a lease term after the ROU End Date, depreciation will be calculated for the new period. In this case, you should update the ROU End Date to correctly reflect the extended lease term.

Once the activation group has been extended, all types of events are available.

To add a term after the ROU End Date:

  1. If the current terms end at the ROU End Date, ensure all postings have been performed up to the ROU End Date.
  2. There must be a term that starts after the ROU End Date. If one does not exist: 
    1. Open the required lease component and create an event.
    2. Use the regular event procedure to add a new term that starts after the ROU End Date.
  3. Open the required active activation group and create an event. Use the regular event procedure, using the following information:
    1. For the Modification Date, the only available dates depend on the current terms: 
      • If the payments end before the ROU End Date, you can select the day after the ROU End Date.
      • If there are payments that continue after the ROU End Date, you can select any date up until the last payment date.
    2. Select "Likely to exercise" for the applicable term and condition.
    3. On the activation group Definition page, update the ROU End Date.

See also:  

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