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Revert R12.1.3 Homepage Layout to Link Style as in R12.1.1 or 11i

Posted on May 7th, 2014 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

If you are using R12.1.2 , user may report some difficulty with Homepage responsblity , therefore they prefer similar to 11i or R12.1

In release 12.1.2 the E-Business Suite homepage has been re-designed using the configurable pages infrastructure.

This is new Enhancement which allows customers to work with a WYSIWYG model of configuration. This allows highly flexible content and layout including the ability to add and move content around the homepage to suit your needs.

These configurable home page provide a new and improved navigator tree which has expandable menus using richer and faster ajax calls and requests are kept within the sidebar to save valuable homepage space. The new tree also eliminates full page render of server-side requests therefore enhancing performance.

hanging menu

What If , you want to Revert back this options. Here are some notes, from our DBA who helped to achieve this.The above changes will result in the expandable menus changing to the older 'link style' menus.

Set the following profiles:

  • FND: Applications Navigator Menu Consolidation count : 25 – old is Null
  • FND:Slide out menu: Enabled – old is disable
  • Enable Configurable Home Page: No
  • FND: Personalization Region Link Enabled: Yes
  • FND: Disable Configurable Home Page: True — old is false

You can refer to Note :1061482.1: 12.1.2: How to Modify and Enable The Configurable Home Page Delivered Via 12.1.2 for more details.

Posted in EBS Suite | No Comments »

FASB 13 & Normalizing Payments

Posted on May 2nd, 2014 by Sanjit Anand |Print This Post Print This Post |Email This Post Email This Post

Landlords and tenants whose companies are publicly traded need to comply with FASB-13 standards for accounting of leases.

What is FASB 13?
FASB 13 regulates the accounting standards for office leases in the United States. In effect since 1977, these standards have established how leases are reported on financial statements by both tenants and landlords.

FASB 13 calls for every lease to be classified as either an Operating Lease or a Capital Lease based on specific criteria. As it currently stands, the vast majority of lease transactions are classified as Operating Leases. An Operating Lease is treated as an ongoing operating expense , where a Capital Lease is treated as a financing transaction and should be reported as an asset and liability on a company’s financial statements.

Understanding FASB 13 Standards

The Financial Accounting Standards Board (FASB) controls the accounting standards in the United States to ensure that financial statements are in accordance with Generally Accepted Accounting Principles (GAAP).

FASB 13, which is Ruling 13 from that board, states that the revenue from rent (recurring billings) must be recognized evenly (as a straight line) over the life of the lease. The difference between the straight-line rent that the system calculates for FASB 13 and the actual rent that you bill the tenant (or pay the landlord) must be reflected in the general ledger.

This examples below illustrate the actual rent amount for three years and the effect of FASB 13.

Actual Rent : This table illustrates the actual rent for the lease term January 1, 2012 – December 31, 2014 :

FAB13-1

Effect of FASB 13 : This table illustrates the effect of FASB 13 for the lease term January 1, 2007 – December 31, 2 008:

FAB13-2

Accural/Defferal :*Straight-line rent minus actual rent

To calculate the effect of FASB 13, the system adds the rent amounts for the entire lease term, and then divides the sum by the number of months in the lease term. Then the system subtracts the actual rent from the straight-line rent to determine the amount of the accrual or deferral that must be recorded in the general ledger.

GAAP states that accruals and deferrals must be recognized in the financial statements.

  • A positive difference is an accrual .
    • In above example, you received 15,000 in cash the first year, but you earned 20,000 based on FASB 13.
  • A negative difference is a deferral .
    • In above example, you received 25,000 in cash the third year, but you earned 20,000 based on FASB 13.

what you can see, the net sum of the accruals and deferrals over the life of the lease should be zero.

Understanding the FASB 13 Billing Process (Normalizing Payments) @Oracle Property Manager

As you have observed, according to these rules, companies need to normalize or calculate the average rent payments/billings over the term of the lease.

These normalized amounts need to be reported as revenue/expense, along with accrued revenue/liability, so that the investment community can accurately analyze the company's financials.

If you have a lease for which payment/billing amounts vary over the lease term, you can use Property Manager to normalize a lease for you and renormalize it if you amend the lease.

Normalization, also known as straight-lining,spreads the cost of rent payments/billings and rent abatements over the life of a lease to more accurately record the lease expense or revenue during the time it was incurred.

Rent normalization is used to comply with FASB-13 standards. Landlords can vary rent amounts over the life of a lease term for the following reasons:

  • Provide an incentive for the lessee
  • Reflect the anticipated effects of inflation
  • Ease the lessee's near term cash flow requirements

Using the rent normalization feature provides you with detailed monthly deferred liability and accrued asset amounts that can be accessed by accounting and finance departments to accurately calculate and estimate company-level revenue and expenses.

Only those lease terms for which the Normalize check box is checked can be normalized. Only actual amounts can be specified for normalized terms.

All normalized terms must lie within the lease term.

In other words, the start date of a normalized term cannot be earlier than the lease commencement date, and the normalized payment/billing term end date cannot be later than the lease termination date.

In EBS , When you enter a lease, you check the Normalize check box for a payment, billing, or abatement if you want it to be included in the normalization calculations .

After you finalize and save the lease, Property Manager creates a payment or billing schedule.

In the View Requests window you can then review the payment/billing schedule and the normalized amounts, or you can run the Normalized Rent Schedule Report.

Property Manager transfers revenue and expense distribution lines directly to Oracle General Ledger.

To calculate the average (normalized) amount for a term, Oracle Property Manager adds up all the cash items for that term over the entire lease term, and divides this sum with the number of months between the lease start and end dates.

If the lease starts or ends mid-month, the proration rule specified at the Lease Details level is used to calculate the number of months.

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