Ebs 122 Cum RCD Lease

ORACLE E-BUSINESS SUITE
RELEASE CONTENT DOCUMENT

Lease and Finance Management
Releases 12.1 and 12.2 (inclusive of 12.0.2 12.0.7)
Prepared by EBS Product Management & Strategy
Last Updated:
April 7, 2015
Version:
3.0
Copyright 2015 Oracle Corporation

All Rights Reserved
Table of Contents
1.
Disclaimer
2.
Introduction
2.1.
Purpose of Document
3.
New and Changed Features in Lease and Finance Management
3.1.
Product Overview
3.2.
3.3.
3.4.
Origination
3.2.1. Release 12.1.3

3.2.1.2.
Enhanced Pricing Scenarios
4
4
Contract Management
3.3.1. Release 12.1.1

3.3.1.1.
Improved Ease of Use
3.3.1.2.
Improved Authoring Flows
3.3.1.3.
Automated Billing & Accruals
3.3.1.4.
Loans
3.3.2. Release 12.1.2
3.3.2.1.
Effective Dated Rebook
3.3.2.2.
Additional Rebook Updates
3.3.3. Release 12.1.3
3.3.3.1.
Authoring
3.3.3.2.
Transfer & Assumption
3.3.3.3.
Termination
3.3.4. Release 12.1.3+
3.3.4.1.
Configure new and released assets on same contract
3.3.4.2.
Variable rate
3.3.4.3.
Terminating Expired Contracts
3.3.5. Release 12.2.4
3.3.5.1.
Enter Interim Payments for Assets, Fees and Services
3.3.5.2.
Author Contracts with New and Re-Leased Assets
3.3.5.3.
Author Variable Rate Contracts with Additional Interest Rate Conventions
3.3.5.4.
Update Default Asset Salvage Values
3.3.5.5.
Revise Variable Rate Contracts
3.3.5.6.
Revising Re-Amortization Contracts
3.3.6. Release 12.2.5
3.3.6.1.
Contract Renewal Command Center
3.3.6.2.
Enhanced Termination Quoting and Processing
5
5
5
5
6
6
6
6
7
7
7
7
7
7
7
8
8
8
9
9
9
9
10
10
10
11
Cash Management
12
3.4.1. Release 12.1.1

3.4.1.1.
Billing Integration: Multi-line Invoices and Simplified Invoice Query
3.4.1.2.
Pre-billing Report
3.4.1.3.
Receipts Enhancements
3.4.1.4.
Consolidate Multiple Distribution Transactions onto a Single AP Invoice
3.4.1.5.
Raise an Invoice on Behalf of a Third Party Supplier
3.4.1.6.
View Leasing Information on Payable Invoices
12
12
12
12
13
13
13
Oracle E-Business Suite Releases 12.1 and 12.2 Release Content Document
ii
3.4.1.7.
View Vendor Disbursement Invoice Details
13
3.4.1.8.
Support for Oracle Lease and Finance Management with Supplier Merge into Oracle Trading Community
Architecture 13
3.4.1.9.
Support for Additional Payment Methods
14
3.4.2. Release 12.1.3
14
3.4.2.1.
Enhanced Receipts Drill Down
14
3.4.2.2.
Variable Rate Interest Calculation
14
3.4.3. Release 12.1.3+
15
3.4.3.1.
Enhanced Pass Through Fees
15
3.4.4. Release 12.2.4
15
3.4.4.1.
Enhanced Security Deposit and Contract Termination Processing
15
3.4.4.2.
Enhanced Pass Through Processing for Fees and Services
15
3.4.4.3.
Enhanced Vendor Disbursement Consolidation
15
3.5.
3.6.
3.7.
3.8.
3.9.
3.10.
Asset Management
17
3.5.1. Release 12.1.1

3.5.1.1.
Asset Tracking by Serial Number
3.5.1.2.
Asset Drill-Down
3.5.1.3.
Enhanced Split Asset
3.5.2. Release 12.1.3+
3.5.2.1.
Configurable Salvage Value in Asset Reporting and Tax Books for Leases in OLFM
3.5.3. Release 12.2.5
3.5.3.1.
Terminate Usage Contract Lines
3.5.3.2.
Improve Customer Satisfaction and Operations Efficiency with Usability Enhancements
17
17
17
17
17
17
17
17
17
Investor Management
19
3.6.1. Release 12.1.1

3.6.1.1.
Investor Agreements & Securitization
19
19
Accounting & Controls
20
3.7.1. Release 12.1.1

3.7.1.1.
Enhanced Accounting with Subledger Accounting Architecture (SLA)
3.7.1.2.
Additional Functionality for Ledgers
3.7.1.3.
Contract Trial Balance
3.7.1.4.
Lease Classification
3.7.1.5.
Reconciliation Reports
3.7.1.6.
Automatic Multi-GAAP
3.7.1.7.
Improved Support for Transaction Tax
3.7.1.8.
Improved Legal Entity Definition
3.7.2. Release 12.1.2
3.7.2.1.
Multi-GAAP Enhancements
3.7.3. Release 12.1.3
3.7.3.1.
Accrual for Variable Rate Contracts
20
20
21
21
21
21
22
22
23
23
23
23
23
Customer Service
24
3.8.1. Release 12.1.1

3.8.1.1.
Lease Center
3.8.1.2.
Additional Support for Shared Services
3.8.2. Release 12.1.2
3.8.2.1.
File Attachments
3.8.2.2.
Bill Presentment
24
24
24
25
25
25
26
3.9.1.1.
Overview
3.9.2. Release 12.2.5
3.9.2.2.
Enhanced Termination Quoting and Processing
26
26
27
Setup & Implementation
28
3.10.1. Release 12.1.1

3.10.1.1.
Reduce Implementation Risk
28
28
iii
1.
Disclaimer
This Release Content Document (RCD) describes product features that are proposed for
the specified releases of the Oracle E-Business Suite. This document describes new or
changed functionality only. Existing functionality from prior releases is not described. It
is intended solely to help you assess the business benefits of upgrading to the specified
release of the Oracle E-Business Suite.
This document in any form, software or printed matter, contains proprietary information
that is the exclusive property of Oracle. Your access to and use of this confidential
material is subject to the terms and conditions of your Oracle Software License and
Service Agreement, which has been executed and with which you agree to comply. This
document and information contained herein may not be disclosed, copied, reproduced or
distributed to anyone outside Oracle without prior written consent of Oracle. This
document is not part of your license agreement nor can it be incorporated into any
contractual agreement with Oracle or its subsidiaries or affiliates.
This document is for informational purposes only and is intended solely to assist you in
planning for the implementation and upgrade of the product features described. It is not a
commitment to deliver any material, code, or functionality, and should not be relied upon
in making purchasing decisions. The development, release, and timing of any features or
functionality described in this document remains at the sole discretion of Oracle.
Due to the nature of the product architecture, it may not be possible to safely include all
features described in this document without risking significant destabilization of the code.
Purpose of Document
2.
Introduction
2.1.
Purpose of Document
This Release Content Document (RCD) communicates information about new or changed
functionality introduced in Oracle E-Business Suite Releases 12.1 and 12.2, and in
subsequent Release Update Packs (RUPs) and off-cycle patches. For your convenience,
it also includes new or changed functionality introduced in the RUPs for Release 12,
including 12.0.2 through 12.0.7.
The features and enhancements described in this document are grouped by product, and
then by the release in which they first became available, for example, Release 12.1.1.
Features released in an off-cycle patch have a special designation for example, a feature
released after 12.1.1, but before 12.1.2, is designated as Release 12.1.1+.
Purpose of Document
3.
New and Changed Features in Lease and Finance

Management
3.1.
Product Overview
Oracle E-Business Suite includes a number of changes in technology standards to
enhance your experience and insure consistency in screen behavior across the E-Business
Suite. Oracle E-Business Suite Release 12.1.1 includes a number of mandatory uptakes
for all products in the Suite. These mandatory uptakes include features that address
application performance, changes in the user interface standards, changes in the
technology stack and enhanced functional features.
The following business processes have been enhanced to help you to improve your
operating margins, drive portfolio growth in new and existing markets, and to control
credit, operational and statutory risk:
Origination
Contract Management
Cash Management
Asset Management
Investor Management
Customer Service
Product Overview
3.2.
Origination
3.2.1.
Release 12.1.3
3.2.1.1.1. Improved efficiency in processing lease applications counteroffer history is
available in case folders for review
When Credit Analysts and Credit Managers review credit case folders to make
recommendations, approve, or close a lease or loan application, they need to be able to
view original offers and all counteroffer approval history that have been entered through
Oracle Credit Management. Credit Analyst and Credit Managers can view the history of
counter offers approved within case folders to take appropriate action.
3.2.1.1.2. Default attributes from contract template when creating from lease
application
When a user creates a new lease or loan contract from a lease application, the terms and
conditions from the contract template associated to the lease application are copied to the
new contract as well as information from the approved lease application... The
enhancement allows you to copy the following new fields from the contract template:
Contract Description
Parties (including DFFs)
Additional Information (DFFs) from the contract template header
Guarantor parties defined on the case folder associated to the lease application
If a field has different values on the lease application and the contract template, the value
on the lease application overrides the value copied from the contract template.
3.2.1.2. Enhanced Pricing Scenarios
Lenders may agree to defer or provide a period during the life of a contract where no
interest/financing charge is accumulated. These periods are often at the beginning of a
deal and correlate to a rental "holiday" where no payments are due or to reduce the
amount of the payments overall for the life of the contract. Users may put in a "zero"
interest rate and/or payment amount for those periods, then target a final rate needed to
achieve profitability for the overall transaction.
Origination
3.3.
Contract Management
3.3.1.
Release 12.1.1
3.3.1.1. Improved Ease of Use
Oracle Lease and Finance Management improves your experience in using many
common page functions. Improvements in how the pages handle use of the browser back
button, the content of your search results and expandable tables and global access to the
preference menu all make it much easier for you to use Lease and Finance Management.
Underlying changes in the application files and handling of diagnostic logs make it easier
for you to navigate from page to page, perform common functions and find out about
errors that occur. Categorization of profile options makes it easier for you to search and
update the profile options you need to manage your users and program features.
With improved navigation and page flow, you improve efficiency authoring agreements
and processing transactions using fewer screens and streamlined process flow.
3.3.1.2. Improved Authoring Flows
Oracle Lease and Finance Management has improved ways to present and enter
information on screen and perform various actions on objects. The Authoring screen
design incorporates enhancements to enter and process various types of deals in Oracle
Lease and Finance Management to meet lease industry origination requirements.
With improved authoring flows, you can:
Improve authoring efficiency through enhanced access to contract information

for viewing, creating and updating a contract
Limit the number of contract terms and conditions by selecting only the ones that
are relevant to your contract
Quickly search, create or update assets with an improved page flow
More clearly view items that are financed on the contract with the Configuration
tab that shows all financed items
Enter payments while entering the related asset, fee or service
View and enter adjustments (capitalized fee, trade-in, down payment, and
subsidy) from a single location
View payment details in an easier to read summary format
View only the relevant sections you need to enter based on the type of contract
3.3.1.3. Automated Billing & Accruals

Increase automation and reduce manual billing and accrual generation when contracts are
terminated early. When a termination quote is accepted for a fixed rate contract, Lease
and Finance Management verifies that billing and accruals have been processed for the
contract through the quote effective from date. When billing has not yet been processed,
Lease and Finance Management automatically initiates billing through the quote effective
from date. When accruals have not yet been processed, Lease and Finance Management
automatically initiates accruals for fixed rate contracts through the quote effective from
period.
Contract Management
3.3.1.4. Loans
Lessors require the flexibility to address their customers financing requirements by
offering different financing options. Providing a complete offering of loans is critical to
most lessors. Loans may be offered as:
Fixed Rate Loans- the interest rate does not change over its life.
Variable Rate Loans- the interest rate may change during the life of the loan.
Revolving Rate Loan- a line of credit is available for the customer with no
principal repayment schedule.
Variable rate loans are configurable. The basis of interest rate change and its frequency
can differ for each contract. It is also possible to define when the principal balance is
reduced, on billing or on receipt of cash.
User processes to author variable rate loans are streamlined to improve efficiency. View
enhanced reports to ascertain variable rate processing completed on the contract. Once
loan contracts have been booked, you can transact downstream processes:
Rebook active loan contract to make modifications
Pay down principal and interest
Terminate the loan contract early
Repossess assets
Run a projected amortization schedule
View comprehensive loan details in the Lease Center
The benefits of Oracle Lease and Finance Management loans include:
3.3.2.
User defined interest indexes
Flexible configuration to meet customer needs
Per Diem Loans
Release 12.1.2
3.3.2.1. Effective Dated Rebook
In the competitive equipment leasing market, financiers must be flexible to meet their
customers needs and respond quickly to financial changes in contract terms. Contract
changes require flexible accounting systems to properly account for revenue and expense
adjustments. When contracts are rebooked, Controllers need to make proper accounting
adjustments including the ability to spread the financial impact of contract revisions over
the remaining contract term.
In R12.1.2, the effective dated rebook feature ensures that income adjustments due to
contract revisions is not recalculated and adjusted for periods prior to the effective date of
the revision. Accounting for income adjustments is recognized from the effective revision
date through the remaining contract term.
This means you can automatically apply your accounting policies with assurance that
there is no impact on contract changes to prior or current accounting periods. Contract
changes for floating rate contracts, principal paydowns and restructures are prospective.
3.3.2.2. Additional Rebook Updates
Equipment financiers frequently require the flexibility to modify terms of agreement after
contract activation. In R12.1.2, Oracle Lease and Finance Management is enhanced to
Contract Management
enable financiers to easily update additional contract parameters on terms and conditions,
adjustments, and additional charges, such as down payments, during manual rebook.
Additional rebook updates increase usability and provides users flexibility to modify
additional parameters after contract activation. Non financial changes can also be routed
for approval before the contract is rebooked.
3.3.3.
Release 12.1.3
3.3.3.1. Authoring
3.3.3.1.1. Reuse contract numbers
Contracts that are not yet booked may be canceled in order to make their contract
numbers available for reuse.
3.3.3.1.2. Salvage value
Global equipment lessors must account for salvage values to meet local statutory
reporting requirements and tax regulations in countries that have different accounting and
tax principles. For instance, lessors that operate in multiple countries use tax books for
local statutory reporting that may or may not require salvage values, so users require the
flexibility to set values appropriately for their region.
Users may specify the salvage value for each asset and book combination during booking
and activation, and can update salvage values during online rebook.
3.3.3.1.3. Enhanced SuperTRUMP Integration
Users in Turkey, Oman, Qatar, Saudi Arabia, Kuwait, United Arab Emirate and South
Africa can use SuperTRUMP for pricing their leases and loans.
3.3.3.2. Transfer & Assumption
Users can include assets in Re-Lease for Transfer or other re-lease transactions for a
contract whether individual asses are fully funded or not. This means that when assets are
transferred from partially funded contracts, the un-funded portion is also transferred to
the balances of the new contract.
3.3.3.3. Termination
When users request termination quotes for multiple assets through the Termination
Interface, Oracle Lease and Finance Management automatically consolidates the quotes
based on the quote recipient for each asset line. Consolidating termination quotes by
recipient reduces the volume of transactions and streamlines processing.
In addition, when contracts are terminated, the system automatically generates a credit
memo as a refund of any security deposit paid on the contract.
3.3.4.
Release 12.1.3+
3.3.4.1. Configure new and released assets on same contract
Equipment lessors require the ability to author lease contracts that combine used
equipment with new equipment on the same contract. This enhancement enables users to
create a new contract with new and existing assets from a previously terminated contract.
3.3.4.2. Variable rate
Valid combinations to calculate variable rates using the number of days in months and
years include:
Days in a Month / Days in a Year
30 / 360
Contract Management
30 / 365
Actual / 360
Actual / 365
Actual / Actual
For contracts using the Interest Calculation Method, Reamortization, valid combinations
include 30/360, Actual/360 and Actual/365. Rate Change Frequencies of Date of
Calendar Month and Date of Calendar Month and Year are no longer necessary and will
not be supported.
Lessors may provide their customers interest holidays. Users can author contracts with
stub days for interest holidays or to generate variable interest schedules for reamortized
loans and leases that have non standard frequencies.
Users may require interest rates to change semi-annually. Users can setup variable rate
interest rate changes to be calculated twice a year.
3.3.4.3. Terminating Expired Contracts
Enhanced Security Deposit Processing
By enabling a contract attribute, users can automatically generate on-account credit

memos in Oracle Receivables when terminating expired contracts with security deposits
that were billed during the original term. An on-account credit memo can be applied to
any open receivable for the same customer account.
Open Receivable Validation
In addition, the Terminate Expired Contracts program does not terminate contracts with
open receivable invoices, so users can initiate a contract modification at end of term in
the cases where a workout or renewal is negotiated.
3.3.5.
Release 12.2.4
3.3.5.1. Enter Interim Payments for Assets, Fees and Services
Lessors who charge interim amounts can enter the amounts when they enter regular
payment terms for the following types of contract lines:
Assets
Pass Thru Fees
Miscellaneous Fees
Services (with or without pass through)
Financed Fees
Rollover Fees
Interim payments are billable amounts charged by lessors that cover the period of time
when the asset, fee or service is considered in-service until the start date of the base
term of the contract.
Interim payments are included in the pricing of a contract prior to activation, and users
can bill the interim payment amounts, recognize and accrue the related income and view
the interim payment amounts in the Authoring and Lease Center payment summary
pages. Users will also be able to import the interim payment amounts through the existing
contract import interface.
Contract Management
3.3.5.2. Author Contracts with New and Re-Leased Assets

The term re-leased assets refers to leased assets previously booked on another contract
that are terminated from the original contract and added to a new contract. New assets
are assets that have never been booked on any contract. Assets are entered on the
Configuration sub tab during contract authoring or imported as contract lines through the
contract import interface.
With this enhancement, lessors may include new assets and re-leased assets (existing
assets that have already been leased) on the same contract. Previously, users were
required to put new and re-leased assets on separate contracts. In the asset summary page,
new fields display the type of asset line.
The booking, revision rebooking, funding and accounting processes have been modified
to accommodate both types of assets in the same contract.
3.3.5.3. Author Variable Rate Contracts with Additional Interest Rate Conventions
The specified day convention in the interest rate terms and conditions for a contract,
along with the applicable interest rate, are used by the pricing engine to determine the
new payment amount for contracts that are re-amortized due to a qualifying rate change.
Users can select the day conventions Actual/365 and Actual/360 (Days in a Month/Days
in Year) in loans and leases with the Interest Calculation Method Re-Amortization.
3.3.5.4. Update Default Asset Salvage Values
To meet local requirements for asset depreciation accounting, lessors may need to specify
a salvage value for assets that is not equal to the residual value. Users can update the
default value for the salvage value assigned in asset books for assets created or updated
during contract booking and rebooking.
3.3.5.5. Revise Variable Rate Contracts
Lessors may need to modify or rebook variable rate contracts during their term. A rebook
may involve a change to any part of the contract, including terms and conditions that
define the variable rate calculations, a restructure of the payments or due to errors during
the original contract booking. Depending upon the change, the updates may impact
billing and accrual transactions that have already taken place as well as transaction
expected to happen in the future.
Users are permitted to rebook all methods for variable rate contracts. Rebooks are
permitted with or without Effective Dated Rebook method enabled. However, to insure
consistencies in revision processing, users are not permitted to update payment due dates
for any payment occurring prior to the Rebook Effective Date when Effective Dated
Rebook processing is enabled.
3.3.5.5.1. Revising Float, Catchup/Cleanup or Float Factor Contracts
Contracts with these Interest Calculation Methods can be rebooked with effective dates
before or after the last interest calculation date. All billing period amounts are
recalculated and historical interest rates from prior periods are maintained and applied to
the recalculated amounts. Adjustments to billing and accrual amounts are processed when
the revised contract is re-activated. If the contract uses the Revenue Recognition Method
Estimated & Billed, the variable rate program will determine if any previously accrued
billed amount has changed based on the rebook and create any necessary adjustment. A
seeded formula will determine the adjustment based on the difference between the Sum
of Billed and Accrued Amounts as updated by Rebook and the Sum of Previously Billed
and Accrued Amounts. Users may modify the seeded formula.
Contract Management
3.3.5.6. Revising Re-Amortization Contracts

Contracts using the Interest Calculation of Re-Amortization can be revised using the
rebook process. The Rebook Effective Date can be any date before or after the last
interest calculation date. All previous re-amortization points in the contracts history will
be recalculated sequentially to determine the new payment amounts, but the effective
interest rate will only be re-derived for periods after the rebook effective date. Once the
re-amortized payments are re-generated, the new streams will be used to determine
billing and accrual adjustments. To avoid inconsistencies in re-pricing payments, users
may only enter equal payment amounts or zero payment amounts for future periods
(either recurring payments or stub periods) when modifying the payment structure for any
asset contract line.
3.3.6.
Release 12.2.5
3.3.6.1. Contract Renewal Command Center
Equipment financiers and service providers must effectively manage relationships with
customers and partners to pave the way for attaining customer and partner loyalty while
increasing operational efficiency and balancing ROI for all stakeholders. This new
module consolidates the needs of both Oracle Lease and Finance Management and Oracle
Service Contracts users by providing a relationship-driven view of equipment financing
and service contracts through a command center dashboard as well as analytical portals
that leverage transactional data generated in Oracle as well as external sources.
The Contract Renewal Command Center provides insights organized into objectivedriven pages that provide metrics, charts, graphs and other data to help you manage
customer and partner relationships and make the right decisions to drive loyalty and
balance value.
3.3.6.1.1. Customer Management
The customer management command center page provides you with information about
your customer relationships, such as the contracts they have with you and the transactions
and customer service information generated during your interactions with them to help
you:
Drive customer loyalty

Drive repurchases
Increase your share of the customers spending on financing and service
3.3.6.1.2. Portfolio Management

The portfolio management command center page provides you with enhanced analytical
and summarized information about your portfolio of customers, contracts and assets to
help you:
Increase your share of customer spending

Balance your ROI with the value to your customers
3.3.6.1.3. Vendor Management

The vendor management command center page provides you with detailed and summary
information about the cash flow generated to and from your partners as well as
information about the portfolio generated through your partner relationships. This page
helps you:
Drive your vendor loyalty

Improve your vendors cash flow
Help vendors increase business with you
Contract Management
10
3.3.6.1.4. Contracts (Finance and Service)

Two new contract management command center pages, one for finance contracts and one
for service contracts, provides you with the ability to balance the workload of
transactions you need to process to manage your customers contracts. These pages help
you
Increase your operational efficiency

Drive repurchases from customers
The information in the command center pages is provided through alerts, metrics, and
charts of various types as well as tables of details about your customers, contracts, assets
and transactions. Actionable links from the command center allow for the implementation
of decisions in OLFM or Oracle Service Contracts that you need to make to drive your
business objectives and to track the effectiveness of decision making to your results.
3.3.6.2. Enhanced Termination Quoting and Processing
You may want to offer multiple mid and end of term options to your customers while at
the same time allowing flexibility to respond to your customers changing preferences
and conditions. Decision making requires quotes to be presented in a single document or
set of options so overall profitability can be assessed and compared against other options.
With enhanced termination quoting and processing, you can consolidate different
termination and renewal quote types for assets or partial assets on the same contract while
associating profitability formulas that assess the profitability of the consolidated quote
types.
Enhanced termination processing separates quote acceptance from termination through a
new system option. If you enable the new system option, the actual termination is
processed only when the asset is returned or when the purchase amount is paid. When the
new system option is enabled, you have the ability to cancel asset lines from accepted
consolidated quotes that have not yet been terminated. The cancellation automatically
adjusts invoices associated to the termination of the cancelled line as well as the
cancellation of any open asset return requests.
To address usability issue with large volume of asset return requests, a facility has been
provided to update the status of asset return requests in format that is efficient in such
large volume settings.
3.3.6.2.1. Enhanced Renewal Quoting
When approaching end of term, your customers may decide they want to keep assets
beyond the end of term of the current contract. If your customer does not wish to enact an
indefinite period renewal (ie, evergreen or month-to-month) they can decide to extend the
asset rental through a fixed period renewal. Offering fixed period renewals to your
customers requires the ability to quote the new term including new payments, renewal
term and yields.
With enhanced renewal quoting, you can create renewal quotes for any asset in an active
status. Depending on the pricing method selected, you can calculate payments for a
target rate or calculate the yield for a specific target payment and term. If the quote is
accepted, using the financial terms in the quote, a new contract is automatically created
and activated as soon as the existing contract reaches expiration.
Contract Management
11
3.4.
Cash Management
3.4.1.
Release 12.1.1
3.4.1.1. Billing Integration: Multi-line Invoices and Simplified Invoice Query
Billing integration between Oracle Lease and Finance Management and Oracle
Receivables has been enhanced to enable the creation of multi-line invoices and to
simplify queries of invoices for cash application and informational purposes. This has
been enabled as Oracle Receivables has introduced functionality to maintain invoice line
levels.
With this billing integration, you can:
Reduce the number of invoices

Improve efficient operations managing receivables
Leverage more standard receivables functionality
3.4.1.2. Pre-billing Report

Avoid delays in collection and improve control of your billing process by validating
billing details before invoice preparation and preventing time consuming manual
corrections. The Oracle Lease and Finance Management pre-billing report identifies
potential errors that can occur during billing process that are difficult to correct once the
billable streams are processed in Lease and Finance Management and billing details are
transferred to the Oracle Receivables interface table for invoice generation.
The Pre-billing Report identifies the contracts for which the error can occur due to
disabled bank accounts, disabled receipt methods, incorrect bill-to-site, inaccurate sales
representative, and invalid GL code combinations.
With the pre-billing report, you can:
Reduce costly manual error correction caused by incomplete or invalid

information
Improve the efficiency of your billing process
3.4.1.3. Receipts Enhancements

Receipt functionality has been enhanced to apply receipts created in Oracle Lease and
Finance Management. Lease and Finance Management applies the receipt to the invoice
line amount manually or automatically based on cash application rules. In addition,
receipts can be created in as on account, unidentified or as un-applied in Lease and
Finance Management. These receipts, or receipts created in Oracle Receivables, can be
viewed and updated in Lease and Finance Management. Receipt functionality is
modified to take into account the multi-line invoices created in Lease and Finance
Management.
With these receipt enhancements, you can:
Increase efficiency in your receipts processes by using cash application rules in

Lease and Finance Management to automatically apply cash and lockbox receipts
to line level invoices in Receivables. After receipts have been applied, you can
update the application amount, and un-apply the receipt application to invoice
lines.
Improve customer service by creating advance receipts against contracts before
activation or during the contract life.
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12
Reduce time searching for receipts created in either Lease and Finance
Management or Receivables through centralized search in Lease and Finance
Management by using multiple receipt based search criteria.
3.4.1.4. Consolidate Multiple Distribution Transactions onto a Single AP Invoice

With the introduction of invoice lines, you can consolidate multiple disbursement
transactions from Oracle Lease and Finance Management onto a single payable invoice.
You can set up business rules to determine the frequency and consolidation method for
each vendor site.
3.4.1.5. Raise an Invoice on Behalf of a Third Party Supplier
Enhancements allow you to setup rules that govern your ability to create invoices on
behalf of third parties. You can set up taxes to automatically calculate your payments and
specify invoice numbering sequences for each vendor site. You can also specify business
rules to automatically charge a processing fee for this service.
3.4.1.6. View Leasing Information on Payable Invoices
Using the new payable invoice line architecture, you can view leasing specific details on
your payable invoices, such as contract and asset number, stream type and disbursement
type.
3.4.1.7. View Vendor Disbursement Invoice Details
You can view the additional invoice line details and consolidated invoices with drilldown capability into the leasing transactions for your supplier disbursements from the
Vendor Disbursement Center.
With these disbursement enhancements & Oracle Payables integration, you can:
Improve operational efficiency by consolidating invoices based on configurable

rules for each vendor pay site. Oracle Lease and Finance Managements
integration with Oracle Payables enables you to setup rules that consolidate
different types of disbursements into a single invoice while still allowing you to
see details of the disbursement transaction. You can setup default values in
Payables to stream line payment processing and automate the process.
Comply with local statutory & regulatory requirements for payable taxes and
invoice number control for invoices raised on behalf of third parties. Payables
integration with the new E-Business Suite Tax engine allows you to setup
payable tax calculations that meet your local and global statutory requirements.
Improved effectiveness when searching and viewing payable invoices by enabled
leasing attributes on payable invoices at the invoice line level.
Enhance supplier relationships by processing payments faster and more
accurately. Disbursements for your existing pass through fees and services and
investor disbursements are upgraded as-is, but allow you to improve the payable
invoice processing to meet your suppliers requirements.
Maintain your existing disbursement rules for pass-throughs and investor
agreements.
3.4.1.8. Support for Oracle Lease and Finance Management with Supplier Merge
into Oracle Trading Community Architecture
Suppliers that you have set up in Oracle Procurement and Oracle Payables now have a
party account in Oracles Trading Community Architecture (TCA). You can link a
supplier account with related customer accounts so that a single party can have both
receivable and payable accounts with you. The list of accounts you can select is now
limited to those associated with the same party record in TCA. You can also set up a
Cash Management
13
customer account for the suppliers associated to your contracts and agreements. The list
of customer accounts you can select from is now limited to those associated to the same
party record as the supplier account.
When you use the Release 12 feature to merge supplier accounts, the updates required in
Oracle Lease and Finance Management transactions, contracts and agreements are
processed automatically.
With Supplier Merge in TCA, you can:
Decrease potential errors when selecting a customer (receivable) account for a

vendor or a supplier (payable) account for a customer. Lease and Finance
Management decreases the data entry errors when selecting a Customer party
against a Vendor or vice versa using the new Supplier merge into TCA capability
Decrease errors and improve efficiency by automatically associating vendor
account to transactions, contracts and agreements. Lease and Finance
Management automatically updates vendor references when a vendor or vendor
site is merged in Payables.
3.4.1.9. Support for Additional Payment Methods

You can accept and process payments using multiple methods, such as bank account
deductions, credit cards and wire transfers in Oracle Lease and Finance Managements
self-service portals and lease center. You can also select specific customer invoice lines
to apply the payment to after it is processed.
With additional payment methods, you can:
3.4.2.
Improve customer satisfaction by accepting multiple forms of payment when

processing customer payments. Lease and Finance Management increases the
number of available of instruments to be used to make a payment beyond the use
of credit card.
Improve efficiency in processing cash payments by using AR invoice number for
searching and making payments. Lease and Finance Management enables the
use of AR invoice number for searching and making payments
Release 12.1.3
3.4.2.1. Enhanced Receipts Drill Down
Users can review receipts and receipt adjustments applied to invoices generated for lease
or loan contracts in Oracle Lease and Finance Management. They can view receipt
activity, including the original receipt, reversals and subsequent receipts, without using
Oracle Receivables.
3.4.2.2. Variable Rate Interest Calculation
Print lead days are considered to determine the dates used for interest calculation on
variable type contracts. Variable interest is calculated up to the date interest rates are
defined on the Interest Index. On Float or Catchup and Cleanup contracts, variable
interest calculation streams are generated on asset level in order to calculate partial
terminations and net investment correctly at the asset level. Daily Interest Calculation
runs for Variable Rate Contracts using Actual Principal and is calculated on contract
level.
When the variable rate processing program cannot calculate interest for an eligible
contract, the output report ends with a warning. The output report provides detailed
reasons for each error listed by contract. For Catchup/Cleanup contracts, columns for
Settlement Basis and Amount have been added to the report.
Cash Management
14
3.4.3.
Release 12.1.3+
3.4.3.1. Enhanced Pass Through Fees
To insure pass through fee disbursement amounts are calculated correctly based on the
payments received or expected to be received from their customers, users can use
Processing and Source as Payment Basis options for pass through type fees on contracts.
To pay a vendor on a schedule that differs from the payment schedule for the contract
customer, users can use Vendor Disbursement Terms to define the disbursement schedule
and any consolidation rules. Additional validations help avoid unintended overpayment
of disbursement amounts to vendors and insure consistency of payouts to vendors when
multiple vendors need to be paid for the same pass through fee.
3.4.4.
Release 12.2.4
3.4.4.1. Enhanced Security Deposit and Contract Termination Processing
Typically at end of term, lessors return security deposits that were not used during the
term to offset any default or negotiate extensions with customers who have not fully paid
all outstanding invoice amounts. Once the end of term obligations are fully met by the
lessor and borrower/lessee, the contract is terminated and contract balances are closed.
Users can set a new attribute in the Security Deposit terms and conditions for a contract
to Automatically Credit Security Deposit on Expiration. The value of this attribute for
existing contracts will be upgraded to No, and the value can be included on imported
contracts, updated during a contract revision and viewed or updated from the Lease
Center. When the value is set to Yes, an on-account credit memo is issued to the
customer account associated to the contract for the security deposit amount upon contract
expiration.
The Terminate Expired Contracts program has also been enhanced so that it will not
automatically expire contracts with any open receivables. This enables users to
restructure or revise a contract at end of term in cases where the receivables are not paid
or not written off as a loss.
3.4.4.2. Enhanced Pass Through Processing for Fees and Services
Lessors use pass-through type fees on lease and loan contracts to share the
revenue with vendors and suppliers. For a pass through fee or service, rules
associated with the line determine the amount and timing of vendor disbursements
in relationship to the payment billing.
To avoid conflicts with other vendor disbursement terms and overpayments, the
Scheduled Payment Basis has been modified so it can only be selected when the
Payout Basis is Billing. Users enter the details of the payout schedule for the
fee or service line and all vendors associated to the line are paid on the same
schedule. The Disbursement Basis and Processing are entered as an amount for
this type of payout basis and the total of amounts cannot exceed the total of
payments.
Based on the new pass through attributes, vendors and suppliers can be paid on a
schedule this is separate from the billing schedule of the fee or service payments but
controlled by the overall total amount of the payments.
3.4.4.3. Enhanced Vendor Disbursement Consolidation
Lessors and financers who need to pay vendors for fundings and other disbursements
associated to their contracts often consolidate transactions occurring during a specified
period into a single payable invoice in order to reduce the number of invoices requiring
processing.
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15
In addition to the implicit grouping rules mandated by the integration with Oracle
Payables, users may define additional consolidation rules by creating a Vendor
Disbursement Term and associating it to one or more vendor pay sites. The values for
the Vendor Disbursement Term options Consolidate Across Invoice Dates and
Consolidate Across Disbursement Types are used to group the eligible transactions
after the implicit groupings are determined. If you do not enable one or both of the
values, only disbursement transactions that have the same date and same stream type will
be grouped.
The disbursement schedule is derived using the Frequency, Scheduled Month and
Scheduled Day of the Month values and the eligible transactions are selected based on the
stream types associated in the Vendor Disbursement Term. The logic used to derive the
disbursement schedule was enhanced with new processing validations to insure
consistency with other disbursement logic for vendor and supplier payments.
Cash Management
16
3.5.
Asset Management
3.5.1.
Release 12.1.1
3.5.1.1. Asset Tracking by Serial Number
Lessors need to track assets through the life of the asset. A Serial number recorded in
Oracle E-Business Suite from any source may be the same serial numbers used on the
contract for asset tracking. When users book a contract, Oracle Lease and Finance
Management validates whether an existing serial number exists before creating a new
one. If a serial number already exists, Lease and Finance Management links the contract
asset to this serial number; otherwise it creates a new serial number.
When the asset is disposed in Lease and Finance Management, the serial number is not
terminated or expired in the Oracle E-Business Suite and may continue to be used by
other applications.
3.5.1.2. Asset Drill-Down
Oracle Lease and Finance Management has been enhanced to view Oracle Assets screens
from authoring and termination pages. You can view tax depreciation details for leased
and off-lease assets.
3.5.1.3. Enhanced Split Asset
Equipment financers require the ability to group assets coming of lease after the contract
terminates for remarketing. Oracle Lease and Finance Management is enhanced so that
assets that were grouped one way on the contract can be split to facilitate remarketing.
You can split assets that are off-lease or in the evergreen period.
3.5.2.
Release 12.1.3+
3.5.2.1. Configurable Salvage Value in Asset Reporting and Tax Books for Leases
in OLFM
Users need the ability to set the correct salvage values (SV) for each asset in all
applicable asset books in Oracle Assets to insure correct depreciation asset accounting.
Since the rules can be complex and vary by geographic location, users can update the SV
for any asset when authoring or modifying a lease contract if the defaulted values do not
satisfy their accounting requirements. Based on the Salvage Basis defined for the asset
category in Oracle Assets, users can override the default or previously entered SV
amount or percentage. The override values will be used when creating new assets or
updating existing assets in Oracle Assets. The current values from Oracle Assets are
displayed on the asset details page for assets on booked lease contracts.
3.5.3.
Release 12.2.5
3.5.3.1. Terminate Usage Contract Lines
With Terminate Usage Contract Lines, you can now automatically terminate related
usage lines when you terminate a contract asset line using a termination quote. Upon
acceptance and processing of a termination quote for any asset contract line, the usage
lines associated with any linked Oracle Service Contract is also terminated.
3.5.3.2. Improve Customer Satisfaction and Operations Efficiency with Usability
Enhancements
With new usability enhancements, you will be able to more efficiently author and manage
contracts and improve customer service and collections effectiveness.
The usability improvements include the following enhancements:
Asset Management
17
Improved Depreciation Settings Defaulting for Authoring Assets on New

Contracts
Additional, User-Defined Contract Attributes for Customer Service
Consolidated View of Collections Notes for Lease and Loan Contracts
To improve accuracy and efficiency during authoring new contracts, the existing
defaulting logic to derive depreciation settings for assets has been enhanced with new
user-defined options. When you have locally-specific rules that require special logic you
can also easily extend the enhanced defaulting to derive your own depreciation values.
You setup new, pre-defined rules for depreciation defaulting for authoring assets on new
contracts. During authoring, you can update the default values, reset updated values to the
specified default values and also default values on imported contracts you enter through
the import interface.
Often you may need to record additional information about a contract that is not
contained in the standard contract definition or terms and conditions. With new, userdefined contract attributes, you can configure, capture and update additional fields on a
contract. The fields will be available on the contract header and viewable in the Lease
Center.
To be more effective in collecting from your customers and provide better customer
service, you can now view any notes entered or collected in the Lease Center from Oracle
Advanced Collections. By adding the customer reference number to the Related To in
Collections, any notes you enter when providing customer service, you can use during
collection activities.
Asset Management
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3.6.
Investor Management
3.6.1.
Release 12.1.1
3.6.1.1. Investor Agreements & Securitization
Lessors need quick access to funds to compete. Most equipment financers use
securitization and syndication to fund their leases and loans. Oracle Lease and Finance
Management provides an integrated system for securitization and syndication
agreements.
Lease and Finance Management enables you to group multiple contracts into pools for
sale to investors:
Identify contracts for addition to a pool from multiple selection criteria

Select rent, residual, principal or interest for the investment
Remove selected contracts before activating the agreement
Record the terms and conditions for sale to investors:
Include multiple investors in the agreement

Define the basis and terms for payment to the investors
Define the basis and terms for buy-back
Collect dues, pay investors and account for revenue and expense:
Collect investor stake

Automatically pay investors on either billing or cash receipt
Automatically account for the correct investor share of revenue after sale
Modify contracts sold to investors and agreements with investors:
Manage the payout of the investment or modify the pool when contracts are
rebooked or terminated
Add contracts and streams to the investment pool in active agreements
Buyback contracts and streams to the investment pool in active agreements
The benefits of investor agreements include:
Additional source of revenue

Additional source of funds
Reduce risk
Investor Management
19
3.7.

3.7.1.
Release 12.1.1
3.7.1.1. Enhanced Accounting with Subledger Accounting Architecture (SLA)
Subledger Accounting has been introduced to develop a corporate global subledger
accounting standard so Oracle Financials can be consistent in creating subledger journal
entries. Subledger Accounting provides tools that allow you to meet Multi-GAAP,
corporate, and fiscal accounting requirements. With the flexible Accounting Methods
Builder you can determine the accounts, lines, descriptions, summarization, and dates of
their journal entries. You can also add detailed transaction information to journal headers
and lines. Detailed subledger accounting journals are available for analytics, auditing,
and reporting. They are summarized, transferred, imported and posted to the Oracle
General Ledger.
The use of subledger accounting in Oracle Lease and Finance Management enables these
key enhancements:
Multiple accounting options available: You have the option to choose to

derive account codes in one of the following ways. You can select the option for
an operating unit. You can derive account codes using Account method Builder
(AMB) setup; the AMB option requires you to complete setups in the Account
Method Builder. Oracle Lease and Finance Management does not derive the
account codes using Accounting Template Set. When a transaction is processed
for accounting in SLA, AMB setup is evaluated and account codes are derived
for accounting the transaction.
Simultaneous accounting in multiple ledgers: Subledger Accounting allows

simultaneous accounting for all primary and secondary ledgers. This improves
the operational efficiency of the accounting process.
Contracts level accounting using supporting references: You can associate the
contract number with every subledger journal entry using the supporting
reference functionality. This functionality enables the analysis of accounting
information by contracts, and contracts level accounting.
With Subledger Accounting, you can:
Centralize accounting setups. Provides common subledger accounting

infrastructure for setting accounting rules for generating a subledger journal entry
and for maintaining the accounting information for all oracle application
modules.
Increase flexibility setting up account codes. You are no longer limited by the
number of parameters on the accounting template to derive accounting, but can
use all identified sources to derive account codes. SLA allows you to define
complex account derivation rules, if required, and to setup user defined rules for
Journal Descriptions.
Perform multi-GAAP accounting by allowing you to define multiple subledger
accounting methods each with different chart of accounts, account derivation
rules, journal entry setups and to associate the subledger accounting method with
primary and secondary ledgers. Subledger Accounting functionality allows
Oracle Lease and Finance Management to create multiple accounting
transactions one for each ledger.
Perform detailed analysis of the accounting information by using Supporting
references functionality to associate additional information with subledger
journal entry.
20
3.7.1.2. Additional Functionality for Ledgers

Oracle Lease and Finance Management has enhanced the accounting infrastructure to
leverage the new ledger functionality in General Ledger that enables you to perform
simultaneous accounting for multiple reporting requirements and allows you to access
and process data for multiple ledgers and legal entities. You can also secure the data and
setup definitions by a ledger, a legal entity, or a segment of chart of accounts and other
security features.
With additional functionality with Ledgers, you can:
Maintain the multiple ledgers
Enhance the operational efficiency by performing operations like automatic

posting, financial reporting, currency translation, consolidation mapping across
the ledgers enables simultaneous accounting of leasing transaction
Setup Ledger information and data security by ledger, legal entity and segments
of chart of accounts
Drilldown from any ledger journal to the source transaction
Have simultaneous accounting for multiple GAAP ledgers or multiple fiscal or

tax ledgers with Subledger Accounting
3.7.1.3. Contract Trial Balance

Lessors need to ensure proper accounting for all transactions and balances for each
contract. They need to identify issues quickly and take necessary resolution immediately.
Leveraging the supporting references balances functionality in the sub-ledger
architecture, Oracle Lease and Finance Management provides an accounting trial balance
view for you to analyze the financial impact of a contract over time. The trial balance
view of each contract provides a quick analysis of a contracts accounting and
profitability to enable quality decisions.
The ability to view contract level accounting information in Trial Balance format
provides:
Greater control over your accounting process with account reconciliation at the
contract level.
Informed decisions and timely response to accounting issues identified through
financial analysis and management reporting at the contract level.
3.7.1.4. Lease Classification

The user configurable QA Checker has been enhanced to include an FASB test for
accounting classifications of the lease, and reports a warning if the contract terms are not
consistent with the selected financial product. The Oracle Lease and Finance
Management QA checker notifies you if any of the following is true:
The Purchase Option is a Bargain Purchase Option or $1 buyout for an operating

lease
The Term is greater than 75% of the assets useful life for an operating lease
Present value of rent is more the 90% of Fair Value of the asset
3.7.1.5. Reconciliation Reports

Lessors require financial statement balances and activity to accurately reflect the
transactions for each period. Balances on a statement of financial position must match
the contract and asset data. Income statement balances and activity must match the
21
income and expenses from lease and loan contracts in Oracle Lease and Finance
Management.
Lease and Finance Management leverages the supporting references balances
functionality in the sub-ledger architecture to provide a set of user configurable
reconciliation reports that match account balances and activity in the general ledger with
the contract and asset details in Lease and Finance Management.
Reconciliation reports benefit the accountants in their month end processes to close the
books quickly and efficiently. On-line you can analyze accounting balances and drilldown to view contract balance details that can help you reconcile suspense accounts.
Then you can drill-down to view the source transactions.
3.7.1.6. Automatic Multi-GAAP
Financiers know that converting accounting for contracts and transactions in one region
using accounting principles in another region requires expertise, is time consuming and is
error prone. With Oracle Lease and Finance Management, financiers in one region can
author contracts with two accounting classifications that meet accounting standards and
reporting requirements in another region. Automatically post journals to multiple ledgers
to reduce costly manual intervention. For example, author a single contract and
automatically treat it as an operating lease in the local region and as a finance lease in the
corporate region.
Users can create unique data sets of contract streams and assets and define separate
accounting rules to generate local and reporting GAAP in each ledger. Their accountants
can increase efficiency by grouping ledgers into a ledger set and performing operations
across multiple ledgers in a single step. Then they can reconcile accounting ledgers and
drill-down to source transactions.
The benefits of generating accounting in multiple ledgers in Lease and Finance
Management are to:
Reduce manual intervention and cost by applying different accounting principles

in multiple ledgers automatically
Have the flexibility to support multiple local, corporate and reporting ledgers
automatically
Accelerate the period close with automatic accounting in multiple ledgers
3.7.1.7. Improved Support for Transaction Tax

Oracle Lease and Finance Management has been enhanced to help you calculate, collect
and remit transaction-based taxes and meet leasing specific tax requirements within
multiple applicable jurisdictions. Lease and Finance Management tax functionality has
been enhanced to calculate tax on payables invoices using lease specific parameters.
Additional tax parameters provided by eBTax module are now available for tax
determination.
With improved support for transaction tax, you can:
Increase efficiency using a common infrastructure for tax configuration for

multiple legal entities, operating units and tax jurisdictions.
Increase the flexibility of your infrastructure to define comprehensive set of tax
rules for tax determination requirements.
Reduce duplication of effort and errors using a common repository to maintain
tax related records.
Reduce clerical effort generating tax reports for reporting to tax authorities
22
3.7.1.8. Improved Legal Entity Definition

Legal entities generally have the right to own property (assets, inventory, receivable,
investments, other legal entities), the right to trade (borrow, sell, buy, incur expenses,
employ), the responsibility to repay debt (liabilities, equity) and comply with Labor Law,
and the responsibility to account for themselves (balance sheet, income statement,
specified reports) to company regulators, taxation authorities, and owners according to
rules specified in the relevant legislation.
Oracle Lease and Finance Management allows you to associate the legal entity of the
equipment financer called legal entity of first party to a legal document created in lease
management. You can associate a legal entity with lease and loan contracts, agreements
with vendor, agreement with investors, and sales quote. Any transaction related to above
documents derive legal entity from the source document.
Legal entity associated with any document can be utilized in two major ways: 1) Setup
the tax in eBTax module for each legal entity and use the legal entity of the equipment
financer to determine and calculate the lease transaction tax. 2) Use the legal entity as a
transaction source available in subledger accounting, which can be used to derive any
part of the journal entry.
With improved legal entity definition, you can:
3.7.2.
Enjoy flexible management of your organizations. Your organizations should be

able to reflect any enterprise, structural and process changes that occur over time
with ease. These organizational requirements could be internal within an
enterprise or they may deal with external parties to support the legal requirements
of various Legal and Judicial Authorities.
Improve and simplify accounting & reporting. When you register your legal
entities, you can create and maintain transactions, accounting, tax and reporting
for each legal entity.
Release 12.1.2
3.7.2.1. Multi-GAAP Enhancements
Controllers know that converting accounting for contracts and transactions in one region
using accounting principles in another region requires expertise, is time consuming and is
error prone. With Oracle Lease and Finance Management, financiers in one region can
author contracts with the accounting classifications that meet accounting standards and
reporting requirements in another region. Automatically post journals to multiple ledgers
to reduce costly manual intervention. For example, author a single contract and
automatically treat it as an operating lease in the local region and as a finance lease in the
corporate region.
In R12.1.2, Oracle Lease and Finance Management is enhanced to enable Controllers to
automatically account for variable rate lease and loan contracts and securitization
agreements in multiple ledgers through Multi-GAAP functionality.
3.7.3.
Release 12.1.3
3.7.3.1. Accrual for Variable Rate Contracts
The accrual formula to calculate estimated interest uses the last accrual date as the
starting date instead of the last interest calculation date. For example, assume interest is
accrued through 31-Mar and estimated interest is calculated on 15-Mar. Then, when the
interest income accrual is run on 30-Apr, in order to align the estimated interest with
accrued interest calculations, the start date of the estimated interest calculation is 01-Apr,
not 16-Mar.
23
3.8.
Customer Service
3.8.1.
Release 12.1.1
3.8.1.1. Lease Center
Lease Center agents need to view contract information quickly and easily. The Lease
Center groups contract information for easy access:
Payment Schedules
Tax Schedules
Invoice drill-down views from contract level to asset level
Overview tab displays combined balances, remaining payments and remaining
term
3.8.1.2. Additional Support for Shared Services

By providing security accesses to multiple operating units for a single user profile, you
no longer have to change responsibilities to 1) view data from the organizations you work
with, 2) create data or setups for those operating units or 3) run programs for those
operating units.
By eliminating the need to change responsibilities, you can be more efficient in locating
the data needed to support customers or business processes. Multi-org access by a single
responsibility improves business activities in call centers and shared service centers. You
can also reduce the complexity and time spent on management of system user security by
creating common security profiles and associating the profile to multiple users. In
addition, you can select one operating unit as your default operating unit, which saves
time searching or creating new records for the operating unit you work with the most
often.
No need to change responsibilities for multiple operating units. You can

access data associated to more than one operating unit and run programs for
different operating units without having to change responsibilities.
Access data from, create data for, and run programs. You can create security
profiles that authorize users with that profile to access data from, create data for,
and run programs for one or more operating units.
Setup security profiles in Oracle HRMS. Setup the profile through Oracle
HRMS or through User Management. Select one of the operating units from the
authorized operating units in the profile to be designated as the default. Setup
several profile options in Lease and Finance Management to store settings for
processing preferences in each operating unit.
With additional support for shared services, you can:
Increase customer satisfaction & business process efficiency by reducing time for
issue resolution
Decrease costs by supporting centralization of business support activities
Increase accuracy & efficiency through visibility of the operating unit business
record
Increase efficiency of system user management by creating & applying security
profiles
Customer Service
24
3.8.2.
Release 12.1.2
3.8.2.1. File Attachments
Many physical and on-line documents associated with lease and loan contracts are
received from or sent to the customer during the contract life. Customer service reps need
quick access to these documents before responding to service requests.
In R12.1.2, file attachments provide easy access to physical and online documentation
associated to contracts, sales quotes and lease applications. As time progresses, you can
easily add and update multiple files in various formats to booked contracts, sales quotes
and lease applications. This enables customer service reps to improve customer service
with quick access to documents associated to contracts by the contract administrator.
3.8.2.2. Bill Presentment
Cash managers need to apply cash to invoices easily and accurately. Customer service
personnel need to respond quickly to resolve customer inquiries about billing and account
balances. Oracle Lease and Finance Management usability is enhanced to help users
apply cash and respond to billing inquiries easily by displaying invoices just as they were
presented to the customer.
In R12.1.2, bill presentment provides customer service reps and other users the ability to
view invoices in the same format as presented to customers. This means users can view
the same invoice the customer sees and shorten response times and reduce delays
applying cash to outstanding invoices. Customer service reps can respond to queries
Customer Service
25
3.9.

3.9.1.1. Overview
Equipment financiers and service providers must effectively manage relationships with
customers and partners to pave the way for attaining customer and partner loyalty while
increasing operational efficiency and balancing ROI for all stakeholders. This new
module consolidates the needs of both Oracle Lease and Finance Management and Oracle
Service Contracts users by providing a relationship-driven view of equipment financing
and service contracts through a command center dashboard as well as analytical portals
that leverage transactional data generated in Oracle as well as external sources.
The Contract Renewal Command Center provides insights organized into objectivedriven pages that provide metrics, charts, graphs and other data to help you manage
customer and partner relationships and make the right decisions to drive loyalty and
balance value.
3.9.2.
Release 12.2.5
3.9.2.1.1. Customer Management
The customer management command center page provides you with information about
your customer relationships, such as the contracts they have with you and the transactions
and customer service information generated during your interactions with them to help
you:
Drive customer loyalty

Drive repurchases
Increase your share of the customers spending on financing and service
3.9.2.1.2. Portfolio Management

The portfolio management command center page provides you with enhanced analytical
and summarized information about your portfolio of customers, contracts and assets to
help you:
Increase your share of customer spending

Balance your ROI with the value to your customers
3.9.2.1.3. Vendor Management

The vendor management command center page provides you with detailed and summary
information about the cash flow generated to and from your partners as well as
information about the portfolio generated through your partner relationships. This page
helps you:
Drive your vendor loyalty

Improve your vendors cash flow
Help vendors increase business with you
3.9.2.1.4. Contracts (Finance and Service)

Two new contract management command center pages, one for finance contracts and one
for service contracts, provides you with the ability to balance the workload of
transactions you need to process to manage your customers contracts. These pages help
you
Increase your operational efficiency

Drive repurchases from customers
26
The information in the command center pages is provided through alerts, metrics, and
charts of various types as well as tables of details about your customers, contracts, assets
and transactions. Actionable links from the command center allow for the implementation
of decisions in OLFM or Oracle Service Contracts that you need to make to drive your
business objectives and to track the effectiveness of decision making to your results.
3.9.2.2. Enhanced Termination Quoting and Processing
You may want to offer multiple mid and end of term options to your customers while at
the same time allowing flexibility to respond to your customers changing preferences
and conditions. Decision making requires quotes to be presented in a single document or
set of options so overall profitability can be assessed and compared against other options.
With enhanced termination quoting and processing, you can consolidate different
termination and renewal quote types for assets or partial assets on the same contract while
associating profitability formulas that assess the profitability of the consolidated quote
types.
Enhanced termination processing separates quote acceptance from termination through a
new system option. If you enable the new system option, the actual termination is
processed only when the asset is returned or when the purchase amount is paid. When the
new system option is enabled, you have the ability to cancel asset lines from accepted
consolidated quotes that have not yet been terminated. The cancellation automatically
adjusts invoices associated to the termination of the cancelled line as well as the
cancellation of any open asset return requests.
To address usability issue with large volume of asset return requests, a facility has been
provided to update the status of asset return requests in format that is efficient in such
large volume settings.
3.9.2.2.1. Enhanced Renewal Quoting
When approaching end of term, your customers may decide they want to keep assets
beyond the end of term of the current contract. If your customer does not wish to enact an
indefinite period renewal (ie, evergreen or month-to-month) they can decide to extend the
asset rental through a fixed period renewal. Offering fixed period renewals to your
customers requires the ability to quote the new term including new payments, renewal
term and yields.
With enhanced renewal quoting, you can create renewal quotes for any asset in an active
status. Depending on the pricing method selected, you can calculate payments for a
target rate or calculate the yield for a specific target payment and term. If the quote is
accepted, using the financial terms in the quote, a new contract is automatically created
and activated as soon as the existing contract reaches expiration.
27
3.10. Setup & Implementation

3.10.1.
Release 12.1.1
3.10.1.1. Reduce Implementation Risk
Financiers fear the risk of unexpected implementation costs due to incomplete definition
of requirements that results in an incomplete or inaccurate configuration of the
application. For example, two frequent implementation issues are the difficulty to plan
complete business reporting requirements during the implementation phase of the project
and the difficulty to synchronize data between existing and planned systems that may
cause problems converting existing portfolios.
Oracle Lease and Finance Management offers an implementation tool kit that includes:
3.10.1.1.1. Knowledge base
The implementation knowledge base describes business concepts, detailed setup steps
and user steps to perform each feature. Whitepapers describe specific features in depth
and streamlined Business Process Models define supported business processes to help
you agree on the features and processes that need to be implemented.
3.10.1.1.2. Planning tools
The planning tools include a Setup Library that defines available accounting
classifications (Operating Lease, Finance Lease, and Loans) to accelerate configuration
of your scenario setups. Use the setup library to quickly confirm the configuration of
your instance. Then use Sample Contracts to process transactions and confirm expected
accounting results and setups quickly and efficiently.
3.10.1.1.3. Implementation tools
Implementation tools enable you to setup Stream Generation Templates, Accounting
Template Sets, and Financial Products in one operating unit or instance and confirm them
using the knowledge base and planning tools. Once approved, you can automatically
transfer the setups to other units or instances quickly and accurately. You can also use
the Conversion whitepaper to evaluate alternatives to convert existing portfolios quickly.
Implementation tools also include a comprehensive reporting infrastructure based on
Oracle BI Publisher empowers users to create and modify business reports easily and to
use seeded data extracts to access contract & contract line data for reports easily and
quickly. Oracle Lease and Finance Management now generates documents and reports
using Oracle XML Publisher technology. Oracle XML Publisher reduces the high costs
associated with the development, customization and maintenance of business documents,
while increasing the efficiency of reports management. Lease and Finance Management
has migrated reporting based features to the XML Publisher service so you can create
reports and documents using a template-based publishing service. Lease and Finance
Management uses reports to view and distribute results from concurrent programs, to
send seeded workflow notifications and to send documents from the Lease Center. XML
Publisher supports multiple report formats and media as well as multiple distribution
methods, including email, fax and printing. XML Publisher replaces Oracle One to One
Fulfillment in the Send Document feature from the Lease Center.
3.10.1.1.4. Integration tools
Integration Tools include the Oracle Integration Repository that compiles complete
information of Oracle E-Business Suite's business service interfaces. The tool enables
you to easily discover and deploy the appropriate business service interface for
integration with any system, application, or business partner. You can also use Interfaces
for Data Transfer to plan how to import data from existing applications, including use of
28
the Contract Open Interface to import contracts, Billing Open Interface to import invoice
history and Termination Open Interface to import contracts and assets to be terminated.
The benefits of Oracle Lease and Finance Managements capability to reduce
implementation cost are to:
Minimize unexpected activities during the implementation project
Identify problems early to plan for solutions and prevent delays
Design portfolio conversion early to eliminate surprises
Assurance that you are using supported public interfaces
Rely on a reporting infrastructure designed to eliminate waste by enabling users

to design and deliver reports quickly
29

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ORACLE E-BUSINESS SUITE

RELEASE CONTENT DOCUMENT

Prepared by EBS Product Management & Strategy

Copyright 2015 Oracle Corporation

New and Changed Features in Lease and Finance Management

3.2.1. Release 12.1.3

3.3.1. Release 12.1.1

3.4.1. Release 12.1.1

3.5.1. Release 12.1.1

3.6.1. Release 12.1.1

Accounting & Controls

3.7.1. Release 12.1.1

3.8.1. Release 12.1.1

Contract Renewal Command Center

Setup & Implementation

3.10.1. Release 12.1.1

New and Changed Features in Lease and Finance

Accounting & Controls

Setup & Implementation

Parties (including DFFs)

Additional Information (DFFs) from the contract template header

Improve authoring efficiency through enhanced access to contract information

Quickly search, create or update assets with an improved page flow

Enter payments while entering the related asset, fee or service

View payment details in an easier to read summary format

3.3.1.3. Automated Billing & Accruals

Rebook active loan contract to make modifications

Pay down principal and interest

Terminate the loan contract early

Run a projected amortization schedule

View comprehensive loan details in the Lease Center

The benefits of Oracle Lease and Finance Management loans include:

User defined interest indexes

Flexible configuration to meet customer needs

Per Diem Loans

Enhanced Security Deposit Processing

By enabling a contract attribute, users can automatically generate on-account credit

Open Receivable Validation

3.3.5.2. Author Contracts with New and Re-Leased Assets

3.3.5.6. Revising Re-Amortization Contracts

Drive customer loyalty

3.3.6.1.2. Portfolio Management

Increase your share of customer spending

3.3.6.1.3. Vendor Management

Drive your vendor loyalty

3.3.6.1.4. Contracts (Finance and Service)

Increase your operational efficiency

Reduce the number of invoices

3.4.1.2. Pre-billing Report

Reduce costly manual error correction caused by incomplete or invalid

3.4.1.3. Receipts Enhancements

Increase efficiency in your receipts processes by using cash application rules in

3.4.1.4. Consolidate Multiple Distribution Transactions onto a Single AP Invoice

Improve operational efficiency by consolidating invoices based on configurable

Decrease potential errors when selecting a customer (receivable) account for a

3.4.1.9. Support for Additional Payment Methods

Improve customer satisfaction by accepting multiple forms of payment when

Improved Depreciation Settings Defaulting for Authoring Assets on New

Additional, User-Defined Contract Attributes for Customer Service

Consolidated View of Collections Notes for Lease and Loan Contracts

Identify contracts for addition to a pool from multiple selection criteria

Record the terms and conditions for sale to investors:

Include multiple investors in the agreement