oracle lease and finance conversion cookbook.pdf

Oracle Lease and Finance Management

Conversion Cookbook- Plan, Prepare & Execute

March, 2008

Overview Conversion Cookbook- Plan, Prepare & Execute 2

Table of Contents

1. Disclaimer and Recommendation .......................................................................................................7

2. Introduction ..........................................................................................................................................8

2.1 Overview ....................................................................................................................................8

2.2 Scope ..........................................................................................................................................9

2.3 Key Assumptions .......................................................................................................................9

2.4 Limitations ...............................................................................................................................10

2.5 Tools ........................................................................................................................................11

3. Disclaimer ...........................................................................................................................................12

4. Definitions ...........................................................................................................................................13

5. Key Functional Considerations ........................................................................................................21

5.1 Master Data Management ........................................................................................................21

5.2 Parties .......................................................................................................................................21

5.3 Streams .....................................................................................................................................22

5.4 Contracts ..................................................................................................................................23

6. Stage 3 – Prepare for Conversion .....................................................................................................24

6.1 Cleanse Data ............................................................................................................................24

6.1.1 Master Data ............................................................................................................................................ 24 6.1.2 General Ledger and Sub-Ledgers .......................................................................................................... 25 6.1.3 Asset Information .................................................................................................................................. 25 6.1.4 Stream Types and Accounting Templates .............................................................................................. 25

6.2 Map Data ..................................................................................................................................26

6.3 Test Conversion Process ..........................................................................................................26

7. Stage 4 – Conversion Execution........................................................................................................27

8. Phase 1 – Extract and Stage Legacy Data .......................................................................................28

8.1 Overview ..................................................................................................................................28

8.2 Assumptions .............................................................................................................................29


8.3 Tasks ........................................................................................................................................29

8.3.1 Determine Conversion Scope................................................................................................................. 29 8.3.2 Standardize Data .................................................................................................................................... 29 8.3.3 Data Mapping ........................................................................................................................................ 29 8.3.4 Create Conversion Download Programs ................................................................................................ 30 8.3.5 Build Staging Tables .............................................................................................................................. 30 8.3.6 Create Conversion Upload Programs ..................................................................................................... 30 8.3.7 Build Temporary Oracle Interface Tables .............................................................................................. 30 8.3.8 Run Interface Program (Open Interface/Custom programs) .................................................................. 30 8.3.9 Production Tables .................................................................................................................................. 30 8.3.10 Testing and Reconciliation .................................................................................................................... 30

8.4 Task Order ...............................................................................................................................31

8.5 Reconciliation ..........................................................................................................................31

8.6 Common Issues & Recommendations .....................................................................................31

9. Phase 2 - Master Data Load ..............................................................................................................32

9.1 Objective ..................................................................................................................................32

9.2 Overview ..................................................................................................................................32

9.3 Assumptions .............................................................................................................................32

9.4 Tasks ........................................................................................................................................33

9.4.1 Load Customers ..................................................................................................................................... 33 9.4.2 Load Vendors/Suppliers ......................................................................................................................... 35 9.4.3 Load Items ............................................................................................................................................. 38 9.4.4 Load Master Lease Agreements (Optional) ........................................................................................... 39 9.4.5 Load Vendor Program Agreements (Optional) ...................................................................................... 40 9.4.6 Load & Activate Credit Lines (Optional) .............................................................................................. 40

9.5 Task Order ...............................................................................................................................41

9.6 Reconciliation ..........................................................................................................................42


10. Phase 3 - Initial Contract Load.........................................................................................................43

10.1 Objective ..................................................................................................................................43

10.2 Overview ..................................................................................................................................43

10.3 Assumptions .............................................................................................................................43

10.4 Tasks ........................................................................................................................................44

10.4.1 Contract Import ...................................................................................................................................... 44 10.4.2 Funding Requests (Optional) ................................................................................................................. 45 10.4.3 Pay Invoice Prepare for AP Transfer (Optional) .................................................................................... 46 10.4.4 Validate Contract ................................................................................................................................... 47 10.4.5 Generate Streams (Pricing) .................................................................................................................... 48 10.4.6 Generate Draft Journal Entries (Optional) ............................................................................................. 49 10.4.7 Approve Contract ................................................................................................................................... 49


10.5 Task Order ...............................................................................................................................50

10.6 Reconciliation ..........................................................................................................................50

11. Phase 4 – Book & Terminate Expired Contracts (excluding Evergreen Contracts) ...................51

11.1 Objectives ................................................................................................................................51

11.2 Overview ..................................................................................................................................51

11.3 Assumptions .............................................................................................................................51

11.4 High level Solutions .................................................................................................................51

Solution 1 ............................................................................................................................................................. 51 Solution 2 ............................................................................................................................................................. 52

11.5 Tasks (Solution 1) ....................................................................................................................52

11.5.1 Activate Expired Contracts .................................................................................................................... 52 11.5.2 Age Expired Contracts ........................................................................................................................... 54 11.5.3 Terminate Expired Contracts ................................................................................................................. 55 11.5.4 Suppress Termination Accounting Transactions in Lease and Finance Management ........................... 59 11.5.5 Asset Cost Adjustment ........................................................................................................................... 60

11.6 Tasks (Solution 2) ....................................................................................................................60

11.6.1 Import Contracts .................................................................................................................................... 60 11.6.2 Create Assets in FA ............................................................................................................................... 61 11.6.3 Process Contract Termination ................................................................................................................ 62 11.6.4 Asset Cost Adjustment ........................................................................................................................... 65

11.7 Task Order ...............................................................................................................................65

11.8 Reconciliation ..........................................................................................................................65


11.9.1 Common Issues ...................................................................................................................................... 66 11.9.2 Recommendations .................................................................................................................................. 66

12. Phase 5 – Load Open Receivables ....................................................................................................67

12.1 Objectives ................................................................................................................................67

12.2 Overview ..................................................................................................................................67

12.3 Assumptions .............................................................................................................................67

12.4 Tasks ........................................................................................................................................67

12.4.1 Load Billing Interface ............................................................................................................................ 67 12.4.2 Third Party Billing Import Program ....................................................................................................... 68 12.4.3 Prepare Receivable Bills ........................................................................................................................ 69 12.4.4 Receivable Bills Consolidation .............................................................................................................. 70

12.5 Task Order ...............................................................................................................................70

12.6 Reconciliation ..........................................................................................................................71



13. Phase 6 - Activate & Age Active Contracts .....................................................................................72

13.1 Objectives ................................................................................................................................72

13.2 Overview ..................................................................................................................................72

13.3 Assumptions .............................................................................................................................72

13.4 Tasks ........................................................................................................................................72

13.4.1 Activate Contracts .................................................................................................................................. 72 13.4.2 Suppress Booking Accounting Transactions in Lease and Finance Management ................................. 73 13.4.3 Flag Billed Streams ................................................................................................................................ 74 13.4.4 Flag Accrued Streams ............................................................................................................................ 75 13.4.5 Receivables Invoice Transfer to AR ...................................................................................................... 76 13.4.6 AR Auto Invoice Master Program ......................................................................................................... 77 13.4.7 Update Tax Lines in AR (Optional) ....................................................................................................... 77 13.4.8 Fetch AR Invoice Numbers ................................................................................................................... 78 13.4.9 Pay Invoices Transfer to AP Invoice Interface ...................................................................................... 78 13.4.10 Payables Open Interface Import ............................................................................................................. 79

13.5 Task Order ...............................................................................................................................79

13.6 Reconciliation ..........................................................................................................................80


14. Phase 7 –Account Balances Import ..................................................................................................81

14.1 Objective ..................................................................................................................................81

14.2 Overview ..................................................................................................................................81

14.3 Assumptions .............................................................................................................................81

14.4 Tasks ........................................................................................................................................81

14.4.1 Create Trial Balance from Legacy System ............................................................................................ 81 14.4.2 Identify Accounts for Opening Balance Import ..................................................................................... 83 14.4.3 Load Opening Balances ......................................................................................................................... 84 14.4.4 Account for Sub-ledger Journal Entries ................................................................................................. 85 14.4.5 Post Sub Ledger Journal Entries to GL .................................................................................................. 85 14.4.6 Create Trial Balance from Oracle General Ledger ................................................................................ 85

14.5 Task Order ...............................................................................................................................85

14.6 Reconciliation ..........................................................................................................................85



15. Risks ....................................................................................................................................................87

16. Appendix A: Conversion Interfaces Reference Table ...................................................................88

17. Appendix B: Summary of Execution Phases ..................................................................................94


1. Disclaimer and Recommendation

The following is intended to outline our general direction, and is intended for information

purposes only. This document is not warranted to be error-free, nor subject to any other

warranties or conditions, whether expressed orally or implied in law, including implied

warranties and conditions of merchantability or fitness for a particular purpose. The

statistics and bench marks mentioned in this document, are for guidance purpose only. We

specifically disclaim any liability with respect to this document and no contractual

obligations are formed either directly or indirectly by this document. This document may

not be reproduced or transmitted in any form or by any means, electronic or mechanical,

for any purpose, without our prior written permission.

The software designs described within this document are based on Lease Management Minipack

11i.OKL.H. This is a one-time only document prepared to provide guidelines for data conversion.

There is no guarantee that this document will be enhanced in future. It is our recommendation that

readers use published documents found on Metalink such as Product Release Notes. This

document is not a substitute or replacement for published documents that accompany a formal

Oracle applications release.


2. Introduction

2.1 Overview

In order to use Oracle Lease and Finance Management as the primary system for managing your

equipment-financing portfolio, you typically will consider converting data from legacy systems.

Data conversion can be complex as it usually involves multiple source legacy systems and it spans

various Oracle Applications modules.

To assist you with planning and executing your conversion, this document will outline a standard

approach as well as tools and other recommendations.

The conversion process is comprised of four major stages, each of which with a set of activities

intrinsic to the phase. The stages are displayed in the figure below.

Develop

conversion

strategy

Develop

conversion plan

Execute

conversion plan

Conversion Proposal

ConvertedData

Prepare

Conversion

Figure 1: Stages in Conversion Process

In Stage 1: “Develop Conversion Strategy”, you devise a strategy for your conversion. The

activities associated to this stage include the following:

Establish Strategy Objectives

Define Scope for Conversion

Identify Risks

Define Strategy

During Stage 2: Develop Conversion Plan; you develop a detailed plan for the conversion effort.

Planning includes the following activities:

Design and Analyze Data

Develop Execution Script

Develop Reconciliation Approach

Develop a Recovery Plan

Identify Custom Builds

Develop Conversion Plan

In Stage 3: Prepare Conversion, you complete activities required before the actual data conversion

takes place. These activities include the following:

Cleanse Data

Map Data

Build Reconciliation Reports

Build Custom Objects and Processes

Scope Conversion Cookbook- Plan, Prepare & Execute 9

Test Conversion Process

In the final Stage 4: Execute Conversion Plan, the actual conversion of business data is executed.

Typical activities during this stage are the following:

Extract and Stage Legacy Data

Master Data Load

Initial Contract Load

Load Open Receivables

Activate and Age Contracts

Load Accounting Balances

The stages and activities in your conversion plans may be different. However, this document will

use the stages and activities above to outline a process for converting data from your legacy

system into Oracle Lease and Finance Management or other Oracle Application modules to insure

you can operate and service your contracts after performing a conversion.

A discussion of the stages, recommendations and suggested methodologies has been broken up

into two separate documents. This document focuses on the last two stages of the conversion

process: Prepare Conversion and Execute Conversion. The first and the second stages: Develop

Conversion Strategy and Develop Conversion Plan are addressed in a separate document, “[add

document name]”.

2.2 Scope

This document describes activities associated to the third and fourth conversion stages,

Preparation and Execution, of converting leasing and loan data into Oracle Lease and Finance

Management. Each stage is comprised of one or more activities or phases. For each activity or

phase, the document provides a recommended approach; references for existing tools that can be

used for that activity, or a recommended approach for building conversion tools for activities that

have no existing supported tools available.

You may have many types of financial products and contracts in your legacy systems that you

plan to convert into Oracle Lease and Finance Management. However, in order to provide a

concise description of the steps in the basic recommended conversion process and address most of

the common data types and processes, the scope of the examples has been limited to the following

scenario:

Converted contracts have a book classification of Direct Finance (lease) and other

attributes as defined in the Sample Contract (see Appendix).

You are converting into a freshly installed instance with no existing active contracts or

other data. NOTE: The strategy for converting an acquired portfolio into an existing

production is not included in this document.

You are converting into an environment with Oracle Lease Management Minipack

OKL.H.

2.3 Key Assumptions

The following assumptions about your conversion preparation were used in describing the

standard conversion process:

Limitations Conversion Cookbook- Plan, Prepare & Execute 10

The structure of the sample Direct Finance Lease Contract is as follows:

o Two assets

o Level payments

o No Fees, Subsidies or Insurance

o External pricing method

You are using SuperTrump as the third party pricing software.

You have billed and accrued all contracts to be converted in your legacy systems up to the

conversion date.

Your users are familiar with the Oracle Lease and Finance Management application and all

supporting Oracle Applications modules.

You have implemented Oracle Applications and the relevant modules.

You have completed all required setups to support full lifecycle processing of the converted

contracts. The development, testing and production environment should have all the required

functional set-ups and reference business objects before the start of the conversion process.

You are providing development and conversion environments for development of conversion

related programs.

You data will be cleansed and free from duplicates.

You are not splitting transactions from the source instance to be migrated into the target

instance. The transactions are considered in entirety while converting into the new instance.

You have correctly mapped the data and setups from the legacy application(s) to the new

Oracle Lease and Finance Management instance, which has a direct impact on the accuracy of

the converted data. You may have to manually correct errors for those transactions that fail

conversion.

2.4 Limitations

Please be aware of the following limitations that apply to the activities described in this document:

Performance benchmarks and functional descriptions provided are limited to the import

interface, concurrent program, and APIs mentioned in the relevant phases.

Unless explicitly specified, programs mentioned perform a one-time INSERT only operation.

You cannot use the programs to perform updates to data or incremental loads („Incremental‟

means updating the changes to previously converted data at a later point of time).

You are expected to handle investigation and correction of any data fall-outs resulting from

production instance migration.

Some recommended APIs are designated as Private “[filename].pvt). Such programs were not

originally designed for standalone use. While the use of such programs may be recommended,

you should be aware that product support for such programs might be limited.

Other assumptions specific to an activity or phase are addressed in the relevant phase descriptions

below.

Tools Conversion Cookbook- Plan, Prepare & Execute 11

2.5 Tools

The following tools are available to facilitate a conversion project:

Oracle PL/SQL Language

SQL to access database

Oracle Development Platform (Forms, Reports, OAF etc.)

Telnet and FTP

Oracle Applications Modules

Dataloader

SQL Loader


3. Disclaimer Oracle, JD Edwards, PeopleSoft, and Siebel are registered trademarks of Oracle

Corporation and/or its affiliates. Other names may be trademarks of their respective

owners.


4. Definitions

accrual accounting

Recognizing accounting for economic events regardless of when actual cash transactions occur.

The opposite of cash basis accounting.

aged contract

An aged contract is defined as a contract that has begun its lifecycle on another leasing system but

will be imported into Lease and Finance Management.

amortization

The systematic method for recording financial elements to income or expense over a defined

period, typically the lease or loan term.

API

An acronym for application programming interface

approver

The person who is authorized to approve a document before the next activity may be carried out.

asset item

Anything you make, purchase, or sell including components, subassemblies, finished products, or

supplies that carries a cost and is valued in your asset subinventories.

asset disposition

Sale or disposal of assets.

authoring

A process of creating a contract.

auto-invoice

The process of automatically invoicing the lessee for a payment due. This process can be

automated by running a concurrent program.

auto-terminate

The process of automatically terminating a lease contract when it reaches its end of term. This

process is automated by running a concurrent program.

benchmarks

An established point of reference against which computers or programs can be measured in tests

comparing their performance.

billed basis

An event initiated based on when the item is billed.


billing

The process of notifying the responsibility party of amounts due, usually through an invoice.

booking

The process of preparing and recording accounting records associated with a contract.

business unit

A business unit is an entity created by a company to manage a certain segment or segments of its

business. The business unit can span multiple product lines and geographies.

custom build

Interfaces are the regular inbound and outbound links between Oracle and other third party

systems.

concurrent program

An instance of an execution file, along with parameter definitions and incompatibilities.

Concurrent programs use concurrent program executables to locate the correct execution file.

Several concurrent programs may use the same execution file to perform their specific tasks, each

having different parameter defaults and incompatibilities.

consolidated billing

One or more billing items combined into one group for invoicing purposes.

contract

A written, signed, Legal Agreement between/among trading partners that has financial, legal, and

industry-specific operational consequences.

contract activation

A series of steps performed on an authored contract that culminates with a booked contract that is

ready to be billed.

contract ID

Unique identifier of a contract.

contract status

The state of the contract. Possible values: new, passed, complete, incomplete, pending approval,

booked, under revision, evergreen, litigation hold, bankruptcy hold, expired, terminated, reversed,

amended, abandoned

contract validation

The application of various QA logic and business rules to a contract to insure it meets business

requirements.

customization

Customizations are enhancements to an Oracle applications system made to fit the needs of a

specific user community.


data conversion

Data conversion is the inbound loading of required open and historic data from systems that are to

be replaced by the Oracle e-Business suite. It is the data required in the new system from the go-

live date.

data setup

Data Set-up is the manual entry of „new‟ data specific to the TCO e-Business Implementation.

direct finance(DF) lease

Direct finance lease is a non-leveraged lease by a lessor (not a manufacturer or dealer) in which

the lease meets any of the definitional criteria of a capital lease, plus certain additional criteria.

disposition

Sale or disposal of assets.

disbursement

Disbursements are payments to suppliers or other third parties for the cost of equipment, a

prepayment facility with lessor, maintenance, insurance and other services. Some disbursements

such as pass-through and investor payments are linked to billing events.

due date

The date on which payment is due from the customer.

effective dates

Effective dates are the dates a record is effective or to be in use.

evergreen

Evergreen refers to a lease contract period past the initial term end date, when rents are still

collected. Evergreen is the default contingent continuation of a lease after its contractual end-of-

term, where a lessee continues to pay indefinitely. The contract language includes an Evergreen

Eligibility Clause, indicating the customer will be billed a rental amount indefinitely unless they

provide the Equipment Return Notice by a certain date.

financial product

A financial product in Oracle Lease and Finance Management groups together a set of attributes

and rules based on which contracts are created. It is mandatory for every contract to be associated

with a single product.

flexfield

A flexible data field format that your organization can customize to your business needs without

programming.

FMV

An acronym for Fair Market Value. The price for which property is sold in an arms-length

transaction between two unrelated parties.


formula

An arithmetic operation over operands.

function

A function is a register of a function that returns a scalar numeric value.

function parameter

A function parameter passes a value to function. The function parameter gets its value from the

corresponding context parameter. The context parameter comes from an instance of context in

which the function is executed.

funding

Generally, funding is the process of paying a supplier for leased equipment.

general ledger

The General Ledger (GL) is the book of final entry summarizing all of a company's financial

transactions through offsetting debit and credit accounts.

interface

Interfaces are the regular inbound and outbound links between Oracle and other third party

systems.

inventory item

Items you stock in inventory. You control inventory for inventory items by quantity and value.

Typically, the inventory item remains an asset until you consume it. You recognize the cost of an

inventory item as an expense when you consume it or sell it.

You generally value the inventory for an item by multiplying the item standard cost by the

quantity on hand.

invoice

A bill sent to a customer, or a notice for the lessor to pay a disbursement to an investor.

invoice amount

Total amount of charges on an invoice.

invoice date

The date of the Oracle Receivables invoice. The invoice creation date, invoice date, invoice

printing date, and the due dates can be different in any receivables system. In Lease Management,

the invoice date and payment term derive the due date.

invoice format

Invoice format is a group of invoice types that specify how data is to appear on the invoices.

invoice generation

The process of creating an open receivables invoice within Oracle Receivables.


items

Items can be master documents, collateral, or attachments in fulfillment. Items are inserted in the

body of an email. Items are selected from the list of all possible documents and collateral material

available to the user from fulfillment templates.

journal entries

A set of financial data that is of significance for recording ledger transactions in accounting.

key flexfield

A key flexfield is a field format you can customize to enter multi-segment values such as part

numbers, account numbers, location, and so on. Key flexfields relate to specific uses in Oracle

applications.

lease

A lease is a contract in which one party conveys the use of an asset to another party for a specific

period of time for a predetermined payment amount.

lessee

User of the equipment being leased.

lessor

Owner of the equipment which is being leased.

OKL

An acronym for the Oracle Lease and Finance Management product, as designated in the Oracle

applications database.

Lease and Finance Management

A general reference acronym for Oracle Lease and Finance Management, not to be confused with

Oracle Learning Management.

open item

A receivable item that has not been paid.

partial termination

The amount a customer must pay for a subset of assets and a contract to terminate them and pay

off all future amounts due.

product

Usually, financial product (not an asset; for example, not a piece of equipment).

profile options

In Oracle Applications, profile options enable you to turn on or off specific functionality, such as

integrations and processes, and allows you to set specific parameters that govern a process or

transaction such as number of days before a task is due that the user is notified.


property tax

Tax assessed for owning property.

reconciliation

The act of reconciling data from Legacy or interface tables to the Lease and Finance Management

system.

residual amount

The estimated value of an asset at the end of a lease for which the lessee is not expected to pay.

responsibility

A responsibility is a level of authority in Oracle Applications that allows access only to those

Oracle Applications functions and data appropriate to fulfill your role in the organization.

service (1)

a) Customer Service, the Lease Center view of Oracle Lease and Finance Management provided to

a lessor's Customer Service agents who login using the Lease Center Agent profile. Lessees,

vendors, and other interested parties typically telephone into lessor's call center to ask questions

regarding specific account details.

b) Customer Self Service, web portal access to lessees so they can view their account and contract

information. Set up by the lessor so that lessees can access their own account information,

according to the lessor's information and security policies.

c) Vendor Self Service, web portal access to both vendor and customer contract and account

information. Set up by the lessor so that vendors and suppliers can access their own account

information, and information on lessees of their equipment, according to the lessor's information

and security policies. (May update and enter some transactions.)

service (2)

Service contracts on leased equipment assets. (Also, Oracle Service Contracts is a separate Oracle

E-Business Suite application that integrates with Oracle Lease and Finance Management.)

service and maintenance

Fees charged to a customer for servicing or warranting assets, such as extended warranty

contracts.

stream

A stream is a schedule of amounts and associated dates.

stream activity

Stream activity types describe the state of the stream. A stream can be ACTIVE, CURRENT,

HISTORY, or WORKING.

stream element

A single amount and its corresponding date (i.e., a cash flow). A stream element is the line level

detail of a stream. A stream can have multiple stream elements.


stream purpose

A stream purpose is an important attribute of a stream type that determines how Lease

Management processes the stream. Lease Management recognizes streams based on their stream

purpose name.

stream type

The functional name for a stream which relates to the attributes used to process a stream.

stream type subclass

Rent or Residual.

subledger

A book in which the monetary transactions related to a specific financial function of a business are

posted in the form of debits and credits before the financial transaction is posted in the General

Ledger.

supplier

Oracle Payables uses the term "Supplier" for vendors, so "Vendor" and "Supplier" are used

interchangeably for the purpose of this document, unless specified otherwise.

system administrator

The system administrator is the person who manages administrative tasks in Oracle Applications,

such as registering new users and defining system printers, using the system administrator

responsibility.

task

A task is a discrete unit of work that is assigned to one or more individuals. Tasks are managed by

the Task Manager. Tasks are often scheduled events and have defined expirations.

termination

The process of ending a leasing transaction with the lessee.

TCA

An acronym for Trading Community Architecture. This is a standardized approach in Oracle

Applications for handling customer and other party information.

termination quote

Termination quotes allow contracts or assets on a contract to terminate early or at the expiration of

a contract. Termination quotes identify the financial impact of the termination. The various

business rules specified in a contract's terms and conditions are the basis of calculating the

financial impact of a termination quote.

terms and conditions

Financial and legal arrangements that are agreed to by parties of a contract.

transaction type

An event in Oracle Lease and Finance Management relating to a contract or asset.


user

A user is any person who needs access to any application, including various types of customers,

partners, suppliers, and employees.

user ID

The User ID is a combination of a user name and its password.

user profile

User profiles, which are associated with responsibilities, are a set of user interfaces that give users

access to their personal data and preferences.

user type

A user type is a category of users that caters to the specific needs of an application's business

requirements in User Management. User types allow flexible and extensible ways for defining,

categorizing and implementing behavior of users. A user type is associated to only one template,

one responsibility, zero or one approval and zero or more roles.

vendor

A supplier of equipment or services. A vendor can be a manufacturer, reseller, distributor, or

dealer.

workflow

A complete workflow management system that supports business process definition and

automation in Oracle Applications. Typically, workflow is used for contract approval, change

requests, and notifications.

yield

A measurement of profitability obtained from a series of cash flows. This may represent the

lessor's return on invested funds.

Master Data Management Conversion Cookbook- Plan, Prepare & Execute 21

5. Key Functional Considerations

Several key functional concepts specific to Lease and Finance Management must be understood

before proceeding with the description of data conversion phases into Lease and Finance

Management. A good understanding of them is critical, as they constitute the underlying rationale

for many of the conversion execution tasks and their sequencing.

Lease and Finance Management is part of the Oracle E-Business Suite and as such it interfaces

with many of its modules. This results in data conversion requirements that originate beyond

Lease and Finance Management and can be traced to one or more of the interfacing E-Business

Suite modules.

In this section, an overview of three key concepts of Lease and Finance Management and Oracle

E-Business Suite is presented.

5.1 Master Data Management

Master Data sets, also known as referential data, are synchronized copies of core business entities

used in Lease and Finance Management and other Oracle modules across the organization, and

subjected to enterprise governance policies, along with their associated metadata, attributes,

definitions, roles, relationships and taxonomies. This covers all the traditional master data sets:

customers, items, employees, vendors, etc.

Master Data objects are the subjects of transactions. For instance, an item after being selected as

an asset in an Lease and Finance Management contract can be leased or sold through a loan. Also,

a logistical transaction can change the location of an object. Master Data objects are usually

assigned a unique identifier.

Oracle Lease and Finance Management relies heavily on Master Data, as the application is highly

referential. As a result, Master Data is a pre-requisite for any type of processing in the application.

For instance, the authoring of a contract requires customer and vendor information to be loaded in

advance. In fact the loading of customer and vendor information along with other types of master

data is the first type of data that must be loaded in Lease and Finance Management during a

conversion.

The reliance on Master Data results in multiple benefits that include the following:

Elimination of redundancies

Minimization of errors that normally occur when re-entering the same data multiple times

Automation of some processes

Reduction of data entry by users

Better data governance and data management

Improved ability to manage business relationships with customers and partners

Improved ability to view and analyze business data for common transactional objects,

such as bank accounts, contracts, agreements, etc.

5.2 Parties

One of the most important Master Data Management features of the Oracle e-Business Suite is the

management of party relationships. Oracle Lease and Finance Management, through the

Streams Conversion Cookbook- Plan, Prepare & Execute 22

integration with Oracle Trading Community Architecture (TCA), relies on Parties as a

fundamental concept of the application.

Through TCA, complex information about the parties, or customers, who belong to a commercial

community are managed. This includes organizations, locations, and the network of hierarchical

relationships among them.

Parties are entities of type Person or Organization that can enter into business relationships.

Relationships with parties identify how you work with parties in the application. For example, Joe

as himself is a party of type Person, but Joe as a contact for Vision Corporation has a “Contact”

relationship for the Vision Corporation party. Every party in the TCA Registry has a unique

Registry ID and can have one or more standard, defined relationships.

The hierarchical relationship of the party relationships is an important factor in determining what

data to convert and the order in which you must convert it. For example, each customer you set up

with a billing account in Oracle Receivables must first have a party account. For the party account,

you define contacts and addresses. Once you create a party, you create customer accounts. Then

for each customer account, you can set up billing sites and bank accounts to manage their invoices

and receipts.

Party records can be shared amongst business units (operating units), but accounts, billing sites

and bank accounts are specific to an operating unit and cannot be viewed or shared by users that

are not authorized for the same operating unit.

In some Oracle Applications, the party account is created for you as part of defining the

relationship. For example, when you create new customer accounts, the party record is

automatically created at the same time.

Other than Parties, the key entities in TCA include:

Party sites: Addresses that parties use for specific purposes, or uses.

Customers: Parties with whom there is a selling relationship.

Customer accounts: The business relationships between the lessor and his lessees or

borrowers.

Customer account sites: Party sites used in the context of customer accounts for specific

purposes, or uses, for example ship-to and bill-to account sites.

Locations: Geospatial points, usually defined by an address.

Contacts: People who have a contact or employment relationship with an organization or

person.

Contact points: Means of contact, for example, phone and e-mail address.

You should study the required hierarchy of parties and accounts before deciding what data to

convert. Parties and their attributes is one of the main types of Master Data. As such, it must be

loaded and configured early before any transactional data is converted.

5.3 Streams

A significant aspect of the implementation and conversion efforts is associated to the setup and

generation of streams.

A stream is simply a series of elements comprised of amount and associated dates. In other words,

a stream is a flow of one or multiple amounts, each associated to a specific date. This is a central

concept to term lending or asset based financing because the lender or lessor‟s investment is

Contracts Conversion Cookbook- Plan, Prepare & Execute 23

recovered through a series of scheduled payment flows or streams. Cash flows are required for

appropriate financial analysis, for supporting transactions you have with customers and partners

and to support related accounting. The relationships between streams, transactions and rates are

balanced and any change to the streams requires an offsetting change in the transactions and rates

associated with the streams.

Lease and Finance Management crucially relies on streams for multiple aspects of a contract

processing such as billing, accounting, pricing and other financial calculations. Given their

fundamental role, streams must be generated at the time of contract activation and every time a

revision having a financial impact takes place.

The name of a stream is referred to as Stream Type. You are required to maintain a standard list of

stream types and setup templates of stream types associated to specific purposes that Lease

Management uses to determine the stream type to assign to the streams generated for new

contracts. A stream type is fundamental as it acts as an identifier for the various Lease

Management processes that need streams to produce transactions, such as billing and accounting.

In fact, the stream type is used by Lease and Finance Management to determine the accounting

entries applying to the stream for various types of transactions. It is for these reasons that any

financial amount created for the contract at any point during its lifecycle must be associated to a

stream type in order to be accounted for and processed correctly.

5.4 Contracts

In Lease and Finance Management, your financing deals are represented as contracts. Each

contract has a “seller” (the lessor) and “buyer” (the lessee/borrower). The lines on the contract

represent financial transactions that comprise your deal.

Contracts have the following primary components:

Header – The contract header links together many important pieces of information you

need to maintain and control your financing contract over its life, such as the

lessee/borrower, dates, any vendor agreements or master lease agreements related to the

contract and certain financial settings.

Parties – Parties are associated to a contract that control participants in the transactions

generated by the contract. For example, in order to pay suppliers/vendors they must be

associated to the contract as a party. The party association provides you the ability to

control access to contract information and insure that unrelated parties cannot participate

in contract transactions.

Terms and Conditions – The terms you agree to in a contract with a customer that effect

the future contract transactions are recorded in the Terms and Conditions section. Lease

and Finance Management uses the information in the terms and conditions to perform

many automated activities and tasks. There are several options for you to create standard

templates that insure contracts of a particular type have the required terms associated to

them as well as streamline your deal authoring activities.

Lines – Items that generate transactions in your deal are represented as lines on the

contract. Assets, financed amounts, income fees, expenses, services, usage meters and

other billable items are stored as contract lines. You can also relate some contract lines to

each other. For example, if you have an expense contract line, you can associate that line

to the asset lines on the contract. This enables to you look a the profitability of individual

assets in a deal.

Unless you create a transaction in a different E-Business Suite module, such as AR or AP, all

accountable transactions must be related to a contract so that the correct journal entries can be

derived.

Cleanse Data Conversion Cookbook- Plan, Prepare & Execute 24

6. Stage 3 – Prepare for Conversion

During Stage 3, you prepare for conversion by completing the process of preparing your legacy

data, building the tools you will need to complete the conversion and testing the process to insure

you can meet your requirements for conversion timelines and accuracy.

6.1 Cleanse Data

Every record you plan to convert should represent your business data accurately. Converting data

with poor quality poses a risk to your project since a new system can expose these inadequacies in

ways you may not have expected.

Because each customer has a different combination of legacy systems, each conversion has

different challenges to overcome with the quality of data. There are some common problems

customers encounter in cleansing their legacy system data.

6.1.1 Master Data

The Oracle E-Business Suite is a highly integrated application with a broad footprint. The type

and number of master data records is significant. Many legacy systems do not have the same

degree of referential integrity or maintain sufficient master data records to provide comprehensive

and useful business information. Therefore, you may find it challenging to cleanse your existing

business information and extract accurate master data records. However, this information can be

quite valuable and help you maximize the benefits of your E-Business Suite implementation.

Care should be taken when identifying these master records from your legacy data to insure you

have the highest quality data to convert that is free from duplicates or inaccuracies.

Some of the key master records used in the E-Business Suite and Lease and Finance Management

that are commonly not normalized in legacy systems include:

Customers – Each customer you have should have only one master record in the E-

Business Suite. The customer may have multiple accounts that represent different billing

sites. This master record allows you to maintain a single view of your relationship with

them.

Suppliers – Each supplier you do business with should have only one master record in the

E-Business Suite. The supplier may have multiple pay sites that represent different

payable locations. This master record allows you to maintain a single view of your

relationship with them.

Contacts – Each contact you have, both internal and external, should have only one

master record in the E-Business Suite. This allows you to view relationships with

individual contacts, saves time and maintains accuracy when you add contacts to

contracts or accounts.

Inventory Master Items – The inventory of master items you create forms a catalog that

allows you to maintain a common, consistent set of information about the equipment you

finance. The business information you are able to obtain about specific makes and models

can prove highly valuable as you track the assets with these master items over time.

Lessor Organizations – Maintaining a set of consistent business unit definitions allows

you significant control over many of your operations. At the same time having a single

data instance allows you to easily view consolidated business information.

Agreements – Vendor, Investor and Master Lease Agreements are created once with a

common set of terms and conditions. You then reference those agreements when you

Cleanse Data Conversion Cookbook- Plan, Prepare & Execute 25

create and process contracts for deals. This insures that terms and conditions you

maintain separately from your contracts are consistent, reliable and verifiable.

Depreciation Categories – You define a common set of depreciation methods, rates and

convention configurations that you apply to the different assets you finance on leases.

This insures that you can calculate and account for depreciation consistently for the same

types of assets.

6.1.2 General Ledger and Sub-Ledgers

Many legacy leasing systems do not include a general ledger to maintain your accounting but

create journal entries that you export to a separate accounting system. With the E-Business Suite,

you have a completely functioning General Ledger along with Sub-Ledgers for your transactional

modules such as AR, AP, FA and Lease and Finance Management. You may find it challenging to

set up, convert or create the data required to establish the account values you need for your GL

and sub-ledgers. However, the value created by maintaining a GL can be very high when you are

able to quickly and easily generate real time business information.

Care should be taken when calculating and reconciling these account balances to insure you have

the highest degree of accuracy when establishing your initial balances for the GL.

6.1.3 Asset Information

Due to customer demands and the recognition of the significant business value provided by

maintaining asset information, there has been a revolution in leasing systems with regard to the

amount and type of information captured and maintained for financed equipment assets. Many

older leasing systems do not provide the capability to capture detailed information about financed

equipment assets such as the type, condition, location or identifying information. Many of your

customers may want you to capture, track and report this information to them as a service, or you

may want this information to enhance your ability to remarket or otherwise handle assets that

come off lease.

You should carefully assess the investment required and potential benefits from extracting or

compiling information about assets in your legacy systems. In the E-Business Suite, asset

information is maintained in Lease and Finance Management, FA and Installed Base (IB). There

are a number of required and optional fields that you can maintain for a single asset. Fortunately,

Lease and Finance Management provides you the ability to track individual assets, but account for

the financial aspects of a group of similar assets, thus reducing your overhead to maintain large

numbers of accounting records.

Special attention should be given to establishing the one-to-many relationship you can create for

assets and related financial information when converting records for the financed equipment assets

in your portfolio.

6.1.4 Stream Types and Accounting Templates

In many existing leasing systems, you have little control over the composition of the accounting

created for your business transactions. To achieve the desired accounting, you may have

customized your legacy system. With Lease and Finance Management, you can configure the

accounting you need to generate to meet your business needs. Accounting configuration involves

setting up templates that use business information generated by your transactions to create

postable journal entries.

For each new financing contract created, Lease and Finance Management generates a set of

streams that represent amounts associated with accounting or transactional events that will happen

during the contract‟s life. Lease and Finance Management processes extract individual amounts

(elements) within a stream to produce accounting journal entries or business transactions, such as

invoices or disbursements. The relationship between the streams, the rates and the accounting for a

Map Data Conversion Cookbook- Plan, Prepare & Execute 26

contract is balanced at the time you book a contract. You must insure that the balances you convert

for a contract are balanced with the remaining stream elements and the accounting you expect to

generate for a contract after conversion.

6.2 Map Data

In preparation for conversion, you must undertake a set of tasks to map data from your legacy

systems to the data locations in Lease and Finance Management or other E-Business Suite

modules required to service your business after conversion. This document covers the mandatory

steps to convert data to support a basic Direct Finance type contract. However, you may want to

convert additional data to support more optional application features or other types of lease and

loan contracts. For each type of contract or business object you want to convert as identified in

your conversion strategy, you must identify the data required to manage the business object

effectively after conversion. Then keeping in mind your requirements for data quality and

integrity, you find the information in your legacy systems to support it.

There are some tools available to assist you in your data mapping efforts:

Oracle Lease and Finance Management whitepaper, [need to include the name of the contract

import whitepaper], describes the fields you can import for a contract.

Billing import

GL import

6.3 Test Conversion Process

Testing your conversion execution plan sufficiently before you engage in the actual conversion of

a production environment may be the most crucial of all steps and reduces your risk significantly.

Because of the nature and intricacy of the business data and number of master records, many

customers decide to plan for a complete “cut over” strategy to move to a converted portfolio.

Rather than maintain and synchronize multiple production environments, a cut over strategy

allows you to move immediately onto your new E-Business Suite platform.

Using this strategy, the conversion of production information from one platform to another may

require you to shut down both systems during the cut over process. In this document, that period

of your timeline is called the “black out window”. By testing and benchmarking the steps of the

conversion process, you can develop an accurate assessment of the black out window duration and

plan your business activities appropriately. In your testing, you will also want to 1) insure your

custom built objects and processes are performing appropriately for your requirements and

conditions, 2) insure the identified set of “go-no-go” decision points in the process are positioned

appropriately and 3) insure you can reconcile data quickly and accurately during the process.

Test Conversion Process Conversion Cookbook- Plan, Prepare & Execute 27

7. Stage 4 – Conversion Execution

The remainder of this document discusses the specific steps, tasks and activities you could engage

in to convert the sample Direct Finance contract from your legacy system into Lease and Finance

Management and the E-Business Suite.

In this final stage you perform the actual conversion of business data to a new production

environment. Recommended activities during this stage are broken down into the following

phases:

Extract and Stage Legacy Data

Master Data Load

Initial Contract Load

Load Open Receivables

Activate and Age Contracts

Load Accounting Balances

Each phase is comprised of a set of tasks you should perform and a recommended order of

execution.


8. Phase 1 – Extract and Stage Legacy Data

Before you can import data into Oracle Application, including Lease Management, you must

extract the data from your legacy systems and insure it can be imported accurately and cleanly. To

facilitate this process, you should stage your data in a set of database tables so that the data can be

summarized, analyzed or modified to meet the requirements for importing.

8.1 Overview

The following diagram depicts the various phases in the conversion effort.

11.5.10 Staging

Tables

(Customization)

Conversion Upload Program

(Customization)

11.5.10 Production

Tables

Legacy Instance

Database Link

Conversion Download

Program

(Customization)

11.5.10 Open

Interface Tables

Interface Program

(Standard or Customization)

Source System

Target system

Oracle Applications11.5.10

Assumptions Conversion Cookbook- Plan, Prepare & Execute 29

Figure 2 Conversion Process Flow

8.2 Assumptions

You perform the data extraction process from your legacy system instance.

You analyze and cleanse data before conversion into the new Oracle Applications instance to

insure it is accurate, free from duplicates or errors.

You analyze and map the data that needs to be imported into Oracle Applications so that it

represents the same data in Lease Management and other Oracle Applications as it does in

your legacy system. This includes mapping scenarios that include: one to one, many to one,

one to many etc.

You merge and consolidate data as part of the data cleansing activity and not during the data

conversion activity. For example, merging multiple invoices for a supplier, multiple invoices

for a customer, merging two customers/suppliers into one, etc. is not considered for data

conversion.

8.3 Tasks

The following are typical tasks in the Extraction and Stage Legacy Data phase.

8.3.1 Determine Conversion Scope

In this task, various systems that hold the converted data are identified. An exercise to identify the

various systems that contain the data for the same entity assists in eliminating redundancies and

duplication. For instance supplier information may come from various source systems. Identifying

the comprehensive list if systems and the data that those systems contain would assist in the

subsequent data mapping process. Conversion timelines are arrived at in this first phase.

8.3.2 Standardize Data

In this task, the data that needs to be converted is standardized before importing it into Oracle

Applications. Standardization may involve things such as identifying a common naming

convention, the use of capital letters, abbreviations and punctuation. Standardizing the data

ensures an accurate and a quality data conversion.

8.3.3 Data Mapping

The data mapping process task provides detailed lists of the legacy system data sets and data

elements that need to be moved into the Oracle Applications tables during the data conversion.

During this process, some decisions are made with regard to obtaining required information

needed by the Oracle Applications system that may not be present in the legacy system. Default

settings, user input, and new data entries are many issues that are addressed during this phase.

Data mapping is used as a first step for a wide variety of data integration tasks including:

Data transformation or data mediation between a data source and a destination

Identification of data relationships as part of data lineage analysis

Discovery of hidden sensitive data such as the last four digits social security number

hidden in another user id as part of a data masking or de-identification project

Consolidation of multiple databases into a single database and identifying redundant

columns of data for consolidation or elimination

Tasks Conversion Cookbook- Plan, Prepare & Execute 30

The output of this section is data mapping spreadsheets that show what is needed for the Oracle

target application processing to meet business operational requirements and where these data

elements will come from.

8.3.4 Create Conversion Download Programs

You need to develop programs that extract data from your legacy systems into a set of standard

staging tables so you can cleanse, modify and complete data sets to prepare the data for importing.

Store the extracted information into conversion staging tables in the target Oracle Applications

11.5.10 system.

8.3.5 Build Staging Tables

You should create staging tables in the target instance to temporarily hold the data coming from

source instance. These tables will form basis of data validations and data corrections before the

data is loaded into the target interface tables.

8.3.6 Create Conversion Upload Programs

Once data has been loaded into Oracle Applications 11.5.10 staging tables you create, you need to

create one or more upload programs that validate the data and load the data into the standard

Oracle Applications 11.5.10 interface tables.

8.3.7 Build Temporary Oracle Interface Tables

Before loading the Oracle Application production tables, the staging tables data should first be

loaded into temporary or Oracle interface tables. The interface tables provide a location for you to

manipulate and translate the data as needed before validating the data and loading the application

production tables. These temporary interface tables need to be built before you run the loader

script to populate these tables. The interface tables may be standard Oracle Application interface

tables or may be custom interface tables.

8.3.8 Run Interface Program (Open Interface/Custom programs)

For much of the data you need to convert there are standard Open Interface programs and APIs

available to validate and load the records from the interface tables into main Oracle Applications

tables. In cases where standard Interface programs or APIs are not available, you must create

upload programs or tools like dataloaders that performs form-level validations.

8.3.9 Production Tables

These are the final production data tables where the converted data resides. You should identify

and study these tables early in your planning stage when doing the initial data mapping.

8.3.10 Testing and Reconciliation

You should create a test plan that is integrated into the entire conversion process so that, even

during the pre-conversion steps, some type of validation reports are generated from the source

systems, to be compared later with the converted data.

The recommended approach is to use any available standard reports available in the legacy and

target system for the final data validation. If no reports support the validation requirements, then

custom scripts will need to be created for specific validation purposes.

Task Order Conversion Cookbook- Plan, Prepare & Execute 31

8.4 Task Order

The tasks listed above should be carried out sequentially.

8.5 Reconciliation

The data should be reconciled between the legacy system and the staging area.

8.6 Common Issues & Recommendations

None identified.

Objective Conversion Cookbook- Plan, Prepare & Execute 32

9. Phase 2 - Master Data Load

Master data is considered to be the regularly updatable business entity records that you expect to

use in day-to-day transactions. These include, among others, supplier master, customer master,

chart of account master (for each segment), banks master, currency master, region master, country

master, location master, tax master etc. The principle feature of the master data is the extensibility

of data. These are in the nature of transactional data that typically needs regular updates and

maintenance. The mode of data entry you use depends on the data volume. Predominantly, you‟ll

use different tools to load the master data into the application.

Localization requirements form an important part of the master data. You should insure that the

templates being used to load master data collect the localization information relating to each

master entity. Since master data is subjected to regular updates, it is prudent to load the master

data very close to the go live date.

Master data may reside in other Oracle Applications beyond Lease Management.

9.1 Objective

The objective of this phase is to identify the list of master data objects necessary to load and

support a contract into Oracle Lease and Finance Management and recommend the interfaces

needed to upload these master data object records into Oracle Applications.

9.2 Overview

The Master Data Load phase of the conversion process covers the master data objects that must be

loaded into Oracle Applications prior to the Contract Import Interface process. The list of master

data objects required to support the sample Direct Finance lease contract addressed in this section

is:

Customers

Vendors

Items

Master Lease Agreements

Vendor Programs

Credit Lines

9.3 Assumptions

The assumptions for this phase are as follows.

You have extracted the required master data objects from the legacy systems and placed

it in staging tables

You have cleansed and transformed that master data records to meet the interface

requirements.

The tasks listed below are MANDATORY unless otherwise specified as OPTIONAL.


9.4 Tasks

9.4.1 Load Customers

The customer data object covers all information relating to customers, such as number, name,

address, payment terms, contact details etc. The customer master record is mandatory to load any

contract and perform billing and collecting activities for production contracts.

9.4.1.1 Interface and Programs Usage

Oracle Applications provides two methods for importing customer records from legacy

systems. Customer records can be imported using the Receivables Customer Interface or

through the TCA Bulk Import Process.

9.4.1.1.1 Customer Interface

Use Customer Interface to import and validate current or historical customer information

from other systems into Receivables. Once customer information is imported into the

system, you can use Customer Interface to import additional data for that customer (such

as additional contacts or addresses) and to update existing information.

The following is the list of customer interface tables.

Interface Name Description

RA_CUSTOMER_INTERFACE To import a customer, address, or business

purpose

RA_CUSTOMER_PROFILES_INTERFACE A customer level profile must exist in

RA_CUSTOMER_PROFILES_INTERFACE

for new customers.

RA_CONTACT_PHONES_INTERFACE To import telephone numbers for customers,

addresses, and contacts.

RA_CUSTOMER_BANKS_INTERFACE To import banks for customers and bill–to

business purposes.

RA_CUST_PAY_METHOD_INTERFACE To import payment methods for customers

and bill–to business purposes.

For additional information on the customer interface, please refer to the Oracle

Receivables User Guide.

9.4.1.1.2 TCA Bulk Import

Bulk Import is used to load data from legacy or other external systems in bulk into the

TCA (Trading Community Architecture) Registry. TCA provides validations and optional

de-duplication to ensure the quality of the imported information. Bulk Import is used only

to import information on the party level. The concurrent program used is Import Batch to

TCA Registry (ARHIMAIN).

Interface Tables used in Bulk Import Process are:


HZ_IMP_PARTIES_INT Party Information


HZ_IMP_ADDRESSES_INT Party Address Information

HZ_IMP_CONTACTS_INT Party Contacts

Following Concurrent processes should complete successfully.

ARHIMAIN module: Import Batch to TCA Registry

ARHLWRPB module: TCA Import - Batch Data Load

ARHLSG1W module: TCA Import - Data Load Stage 1



ARHLPPLB module: TCA Import Post Processing

Additional information on how to import customers using the TCA Bulk import can be

found in the Metalink document – “How To Import Parties Using Bulk Import Process”,

Doc ID: 279924.1. Also refer to the Oracle Trading Community Architecture User Guide,

Release 11i.

9.4.1.2 Custom Build

The following is the list of custom build objects you may need to support the customer

interface and the TCA Bulk Import process.


You must develop an import program that is compatible with the environment from which

you want to import your data to load the interface tables. Once the import data is loaded

into the interface tables, you can run Customer Interface to validate the data and convert it

into Receivables customer information. The type of feeder program you write depends on

the environment from which you are importing data. For example, you can use

SQL*Loader, SQL*Report, PL/SQL, or C to write an import program to import data from

a non-Oracle system. Regardless of the type of import program you write, the output

should be in a standard data format that Customer Interface could use to import the

information into Receivables.

More information on importing customer records through the customer interface can be

found in the Oracle Receivables Implementation and User Guides, Release 11i.


Custom scripts need to be created for importing data into the interface tables and to create

an import batch.

Additional information on the custom script logic and how to import customers using the

TCA Bulk import can be found in the Metalink document – “How To Import Parties

Using Bulk Import Process”, Doc ID: 279924.1. Also refer to the Oracle Trading

Community Architecture User Guide, Release 11i.

9.4.1.3 Reconciliation

The number of customer records loaded into the customer tables must equal the number in

the interface tables. Use a sample of customer records within the Receivables module to

verify that the records operate as expected and without error. For instance use the


converted customer record to enter sample invoices, credit memos, adjustments and

receipts, and use in billing interfaces.


Oracle Receivables generates the Customer Interface Transfer report each time you run

Customer Interface. This report lists the number of records imported into each table and

records specific error messages describing any problems. You may need to make changes

in either your feeder program or Oracle Receivables to resolve the errors. For more

information, please refer to the Oracle Receivables User Guide, release 11i.


Once the Process is completed you can review the data. Use the following SQL mentioned

in the Metalink note - 279924.1.

select

party_number,party_id||','||party_type||','||party_name||','||orig_system_reference||','||status

from hz_parties where orig_system_reference in(select party_orig_system_reference from

hz_imp_parties_int where batch_id=10141);

This query will give you the party number. Then query the Party created using the Party

Number through the customer detail pages in Oracle TCA to verify accuracy of the

converted record.

9.4.1.4 Performance Considerations

If you are importing a large number of customers using the Customer Interface, use the

Customer Interface Master concurrent program to invoke parallel workers that process

data at the same time. Before you run this program, define the number of workers to use in

the HZ: Number of Workers Used by Customer Interface profile option.

9.4.1.5 Benchmarks

Typically, one million customer records per hour can be imported using the TCA Bulk

Import method. These performance metrics are based on one address per customer.

9.4.2 Load Vendors/Suppliers

The supplier data object covers all information relating to suppliers to whom you need to make

payments, such as account number, name, address, payment terms, telephone numbers and

contacts. Only active suppliers should be converted into new system. Your cleansing process

should focus on status of suppliers in the legacy system and insuring their account data is correct,

such as address information, contacts and bank accounts.


Oracle Applications provides two methods for importing vendor/supplier records from

legacy systems. Supplier records can be imported using the Supplier Open Interface

Import or through the Suppliers Package public APIs.

9.4.2.1.1 Supplier Open Interface Import

The Supplier Open Interfaces Import process executes the Open Interface for Suppliers,

Supplier Sites and Supplier Site Contacts.


Load supplier data into the supplier import interface tables. Once supplier records are

loaded into the interface tables, the following interface programs should be submitted.

Supplier Open Interface Import.

Supplier Sites Open Interface Import

Supplier Site Contacts Open Interface Import

The following is the list of supplier interface tables.


AP_SUPPLIERS_INT This is the open interface table for AP

Suppliers. AP_SUPPLIERS_INT

holds Supplier information that is

loaded by the user for import. The

columns in the table map to

corresponding columns in the

PO_VENDORS table. The Oracle

Payables application uses this

information to create a new Supplier

record when the Supplier Open

Interface Import program is

submitted. Each row in the table will

be identified by a unique identifier,

the VENDOR_INTERFACE_ID.

AP_SUPPLIER_SITES_INT AP_SUPPLIER_SITES_INT_ALL

holds Supplier Site information that is

loaded by the user for import. The


corresponding columns in

PO_VENDOR_SITES_ALL table.

The Oracle Payables application uses

this information to create a new

Supplier Site record when the


program is submitted. Each row in the

table will be joined to the appropriate

Supplier using the VENDOR_ID

column. This is the open interface

table for AP Supplier Sites. Use it in

conjunction with

AP_SUPPLIERS_INT table.

AP_SUP_SITE_CONTACT_INT This is the open interface table for AP

Supplier Site Contacts. Use it in

conjunction with

AP_SUPPLIERS_SITES_INT.

AP_SUP_SITE_CONTACT_INT

holds Supplier contact data. The


corresponding columns in

PO_VENDOR_CONTACTS table.

The Oracle Payables application uses

this information to create a new

Supplier Contact record when the


program is submitted. Each row in the


table will be joined to the appropriate

Supplier Site using the

VENDOR_SITE_CODE and

ORG_ID.

For more information on the supplier interface, please refer to the Oracle Payables User

Guide, release 11i. You can also refer to the Metalink note “How to use the Supplier Open

Interface Import Process” - Doc ID: 291903.1

9.4.2.1.2 Supplier Packages

Use the following Supplier public API packages to import supplier information from the

legacy system into Oracle Applications.


AP_PO_VENDORS_APIS_PKG This Package provides APIs to allow

users to import suppliers, supplier

sites, or supplier contacts records into

AP.




AP.




AP.

For more information, please refer to the Oracle Payables User Guide, release 11i.


The following is the list of custom build objects needed for loading the supplier records

into Oracle Payables.

9.4.2.2.1 Supplier Interface

Depending on the source of data, you create customized scripts to upload data into the

interface tables.

9.4.2.2.2 Supplier Packages

Create custom scripts that call the supplier package APIs (routines) to load supplier data

into Oracle Payables. More information on the supplier package routines can be found in

the Oracle Payables User Guide, Release 11i.


The number of supplier records loaded into the supplier table must equal the number in the

extract file if using Supplier Package APIs and must equal the number of records in the

open interface tables if using the open interface tables. Use a sample of supplier records

within the Payables module to verify that they operate as expected and without error. For

instance use the converted supplier record to enter invoices, credit memos etc.

Use any output files of the Supplier Interface Import programs to reconcile the supplier

records imported with the legacy system.



Use the Import Options and Batch Size parameters in the Supplier Interface Import

programs to improve performance.

9.4.2.5 Benchmarks

Typically, 40,000 supplier records per hour can be imported using the supplier package

APIs.

9.4.3 Load Items

Items are inventory catalog references used to identify, describe and classify the asset equipment

and services you add to lease and loan contracts. Every asset or service line on a lease or loan

contract must have a valid item reference.

You should only convert valid and active items. An Item Master list should be extracted from the

legacy system and the standard Open Item Interface should then be run to load the records into the

Oracle Applications. All current item records must be reviewed to ensure that the information is

unique, complete, accurate and up to date.


You can import customer items and customer item cross references from any source into

Oracle Inventory and Oracle Engineering using the Customer Item and Customer Item

Cross Reference Interfaces.

Users can use the following interface tables to load items and item references.


MTL_SYSTEM_ITEMS_INTERFACE You use the

MTL_SYSTEM_ITEMS_INTERFACE

table for new item numbers and all item

attributes. This is the main item interface

table, and can be the only table you

choose to use.

MTL_INTERFACE_ERRORS This table is used for error tracking of all

items that the Item Interface fails.

MTL_ITEM_REVISIONS_INTERFACE If you are importing revision details for

new items, you can use the

MTL_ITEM_REVISIONS_INTERFACE

table. This table is used only for revision

information, and is not required.

After you load the items into these interface tables, you run the Item Interface to import

the data. The Item Interface assigns defaults, validates data you include, and then imports

the new items.

For more information, please refer to the Oracle Inventory User guide. Also refer to the

Metalink document – “Item Open Interface Setup and How-To” – Doc ID 115557.1.


Before you use the Item Interface, you must write and run a custom program that extracts

item information from your source system and inserts it into the


MTL_SYSTEM_ITEMS_INTERFACE table, and (if revision detail is included) the

MTL_ITEMS_REVISIONS_INTERFACE table.


Compare item records loaded into Oracle Inventory with that of the legacy system. The

number of item records loaded into Oracle Applications equals the number in the extract

file. Use a sample of item records within the Oracle Applications, to verify that they

operate as expected and without error. For example use converted item records to enter

requisitions and purchase orders. Use the Oracle Inventory Transaction Register as an

audit report for further reconciliation.


None available.

9.4.3.5 Benchmarks

None available.

9.4.4 Load Master Lease Agreements (Optional)

A master lease agreement (MLA) allows you to set some terms and conditions for a customer that

will apply to lease or loan contracts that reference that agreement. You may have multiple MLAs

with the same customer. If you use MLAs, you must load them before you can load the contracts

that reference a master lease agreement. MLAs must be active before you can use them for

references.


Use the Master Lease Agreement API to import and create Master Lease Agreements in

Lease Management from legacy systems.

Users can use the following API to create Master Lease Agreements.


OKL_MASTER_LEASE_AGREEMENT_PUB.

CREATE_MASTER_LEASE_AGREEMENT()

The Master Lease Agreement API

allows users to create Master Lease

Agreements in Lease Management.

This API creates one master lease agreement at a time. For more information on Master

Lease Agreements, please refer to the Oracle Lease and Finance Management User Guide,

release 11i.


You need to create your own custom scripts to load Master Lease Agreement records from

legacy systems and call the interface routine within the script to create Master Lease

Agreement records in Lease Management. For batch processing capabilities, you can

create custom wrappers.


None



This API does not support parallel processing.

9.4.4.5 Benchmarks

Typically, 7,500 MLA records per hour can be created using the API and 50,000 MLA

records can be activated per hour.

9.4.5 Load Vendor Program Agreements (Optional)

Program Agreements (VPAs) are contracts between a lessor and an organizationally lower-level

vendor or manufacturer, such as a company‟s divisions or dealers. A program agreement between

the lessor and a vendor creates a specific financing program for the vendor‟s customers who desire

financing. If you have agreements with dealers or partners and need to reference them for a

contract, you must load VPAs before you convert your contracts. A lease or loan contract can

participate in only one VPA and VPAs must be active before they can be used as a reference on a

contract.


Use the Vendor Agreement API to import and create Vendor Agreements in Lease

Management from legacy systems.

Users can use the following API to create Vendor Agreements.


OKL_VENDOR_AGREEMENT_PUB.

CREATE_VENDOR_AGREEMENT()

The vendor Agreement API allows

users to create Vendor Agreements in

Lease Management.

This API creates one vendor agreement at a time. For more information on Vendor

Agreements, please refer to the Oracle Lease Management User Guide, Release 11i.


You need to create your own custom scripts to load vendor from legacy systems and call

the interface routine within the script to create the Vendor Agreements in Lease

Management. For batch processing capabilities, you can create custom wrappers.


None


This API does not support parallel processing.

9.4.5.5 Benchmarks

Typically, 3000 Vendor Agreement records per hour can be created using the API and

60,000 Vendor Agreement records can be activated per hour.

9.4.6 Load & Activate Credit Lines (Optional)

Use credit lines to control your risk exposure when you want to extend credit to your customers

for multiple transactions. You create a credit line without using an Oracle Credit Management


request by setting up and activating a credit line in Lease Management. Lease Management allows

you to set up and execute checklist items before you activate credit lines. You can also set up

checklists for a credit line that apply to funding requests for contracts associated to credit lines. A

contract can only participate in one credit line, but you can associate a credit line to a master lease

agreement and all contracts associated with the master lease agreement will use the same credit

line.

Credit lines must be activated before you can use them with your contracts.


Use the Credit Line APIs to import and create Credit Line records in Lease Management

from legacy systems and activate them.

Users can use the following API to create Credit Line records.


OKL_CREDIT_PUB.CREATE_CREDIT The API allows users to create Credit

Lines in Lease Management.

OKL_CREDIT_PUB.ACTIVATE_CREDIT The API allows users to activate

Credit Lines in Lease Management.

The APIs create and activate one credit line record at a time. For more information on

Credit Lines, please refer to the Oracle Lease Management User Guide, release 11i.


You need to create your own custom scripts to load and activate credit lines from legacy

systems and call the interface routine within the script to create the Credit Line records in

Lease Management. For batch processing capabilities, you can create custom wrappers.


None


The APIs does not support parallel processing or bulk processing capabilities.

9.4.6.5 Benchmarks

Typically, 40000 Credit Line records per hour can be created using the API and 80,000

records can be activated per hour.

9.5 Task Order

Following is the recommended order in which the master data objects should be loaded into

Oracle Applications. Master objects listed together can be loaded in parallel, as they do not have a

dependency on each other.

1. Customers, Suppliers, Items

2. Vendor Programs, Credit Lines

3. Master Lease Agreements

Reconciliation Conversion Cookbook- Plan, Prepare & Execute 42

9.6 Reconciliation

As part of phase 1, the master data is extracted from the legacy system and staged in interim tables

prior to loading them into the interface tables or the production tables in Oracle Applications. The

following methods may be implemented for reconciling the master data objects loaded in this

phase:

The master data objects loaded into the interim staging tables may be reviewed and

compared with the Oracle Applications master data objects using custom built

reconciliation reports.

Various methods for reconciliation mentioned in the above sections and the referenced

Metalink documents could be implemented in such custom reconciliation reports.

To insure data is working as expected, test the data by booking a contract in Oracle Lease

and Finance Management using the converted master data objects.


None identified.


10. Phase 3 - Initial Contract Load

During this phase, you load active and expired contracts through a contract import process.

Contracts are created, validated, priced and approved in this phase. You need to load expired

contracts if you have off-lease assets since Oracle Lease and Finance Management uses terms and

conditions of the original contracts to complete processes and accounting for transactions

involving off-lease assets.

After contracts are put into an approval status, you perform additional operations on the expired

contracts. After processing the expired contract, you activate the remaining contracts that are

active in your legacy systems.

10.1 Objective

The following are the objectives for this phase.

To create contracts in Approved status

To create funding requests and other pending disbursements for Active contracts

10.2 Overview

You create contracts in Lease Management using supported interfaces. Before activating a

converted contract, all contracts should be created, reconciled and verified. Importing in batches

allows you to more easily reconcile and control the contract creation process.

The following sections describe the process for importing a sample Direct Finance lease contract

with two asset lines during the base term of the contract. Initial Data Load phase of the conversion

process covers the following process:

Create Contract

Create and Process Funding Requests

Validate Contract

Generate Streams (Price)

Generate Draft Journal Entries

Approve Contracts

10.3 Assumptions

The assumptions for this phase are as follows:

Users have setup the external stream generator as the pricing engine.

All activities listed are mandatory unless otherwise specified.


10.4 Tasks

10.4.1 Contract Import

Oracle Lease and Finance Management allows you to import contracts through a standard set of

interface tables. The import program imports data from interface tables into the Oracle Lease and

Finance Management tables. After interface tables are populated, you submit a request to import

and process contracts.


To submit the Import Contract concurrent program navigate to Processing->Interfaces-

>Import Contracts.

You can set the following parameters for the import batch: Batch Number, Contract

Number, Customer Number, Start Date From, Start Date To, Number of Parallel Instance.

Based on the parameter(s) entered, a set of contracts will be selected for import for the

specific request from the interface tables.

You populate the following interface tables before submitting the contract import

concurrent program.

Interface Table Name Description

OKL_HEADER_INTERFACE Contract header table

OKL_LINES_INTERFACE Contract lines table

OKL_PAYMENTS_INTERFACE Payments table

OKL_PARTY_ROLES_INTERFACE Party Roles

OKL_TERMS_INTERFACE Contract Terms & Conditions

You can import contract in batches by populating the batch number field in the interface

header table.

The contract import program follows these processes:

Validate required values –The program validates the required values are loaded for

each contract in the interface tables. The system marks the record status as

“ELIGIBLE” if all required values are found populated. Otherwise, it changes status

to “ERROR” and reports the error detail in a concurrent log/output file.

Load into Lease Management tables – After the validation phase, each „ELIGIBLE‟

contract is populated in the corresponding destination data table. The record status in

the Interface is set to either “INTERFACED” or “ERROR” depending on the result of

loading. This process continues for all “ELIGIBLE” contracts. The system generates a

detailed report as a concurrent manager log/output file.

Process – After the load, the import program processes loaded contracts. As each activation

step is completed, the contract status is updated.

Contract Status Description

NEW Interface contract data is loaded to

create a new contract


PASSED Contract has been validated by the

QA checker

COMPLETE Streams are generated and draft

journal entries created

APPROVED Contract is approved using the

activation approval workflow you

have setup

BOOKED Contract is activated and all booking

activities are completed

Based on the parallel processing capability, users can specify number of parallel workers

as a parameter for contract import program.


None


Based on the status mentioned in interface header table, the import program will process

the contract to the specified contract status.

If the contracts are processed in batches, you can verify the number of contracts in the

interface tables compared to the contracts successfully processed in Lease and Finance

Management tables. You should verify the assets associated with the contract in legacy

systems are correct after the import.

If the contracts are imported through Booked status, make sure the asset values like Asset

Cost, Depreciation Values and In-Service Date for the assets in Oracle Assets are the same

as in your legacy system. You can verify the values through screen-based inquiries in

Oracle Assets or by custom scripts to verify these attributes.


None

10.4.1.5 Benchmarks

Typically 170,000 contracts with 240,000 assets can be imported to New status in 3.5 hrs

10.4.2 Funding Requests (Optional)

Funding requests are used to request and process payments to vendors/suppliers for items you

finance on a contract or any associated expenses. Approved funding requests can be processed

using standard programs to create invoices in Oracle Payables.

After you import and create contracts, you can create funding requests. You must decide if you

need to import the history of all the past funding requests or only the funding requests with open

payable invoices. In order to prevent over-funding more than the contract value, you should create

funding requests based on the actual funded amounts for the contract. Lease and Finance

Management funding process looks at historical funding transactions to determine maximum

fundable amounts when new requests are submitted. Therefore, you may consider importing a

place-holder funding request for each contract for the entire funded contract value if you do not

require historical funding request actual values. Insure you update the funding request status to

“Processed” after you create place-holder funding requests.


You should create actual funding requests for open or partially paid payable invoices. Update the

funding request to „Approved‟ using update APIs for each actual funding request that corresponds

to an open payable invoice. The Lease Management disbursement program picks up these funding

requests and creates payable invoices automatically when you run the correct programs.


Create funding header, lines and approve funding using the following APIs.

API Name Description

OKL_FUNDING_PVT.CREATE_FUNDING_HEADER() This program will create

funding header

OKL_FUNDING_PVT. CREATE_FUNDING_LINES() This program will create

funding lines

OKL_FUNDING_PVT.

UPDATE_FUNDING_HEADER()

This program will

activate the funding by

updating the status

Parallel processing is not supported in these APIs.


Lease and Finance Management APIs to create funding requests are private. You can

create custom wrappers to provide batch-processing capability for funding requests.


You can check the funding requests manually using screen-based inquiries or can create

script to automate verification depending on how many records you converted. You can

check the funding amounts by contract or summary totals by comparing the values to your

legacy systems or to the imported contract values.


Performance and conversion execution times should be considered when deciding whether

to convert historical funding requests.

10.4.2.5 Benchmarks

Typically, users can create 750 funding requests per minute.

10.4.3 Pay Invoice Prepare for AP Transfer (Optional)

If you decide to import funding requests and you want Oracle Lease and Finance Management to

create your payable invoices in Oracle Payables, you can set the funding requests to “Approved”

status and run the correct programs.

Approved funding requests and other approved disbursements are imported through the Oracle

Payables interface to create payable invoices you can pay to your suppliers and vendors. The Pay

Invoice Prepare for Invoice Transfer program picks up „Approved‟ funding requests and creates

disbursement records to prepare them for the Payables import program. Run this program after

you create and approve funding requests.



Create disbursement records in external tables using the following concurrent program.

Concurrent API Name Description

Pay Invoice Prepare for AP Transfer This program finds „Approved‟

funding requests and creates

disbursement records that can be

imported into Oracle Payables as

payable invoices.

Parallel processing is not supported in this concurrent program.


None


Verify the concurrent request logs and output for any errors or exceptions. You can also

check the disbursement records in external tables OKL_EXT_PAY_INV_B and

OKL_XTL_PAY_INVS_B


None

10.4.3.5 Benchmarks

None available.

10.4.4 Validate Contract

After you create contracts in NEW status, you must validate them before you continue the

activation process. After successful validation, the contract is updated to PASSED status. If there

are any errors, Lease and Finance Management updates the status to ERROR or WARNING.

You can submit a contract for validation from the Lease Management contract authoring pages to

process each contract separately and view each validation message. If you want to process as a

batch, you can call a private Lease and Finance Management API to process the validation.

To improve conversion performance you should process imported contracts up to the validation

step (status PASSED) unless you need to update or reconcile a contract in NEW status.


Use the following API to validate a contract which is in NEW status.


OKL_CONTRACT_BOOK_PUB.VALIDATE_CONTRACT() This program will

submit the contract

for validation

This API can be called one contract at a time. There is no parallel processing or bulk

processing capabilities for the validation program.



To run validation as a batch, you may consider creating a wrapper program.


After the contracts are submitted for validation, you can check the contract for any errors

or warnings. Errors or warnings can be corrected and the validation program can be

submitted to process those records again.


None

10.4.4.5 Benchmarks

Typically, 170,000 contracts with 240,000 assets are validated in 2.5 hrs.

10.4.5 Generate Streams (Pricing)

After contracts are validated, you submit those contracts for pricing. Pricing generates streams and

yields for each contract. After pricing is completed, the contract status is updated to

COMPLETED. For imported contracts, you can submit a contract for pricing from the screen or

call private Lease and Finance Management APIs. You should submit the contract through pricing

(contract status COMPLETED) at the time of import unless you need to update or reconcile a

contract after validation. If a contract is updated after validation, the contract status reverts to

INCOMPLETE.


Use the following API to generate streams and yields for contracts that are validated.


OKL_CONTRACT_BOOK_PUB.GENERATE_STREAMS() This program will

submit the contract

for pricing

There is no parallel processing or bulk processing capabilities for the pricing program.


This API can be called one contract at a time. If you need batch processing capabilities to

submit multiple contracts at one time, create custom wrappers.


After the streams generated, check the contract for any errors or warnings. Errors or

warnings can be corrected and the streams program can be submitted to process those

records again.

The generated streams can be summarized and compared with legacy data like pricing,

payment schedules and/or yields for accuracy.


None


10.4.5.5 Benchmarks

Typically, 170,000 contracts with 240,000 assets are validated in 20 hrs.

10.4.6 Generate Draft Journal Entries (Optional)

If you want to see draft journal entry records of the expected booking accounting before booking

the contract, you can request draft journal entry creation. You do not need to create or view draft

journal entries in order to book (activate) a contract. Streams must be completed for a contract

(status COMPLETED) before you can generate draft journal entries. After generating draft journal

entries, the contract status remains as COMPLETED. You can submit a contract for creating

journal entries from the screen or call private Lease and Finance Management APIs to process the

draft journal entry generation.


Use the following API to generate the draft journal entries.


OKL_CONTRACT_BOOK_PUB.

GENERATE_JOURNAL_ENTRIES ()

This program will submit the

contract for draft journal

entry generation

There is no parallel processing or bulk processing capabilities for draft journal entry

program.



submit multiple contracts at one time, you can create custom wrappers.

If you want to reconcile accounting balances after generating draft journal entries, you

would build a custom report for generating a contract-level trial balance that can be

compared to your legacy system values.


After the journal entries are generated, you can check the contract for any errors or

warnings. Errors or warnings can be corrected and the draft journal entry program can be

submitted to process those records again. You can verify the draft journal entries from the

screen through the accounting transaction inquiry pages or automate the reconciliation

process by creating a custom program to verify the journal entry records.


None

10.4.6.5 Benchmarks

Typically, for 170,000 contracts with 240,000 assets, journal entries can be created in 2

hrs.

10.4.7 Approve Contract

If you want to review and approve the contract before activation, you can approve one contract at

a time from the booking page and initiating the approval workflow. Otherwise, you can perform a

mass update to change the contract status to APPROVED using the approval API. The contract


status must be updated to APPROVED before a contract can be activated (booked), but execution

of the approval workflow is an optional step.

If the contract passes validation and was already approved in the legacy system, you may want to

skip the approval workflow step.


Use the following API to submit contracts for approval.



SUBMIT_FOR_APPROVAL ()

This program will submit the

contract for approval

There is no parallel processing or bulk processing capabilities for contract approval

program.



submit multiple contracts at one time, you can create custom wrappers. If you want to by-

pass the approval workflow, you can create a custom program to update the contract status

to APPROVED once contracts are validated and in PASSED status.


After the contract is approved, user can check the status of individual contracts to see

whether it is in APPROVED status and there are no errors. This is last process before the

contract is activated.


None

10.4.7.5 Benchmarks

Typically for 170,000 contracts with 240,000 assets, contracts can be approved 0.5hrs.

10.5 Task Order

The following process should be sequentially executed (Import, Funding, Validation, Stream

Generation, Draft Journal Entry and Approval). Some of the processes mentioned are optional like

Draft Journal Entry and Approval. These optional processes can be skipped based on your

business process and the state of the contracts in your legacy systems.

If the contracts are created in batches, while one batch is undergoing one process, other batch can

be run in parallel. For example, while the first batch is undergoing stream generation, the second

batch can be submitted for validation.

10.6 Reconciliation

Before activating contracts, you should reconcile the contract attributes with the legacy system.

You can automate reconciliation process using custom build components such as checking for

accounting balances using a contract-level trial balance report

Objectives Conversion Cookbook- Plan, Prepare & Execute 51

11. Phase 4 – Book & Terminate Expired Contracts (excluding Evergreen Contracts)

If you have off lease assets in your legacy system that you need to convert, they are likely from

lease contracts that are no longer active. These assets have values (Net Investment or Net Book

Values) that may be required in Oracle Assets (FA) or in your balance sheet (i.e., based on stream

values). You need this information in order to 1) put these assets on a new lease, 2) sell the asset

as a remarketed asset, or 3) scrap or otherwise dispose of the asset. During the time the asset is

"off-lease" (meaning is has been terminated but not yet re-leased/sold, etc.) you may also need to

depreciate it. In order to maintain association from the asset to the originating contract, you may

need to convert historical contracts.

11.1 Objectives

To create off-lease assets with balance in asset book including the originating expired

contract.

To create GL balance for terminated contract from legacy system for the assets.

11.2 Overview

In order to maintain the proper link for the off-lease assets between Lease and Finance

Management and FA, you should convert expired contracts related to off lease assets through the

contract life cycle, i.e., import, activation, and termination.

Depending upon the information you require and the number of contracts you need to convert,

there are two recommended approaches for converting the contracts and assets that are off lease.

1) Convert contracts with some simulated information, but enough information to

support the processing of off-lease assets.

2) Convert all contracts with all historical data to support processing off-lease assets.

11.3 Assumptions

Excludes evergreen contracts (i.e., contracts past the original end of term, but are still billing)

Assets that are sold in the legacy system are not converted

Unsold assets for the terminated contracts are converted

Funding (Payable invoices) and Billing (Receivable invoices) solution will be addressed in

Phase 3 - Initial Load, Phase 5 - Load Open Receivables (can be run in parallel with Phase 4,

and Phase 6 - Activation & Aging (Blackout Period Duration))

There is no need to adjust RV for DF lease expired contract in FA.

The asset cost for the imported assets are adjusted at NBV.

All tasks listed are mandatory unless otherwise specified.

11.4 High level Solutions

Solution 1

Consider this option when the volume of terminated contracts is low

Tasks (Solution 1) Conversion Cookbook- Plan, Prepare & Execute 52

Seq Task Description

1 Activate Expired contract Booked expired contracts using contract open interface.

2 Aged Expired Contract Flag Billed and Accrual streams. Suppress Booking accounting.

3 Terminated Expired Contract Terminate Expired Contract using standard concurrent program

4 Suppress Termination Accounting

Transactions in Lease and Finance

Management

In order to avoid Termination accounting being posted to GL, set

POST_TO_GL flag to „N‟ on accounting distribution table.

5 GL balance adjustments After processing expired or terminated contracts, GL balance needs to be

adjusted to reflect the proper balance of the contract and assets.

Solution 2

Consider this option when the volume of terminated contracts is high

Seq Task Note

1 Import contract with assets as NEW status There are several options to convert expired contract:

Import contract by one on one basis

Import contract by logical group (Financial product, Vendor

Program, Terms and Conditions etc)

2 Create assets in FA through Lease and

Finance Management using API

To improve the performance to convert Terminated Expired contract to Lease

and Finance Management, we suggest that to develop a custom API to bypass

the QA validation, stream generation, and approval and then call

FA_ADDITION_PUB.DO_ADDITION API to add assets to FA directly from

a converted contract with NEW status.

3 Process termination contract without create

termination accounting transactions

In order to maintain the proper link for the off-lease assets between Lease and

Finance Management and FA, we need to implement the same logic as Lease

and Finance Management standard “Terminated Expired Contract” concurrent

program except the Termination accounting.

If the automatically purchase option is Yes, then we will dispose asset.

Otherwise, we will create asset return as well as off-lease amortization

transactions.

Lastly, we will update the contract, lines, and payments as Expired.

4 GL balance adjustments After processing expired or terminated contracts, GL balance needs to be

adjusted to reflect the proper balance of the contract and assets.

11.5 Tasks (Solution 1)

11.5.1 Activate Expired Contracts

Convert expired contracts – contracts with end date that is less than the conversion date and not

eligible for evergreen – from your legacy system to Lease and Finance Management using Lease

and Finance Management standard contract import interface as NEW, PASSED, COMPLETE,

APPROVED, or BOOKED contract status.

The loading of contracts is covered in the Phase 3 description above.

Once the contract status becomes „Approved‟, you should call

OKL_CONTRACT_BOOK_PUB.ACTIVATE_CONTRACT to activate the expired contract.

When a DF lease contract is activated (booked), the following steps or actions are performed:

o Create Installed Base (IB) record

o Create Oracle Assets (FA) record


o Capitalize or bill interim interest (from Approved Pre-funding Requests)

o Generate invoices for interim interest if needed

o Call accounting engine

o Call tax engine

o Generate invoices for upfront taxes

o Update contract, line and stream statuses (if “current” streams are generated during a

previous step only the contract and line statuses are updated).

Billing transactions for interim interest invoices and upfront taxes invoices will be generated

and reside in the Lease and Finance Management internal billing transaction tables. In Phase 5

- Load Open Receivables (can be run in parallel with Phase 4) will prepare and post all

internal billing transactions to AR to create actual invoices. So you should suppress these

transactions if you don‟t want to transfer to AR for the creation of invoices.

The following APIs are used in this process:

API Description

OKL_ACTIVATE_ASSET_PUB.ACTIVATE_ASSET Create Asset Transaction

from a ready to be

Booked Contract which

has passed Approval

and created assets in FA

OKL_ACTIVATE_IB_PUB.ACTIVATE_IB_INSTANCE Calls IB API to create an

item instance in IB


Refer to the Lease and Finance Management contract open interface documentation and

Phase 3 - Initial Load for details. Lease and Finance Management also provides a private

API to activate the contract:

OKL_CONTRACT_BOOK_PUB.ACTIVATE_CONTRACT.

API Description

OKL_CONTRACT_BOOK_PUB.ACTIVATE_CONTRACT Creates install base

record and fixed asset

record for the

contract.


You should consider creating a wrapper to process parallel workers to execute the API.


Based on the assumptions, you should verify the Fixed Assets and Install Base records are

successfully created.


You should use the following SQL to query the linkage between Fixed Asset and Lease

and Finance Management asset:

SELECT lse.lty_code, cle.id, cle.cle_id, itm.object1_id1, itm.jtot_object1_code

FROM apps.okc_k_lines_b cle,

apps.okc_line_styles_b lse,

apps.okc_k_items itm,

fa_additions ast

where lse.id = cle.lse_id

and itm.cle_id = cle.id

and ast.asset_id = itm.object1_id1

and cle.dnz_chr_id = (select khr.id from apps.okc_k_headers_b khr where

khr.contract_number = Contarct Number')

and itm.jtot_object1_code = 'OKX_ASSET';

You should use the following SQL to query the linkage between Install Base and Lease

and Finance Management asset instance:





csi_item_instances ib



and ib.instance_id = itm.object1_id1


khr.contract_number = 'Contarct Number')

and itm.jtot_object1_code = 'OKX_IB_ITEM';


None

11.5.1.5 Benchmarks

Typically, 500 contracts along with 4,500 - 5,000 assets will take about 60 seconds.

11.5.2 Age Expired Contracts

An aged contract is defined as a contract which has begun its lifecycle on another leasing system

that needs to be imported into Lease and Finance Management; this includes all statuses of active

and terminated contracts. In this step, you update flags on stream elements that have already been

billed and accrued since the contract is already terminated in legacy system. This insures that

billing and accrual accounting transactions will not be created.

To avoid contract booking accounting being posted to GL, you should flag the booking accounting

POST_TO_GL column to „N‟ in accounting distribution table.


None


You must run a custom program to update the billing and accrual flags on previously

billed and accrued stream element values.

You should consider parallel workers or bulk update to execute the SQL update.


Below is the sample SQL script to allow you to update DATE_BILLED to conversion

date and ACCRUED_YN = „Y‟ for the converted contract stream elements:

update okl_strm_elements ste

set ste.DATE_BILLED = <Conversion date>,

ste.ACCRUED_YN = 'Y'

where exists

(select 1

from okl_streams stm

where stm.id = ste.stm_id

and stm.khr_id = <your khr_id>);

Below is the sample SQL script to allow you to update POST_TO_GL column to „N‟ in

accounting distribution table:

update okl_trns_acc_dstrs_all

set post_to_gl = 'N'

where source_table = 'OKL_TXL_CNTRCT_LNS'

and source_id in (select id

from okl_txl_cntrct_lns_all

where tcn_id in (select id

from okl_trx_contracts_all

where try_id in

(select id

from okl_trx_types_tl

where name in ('Booking')

and khr_id = <Contract ID>)));


You should verify the total records and content that has been updated for the SQL script.


None

11.5.2.5 Benchmarks

None

11.5.3 Terminate Expired Contracts

Run the standard „Terminate Expired Contracts‟ concurrent program to set the status of contracts

to „Expired‟. This step will create the off-lease amortization transaction for each asset in Lease and

Finance Management.

The following steps or activities are performed when processing terminated expired DF lease

contracts:

1) Eligible for Termination - checks if billing is complete up to the termination date (only if

contract has expired).

2) Close Balances (Write-off Small Balances) - creates adjustment transactions for the

balances less than tolerance amount (Only for Full Termination). 11i10+ Get invoice

balances as of quote effective from date.

3) Post Accounting Entries

o Creates termination accounting entries.


o Creates accrual accounting entries for catch-up (i.e., transfer accruals from non-

income bucket to income bucket). Only for Full Terminations.

o Reverse loss provisions. Only for Full Terminations.

o 11i10+ Reverse accruals (if excess accruals exist). Only for Full Terminations.

o Accelerate income accrual recognition for financed fees. Only for Full

Terminations.

o Accelerate income recognition or refund subsidy (based on subsidy setup).

4) Dispose Asset

o Retires assets in FA. Expires Item in Install base. 11i10+ Retires asset in FA on

quote effective from date.

5) Amortize Asset (Create Off-Lease Amortization)

o Creates off-lease amortization transactions in Lease and Finance Management,

which are then processed into FA (to adjust depreciation). 11i10+ -- Off-lease

amortization transaction date is set to quote effective date.

6) Create Asset Return

o Creates asset return record in Lease and Finance Management with return status

as Scheduled. 11i10+

7) Update Contract Status (streams, contracts and contract lines)

o Updates stream status to HISTORIZE (except for residual value and investor

contract obligation payable streams).

o Sets the lines and contract to Terminated. 11i10+ Sets date terminated as quote

effective from date. (Only for Full Termination). If the contract is evergreen

eligible the contract and lines are updated to Evergreen status. Along with that

off-lease amortization and Termination accounting is also done for the contract.

8) Update Contract Details (payments, contract lines)

o Updates the payments i.e. remove future payments for terminated assets after

termination date.

o Updates lines to Terminated for all the terminated financial assets. If the

financial asset is attached to service or fees, terminates those sub lines as well.

Terminates the primary service or fee line if all sub-lines terminated. (Does not

terminate those primary service and fee lines that do not have any sub lines).

o Launches mass rebook, which rebooks the contract. 11i10+ Sets rebook date as

quote-effective date. Pass terminated assets to rebook API. (Only for Partial

Termination).


The following programs are used in the termination process.

Concurrent Program Description

„Terminate Expired Contracts‟ concurrent

program

This program will create the off-lease

amortization transaction for each asset


in Lease and Finance Management.


None


Follow the standard „Terminate Expired Contracts‟ concurrent program reconciliation

procedure. Refer to Oracle Lease and Finance Management User Manual and Oracle

Lease and Finance Management Implementation Guide for details.

Furthermore, you should verify the total records and content that has been created by the

API.

Below is the list of tables for off-lease amortization Lease and Finance Management

internal transactions:

Table Name Description

OKL_TRX_ASSETS A top level transaction table to

group all the transactions for

creation of Asset lines for a

contract

OKL_TXD_ASSETS_V A transaction table to record

tax book related asset

attributes needed by Oracle

Assets (FA) before activating

the contract and additionally

to store the split asset

transaction attributes needed

by FA before activating the

contract.

OKL_TXL_ASSETS_V A contract line level

transaction table to record

asset attributes needed by FA

before activating the contract.

Below is the list of tables for asset return of Lease and Finance Management internal

transactions:


OKL_ASSET_RETURNS_B The transaction table for

managing assets that is off

lease after a contract

termination or assets that have

been identified as possible

returns.

The return asset transaction is

created by one of the

following:

1. Repossession request


2. Customer or Vendor

notification of intent to return

3. System notification of

potential return

Below is the list of APIs for asset disposal:

API Description

FA_ADDITION_PUB.DO_ADDITION This API will add an asset to

a specific book in FA.

OKL_OKC_MIGRATION_PVT.UPDATE_CONTRACT_ITEM After create asset disposal in

FA, update contract item

with the proper linkage:

asset_id

OKL_TRX_ASSETS_PUB.CREATE_TRX_ASSET_DEF This API will create asset

disposal header in

OKL_TRX_ASSETS

OKL_TXL_ASSETS_PUB.CREATE_TXL_ASSET_DEF This API will create asset

disposal line in

OKL_TXD_ASSETS_V

OKL_TXD_ASSETS_PUB.CREATE_TXD_ASSET_DEF This API will create asset

disposal details in

OKL_TXL_ASSETS_V

OKL_SLA_ACC_SOURCES_PVT.POPULATE_SOURCES This API will populate

proper asset accounting

entries information for asset

in Lease and Finance

Management.

OKL_AM_ASSET_DISPOSE_PUB.DISPOSE_ASSET This procedure is used to

retire an asset in FA. It

checks if the asset is to be

fully or partially

retired, based upon the

p_quantity parameter and

then calls the appropriate

routine to retire the asset. It

then stores the disposition

transactions in OKL tables,

calls accounting engine and

then finally cancels all

pending transactions in OKL

tables for this asset.

FA_ADJUSTMENT_PUB.DO_ADJUSTMENT This API will adjust the

financial information of an

asset in a specific book in

FA.

FA_RETIREMENT_PUB.DO_RETIREMENT This API will partially or

fully retire an asset in a


specific book in FA.

OKL_AM_ASSET_DISPOSE_PVT.EXPIRE_ITEM This procedure expires an

item in Installed Base.

CSI_ITEM_INSTANCE_PUB.EXPIRE_ITEM_INSTANCE This procedure expires an

existing item instance and its

child entities in Install Base.


You should consider creating a custom wrapper to process parallel workers to execute the

API.

11.5.3.5 Benchmarks

Typically, 2000 contracts along with 4,000 - 5,000 assets will take less than 2 minutes

(with at least 6 workers)

11.5.4 Suppress Termination Accounting Transactions in Lease and Finance Management

During the Lease and Finance Management „Terminate Expired Contracts‟ concurrent program

execution, Termination accounting transactions are created in Lease and Finance Management. In

order to avoid the transactions being posted to GL, flags the POST_TO_GL column to „N‟ in

accounting distribution table.


None











where try_id in

(select id


where name in ('Termination')




Verify the total records and content that have been updated for the SQL script.


None


11.5.4.5 Benchmarks

None available.

11.5.5 Asset Cost Adjustment

Once the assets are imported for the expired contracts and created in Oracle Assets, the asset cost

is adjusted at the NBV. As a result, the asset cost and depreciation account opening balances

would be created from the Oracle Assets module in GL. If you do not want to maintain asset

values for off-lease assets at NBV, you may need to create a program or use FA features to update

the assets to the desired value.

11.6 Tasks (Solution 2)

11.6.1 Import Contracts

You must convert or enter contracts with terms that can be referenced when Lease and Finance

Management processes transactions for any converted off-lease assets. In Solution 1 described

above, you imported one contract for each matching contract in your legacy system for each off-

lease asset. However, if you can determine a set of common terms and conditions that would apply

to groups of off-lease assets, you can simply import a place-holder contract that would contain the

needed terms for each grouping. For example, off-lease assets with the same sales price formula

and for the same vendor program with repurchase terms can all be converted under a single

contract even though the assets come from multiple contracts in your legacy system.

To use this solution option, you convert expired contracts – contracts with end date that is less

than the conversion date and no Evergreen rule – from legacy system to Lease and Finance

Management using Lease and Finance Management standard contract import interface in NEW

contract status. The contracts may not be used for any other purpose than providing terms and

conditions to downstream processes on off-lease assets that you disposition.

The loading of contracts is covered in the Phase 3 description above.


Please refer to the Lease and Finance Management contract open interface documentation

and Phase 3 - Initial Load section for details.


None


Please follow the standard Lease and Finance Management contract open interface

reconciliation procedure.


You should consider creating a custom wrapper to use parallel workers to execute the API.

11.6.1.5 Benchmarks

Typically, 500 contracts along with 4,500 - 5,000 assets will take about 60 second


11.6.2 Create Assets in FA

Since this option is recommended when you have a high volume of contracts and assets and to

improve the performance of converting terminated or expired contracts into Lease and Finance

Management, we suggest that you develop a custom API to bypass a majority of the contract

activation process. Activities such as QA validation, stream generation, and approval are not

required since the contracts are only to be used for retrieving applicable terms and conditions.

Instead, call the FA_ADDITION_PUB.DO_ADDITION API to add assets to FA directly from a

converted contract with NEW status.

However, due to the complexity of the OKL_CONTRACT_BOOK_PUB.activare_contract API,

we suggest that to update the contract and lines status from NEW to APPROVED and then

execute the following APIs by sequence:

API Description

OKL_CONTRACT_STATUS_PUB.UPDATE_CONTRACT_STATUS Update contract status

to APPROVED

OKL_CONTRACT_STATUS_PUB.CASCADE_LEASE_STATUS Update contract lines

status to APPROVED

OKL_ACTIVATE_ASSET_PUB.ACTIVATE_ASSET Create Asset

Transaction from a

ready to be Booked

Contract which has

passed Approval

and created assets in

FA

OKL_ACTIVATE_IB_PUB.ACTIVATE_IB_INSTANCE Calls IB API to create

an item instance in IB

OKL_CONTRACT_STATUS_PUB.UPDATE_CONTRACT_STATUS Update contract status

to BOOKED‟

OKL_CONTRACT_STATUS_PUB.CASCADE_LEASE_STATUS Update contract lines

status to BOOKED‟


None


See above description of custom build items required to create active contracts by-passing

the standard contract import activation process.


You should verify the total records and content that has been created for the API.

You should use the following SQL to query the linkage between Fixed Asset and Lease

and Finance Management asset:






fa_additions ast



and ast.asset_id = itm.object1_id1


khr.contract_number = Contarct Number')

and itm.jtot_object1_code = 'OKX_ASSET';

You should use the following SQL to query the linkage between Install Base and Lease

and Finance Management asset instance:





csi_item_instances ib



and ib.instance_id = itm.object1_id1


khr.contract_number = 'Contarct Number')

and itm.jtot_object1_code = 'OKX_IB_ITEM';


You should consider creating a custom wrapper to use parallel workers or bulk update to

execute the API.

11.6.2.5 Benchmarks

None available.

11.6.3 Process Contract Termination

In order to maintain the proper link for the off-lease assets between Lease and Finance Management and FA,

you need to implement the same logic as Lease and Finance Management standard “Terminated Expired

Contract” concurrent program except the termination accounting. You should refer to Solution 1 for further

details of the functional steps for Expired Terminated Contract.

If the contract has a purchase option that can be processed automatically, then Lease and Finance

Management automatically creates a transaction to dispose the asset. Otherwise, Lease and Finance

Management creates an asset return and off-lease amortization transactions.

Lastly, you should update the contract, lines, and payments as Expired.

This process assumes the following:

You do not require a termination quote

There are no partial terminations

However, due to the complexity of the

OKL_AM_BTCH_EXP_LEASE_LOAN_PVT.CONCURRENT_EXPIRE_LEASE_LOAN (API

of the „Terminate Expired Contracts‟ concurrent program), you should use the API list below to

build your custom API to expire contracts

API Description


OKL_AM_LEASE_TRMNT_PVT.LEASE_TERMINATION This API will terminate the

expired lease contract.

And then suppress the following procedures call inside the API

API Description

OKL_AM_LEASE_TRMNT_PVT.VALIDATE_LEASE This API will validate the

lease contract.

OKL_AM_LEASE_TRMNT_PVT.PROCESS_EVERGREEN_

CONTRACT This API will process

evergreen contract.

OKL_AM_LEASE_TRMNT_PVT.PROCESS_CANCEL_INS

URANCE This API will cancel

insurance policy for the

expired contract.

OKL_AM_LEASE_TRMNT_PVT.PROCESS_CLOSE_BALA

NCES This API will create AR

adjustments for the expired

contract.

OKL_AM_LEASE_TRMNT_PVT.PROCESS_ACCOUNTING

_ENTRIES This API will process the

accounting entries that related

to the expired contract.


None


Refer to the introduction section for details.


You should verify the total records and content that have been created by the custom API.

Below is the list of tables for off-lease amortization Lease and Finance Management

internal transactions:


OKL_TRX_ASSETS A top level transaction table to

group all the transactions for

creation of Asset lines for a

contract

OKL_TXD_ASSETS_V A transaction table to record

tax book related asset

attributes needed by Oracle

Assets (FA) before activating

the contract and additionally

to store the split asset

transaction attributes needed

by FA before activating the

contract.


OKL_TXL_ASSETS_V A contract line level

transaction table to record

asset attributes needed by FA

before activating the contract.

Below is the list of tables for asset return of Lease and Finance Management internal

transactions:


OKL_ASSET_RETURNS_B The transaction table for

managing assets that are off

lease after a contract

termination or assets that have

been identified as possible

returns.

The return asset transaction is

created by one of the

following:

1. Repossession request

2. Customer or Vendor

notification of intent to return

3. System notification of

potential return

Below is the list of APIs for asset disposal:

API Description

FA_ADDITION_PUB.DO_ADDITION This API will add an asset to

a specific book in FA.

OKL_OKC_MIGRATION_PVT.UPDATE_CONTRACT_ITEM After create asset disposal in

FA, update contract item

with the proper linkage:

asset_id

OKL_TRX_ASSETS_PUB.CREATE_TRX_ASSET_DEF This API will create asset

disposal header in

OKL_TRX_ASSETS

OKL_TXL_ASSETS_PUB.CREATE_TXL_ASSET_DEF This API will create asset

disposal line in

OKL_TXD_ASSETS_V

OKL_TXD_ASSETS_PUB.CREATE_TXD_ASSET_DEF This API will create asset

disposal details in

OKL_TXL_ASSETS_V

OKL_SLA_ACC_SOURCES_PVT.POPULATE_SOURCES This API will populate

proper asset accounting

entries information for asset

in Lease and Finance

Management.


OKL_AM_ASSET_DISPOSE_PUB.DISPOSE_ASSET This procedure is used to

retire an asset in FA. It

checks if the asset is to be

fully or partially

retired, based upon the

p_quantity parameter and

then calls the appropriate

routine to retire the asset. It

then stores the disposition

transactions in OKL tables,

calls accounting engine and

then finally cancels all

pending transactions in OKL

tables for this asset.

FA_ADJUSTMENT_PUB.DO_ADJUSTMENT This API will adjust the

financial information of an

asset in a specific book in

FA.

FA_RETIREMENT_PUB.DO_RETIREMENT This API will partially or

fully retire an asset in a


OKL_AM_ASSET_DISPOSE_PVT.EXPIRE_ITEM This procedure expires an

item in Installed Base.

CSI_ITEM_INSTANCE_PUB.EXPIRE_ITEM_INSTANCE This procedure expires an

existing item instance and its

child entities in Install Base.


You should consider creating a custom wrapper to use parallel workers to execute the API.

11.6.3.5 Benchmarks

None available.

11.6.4 Asset Cost Adjustment

Once the assets are imported for the expired contracts into Oracle Assets, the asset cost is adjusted

at the NBV. As a result, the asset cost and depreciation account opening balances would be created

from the Oracle Assets module in GL. If you want to use other asset cost values and not NBV, you

must update the asset cost in FA either by creating a custom program or updating the asset values

from the FA screens.

11.7 Task Order

Please refer to High Level Solution section for each option.

11.8 Reconciliation

None identified other than recommendations at the task level.

Common Issues & Recommendations Conversion Cookbook- Plan, Prepare & Execute 66


11.9.1 Common Issues

Seq Issue Recommendations

1 When import terminated contract to Lease and Finance

Management, recommends importing assets that have not been

sold. If some of the assets have been sold before conversion.

Lease and Finance Management will not have this asset in the

converted contract.

Keep the history records somewhere.

11.9.2 Recommendations

Solution Recommendations Note

1 This option is to be considered when the volume of

terminated contracts is low percentage

Pros: This is the simple solution without much

custom effort to implement.

Cons: For performance concern, this approach

may take much longer time.

2 This option is to be considered when the volume of

terminated contracts is high percentage

Pros: This is most efficient way to implement for

convert expired contract for the following reasons:

1. Skip the contract validation,

stream generation, approve, and part of

the validation for the activation contract

process. This will take less time to

convert expired contracts overall.

2. Skip the termination contract

validation, termination accounting

generation. This will take less time to

terminate convert expired contracts

overall.

Cons: If impact analysis is not done correctly, it

may impact both technical as well as functional

areas of Lease and Finance Management.


12. Phase 5 – Load Open Receivables

This phase describes the process for converting existing invoices you have already billed in your

legacy system.

The purpose of converting open receivables through Lease and Finance Management third party

billing interface is to link the invoices with respective contracts. If the invoices are directly

interfaced to AR, you will not be able to view the related invoices for contracts in Lease and

Finance Management.

You can only process receivables records in Lease and Finance Management. You will not be able

to complete the process for creating AR invoices until you activate the contracts in phase 6. The

remaining steps to create invoices in AR is included in phase 7.

12.1 Objectives

The objective of this phase is to import open and partially paid receivables through the third party

billing import and associate the invoices to your converted lease and loan contracts.

12.2 Overview

You should create receivables in Lease and Finance Management using supported interfaces.

Before the receivables are created, you must have the respective contracts populated in third party

billing interface tables.

You should convert any receivables that are open or partially paid. Partially paid invoices can be

converted with reduced receivable balances.

In the standard billing process, any billing item for a contract is created in the Lease and Finance

Management billing transaction tables first. Lease and Finance Management then processes the

records by using your pre-defined business rules to group them into transactions that will

eventually form an invoice. Once the processing is complete, Lease and Finance Management

creates records in the Oracle Receivables import interface tables. You then use the standard Oracle

Receivables importing program to load the records into Oracle Receivables and create new

invoices.

12.3 Assumptions

You have converted contracts before the respective receivables are imported.

All tasks and activities listed are mandatory unless otherwise specified.

12.4 Tasks

12.4.1 Load Billing Interface

To process a billing item from a third-party company, Oracle Lease and Finance Management can

import billing files containing charges that the customer incurs that you want to pass through, for

example, property taxes, non-sufficient funds fees or service &maintenance charges. After you

import these records, you should review them, correct errors, and download them into Oracle

Lease and Finance Management tables.

You must include third-party billing data in a billing import file.

You may include the following data fields in your data file:

Contract ID and/or Asset ID


Customer ID

Customer address

Type of charge

Amount

In addition, you can provide other fields, such as vendor, invoice, and source identifiers.

After contracts are created in Lease and Finance Management, you can bring open receivables

through the Lease and Finance Management billing interface. You populate billing interface tables

with receivable invoice lines and contract references.


Use the following interface tables to populate receivables details.

Interface Table Name Description

OKL_EXT_BILLING_INTERFACE

Third party billing interface table

In all rows, set the value of the column TRX_STATUS_CODE to "SUBMITTED". This

will make sure records are picked for processing


You can update the contract or asset reference information on each receivable line in the

interface table using a custom script.


You should reconcile the total number of invoice lines and amount with the legacy

receivables details.


None

12.4.1.5 Benchmarks

Typically, 10000 receivable records take about 25 seconds to load.

12.4.2 Third Party Billing Import Program

Run the concurrent program “Third Party Billing Import” to pass all records from the billing

import interface table to Oracle Lease and Finance Management transaction tables. The process

validates data for referential integrity. For example, every record must have an amount, contract

ID, and type of charge. Moreover, if optional data is supplied, it is validated. For example, if a

contract ID is provided, it should correspond to an existing contract.

Note that all the records that passed the checks in the previous step are loaded into the database.


Use the following concurrent program to populate the Lease and Finance Management

transaction table.


Concurrent Program Name Description

Third Party Billing Import Program

Process all records from the billing

import interface table to Oracle Lease

and Finance Management transaction

tables


User need to prepare custom load scripts to populate the interface tables.


If the data is loaded correctly, the column TRX_STATUS_CODE is set to

"PROCESSED". If the concurrent program detects errors, the column

TRX_STATUS_CODE is set to "ERROR".

All validated records are copied to Oracle Lease and Finance Management transaction

tables. Rejected records remain in the interface table. The audit report shows the number

of excepted and rejected records. The exception report displays rejected records and

corresponding error messages.


None

12.4.2.5 Benchmarks

Typically, 60,000 assets + 10,000 receivables takes about one hour to process.

12.4.3 Prepare Receivable Bills

The Lease and Finance Management program “Prepare Receivable Bills” selects unprocessed data

records from internal transaction tables with Status = SUBMITTED and populates Lease and

Finance Management external billing tables. This will process all receivable related transactions

such as manual bills, credit memos, termination quote amounts, etc. Amounts used in the records

for transfer to Oracle Receivables are not based on streams, but on transactions created in the

internal Lease and Finance Management transaction tables.


Use the following concurrent program to prepare receivable invoices and populate Lease

and Finance Management external billing tables


Prepare Receivable Bills

Process the billing transactions from


internal tables to external tables.


None



Check the concurrent program log file and output files to make sure there are no errors.


None

12.4.3.5 Benchmarks

Typically, 60,000 assets + 10,000 receivables takes about 15 minutes to process.

12.4.4 Receivable Bills Consolidation

The Lease and Finance Management program “Receivable Bills Consolidation” picks up all

transactions marked as SUBMITTED in external transaction table for preparation of consolidated

invoice records. Based on the consolidation rules defined, individual billing items are consolidated

to form lines on a single invoice.


Use the following concurrent program to consolidate billing transactions


Receivable Bills Consolidation

Process the consolidation of billing

transactions from Lease and Finance

Management external tables.


None


Check the concurrent program log file and output files to make sure there are no errors.


None

12.4.4.5 Benchmarks

Typically, 60,000 assets + 10,000 receivables takes about 15 minutes to process.

12.5 Task Order

If you are converting open receivables through the Lease and Finance Management interface, the

following process should be executed sequentially

Flag billed streams and flag accrued streams (can be executed together)

Populate interface tables

Run third party billing import concurrent program


Run prepare receivables concurrent program

Run receivables bills consolidation concurrent program

12.6 Reconciliation

After the receivables are imported and consolidated, check the consolidated invoice lines to make

sure invoices lines reflect legacy invoice structure.

You should also reconcile after the invoice lines are transferred to Account Receivables against

the legacy open/partial invoices.


Since the imported receivables won‟t have the stream type link, you will not be able to view the

details of the invoice lines by drilling down into the source streams.


13. Phase 6 - Activate & Age Active Contracts

To convert active, mid-life contracts not associated with off-lease assets from phase 4, you must

book (activate) and age the contracts to bring them to their current state. Aging includes updating

records for billing and accounting transactions that have previously been created for the converted

contracts in your legacy system.

This phase also involves completing the process of converting your open receivables and payable

transactions into the Oracle Receivables and Payables modules that you started in phases 2 and 4.

13.1 Objectives

To activate and age active, mid life contracts.

To complete the data transfer into Receivables and Payables base tables from the Lease and

Finance Management interface and transaction tables.

13.2 Overview

After you create contracts and process them up to “approved” status, you must activate and book

the contracts so they can be billed and accrued. Activating or booking contracts creates

transactions and records such as FA asset records and Install Base information.

During the activation process, you must insure that there are no further transactions against the

contracts in your legacy systems unless you plan a process to catch up these transactions after you

convert your identified contracts. As such, this is considered a “blackout period” and you should

not service the contract in legacy system once you begin this process.

13.3 Assumptions

All activities and steps are mandatory unless otherwise noted.

13.4 Tasks

13.4.1 Activate Contracts

During the contract activation process, the contract status is updated from „Approved‟ to „Booked‟

and asset records are created in the Oracle Assets (FA) module. This process also creates

accounting entries for the contract booking. After successful booking, accounting entries are

generated in the sub-ledger and normally transferred into the general ledger (GL). You should

suppress this GL transfer and setup your existing account balances in the GL directly.

13.4.1.1 Active Contract Linkages

The contract activation process is comprised of multiple sub-tasks. The subtasks result in

new records and calls to APIs inform other Oracle modules to create linked records. The

functional steps executed during the contract activation are the following:

o Create Install Base instance records

o Create Oracle Assets records

o Calculate and capitalize or bill interim interest (for pre-funding requests)

o Generate invoices for interim interest if needed


o Call accounting engine

o Call tax engine

o Generate invoices for upfront taxes if needed

o Update contract, line and stream statuses to Active

The following is the list of APIs used by the processes described above:

API Description

OKL_ACTIVATE_ASSET_PUB.ACTIV

ATE_ASSET

This is a public API. It creates an asset

transaction record for each asset on the

contract

OKL_ACTIVATE_IB_PUB.ACTIVATE

_IB_INSTANCE

This is a public API. It calls IB API to

create an item instance in Install Base

OKL_INTEREST_CALC_PUB.CALC_I

NTEREST_ACTIVATE

This is a public API. This procedure

capitalizes or bill interim interest

OKL_LA_JE_PVT.GENERATE_JOUR

NAL_ENTRIES

This is a private API. This procedure calls

the accounting engine

OKL_LA_SALES_TAX_PVT.PROCES

S_SALES_TAX

This is a private API. This procedure calls

the tax engine and generates invoices for

upfront taxes


Updating a contract from Approved to Booked status can be achieved using Lease and

Finance Management screens - which will process them one at a time, or you can use a

custom program to automate the task utilizing batch processing.


Oracle provides a public API to activate the contract called

“OKL_CONTRACT_BOOK_PUB.activate_contract” This API will activate one contract

per call so a custom concurrent program can be developed to activate multiple contracts in

batches, using the multiple calls to this API.


If you are activating a large number of contracts you should consider creating a custom

concurrent program, this way it can activate the contracts in batches.

13.4.1.5 Benchmarks

Typically, five hundred contracts with 1,050 lines each can be booked in 60 seconds.

13.4.2 Suppress Booking Accounting Transactions in Lease and Finance Management

During contract activation, interim interest invoices and upfront tax invoices are generated and

reside in the Lease and Finance Management accounting distribution table. As these transactions

should already have been posted to GL in your legacy system, you should prevent them from

being posted during the conversion process. You achieve this by flagging the POST_TO_GL

column to „N‟ in the Lease and Finance Management accounting distribution table. The sql

statement is shown below.



None











where try_id in

(select id


where name in ('Booking')


Note: You can create a wrapper using the sample script for purposes of batch processing;

the sample script above only gives the statement to update all booking transactions for one

contract.


You should verify the total records and content that have been updated for the SQL script.



13.4.2.5 Benchmarks

None available.

13.4.3 Flag Billed Streams

After contracts are created and streams are generated, you need to make sure customers are not

billed again for any previous billing periods. Billing should be completed for the past billing

periods before the conversion date in your legacy system.

Billable streams with dates due before the conversion date should be marked as billed. This

prevents billing the customers again for past periods.


None


Below is the sample SQL script to allow you to update DATE_BILLED to conversion

date for the converted contract stream elements:


set ste.DATE_BILLED = <Conversion date>,

where exists

(select 1





Note: You can create a wrapper using the sample script for purposes of batch processing;

the sample script above only gives the statement to update all booking transactions for one

contract.


You should compare the sum of billable streams, which are marked as billed to the legacy

system total billed amount.


None

13.4.3.5 Bench Marking

None available.

13.4.4 Flag Accrued Streams

After contracts are created and streams are generated, you need to make sure accrued amounts

from your legacy system are not accrued again in Lease and Finance Management. All accruals

should be completed for the past accrual periods in your legacy systems before the conversion

date.

You should mark as “accrued” any accrual streams that are dated before the conversion date.


None


Below is the sample SQL script to allow you to update ACCRUED_YN = „Y‟ for the

converted contract stream elements:


set ste.ACCRUED_YN = 'Y'

where exists

(select 1




Note: You can create a wrapper using the sample script for purposes of batch processing; the

sample script above only gives the statement to update all booking transactions for one contract.


You should compare sums of accrued streams that are marked as accrued to the legacy

system total accrued amount for the contract


None


13.4.4.5 Benchmarks

None available.

13.4.5 Receivables Invoice Transfer to AR

The records you imported in Phase 5 – Load Open Receivables, need to be imported into Oracle

Receivables as invoices. You should only convert open receivables to Lease and Finance

Management. If there are partially paid invoices, you should only convert the open balances,

rather than converting the whole invoice and creating adjustment receipts.

If you use the process in Phase 5, you convert the open receivable through Lease and Finance

Management third party billing interface. This insures the invoices are associated to the source

contracts. If you choose to bring the open receivable directly through AR interface, you won‟t be

able to see the open receivable invoices in Lease Center (Lease and Finance Management‟s

customer service module) for a contract.

For third party billing interface details, please refer to Phase 5 – Load Open Receivables section.

During this step, you run the Invoice Transfer to AR program, which is a standard Oracle

concurrent program (CP). This CP transfers Oracle Lease and Finance Management billing

transactions to the Oracle Receivables import interface.

You cannot complete the import in Phase 5 since you must first activate the associated contracts

before you can run the import programs.

Use the following program to transfer records from the Lease and Finance Management external

billing tables and populate the Oracle Receivables import interface table:


Transfer to AR

Process uses records in the Lease and

Finance Management external billing

tables and creates records in the

Receivables import interface tables

13.4.5.1 Interface and Program Usage

None


The number of transferred invoices should match the same number of invoices in the

Lease and Finance Management external billing interface tables.


None

13.4.5.4 Benchmarks

Typically, a batch of 1050 invoices will be transferred in 13 seconds


13.4.6 AR Auto Invoice Master Program

During this step, you run AR Auto Invoice Master Program, which is a standard Oracle concurrent

program (CP. This CP imports the invoices from interface tables into base receivables invoice

tables to create invoice records.

Use the following program to create invoice records from the import interface table.


AR Auto Invoice Master Program

Process transfers records from the

import interface table to create

invoices in Oracle Receivables


None


None


Make sure to review the concurrent program logs for errors and list of invoices transferred.


This concurrent program supports parallel mode processing.

13.4.6.5 Benchmarks

Typically, a batch of 1050 invoices can be transferred in 105 seconds

13.4.7 Update Tax Lines in AR (Optional)

You may choose to use an external tax engine rather than the Oracle Tax Engine to calculate the

tax for open receivables invoices. As such, you can adjust records on AR tables for tax

information using the Oracle API AR_ADJUST_PUB.


The AR_ADJUST_PUB API allows users to create, approve, update, and reverse

adjustments for invoices using simple calls to PL/SQL functions. This API is explained in

detail on the Metalink Note – DocID# 236938.1


None


The tax amount updated for each open receivable invoice line should match the same

amount from your legacy system.


None


13.4.7.5 Benchmarks

Typically a batch of 400 invoices will be updated in 2.0 seconds.

13.4.8 Fetch AR Invoice Numbers

During this step, you run the Lease and Finance Management program Fetch AR Invoice Number,

which is a standard Oracle concurrent program (CP). This CP retrieves information from Oracle

Receivables for new invoices (ie, previously “unfetched” records) within the Lease and Finance

Management invoice grouping tables used to consolidate records for invoice preparation. This is

an important step to insure you can view AR invoice records in Lease and Finance Management.


Fetch AR Invoice Number

Process retrieves invoice information

from Oracle Receivables for viewing

invoice records from Lease and

Finance Management pages.


None


None


Make sure to review the concurrent program logs for detailed information.


This concurrent program does support parallel processing.

13.4.8.5 Benchmarks

Typically, a batch of 1050 invoices will be fetched in 27 seconds

13.4.9 Pay Invoices Transfer to AP Invoice Interface

During this step, you run the Pay Invoices Transfer to AP Invoice Interface program, which is a

standard Oracle concurrent program (CP). This CP processes disbursement records in the Lease

and Finance Management transaction tables and prepares them for import to Oracle Payables by

placing them in the AP open interface table. It uses the following tables:

OKL_EXT_PAY_INVS_B,OKL_EXT_PAY_INVS_TL.


Pay Invoices Transfer to AP Invoice Interface

Process prepares disbursement records

for Payables import and puts them in

the AP open interface table.


None



None




This concurrent program does not support parallel processing.

13.4.9.5 Benchmarks

None available.

13.4.10 Payables Open Interface Import

During this step, you run the Payables Open Interface Import program using the parameter

“Source” set as “Oracle Lease and Finance Management”. This standard Oracle concurrent

program (CP) transfers data from the Payables interface tables to the AP base tables and creates

payable invoices.


Payables Open Interface Import

Processes records in the open

interface tables and creates payable

invoices in Oracle Payables.


Run the AP concurrent program Payables Open Interface Import program.


None




This concurrent program does not support parallel processing.

13.4.10.5 Benchmarks

None available.

13.5 Task Order

Tasks can be broken down into 4 sets as described below and executed in this order:

1) Activate Contracts

2) Suppress Booking Accounting Transactions in Lease and Finance Management.

3) Flag Billed Streams, Flag Accrual Streams


4) Receivables Invoice Transfer to AR,AR Auto Invoice Master Program,Update Tax Lines

in AR (Optional), Fetch AR Invoice Numbers, Pay Invoices Transfer to AP, Payables

Open Interface Import.

13.6 Reconciliation

None


None


14. Phase 7 –Account Balances Import

After completing the migration of all contract, asset and invoice information, you must import

account balances for Direct Finance Lease contracts into Oracle General Ledger.

14.1 Objective

The objective of this phase is to identify the accounts that need to be imported into GL and import

the correct account balances.

14.2 Overview

This phase identifies the DF lease contract accounts necessary for import into GL and the method

for importing the opening account balances into GL.

14.3 Assumptions

The assumptions for this phase are as follows.

All prior phases have been completed successfully.

The opening balance amounts are as of the conversion date from the legacy system

You calculate the opening balances you intend to import.

Only the opening balances are imported through the GL Interface.

You manually create the trial balance.

The phase does not address accounting reconciliation.

All activities and tasks are mandatory unless otherwise specified.

14.4 Tasks

14.4.1 Create Trial Balance from Legacy System

Prior to importing the account balances, it is important to identify the candidate accounts for

import. This can be achieved by drawing up a trial balance from your legacy system for all Direct

Finance lease contracts being converted as of the conversion date. This step is a manual process

and a custom build item.

Based on the standard transaction accounting as described in the Oracle Lease and Finance

Management whitepaper, “[need name]”, the following example describes sample accounting for a

direct finance lease contract. The example may be used to arrive at a trial balance or you may have

your own standard accounting.


Direct Finance Lease – Accounting Example

Column 1 in the above examples lists the typical business events for DF Lease contracts.

Column 2 describes the accounting events.

Column 3 in the above table lists the phase number of this document that the business

event is handled in the conversion effort.

Column 4 describes the Oracle Application module that handles the accounting event.

Columns 5 and 6 describe the accounts impacted.

Based on the above example, the accounts necessary for a trial balance can be identified and a trial

balance for the DF lease contracts being converted can be created as of the conversion date.

Trial Balance as on <<conversion date>>

Account Type Debit Credit

Unbilled Receivable B/S

Lease Funding B/S

Unearned Income B/S

Residual Value B/S

Asset Cost B/S

Asset Clearing B/S

Liability B/S

Bank B/S

Receivables B/S

Finance Income P&L

Total

Event Accounting For Phase Module Debit Credit

Booking Unbilled

Receivables

3 Lease Unbilled Receivables Lease Funding

Unearned Income 3 Lease Lease Funding Unearned Income

Residual Value 3 Lease Residual Value Lease Funding

Asset Cost 3 Assets Asset Cost Asset Clearing

Asset Cost

Adjustment

3 Assets Asset Clearing Asset Cost

Funding Asset Funding 6 Payables Lease Funding Liability

Payment Pay Invoice NA Payables Liability Bank

Billing Rent 5 Receivables Receivables Unbilled

Receivables

Receipts Receive Funds NA Receivables Bank Receivables

Accrual Income Recognition NA Lease Unearned Income Finance Income

Termination Residual Value NA Assets Asset Cost Asset Clearing

Residual Value NA Lease Asset Clearing Residual Value

Sale Sale of Asset NA Receivables Receivables Sale Proceeds

Receive Funds NA Receivables Bank Receivables

Sale of Asset NA Assets Sale Proceeds

Retirement of Asset NA Assets Depreciation Reserve

Retirement of Asset NA Assets Asset Cost

Gain / Loss on Sale NA Assets Loss on Sale Gain on Sale


14.4.2 Identify Accounts for Opening Balance Import

Based on the above trial balance example, you should import the opening balances as of the

conversion date into Oracle General Ledger. There may also be other accounts not listed in the

above example, for which opening balances may need to be imported.

The accounts for which opening balances need to be imported into General Ledger for the

example are listed below.

Account Comment

Unbilled Receivables Booking accounting is suppressed for imported contracts in

phase 3.

Unearned Income Booking accounting is suppressed for imported contracts in

phase 3.

Lease Funding Booking accounting is suppressed for imported contracts in

phase 3.

Residual Value Booking accounting is suppressed for imported contracts in

phase 3.

Bank Receipt and Payment transactions are not imported into AR

and AP.

Finance Income Accrual transactions prior to the conversion date are not

imported into Lease and Finance Management..

The accounts for which opening balances need not be imported into General Ledger for the

example provided are listed below.

Account Comment

Receivables Open receivable transactions are imported into Lease and

Finance Management in phase 5 and interfaced to AR. AR

creates the opening balance for this account in GL when the

AR subledger journals are posted to GL.

Liability Open payable transactions are imported into Lease and Finance

Management in phase 5 and interfaced to AP. AP creates the

opening balance for this account in GL when the AP subledger

journals are posted to GL.

Asset Cost For mid-life DF Lease Contracts is being converted in phase 3,

this account does not have any opening balances.

For expired contracts converted in phase 4, the asset cost

values are adjusted at NBV. FA creates the opening balances

for this account in GL.

NOTE: Since the Receivables and Liability opening balances are not imported into GL, the trial

balance would be imbalanced. The imbalanced amount should be added to a Suspense Account.

The Suspense Account balance would be closed against the credit side of Receivables and the

Debit side of Liability when the subledger journal entries from AR & AP are posted into General

Ledger.


14.4.3 Load Opening Balances

Initial balances must be loaded into Oracle General Ledger (GL). For this purpose, use the Journal

Import program to import historical data from your previous accounting system. You cannot

directly update the GL_BALANCES table. All balance data coming into General Ledger (GL)

must come through the GL_INTERFACE table. Oracle Applications provides two methods for

importing initial balances in GL from legacy systems.

Use Application Desktop Integrator (ADI) to create a journal spreadsheet and upload

amounts to the last non-adjusting period previous to the planned live period.

Use SQL*Loader or any other tool of your choice to populate the interface tables

according to the specifications defined in the Oracle General Ledger Users Guide (for

Release 11i). Enter your transactions for the last non-adjusting period previous to the

planned live period.


The GL_INTERFACE table is where Journal Import receives accounting data that you

import from other systems. When Journal Import receives this data, it validates and

converts your import data into journal entries within your General Ledger application.

The following is the list of interface tables.


GL_INTERFACE GL_INTERFACE is used to import journal

entry batches through Journal Import. You

insert rows in this table and then use the

Import Journals window to create journal

batches. You must supply values for all NOT

NULL columns. For a complete description

of how to load this table, see the Oracle

General Ledger User Guide.

For additional information on how, to load initial balances, please refer to the Oracle

General Ledger Users Guide, release 11i. Also refer to the Metalink document “How To

Load Initial (Beginning) Balances Into General Ledger” - Doc ID: 141069.1.


Journal Import receives accounting data from the GL_INTERFACE table. For non–Oracle

applications, you must import data from your feeder systems to this table. Your import

program should convert data from your feeder system into a standard data format that

Journal Import can read from the GL_INTERFACE table. Journal Import can then convert

your import data into your General Ledger application journal entries.


Use the Journal Import Execution Report to review the status of all import journal entries.

The Journal Import Execution Report prints a line for each journal entry source from

which you are importing journal entries. If you encounter relatively few Journal Import

errors, you can correct the data in the GL_INTERFACE table. If you encounter several

Journal Import errors, you should delete the Journal Import data from the

GL_INTERFACE table and correct the information in your feeder system before running

Journal Import again. Review the journal entries created by Journal Import before you post

them.



None

14.4.3.5 Benchmarks

None available

14.4.4 Account for Sub-ledger Journal Entries

Once you import your opening balances into GL, the receivables and payables transactions

interfaced to AR and AP respectively should be accounted in these modules. The method to create

accounting entries for these transactions is standard functionality and information on performing

these transactions can be found in the Oracle Receivables and Oracle Payables User Guides.

14.4.5 Post Sub Ledger Journal Entries to GL

After creating accounting entries in AR and AP, post the journal entries from these sub-ledger

modules into GL. This creates the opening balances for the receivables and payable accounts in

GL. Posting journal entries is standard GL functionality and you can find additional information

on performing these activities from the GL User Guides.

14.4.6 Create Trial Balance from Oracle General Ledger

To insure your balances are correct after converting your transactions and opening balances, you

create a trial balance from Oracle General Ledger for the portfolio of converted contracts as of the

conversion date. This is a custom build item. The trial balance can be used to reconcile with the

trial balance generated from the legacy system.

14.5 Task Order

Following is the recommended execution order for the tasks.

1. Create Trial Balance from Legacy System as of Conversion Date

2. Identify Accounts for Opening Balance Import

3. Import Opening Balances.

4. Post Sub-Ledger Journal Entries from AR and AP

5. Create Trial Balance from General Ledger

14.6 Reconciliation

The following methods may be implemented for reconciling this phase.

The sum of the receivable transactions imported in phase 5 and interfaced to AR must

equal the Receivable account balance in the trial balance.

The sum of the payable transactions imported in phase 6 and interfaced to AP must equal

the Liability account balance in the trial balance.

Compare the trial balances generated from the legacy system and Oracle General Ledger

for the portfolio of converted contracts.



None identified


15. Risks

Completing a detailed plan and testing sufficiently will help you reduce the overall risk in

your conversion project.

However, some of the areas that may need special attention include:

Incompatible conversion and business management strategies during the conversion

process

Incomplete definition of a conversion plan or inadequate resources and infrastructure to

support the plan

Conflicting project timelines or milestones

Insufficient or inconsistent data from legacy systems to create complete conversion

records in Oracle Applications

Inability to understand the structure or meaning of legacy data in order to identify,

document, and extract legacy data for conversion

Lack of understanding of required key data translation, clean-up, and transformation

criteria

Insufficient testing to determine benchmarks and timeframes required to import and

transform data for conversion.


16. Appendix A: Conversion Interfaces Reference Table

Phase Task Interface (import/API/concurrent

program)

Description

Phase 2 - Master

Data Load

Load

Customers

RA_CUSTOMER_INTERFACE To import a customer, address, or business purpose

Phase 2 - Master

Data Load

Load

Customers RA_CUSTOMER_PROFILES_I

NTERFACE

A customer level profile must exist in

RA_CUSTOMER_PROFILES_INTERFACE for

new customers.

Phase 2 - Master

Data Load

Load

Customers

RA_CONTACT_PHONES_INTERF

ACE

To import telephone numbers for customers, addresses,

and contacts.

Phase 2 - Master

Data Load

Load

Customers

RA_CUSTOMER_BANKS_INTERF

ACE

To import banks for customers and bill–to business

purposes.

Phase 2 - Master

Data Load

Load

Customers

RA_CUST_PAY_METHOD_INTER

FACE

To import payment methods for customers and bill–to

business purposes.

Phase 2 - Master

Data Load

Load

Customers

HZ_IMP_PARTIES_INT Party Information

Phase 2 - Master

Data Load

Load

Customers

HZ_IMP_ADDRESSES_INT Party Address Information

Phase 2 - Master

Data Load

Load

Customers

HZ_IMP_CONTACTS_INT Party Contacts

Phase 2 - Master

Data Load

Load

Vendors/Suppli

ers

AP_SUPPLIERS_INT This is the open interface table for AP Suppliers.

AP_SUPPLIERS_INT holds Supplier information, which

is loaded by the user for import. The columns in the table

map to corresponding columns in the PO_VENDORS

table. The Oracle Payables application uses this

information to create a new Supplier record when the

Supplier Open Interface Import program is submitted. A

unique identifier, the VENDOR_INTERFACE_ID, will

identify each row in the table.

Phase 2 - Master

Data Load

Load

Vendors/Suppli

ers

AP_SUPPLIER_SITES_INT AP_SUPPLIER_SITES_INT_ALL holds Supplier Site

information, which is loaded by the user for import. The

columns in the table map to corresponding columns in

PO_VENDOR_SITES_ALL table. The Oracle Payables

application uses this information to create a new Supplier

Site record when the Supplier Sites Open Interface Import

program is submitted. Each row in the table will be joined

to the appropriate Supplier using the VENDOR_ID

column. This is the open interface table for AP Supplier

Sites. Use it in conjunction with AP_SUPPLIERS_INT

table.

Phase 2 - Master

Data Load

Load

Vendors/Suppli

ers

AP_SUP_SITE_CONTACT_INT This is the open interface table for AP Supplier Site

Contacts. Use it in conjunction with

AP_SUPPLIERS_SITES_INT.

AP_SUP_SITE_CONTACT_INT holds Supplier contact

data. The columns in the table map to corresponding

columns in PO_VENDOR_CONTACTS table. The Oracle

Payables application uses this information to create a new

Supplier Contact record when the Supplier Sites Open

Interface Import program is submitted. Each row in the

table will be joined to the appropriate Supplier Site using

the VENDOR_SITE_CODE and ORG_ID.

Phase 2 - Master

Data Load

Load

Vendors/Suppli

ers

AP_PO_VENDORS_APIS_PKG This Package provides APIs to allow users to import

suppliers, supplier sites, or supplier contacts records into

AP.

Phase 2 - Master

Data Load

Load

Vendors/Suppli

ers



AP.

Phase 2 - Master

Data Load

Load

Vendors/Suppli





program)

Description

ers AP.

Phase 2 - Master

Data Load

Load Items MTL_SYSTEM_ITEMS_INTERFA

CE

You use the MTL_SYSTEM_ITEMS_INTERFACE table

for new item numbers and all item attributes. This is the

main item interface table, and can be the only table you

choose to use.

Phase 2 - Master

Data Load

Load Items MTL_INTERFACE_ERRORS This table is used for error tracking of all items that the

Item Interface fails.

Phase 2 - Master

Data Load

Load Items MTL_ITEM_REVISIONS_INTERF

ACE

If you are importing revision details for new items, you can

use the MTL_ITEM_REVISIONS_INTERFACE table.

This table is used only for revision information, and is not

required.

Phase 2 - Master

Data Load

Load Master

Lease

Agreements

OKL_MASTER_LEASE_AGREEM

ENT_PUB.

CREATE_MASTER_LEASE_AGRE

EMENT

The Master Lease Agreement API allows users to create

Master Lease Agreements in Lease Management.

Phase 2 - Master

Data Load

Load Vendor

Program

Agreements

OKL_VENDOR_AGREEMENT_PU

B.

CREATE_VENDOR_AGREEMENT

The vendor Agreement API allows users to create Vendor

Agreements in Lease Management.

Phase 2 - Master

Data Load

Load Credit

Lines

OKL_CREDIT_PUB.CREATE_CRE

DIT

The API allows users to create credit line and credit limit

in Lease Management.

Phase 2 - Master

Data Load

Load Credit

Lines

OKL_CREDIT_PUB.ACTIVATE_C

REDIT

The API allows users to activate credit line in Lease

Management.

Phase 3 - Initial

Load

Contract

Import

OKL_HEADER_INTERFACE Contract header table

Phase 3 - Initial

Load

Contract

Import

OKL_LINES_INTERFACE Contract lines table

Phase 3 - Initial

Load

Contract

Import

OKL_PAYMENTS_INTERFACE Payments table

Phase 3 - Initial

Load

Contract

Import

OKL_PARTY_ROLES_INTERFAC

E

Party Roles

Phase 3 - Initial

Load

Contract

Import

OKL_TERMS_INTERFACE Contract Terms & Conditions

Phase 3 - Initial

Load

Funding

Requests

OKL_FUNDING_PVT.CREATE_F

UNDING_HEADER

This program will create funding header

Phase 3 - Initial

Load

Funding

Requests

OKL_FUNDING_PVT.CREATE_F

UNDING_LINES

This program will create funding lines

Phase 3 - Initial

Load

Funding

Requests

OKL_FUNDING_PVT.UPDATE_F

UNDING_HEADER

This program will activate the funding by updating the

status

Phase 3 - Initial

Load

Pay Invoice

Prepare for AP

Transfer

PAY INVOICE PREPARE FOR AP

TRANSFER CONCURRENT

PROGRAM

This program will transfer Lease and Finance Management

internal invoice transactions to Lease and Finance

Management external invoice transactions table.

Phase 3 - Initial

Load

Validate

Contract

OKL_CONTRACT_BOOK_PUB.V

ALIDATE_CONTRACT

This program will submit the contract for validation

Phase 3 - Initial

Load

Generate

Stream

OKL_CONTRACT_BOOK_PUB.G

ENERATE_STREAMS

This program will submit the contract for stream

generation

Phase 3 - Initial

Load

Generate Draft

Journal


GENERATE_JOURNAL_ENTRIES

This program will submit the contract for draft journal

entry generation

Phase 3 - Initial

Load

Approve

Contract


SUBMIT_FOR_APPROVAL

This program will submit the contract for approval

Phase 4 – Book &

Terminate

Expired

Contracts

(excluding

Evergreen

Contracts)

Activate

Expired

Contracts

(solution1)

OKL_CONTRACT_BOOK_PUB.A

CTIVARE_CONTRACT

This private API will activate the contract; install base, and

fixed asset.

Phase 4 – Book &

Terminate Expired

Contracts

(excluding

Evergreen

Contracts)

Activate

Expired

Contracts

(solution 2)

OKL_CONTRACT_STATUS_PUB.

UPDATE_CONTRACT_STATUS

Update contract status to APPROVED



program)

Description

Phase 4 – Book &

Terminate Expired

Contracts

(excluding

Evergreen

Contracts)

Activate

Expired

Contracts

(solution 2)


UPDATE_CONTRACT_STATUS

Update contract lines status to APPROVED

Phase 4 – Book &

Terminate Expired

Contracts

(excluding

Evergreen

Contracts)

Activate

Expired

Contracts

(solution 2)

OKL_ACTIVATE_ASSET_PUB.AC

TIVATE_ASSET Create Asset Transaction from a ready to be Booked

Contract which has passed Approval and

created assets in FA

Phase 4 – Book &

Terminate Expired

Contracts

(excluding

Evergreen

Contracts)

Activate

Expired

Contracts

(solution 2)

OKL_ACTIVATE_IB_PUB.ACTIV

ATE_IB_INSTANCE Calls IB API to create an item instance in IB

Phase 4 – Book &

Terminate Expired

Contracts

(excluding

Evergreen

Contracts)

Activate

Expired

Contracts

(solution 2)


UPDATE_CONTRACT_STATUS Update contract status to BOOKED‟

Phase 4 – Book &

Terminate Expired

Contracts

(excluding

Evergreen

Contracts)

Activate

Expired

Contracts

(solution 2)


CASCADE_LEASE_STATUS Update contract lines status to BOOKED‟

Phase 4 – Book &

Terminate Expired

Contracts

(excluding

Evergreen

Contracts)

Terminate

Expired

Contracts

(Solution 1)

„TERMINATE EXPIRED

CONTRACTS‟ CONCURRENT

PROGRAM

This program will create the off-lease amortization

transaction for each asset in Lease and Finance

Management.

Phase 4 – Book &

Terminate Expired

Contracts

(excluding

Evergreen

Contracts)

Terminate

Expired

Contracts

(solution 2)

OKL_AM_LEASE_TRMNT_PV

T.LEASE_TERMINATION

This API will terminate the expired lease contract.

Phase 4 – Book &

Terminate Expired

Contracts

(excluding

Evergreen

Contracts)

Terminate

Expired

Contracts

(solution 2)


T.VALIDATE_LEASE

This API will validate the lease contract.

Phase 4 – Book &

Terminate Expired

Contracts

(excluding

Evergreen

Contracts)

Terminate

Expired

Contracts

(solution 2)


T.PROCESS_EVERGREEN_CO

NTRACT

This API will process evergreen contract.

Phase 4 – Book &

Terminate Expired

Contracts

(excluding

Evergreen

Contracts)

Terminate

Expired

Contracts

(solution 2)


T.PROCESS_CANCEL_INSUR

ANCE

This API will cancel insurance policy for the expired

contract.

Phase 4 – Book &

Terminate Expired

Contracts

(excluding

Terminate

Expired

Contracts

(solution 2)


T.PROCESS_CLOSE_BALANC

This API will create AR adjustments for the expired

contract.



program)

Description

Evergreen

Contracts) ES

Phase 4 – Book &

Terminate Expired

Contracts

(excluding

Evergreen

Contracts)

Terminate

Expired

Contracts

(solution 2)


T.PROCESS_ACCOUNTING_E

NTRIES

This API will process the accounting entries that

related to the expired contract.

Phase 4 – Book &

Terminate Expired

Contracts

(excluding

Evergreen

Contracts)

Terminate

Expired

Contracts

(solution 2)

FA_ADDITION_PUB.DO_ADD

ITION

This API will add an asset to a specific book in FA.

Phase 4 – Book &

Terminate Expired

Contracts

(excluding

Evergreen

Contracts)

Terminate

Expired

Contracts

(solution 2)

OKL_OKC_MIGRATION_PVT.

UPDATE_CONTRACT_ITEM

After create asset disposal in FA, update contract

item with the proper linkage: asset_id

Phase 4 – Book &

Terminate Expired

Contracts

(excluding

Evergreen

Contracts)

Terminate

Expired

Contracts

(solution 2)

OKL_TRX_ASSETS_PUB.CRE

ATE_TRX_ASSET_DEF

This API will create asset disposal header in

OKL_TRX_ASSETS

Phase 4 – Book &

Terminate Expired

Contracts

(excluding

Evergreen

Contracts)

Terminate

Expired

Contracts

(solution 2)

OKL_TXL_ASSETS_PUB.CRE

ATE_TXL_ASSET_DEF

This API will create asset disposal line in

OKL_TXD_ASSETS_V

Phase 4 – Book &

Terminate Expired

Contracts

(excluding

Evergreen

Contracts)

Terminate

Expired

Contracts

(solution 2)

OKL_TXD_ASSETS_PUB.CRE

ATE_TXD_ASSET_DEF

This API will create asset disposal details in

OKL_TXL_ASSETS_V

Phase 4 – Book &

Terminate Expired

Contracts

(excluding

Evergreen

Contracts)

Terminate

Expired

Contracts

(solution 2)

OKL_SLA_ACC_SOURCES_P

VT.POPULATE_SOURCES

This API will populate proper asset accounting

entries information for asset in Lease and Finance

Management.

Phase 4 – Book &

Terminate Expired

Contracts

(excluding

Evergreen

Contracts)

Terminate

Expired

Contracts

(solution 2)

OKL_AM_ASSET_DISPOSE_P

UB.DISPOSE_ASSET

This procedure is used to retire an asset in FA. It

checks if the asset is to be fully or

partially retired, based upon the p_quantity

parameter and then calls the appropriate routine to

retire the asset. It then stores the disposition

transactions in OKL tables, calls accounting engine

and then finally cancels all pending transactions in

OKL tables for this asset.

Phase 4 – Book &

Terminate Expired

Contracts

(excluding

Evergreen

Contracts)

Terminate

Expired

Contracts

(solution 2)

FA_ADJUSTMENT_PUB.DO_A

DJUSTMENT

This API will adjust the financial information of an

asset in a specific book in FA.

Phase 4 – Book &

Terminate Expired

Contracts

(excluding

Terminate

Expired

Contracts

(solution 2)

FA_RETIREMENT_PUB.DO_R

ETIREMENT

This API will partially or fully retire an asset in a




program)

Description

Evergreen

Contracts)

Phase 4 – Book &

Terminate Expired

Contracts

(excluding

Evergreen

Contracts)

Terminate

Expired

Contracts

(solution 2)

OKL_AM_ASSET_DISPOSE_P

VT.EXPIRE_ITEM

This procedure expires an item in installed base.

Phase 4 – Book &

Terminate Expired

Contracts

(excluding

Evergreen

Contracts)

Terminate

Expired

Contracts

(solution 2)

CSI_ITEM_INSTANCE_PUB.E

XPIRE_ITEM_INSTANCE

This procedure expires an existing item instance and

its child entities in Install Base.

Phase 5 – Load

Open Receivables

Load Billing

Interface

OKL_EXT_BILLING_INTERFACE

Third party billing interface table

Phase 5 – Load

Open Receivables

Lease and

Finance

Management

Billing

Interface

Concurrent Program „Third Party

Billing Import‟

Prepares imported data from third party files for billing.

See Prepare Third-Party Billing Import File for Billing.

Phase 5 – Load

Open Receivables

Prepare

Receivable

Bills

Concurrent program „Prepare

Receivables „Bills

Assigns to Receivables transactions appropriate attributes

used in Receivables, such as tax location and bill-to

information from the contract.

Phase 5 – Load

Open Receivables

Receivable

Bills

Consolidation

Concurrent program „Receivable

Bills Consolidation‟

Assigns consolidated bill number to billing transactions

based on attributes--such as Customer, Currency, Bill-to

Location, Payment Method, Private Label, and Invoice

Group.

Phase 6 -

Activation &

Aging (Active

Contracts Only)

Activate

Contracts

OKL_CONTRACT_BOOK_PUB.A

CTIVARE_CONTRACT

This private API will activate the contract; install base, and

fixed asset.

Phase 6 -

Activation &

Aging (Active

Contracts Only)

Activate

Contracts OKL_ACTIVATE_ASSET_PUB

.ACTIVATE_ASSET

This is a public API. It creates an asset

Transaction record for each asset on the contract

Phase 6 -

Activation &

Aging (Active

Contracts Only)

Activate

Contracts OKL_ACTIVATE_IB_PUB.ACT

IVATE_IB_INSTANCE

This is a public API. It calls IB API to create an item

instance in Install Base

Phase 6 -

Activation &

Aging (Active

Contracts Only)

Activate

Contracts OKL_INTEREST_CALC_PUB.

CALC_INTEREST_ACTIVATE

This is a public API. This procedure capitalizes or

bill interim interest

Phase 6 -

Activation &

Aging (Active

Contracts Only)

Activate

Contracts OKL_LA_JE_PVT.GENERATE

_JOURNAL_ENTRIES

This is a private API. This procedure calls the

accounting engine

Phase 6 -

Activation &

Aging (Active

Contracts Only)

Activate

Contracts OKL_LA_SALES_TAX_PVT.P

ROCESS_SALES_TAX

This is a private API. This procedure calls the tax

engine and generates invoices for upfront taxes

Phase 6 -

Activation &

Aging (Active

Contracts Only)

Receivables

Invoice

Transfer to AR

Concurrent program „Receivables

Invoice Transfer to AR‟

This program will transfers Oracle Lease and Finance

Management billing transactions to the Oracle receivables

interface.

Phase 6 -

Activation &

Aging (Active

Contracts Only)

AR Auto

Invoice Master

Program

AR Concurrent program „Auto

Invoice Master Program‟

Login as Receivable Manager and then run the „Auto

Invoice Master Program‟ with the source:

OKL_CONTRACTS. This program will transfer the Lease

and Finance Management invoices to AR.

Phase 6 -

Activation &

Update Tax

Lines in AR

AR_ADJUST_PUB.

CREATE_ADJUSTMENT

Use this procedure to create adjustments to invoices.



program)

Description

Aging (Active

Contracts Only)

Phase 6 -

Activation &

Aging (Active

Contracts Only)

Update Tax

Lines in AR

AR_ADJUST_PUB.

MODIFY_ADJUSTMENT

Use this procedure to update an adjustment.

Phase 6 -

Activation &

Aging (Active

Contracts Only)

Update Tax

Lines in AR

AR_ADJUST_PUB.

REVERSE_ADJUSTMENT

Use this procedure to reverse an adjustment.

Phase 6 -

Activation &

Aging (Active

Contracts Only)

Update Tax

Lines in AR

AR_ADJUST_PUB.

APPROVE_ADJUSTMENT

Use this procedure to approve an adjustment.

Phase 6 -

Activation &

Aging (Active

Contracts Only)

Fetch AR

Invoice

Numbers

Concurrent program „Fetch AR

Invoice Numbers‟

The program will gather information from AR such as the

tax amounts, AR due date and AR receivables invoice id

and update consolidate and transactional Lease and

Finance Management tables.

Phase 6 -

Activation &

Aging (Active

Contracts Only)

Pay Invoices

Transfer to AP

Invoice

Interface

Pay Invoices Transfer to AP Invoice

Interface concurrent program


external invoice transactions to AP interface tables.

Phase 6 -

Activation &

Aging (Active

Contracts Only)

Payables Open

Interface

Import

AP concurrent program Payables

Open Interface Import

Login as Payable Manager and then run the „Payables

Open Interface Import‟ with source: Lease Management.


invoices to AP.

Phase 7 –Account

Balances Import

Payables

Accounting

Process


Accounting Process

This program will prepare AP sub ledger for GL transfer.

Phase 7 –Account

Balances Import

Payables

Transfer to GL


Transfer to GL

Login as Payable Manager and then run the „Payables

Transfer to GL‟. This program will post payable

transactions to General Ledger Module.

Phase 7 –Account

Balances Import

Receivables

Transfer to GL

AR concurrent program Receivables

Transfer to GL

Login as Receivable Manager and then run the

„Receivables Transfer to GL‟. This program will post

Oracle Receivables accounting transactions to the Oracle

General Ledger Module.

Phase 7 –Account

Balances Import

Create

Receipts On-

Account /

Unapplied

AR_RECEIPT_API_PUB.Create_an

d_Apply

Creates and Apply Receipts

Phase 7 –Account

Balances Import

Create

Receipts On-

Account /

Unapplied

AR_RECEIPT_API_PUB.Create_Ap

ply_On_Acc

Creates Receipts on Account

Phase 7 –Account

Balances Import

Create

Receipts On-

Account /

Unapplied

AR_RECEIPT_API_PUB.Create_cas

h

Creates Cash Receipts


17. Appendix B: Summary of Execution Phases

Seq Pre-

Req

Phase Task Mandatory Method Description

1.1 Phase 1 –

Extract and

Stage Legacy

Data

Determine Conversion Scope Yes Custom In this task, various systems that hold the

converted data are identified. An exercise

to identify the various systems that contain

the data for the same entity assists in

eliminating redundancies and duplication.

For instance supplier information may

come from various source systems.

Identifying the comprehensive list if

systems and the data that those systems

contain would assist in the subsequent data

mapping process. Conversion timelines are

arrived at in this first phase.

1.2 1.1 Phase 1 – Extract

and Stage Legacy

Data

Data Standardization Yes Custom In this task, the data that needs to be

converted is standardized before importing

it into Oracle Applications.

Standardization may involve things such as

identifying a standard naming convention,

the use of capital letters, abbreviations and

punctuation. Standardizing the data ensures

an accurate and a quality data conversion.


and Stage Legacy

Data

Data Mapping Yes Custom The data mapping process task provides

detailed lists of the legacy system data sets

and data elements that need to be moved

into the Oracle Applications tables during

the data conversion. During this process,

some decisions are made with regard to

obtaining required information needed by

the oracle Applications system that may

not be present in the legacy system.

Default settings, user input, and new data

entries are many issues that are addressed

during this phase.


and Stage Legacy

Data

Conversion Download

Program

Yes Custom These programs are used to extract the

identified conversion data elements from

the legacy systems in the form of Oracle

tables. The existing legacy system

information will be pulled into Oracle

Applications. The pulled information will

be stored into conversion staging tables in

the target Oracle Applications 11.5.10

system.


and Stage Legacy

Data

Staging tables Yes Custom There will be staging tables created in

target instance to temporarily hold the data

coming from source instance. These tables

will form basis of data validations and data

corrections before these data is loaded into

the target interface tables.


and Stage Legacy

Data

Conversion Upload Program Yes Custom Once data has been loaded into Oracle

Applications 11.5.10 staging tables, the

upload program is run which will validate

the data and load the data into Oracle

Applications 11.5.10 interface tables.


and Stage Legacy

Data

Oracle Interface tables/

temporary tables

Yes Custom Before loading the Oracle Application

production tables, the staging tables data

should first be loaded into temporary or

Oracle interface tables. The interface

tables provide a location for you to

manipulate and translate the data as needed


Seq Pre-

Req


before validating the data and loading the

application production tables. These

temporary interface tables need to be built

before you run the loader script to populate

these tables. The interface tables may be

standard Oracle Application interface

tables or may be custom interface tables.


and Stage Legacy

Data

Interface Program (Open

Interface/Custom programs)

Yes Custom There is standard Open Interface programs

and APIs available to validate and load the

records from the interface tables into main

Oracle Applications tables. In case, where

standard Interface programs or APIs are

not available, data will be uploaded

manually or using tools like data loaders,

which performs form level validations.


and Stage Legacy

Data

Production Table Yes Custom This is the final production data table

where the converted data resides. These

tables are identified early on when doing

the initial data mapping.


and Stage Legacy

Data

Testing Yes Custom This test plan has been integrated into the

entire conversion process so that, even

during the pre-conversion steps, some type

of validation reports are generated from the

source systems, to be compared later with

the converted data.

2.1 1.10 Phase 2 - Master

Data Load

Load Customers Yes Receivabl

es

Customer

Interface

or

through

the TCA

Bulk

Import

Process

The customer data object covers all

information relating to customers, such as

number, name, address, payment terms,

contact details etc. The customer master

record is mandatory to load any contract

and perform billing and collecting activities

for production contracts.


Data Load

Load Vendors/Suppliers Yes Supplier

Open

Interface

Import or

through

the

Suppliers

Package

public

APIs

The supplier data object covers all

information relating to suppliers to whom

you need to make payments, such as

number, name, address, payment terms,

telephone numbers and contacts. Only

active suppliers should be converted into

new system. Your cleansing process should

focus on status of suppliers in the legacy

system and insuring their account data is

correct, such as address information,

contacts and bank accounts.


Data Load

Load Items Yes Customer

Item and

Customer

Item

Cross

Reference

Interfaces

.

Items are inventory catalog references used

to identify, describe and classify the asset

equipment and services you add to lease

and loan contracts. Every asset or service

line on a lease or loan contract must have a

valid item reference.

You should only convert valid and active

items. An Item master list should be

extracted from the legacy system and the

standard Open Item Interface should then

be run to load the records into the Oracle

Applications. All current item records must

be reviewed to ensure that the information

is unique, complete, accurate and up to

date.

2.4 2.1,

2.2

Phase 2 - Master

Data Load

Load Vendor Program

Agreements

No Lease and

Finance

Managem

Program Agreements are contracts between

a lessor and an organizationally lower-level

vendor or manufacturer, such as a


Seq Pre-

Req


ent API company‟s divisions or dealers. A program

agreement between the lessor and a vendor

creates a specific financing program for the

vendor‟s customers who desire financing.

A lease or loan contract can participate in

only one vendor program agreement.


Data Load

Load Credit Lines No Lease and

Finance

Managem

ent API

Use credit lines to control your risk

exposure when you want to extend credit to

your customers for multiple transactions.

You create a credit line without an Oracle

Credit Management request by setting up

and activating a credit line in Lease

Management. Lease Management allows

you to set up and execute checklist items

before you activate credit lines. You can

also set up checklists for a credit line that

apply to funding requests for contracts

associated to credit lines. A contract can

only participate in one credit line, but you

can associate a credit line to a master lease

agreement and all contracts associated with

the master lease agreement will use the

same credit line.

Credit lines must be activated before you

can use them with your contracts.

2.6 2.1,

2.5

(Opt

iona

l)

Phase 2 - Master

Data Load

Load Master Lease

Agreements

No Lease and

Finance

Managem

ent API

A master lease agreement allows you to set

some terms and conditions for a customer

that will apply to lease or loan contracts

that reference that agreement. You may

have multiple master lease agreements with

the same customer.

3.1 2.x Phase 3 - Initial

Load

Contract Import Yes Lease and

Finance

Managem

ent

contract

import

interface


(Lease and Finance Management) allows

you to import contracts through a standard

set of interface tables. The import program

imports data from interface tables into the


tables. After interface tables are populated,

you submit a request to import and process

contracts.

3.2 3.1 Phase 3 - Initial

Load

Funding Requests No Lease and

Finance

Managem

ent API

After the contract has been created, you

can create funding requests. You must

decide if you need to import the history of

all the past funding requests or only the

funding requests with open payable

invoices. In order to prevent over-funding

more than the contract value, you should

create funding requests based on the actual

funded amounts for the contract. Lease and

Finance Management funding process

looks at the funding transactions to

determine maximum fundable amounts.

You may consider importing a placeholder-

funding request for each contract for the

entire contract value if you do not require

historical funding request actual values.

Insure you update the funding request

status to “Processed” after placeholder

funding requests are created.

You should create actual funding requests

for open or partially paid payable invoices.

Update the funding request to „Approved‟

using update APIs for each actual funding

request that corresponds to an open payable


Seq Pre-

Req


invoice. The Lease Management

disbursement program pickup these

funding requests and creates payable

invoices.

Performance should be considered when

deciding to bring historical funding

requests.


Load

Pay Invoice Prepare for AP

Transfer

No Lease and

Finance

Managem

ent

concurren

t program

Approved funding requests and other

approved disbursements are imported

through the Oracle Payables interface to

create payable invoices you can pay to your

suppliers and vendors. The Pay Invoice

Prepare for Invoice Transfer program

picks up „Approved‟ funding requests and

creates disbursement records to prepare

them for the Payables import program.

Run this program after you create and

approve funding requests.


Load

Validate Contract Yes Lease and

Finance

Managem

ent API

After contracts are created in NEW status,

you can validate them. After successful

validation, the contract is updated to

PASSED status. If there are any errors, the

status will be updated as ERROR or

WARNING.

You can submit a contract for validation

from the Lease Management contract

authoring pages or call a private Lease and

Finance Management API to process the

validation.

To improve conversion performance you

should process imported contracts up to the

validation step (status PASSED) unless you

need to update or reconcile a contract in

NEW status.


Load

Generate Stream Yes Lease and

Finance

Managem

ent API

After contracts are validated, you submit

those contracts for pricing. Pricing

generates streams and yields for each

contract. After pricing is completed, the

contract status is updated to

COMPLETED. For imported contracts,

you can submit a contract for pricing from

the screen or call private Lease and Finance

Management APIs. You should submit the

contract through pricing (contract status

COMPLETED) at the time of import

unless you need to update or reconcile a

contract after validation. If a contract is

updated after validation, the contract status

reverts to INCOMPLETE.


Load

Generate Draft Journal No Lease and

Finance

Managem

ent API

If you want to see draft journal entry

records of the expected booking accounting

before booking the contract, you can

request draft journal entry creation. You do

not need to create or view draft journal

entries in order to book (activate) a

contract. Streams must be completed for a

contract (status COMPLETED) before you

can generate draft journal entries. After

generating draft journal entries, the

contract status remains as COMPLETED.

You can submit a contract for creating

journal entries from the screen or call

private Lease and Finance Management

APIs to process the draft journal entry


Seq Pre-

Req


generation.


Load

Approve Contract Yes Lease and

Finance

Managem

ent API

If you want to review and approve the

contract before activation, you can approve

one contract at a time from the booking

page and initiating the approval workflow

or perform a mass update to change the

contract status to APPROVED using the

approval API. The contract status must be

updated to APPROVED, but execution of

the approval workflow is an optional step.

If the contract passes validation and was

already approved in the legacy system, you

may want to skip the approval workflow

step.

4.1.

1

3.x Phase 4 – Book

& Terminate

Expired

Contracts

(excluding

Evergreen

Contracts)

Activate Expired Contracts

(solution 1)

Yes Lease and

Finance

Managem

ent

concurren

t program

Convert expired contracts – contracts with

end date that is less than the conversion

date and not eligible for evergreen – from

your legacy system to Lease and Finance

Management using Lease and Finance

Management standard contract import

interface as NEW, PASSED, COMPLETE,

APPROVED, or BOOKED contract status.

The loading of contracts is covered in the

Phase 3 description above.

Once the contract status becomes

„Approved‟, you should call

OKL_CONTRACT_BOOK_PUB.ACTIV

ATE_CONTRACT to activate the expired

contract.

4.1.

2

4.1.

1

Phase 4 – Book &

Terminate

Expired Contracts

(excluding

Evergreen

Contracts)

Age Expired Contracts

(solution 1)

Yes Custom An aged contract is defined as a contract

which has begun its lifecycle on another

leasing system that needs to be imported

into Lease and Finance Management; this

includes all statuses of active and

terminated contracts. In this step, you

update flags on stream elements that have

already been billed and accrued since the

contract is already terminated in legacy

system. This insures that billing and

accrual accounting and transactions will

not be created.

To avoid contract booking accounting

being posted to GL, you should flag the

booking accounting POST_TO_GL column

to „N‟ in accounting distribution table.

4.1.

3

4.1.

2

Phase 4 – Book &

Terminate

Expired Contracts

(excluding

Evergreen

Contracts)

Terminate Expired Contracts

(solution 1)

Yes Lease and

Finance

Managem

ent

concurren

t program

Run the standard „Terminate Expired

Contracts‟ concurrent program to set the

status of contracts to „Expired‟. This step

will create the off-lease amortization

transaction for each asset in Lease and

Finance Management.

4.1.

4

4.1.

3

Phase 4 – Book &

Terminate

Expired Contracts

(excluding

Evergreen

Contracts)

Suppress Termination

Accounting Transactions in

Lease and Finance

Management (solution 1)

Yes Custom During the Lease and Finance Management

„Terminate Expired Contracts‟ concurrent

program execution, Termination

accounting transactions will be created in

Lease and Finance Management. In order

to avoid the transactions being posted to

GL, flags the POST_TO_GL column to „N‟

in accounting distribution table.

4.1.

5

4.1.

4

Phase 4 – Book &

Terminate

Expired Contracts

(excluding

Asset Cost Adjustment

(solution 1)

Yes Custom Once the assets are imported for the

expired contracts and created in Oracle

Assets, the asset cost is adjusted at the

NBV. As a result, the asset cost and


Seq Pre-

Req


Evergreen

Contracts)

depreciation account opening balances

would be created from the Oracle Assets

module in GL.

4.2.

1

3.1 Phase 4 – Book &

Terminate

Expired Contracts

(excluding

Evergreen

Contracts)

Import contract with assets

as NEW status (solution 2)

Yes Lease and

Finance

Managem

ent

contract

import

interface

Convert expired contracts – contracts with

end date that is less than the conversion

date and not eligible for evergreen – from

legacy system to Lease and Finance

Management using Lease and Finance

Management standard contract import

interface as NEW contract status.

The loading of contracts is covered in the

Phase 3 description above.

4.2.

2

4.2.

1

Phase 4 – Book &

Terminate

Expired Contracts

(excluding

Evergreen

Contracts)

Create assets in FA through

Lease and Finance

Management using API

(solution 2)

Yes Custom To improve the performance of converting

terminated or expired contracts into Lease

and Finance Management, we suggest that

you develop a custom API to by pass a

majority of the contract activation process,

such as QA validation, stream generation,

and approval and call the

FA_ADDITION_PUB.DO_ADDITION

API to add assets to FA directly from a

converted contract with NEW status.

4.2.

3

4.2.

2

Phase 4 – Book &

Terminate

Expired Contracts

(excluding

Evergreen

Contracts)

Process termination contract

without create termination

accounting transactions

(solution 2)

Yes Custom In order to maintain the proper link for the

off-lease assets between Lease and Finance

Management and FA, you need to

implement the same logic as Lease and

Finance Management standard

“Terminated Expired Contract” concurrent

program except the termination accounting.

You should refer to Solution 1 for further

details of the functional steps for Expired

Terminated Contract.

If the contract has a purchase option that

can be processed automatically, then Lease

and Finance Management automatically

creates a transaction to dispose the asset.

Otherwise, Lease and Finance Management

creates an asset return and off-lease

amortization transactions.

Lastly, you should update the contract,

lines, and payments as Expired.

4.2.

4

4.2.

3

Phase 4 – Book &

Terminate

Expired Contracts

(excluding

Evergreen

Contracts)

Asset Cost Adjustment

(solution 2)

Yes Custom Once the assets are imported for the

expired contracts into Oracle Assets, the

asset cost is adjusted at the NBV. As a

result, the asset cost and depreciation

account opening balances would be created

from the Oracle Assets module in GL.

5.1 3.1 Phase 5 – Load

Open

Receivables

Load Billing Interface No Custom

build to

load data

to Lease

and

Finance

Managem

ent

interface

table

To process a billing item from a third-party

finance company, Oracle Lease and

Finance Management can import billing

files containing charges that the customer

incurs that you want to pass through, for

example, property taxes, non-sufficient

funds, service &maintenance. After you

import these files, you must review them,

correct errors, and download them into


tables.


Open Receivables

Third Party Billing Import

Program

No Lease and

Finance

Run the concurrent program “Third Party

Billing Import” to pass all records from the


Seq Pre-

Req


Managem

ent

concurren

t program

billing import interface table to Oracle


transaction tables. The process validates

data for referential integrity. For example,

every record must have an amount, contract

ID, and type of charge. Moreover, if

optional data is supplied, it is validated. For

example, if a contract ID is provided, it

should correspond to an existing contract.


Open Receivables

Prepare Receivable Bills No Lease and

Finance

Managem

ent

concurren

t program

The Lease and Finance Management

program “Prepare Receivable Bills” selects

unprocessed data records from internal

transaction tables with Status =

SUBMITTED and populates Lease and

Finance Management external billing

tables. This will process manual bills,

credit memos, termination quote amounts

etc. Amounts for preparing the records for

transfer to Oracle Receivables is not based

on streams, but on transactions created in

the internal Lease and Finance

Management transaction tables.


Open Receivables

Receivable Bills

Consolidation

No Lease and

Finance

Managem

ent

concurren

t program

The Lease and Finance Management

program “Receivable Bills Consolidation”

picks up all transactions marked as

SUBMITTED in external transaction table

for preparation of consolidated invoice

records. Based on the consolidation rules

defined, invoice lines will be consolidated

to form a single invoice.

6.1 3.7 Phase 6 -

Activation &

Aging (Active

Contracts Only)

Activate Contracts Yes Lease and

Finance

Managem

ent API

During the contract activation process, the

contract status is updated from „Approved‟

to „Booked‟ and asset records are created in

the Oracle Assets (FA) module. This

process also creates accounting for the

contract booking. After successful

booking, accounting entries are generated

in the sub ledger and normally are

transferred into the general ledger (GL).

6.2 6.1 Phase 6 -

Activation &

Aging (Active

Contracts Only)

Suppress Booking & Billing

Accounting Transactions in

Lease and Finance

Management

Yes Custom During contract activation, interim interest

invoices, subsidies invoices and upfront tax

invoices will be generated and will reside

in the Lease and Finance Management

internal Billing transaction tables. As these

transactions should already have been

transferred to the AR interface during

Phase 5 - Load Open Receivables if they

are open invoices, these billing transactions

should not be double-posted to AR and GL.

To avoid this, suppress these transactions,

which will avoid them being posted to GL.

Basically this can be achieved by flagging

the POST_TO_GL column to „N‟ in the


accounting distribution table.

6.3 3.5 Phase 6 -

Activation &

Aging (Active

Contracts Only)

Flag Billed Streams Yes Custom After contracts are created and streams are

generated, you need to make sure

customers are not billed again for any

previous billing period. Billing should be

completed for the past billing periods

before the conversion date in your legacy

system

Billable streams with dates due before the

conversion date should be marked as billed.


Seq Pre-

Req


This prevents billing the customers again

for past periods.

6.4 3.5 Phase 6 -

Activation &

Aging (Active

Contracts Only)

Flag Accrued Streams Yes Custom After contracts are created and streams are

generated, you need to make sure accrued

amounts from legacy systems are not

accrued again in Lease and Finance

Management. All accruals should be

completed for the past accrual periods in

your legacy systems before the conversion

date.

Accrual streams that are dated before the

conversion date should be marked as

accrued.

6.5 5.3 Phase 6 -

Activation &

Aging (Active

Contracts Only)

Receivables Invoice Transfer

to AR

No Lease and

Finance

Managem

ent

concurren

t program

The records you imported in Phase 5 –

Load Open Receivables, need to be

imported into Oracle Receivables as

invoices. You should only convert open

receivables to Lease and Finance

Management. If there are partially paid

invoices, you should only convert the open

balances, rather than converting the whole

invoice and creating adjustment receipts.

If you use the process in Phase 5, you

convert the open receivable through Lease

and Finance Management third party

billing interface. This insures the invoices

are associated to the source contracts. If

you choose to bring the open receivable

directly through AR interface, you won‟t

be able to see the open receivable invoices

in Lease Center (Lease and Finance

Management‟s customer service module)

for a contract.

For third party billing interface details,

please refer to Phase 5 – Load Open

Receivables section.

During this step, you run the Invoice

Transfer to AR, which is a standard Oracle

concurrent program (CP). This CP transfers


billing transactions to the Oracle

Receivables import interface.

You cannot complete the import in Phase 5

since you must first activate the associated

contracts before you can run the import

programs.

6.6 6.5 Phase 6 -

Activation &

Aging (Active

Contracts Only)

AR Auto Invoice Master

Program

No AR

concurren

t program

During this step, you run AR Auto Invoice

Master Program, which is a standard

Oracle concurrent program (CP. This CP

imports the invoices from interface tables

into base receivables invoice tables to

create invoice records.

6.7 6.6 Phase 6 -

Activation &

Aging (Active

Contracts Only)

Update Tax Lines in AR No AR API You may choose to use an external tax

engine rather than the Oracle Tax Engine to

calculate the tax for open receivables

invoices. As such, records on AR tables

can have the tax information adjusted using

the Oracle API AR_ADJUST_PUB.

6.8 6.7 Phase 6 -

Activation &

Aging (Active

Contracts Only)

Fetch AR Invoice Numbers No Lease and

Finance

Managem

ent

concurren

t program

During this step, you run the Lease and

Finance Management program “Fetch AR

Invoice Number”, which is a standard

Oracle concurrent program (CP). This CP

retrieves information from Oracle

Receivables for new invoices (i.e.,


Seq Pre-

Req


previously “unfetched” records) within the

Lease and Finance Management invoice

grouping tables used to consolidate records

for invoice preparation.

6.9 3.2 Phase 6 -

Activation &

Aging (Active

Contracts Only)

Pay Invoices Transfer to AP

Invoice Interface

No Lease and

Finance

Managem

ent

concurren

t program

During this step, you run the “Pay Invoices

Transfer to AP Invoice Interface” program,

which is a standard Oracle concurrent

program (CP) - This CP processes

disbursement records in the Lease

Management transaction tables and

prepares them for import to Oracle

Payables by placing them in the AP open

interface table.

6.10 6.9 Phase 6 -

Activation &

Aging (Active

Contracts Only)

Payables Open Interface

Import

No AP

concurren

t program

During this step, you run the Payables

Open Interface Import program using the

parameter “Source” set as “Oracle Lease

and Finance Management”. This standard

Oracle concurrent program (CP) transfers

data from the Payables interface tables to

the AP base tables and creates payable

invoices.

7.1 6.10 Phase 7 –Account

Balances Import

Create Trial Balance from

Legacy System

Yes Custom Account balances for Direct Finance lease

contracts need to be imported into Oracle

General Ledger. Prior to importing the

account balances, it is important to identify

the candidate accounts for import. This can

be achieved by drawing up a trial balance

from the legacy system for all Direct

Finance lease contracts being converted as

of the conversion date. This step is a

manual process and a custom build item.


Balances Import

Identify Accounts for

Opening Balance Import

Yes Custom Based on the above trial balance, opening

balances as of the conversion date should

be imported into Oracle General Ledger.

There may also be other accounts not listed

in the above example, for which opening

balances may need to be imported.


Balances Import

Load Opening Balances Yes Custom

build to

load data

to GL

interface

table

Initial balances must be loaded into Oracle

General Ledger (GL). For this purpose, use

Journal Import to import historical data

from your previous accounting system.

You cannot directly update the

GL_BALANCES table. All balance data

coming into General Ledger (GL) must

come through the GL_INTERFACE table.

Oracle Applications provides two methods

for importing initial balances in GL from

legacy systems.

Use Application Desktop

Integrator (ADI) to create a

journal spreadsheet and upload

amounts to the last non-adjusting

period previous to the planned

live period.

Use SQL*Loader or any other

tool of your choice to populate

the interface tables according to

the specifications defined in the

Oracle General Ledger Users

Guide (for Release 11i). Enter

your transactions for the last non-

adjusting period previous to the

planned live period.

7.4 7.3 Phase 7 –Account Account for Sub ledger Yes AP, AR Once the opening balances are imported


Seq Pre-

Req


Balances Import Journal Entries concurren

t program

into GL, the receivables and payables

transactions interfaced to AR and AP

respectively should be accounted in these

modules. The method to create accounting

entries for these transactions can be found

in the Oracle Receivables and Oracle

Payables User Guides.


Balances Import

Post Sub Ledger Journal

Entries to GL

Yes GL

concurren

t program

After creating accounting entries in AR and

AP, journal entries from these sub ledger

modules should be posted into GL. This

would create the opening balances for the

receivables and payable accounts in GL.


Balances Import

Create Trial Balance from

Oracle General Ledger

Yes Custom Create a trial balance from Oracle General

Ledger for the portfolio of converted

contracts. This is a custom build item. The

trial balance can be used to reconcile with

the trial balance generated from the legacy

system.

oracle lease and finance conversion cookbook.pdf

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key assumptions

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oracle lease

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