Anomalies Report - Product Advisory
Introduction
The Anomalies Report was designed to provide warnings for scenarios that may cause issues for customers. While the scenario could be problematic for one customer, it may not be pertinent to another based on customer configuration preferences.
Overview
The report is located on the Portfolio report tile in the Reporting workspace. The Anomalies Detected Since date is based on sweep date. Since not all deals are swept on a daily basis, it is currently best practice to run the Anomalies Detected Since date as the earliest of environment set-up. There are also fields to filter on a single Business Unit or Lessee. While those two fields are optional, the two date fields are required.
Note: Deals with the status of Terminated as of the As At Date will not render anomalies.
A list of the Potential Problems reviewed for the Anomalies report along with the Suggested Remediation tips follow:
Potential Problem |
Suggested Remediation |
|---|---|
Accounting depreciation settings applicable to the Lessee and Asset Types used by this deal are not configured. Accounting results may be incorrect or missing. Note: This is currently not referencing parent/child relationships. If Setting is made at parent level, child deals may appear as an anomaly. |
Configure the accounting depreciation method for each combination of select Lessee and Product Category. Note: In many cases, this may be indicative of a missing parent company on the Lessee. Parent company relationships are often used to allow subsidiaries to inherit the depreciation policies of a parent company. |
Amortization settings applicable to the Lessee and Asset Types used by this deal are not configured. Accounting results may be incorrect or missing. Note: This is currently not referencing parent/child relationships. If Setting is made at parent level, child deals may appear as an anomaly. |
Configure the amortization term for each combination of select Lessee and Product Category. Note: In many cases, this may be indicative of a missing parent company on the Lessee. Parent company relationships are often used to allow subsidiaries to inherit the amortization policies of a parent company. |
An accounting classification has been performed with an effective date that is not reasonable per accounting practices. Accounting results may be incorrect or missing. |
Accounting classifications should only be recorded as effective on the lease start date, asset available for use date, booking date, or the effective date of a renewal, transition, payment adjustment, or change in estimates. Please contact LeaseAccelerator support to have the non-compliant Classification retired. |
Deal has not yet been classified and will appear on accounting reports with NonLease treatment. |
Perform the Accounting Classification for the deal. |
Deal is active but has not been booked into any accounting ledger. This deal will not appear on accounting reports. |
Enqueue a Book Deal ToDo if one does not already exist and book the deal into the appropriate ledgers. |
Deal is booked into ten or more ledgers. This may create performance issues when repopping and resweeping. |
Enqueue a Book Deal ToDo if one does not already exist and book the deal, being sure to select only the appropriate ledgers. |
Economic life settings applicable to the Lessee and Asset Types used by this deal are not configured. Accounting results may be incorrect or missing. |
Configure the economic life for each combination of select Lessee and Product Category. Note: In many cases, this may be indicative of a missing parent company on the Lessee. Parent company relationships are often used to allow subsidiaries to inherit the economic life policies of a parent company. |
Either repopulation or evergreen extension has failed for this deal. Payments in the current period may be missing. |
Try repopping the deal. If that does not correct the problem, please contact LeaseAccelerator Support for assistance. |
No functional currency is associated with this deal. It will not be properly reflected in accounting reports run in functional or reporting currency. |
Edit the participant from which the functional currency is taken (typically Entity or BU) and set the functional currency for the selected participant. |
No notifications have been scheduled for this deal. Your operational stakeholders will have no warning before the deal goes into evergreen. |
Configure one or more notifications to ensure timely action at end of term. |
Overlapping events may result in erroneous or confusing accounting. This typically happens when a backdated event (event affects payments on a date prior to the date the activity is visible in the ledgers) overlaps with a postdated event (the activity is visible in the ledgers prior to its actual occurrence). |
Review the EOT events for accuracy. Roll back any EOT events which are irrelevant or superseded and edit other EOT events to properly reflect timing of events and knowledge thereof. |
The deal is missing GL coding or references a GL Code (Ledger Coding Convention) that is no longer associated with one or more of the ledgers into which the deal is booked. The deal may not appear on accounting reports, and if it does, it will be with incorrect coding. |
Review and correct the ledger coding convention configuration for the ledgers into which this deal is booked or use Asset Management to correct the GL coding for the assets in this deal. |
This deal has not been booked into a consolidating ledger and will not be reflected in accounting reports generated against consolidating ledgers. |
Enqueue a Book Deal to-do if one does not already exist and book the deal into the appropriate ledgers. |
Your policy elections call for selecting the transition IBR based on the remaining term, but IBR is not configured for 1 month for the selected combination of lessee and geo. This may leave LeaseAccelerator unable to interpolate the necessary rate, in which the system will fall back on the IBR under which the deal was originally booked, which may be incorrect. |
Configure an IBR for a term of 1 month and the selected combination of Lessee and Geo. Note: In some cases, this may be indicative of a missing parent company on the Lessee. Parent company relationships are often used to allow subsidiaries to inherit the IBR rates of a parent company. |
The effective month of one or more of your reasonably certain EOT options does not align with the end of term. This suggests an implicit evergreen period, but because it is not explicitly stated, accounting results may be incorrect or missing. |
Configure an explicit evergreen renewal option for the gap period. |
The specified purchase price and/or return fee is greater than the original equipment cost. This is highly unusual and may be indicative of a typo or missed decimal. |
Edit the buyout/return event and correct the purchase price/return fee if applicable. |
One or more of the fiscal months spanned by this deal is misconfigured. There is either a gap or an overlap between adjacent months. Accounting results may be incorrect or missing. |
Review the fiscal calendar configuration for each year covered by this lease. Be sure to save each year to ensure it is properly configured, as the on-screen display will attempt to automatically correct gaps and mistakes. |
There are no EOT options associated with this deal. This could affect lease classification and accounting results. |
Using Deal Summary, add all possible EOT options. Best practice is to include one reasonably certain EOT option, if known. |
Backdated renewal is recorded post-transition but affects payment periods prior to transition. This will cause multiple problems with accounting, including potentially impacting classification in other ledgers for the same deal and losing tie-off entries. |
Edit the renewal to use a ledger date prior to transition. This may require unlocking closed periods. |
Deal was transitioned without evergreen or renewal payments extending beyond transition date. Post-transition accounting will show only Operating lease treatment. |
Record a renewal or evergreen event for the deal with a ledger date preceding transition to ensure that payment periods extend beyond the transition date. |
Deal starting pre-transition specifies a Reasonably Certain Holding Period which does not match the lease term, but you have elected to ignore RCHP for ASC 840/IAS 17 accounting. The renewal recorded for this deal may not be properly reflected in the ASC 840/IAS 17 ledgers. |
Either rebook the deal with RCHP equal to the contractual term (the renewal will force a remeasurement based on implicit Change in Estimates, and can be recorded as a postdated renewal with a ledger date equal to the transition date) or create a standalone ASC 840/IAS 17 ledger and book a copy of the deal only to that ledger. |
Other Notes
The Date Last Acted Upon column within the report reflects the last day the deal was swept.
The report is currently not accurately picking up parent/child relationships in regard to the amortization and depreciation settings in all cases.
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Example of a Use Case: Anomaly related to missing lease classification noted for 2 leases with a sweep date two months prior.
First scenario – Checking deals in UI reflects that they were not classified. Classify the deals. Sweep the deals. Rerun the report. Anomaly for those deals should not appear.
Second scenario – Checking deals in UI reveals that they were classified. Sweep the deals (previous sweep might have been interrupted). Rerun the report. Anomaly for those deals should not appear.