Automatic Classification and Booking for Modify Deal Imports - Product Advisory

August 2021

Overview

This release offers a new enhancement feature for the Bulk Import Modify Deal. The MDIW now gives users the option to automatically classify and book the modification using a checkbox that appears after step one validations.

Changes to Import Workspace

New Checkbox to Classify and Book a Modification with Import

After the validation step completes, you are presented with a new checkbox and label underneath the Import Results. If you wish to have the MDIW automatically classified and booked, then you will check this box. If you do not want the modification to classify and book, meaning you want to do these steps manually in the UI, then you would leave the box unchecked and the modification will be imported, but not classified and booked.

Note: If you choose to not auto-generate the accounting classification analysis and book the modified deal, the original deal will remain active until you classify and book the new, modified deal within the user interface. 

Changes to MDIW Import File

Users will notice two new fields in the MDIW. The fields are Accounting Classification and Override Explanation. As with the PIW, these fields give users the ability to override the classification of a modification.

Accounting Classification

Only populate this field if you want LeaseAccelerator to override the automatic classification that is performed upon import. If you populate Accounting Classification, you must provide an override explanation in the next field.

If you uncheck the auto-generate accounting classification analysis and book box and provide an Accounting Classification Override, then you receive the following warning.

Validation Warning: "Accounting Classification Override supplied, but the Auto-generate Accounting Classification Analysis and Book Deal checkbox is unchecked. The override will be ignored and you will need to manually classify and book the deal."

Override Explanation

If you populate the Accounting Classification column, you must provide an Override Explanation with a brief description for the override.

Import Validations

In addition to the existing validations related to MDIW you will notice new guardrails for Materiality Thresholds, GL Code, and coterminous deals.

Materiality Threshold

When importing an MDIW where a Materiality Threshold exists for the combination of Lessee, Product Category, and Geo for the modification, users will be instructed via a warning message that they need to review the classification.

Validation Warning:  "Although this modification will be automatically classified, the configuration of Lessee, Product Category, and Geo is associated with a Materiality Threshold Setting. You should review the classification and evaluate the materiality. It may be necessary to reclassify this lease."

GL Code

Validation of the GL Code will occur for both the original deal’s assets and any additional assets that may be added with the modification. GL Code(s) for existing and/or new assets must be present in the ledger(s) that the modification is booked to.

Validation Error: “The entered GL Code: [GLCode] is not configured in all the ledgers the deal is being booked into.”

Coterminous Deals

When importing an MDIW that results in the modification creating an A00# coterminous deal and the original deal is not classified, then you will not be allowed to complete the import and will see an error. In this scenario, you should classify the original deal if you wish to continue the modification and creation of the coterminous deal.

Validation Error: "This modification cannot be completed. The resulting modification would create a coterminous deal and the original deal has not been classified."

Additionally, when importing an MDIW that results in the modification creating an A00# coterminous deal and you specify an Accounting Classification the override will be ignored and the A00# deal will still inherit the original deal’s classification. There is no warning or error for this scenario.

Ledger Date on Modifications

In accordance with the new Simplification of As At dates approach, the Ledger Date of the modified deal will be the earlier of the Modification Date and the date on which modification is recorded.