Oracle Lease and Finance Management Conversion Cookbook

Oracle Lease and Finance
Management
Conversion CookbookPlan, Prepare & Execute
March, 2008
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
6.
5.1
Master Data Management ........................................................................................................21
5.2
Parties.......................................................................................................................................21
5.3
Streams .....................................................................................................................................22
5.4
Contracts ..................................................................................................................................23
Stage 3 Prepare for Conversion .....................................................................................................24

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

6.1.1
6.1.2
6.1.3
6.1.4
Master Data ............................................................................................................................................ 24

General Ledger and Sub-Ledgers .......................................................................................................... 25
Asset Information .................................................................................................................................. 25
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
Overview
8.1
Overview ..................................................................................................................................28
8.2
Assumptions.............................................................................................................................29
Conversion Cookbook- Plan, Prepare & Execute
8.3
Tasks ........................................................................................................................................29
8.3.1
8.3.2
8.3.3
8.3.4
8.3.5
8.3.6
8.3.7
8.3.8
8.3.9
8.3.10
9.
8.4
Task Order ...............................................................................................................................31
8.5
Reconciliation ..........................................................................................................................31
8.6
Common Issues & Recommendations .....................................................................................31
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
9.4.2
9.4.3
9.4.4
9.4.5
9.4.6
10.
Load Customers ..................................................................................................................................... 33

Load Vendors/Suppliers......................................................................................................................... 35
Load Items ............................................................................................................................................. 38
Load Master Lease Agreements (Optional) ........................................................................................... 39
Load Vendor Program Agreements (Optional) ...................................................................................... 40
Load & Activate Credit Lines (Optional) .............................................................................................. 40
9.5
Task Order ...............................................................................................................................41
9.6
Reconciliation ..........................................................................................................................42
9.7
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
10.4.2
10.4.3
10.4.4
10.4.5
10.4.6
10.4.7
Overview
Determine Conversion Scope................................................................................................................. 29

Standardize Data .................................................................................................................................... 29
Data Mapping ........................................................................................................................................ 29
Create Conversion Download Programs ................................................................................................ 30
Build Staging Tables .............................................................................................................................. 30
Create Conversion Upload Programs ..................................................................................................... 30
Build Temporary Oracle Interface Tables .............................................................................................. 30
Run Interface Program (Open Interface/Custom programs) .................................................................. 30
Production Tables .................................................................................................................................. 30
Testing and Reconciliation .................................................................................................................... 30
Contract Import ...................................................................................................................................... 44

Funding Requests (Optional) ................................................................................................................. 45
Pay Invoice Prepare for AP Transfer (Optional) .................................................................................... 46
Validate Contract ................................................................................................................................... 47
Generate Streams (Pricing) .................................................................................................................... 48
Generate Draft Journal Entries (Optional) ............................................................................................. 49
Approve Contract ................................................................................................................................... 49
11.
10.5
Task Order ...............................................................................................................................50
10.6
Reconciliation ..........................................................................................................................50
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
11.5.2
11.5.3
11.5.4
11.5.5
11.6
Tasks (Solution 2) ....................................................................................................................60

11.6.1
11.6.2
11.6.3
11.6.4
Task Order ...............................................................................................................................65
11.8
Reconciliation ..........................................................................................................................65
11.9

Common Issues ...................................................................................................................................... 66
Recommendations .................................................................................................................................. 66
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
12.4.2
12.4.3
12.4.4
Overview
Import Contracts .................................................................................................................................... 60

Create Assets in FA ............................................................................................................................... 61
Process Contract Termination ................................................................................................................ 62
Asset Cost Adjustment ........................................................................................................................... 65
11.7
11.9.1
11.9.2
12.
Activate Expired Contracts .................................................................................................................... 52

Age Expired Contracts ........................................................................................................................... 54
Terminate Expired Contracts ................................................................................................................. 55
Suppress Termination Accounting Transactions in Lease and Finance Management ........................... 59
Asset Cost Adjustment ........................................................................................................................... 60
Load Billing Interface ............................................................................................................................ 67

Third Party Billing Import Program....................................................................................................... 68
Prepare Receivable Bills ........................................................................................................................ 69
Receivable Bills Consolidation .............................................................................................................. 70
12.5
Task Order ...............................................................................................................................70
12.6
Reconciliation ..........................................................................................................................71
12.7
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
13.4.2
13.4.3
13.4.4
13.4.5
13.4.6
13.4.7
13.4.8
13.4.9
13.4.10
14.
13.5
Task Order ...............................................................................................................................79
13.6
Reconciliation ..........................................................................................................................80
13.7
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
14.4.2
14.4.3
14.4.4
14.4.5
14.4.6
Overview
Activate Contracts.................................................................................................................................. 72
Suppress Booking Accounting Transactions in Lease and Finance Management ................................. 73
Flag Billed Streams ................................................................................................................................ 74
Flag Accrued Streams ............................................................................................................................ 75
Receivables Invoice Transfer to AR ...................................................................................................... 76
AR Auto Invoice Master Program ......................................................................................................... 77
Update Tax Lines in AR (Optional) ....................................................................................................... 77
Fetch AR Invoice Numbers ................................................................................................................... 78
Pay Invoices Transfer to AP Invoice Interface ...................................................................................... 78
Payables Open Interface Import ............................................................................................................. 79
Create Trial Balance from Legacy System ............................................................................................ 81

Identify Accounts for Opening Balance Import ..................................................................................... 83
Load Opening Balances ......................................................................................................................... 84
Account for Sub-ledger Journal Entries ................................................................................................. 85
Post Sub Ledger Journal Entries to GL .................................................................................................. 85
Create Trial Balance from Oracle General Ledger ................................................................................ 85
14.5
Task Order ...............................................................................................................................85
14.6
Reconciliation ..........................................................................................................................85
14.7
15.
Risks ....................................................................................................................................................87
16.
Appendix A: Conversion Interfaces Reference Table ...................................................................88
17.
Appendix B: Summary of Execution Phases ..................................................................................94
Overview
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.
Overview
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.
Conversion
Proposal
Develop
conversion
strategy
Develop
conversion plan
Prepare
Conversion
Execute
conversion plan
Converted
Data
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:
Overview
Cleanse Data
Map Data
Build Reconciliation Reports
Build Custom Objects and Processes
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:
Scope
The structure of the sample Direct Finance Lease Contract is as follows:

o
Two assets
Level payments
No Fees, Subsidies or Insurance
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.
Limitations
10
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
Tools
11
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.
Tools
12
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.
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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.
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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 golive 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-ofterm, 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.
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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.
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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.
Tools
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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.
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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.
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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.
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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
Master Data Management
21
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 lessors investment is
Streams
22
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.
Contracts
23
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:
Cleanse Data
Customers Each customer you have should have only one master record in the EBusiness 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
24
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 contracts 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
Cleanse Data
25
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.
Map Data
26
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.
Test Conversion Process
27
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.
Source System
Legacy Instance
Da
ta
ba
se
Lin
Target system
Oracle Applications11.5.10
k
Conversion Download
Program
(Customization)
11.5.10 Staging
Tables
(Customization)
Conversion Upload Program

(Customization)
Interface Program
(Standard or Customization)
11.5.10 Open
Interface Tables
11.5.10 Production
Tables
Overview
28
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:
Assumptions
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
29
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.
Tasks
30
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.
Task Order
31
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, youll
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.
Objective
32
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 billto

business purposes.
RA_CUST_PAY_METHOD_INTERFACE
To import payment methods for customers

and billto 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:
Tasks
Interface Name
Description
HZ_IMP_PARTIES_INT
Party Information
33
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
Tasks
34
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.
Tasks
35
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.
Tasks
Interface Name
Description
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.
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
36
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.
Interface Name
Description
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.
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37

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.
Interface Name
MTL_SYSTEM_ITEMS_INTERFACE
MTL_INTERFACE_ERRORS
MTL_ITEM_REVISIONS_INTERFACE
Description
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.
This table is used for error tracking of all
items that the Item Interface fails.
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
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38
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.
Interface Name
Description
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
Tasks
39

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 companys divisions or dealers. A program agreement between
the lessor and a vendor creates a specific financing program for the vendors 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.
Interface Name
Description
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
Tasks
40
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.
Interface Name
Description
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.
Task Order
1.
Customers, Suppliers, Items
2.
Vendor Programs, Credit Lines
3.
Master Lease Agreements
41
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.
Reconciliation
42
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.
Objective
43
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.
Tasks
Contract Status
Description
NEW
Interface contract data is loaded to

create a new contract
44
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.
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45
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.
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46

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.
API Name
Description
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.
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47

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.
API Name
Description
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
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48
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.
API Name
Description
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
Tasks
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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.
API Name
Description
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 bypass 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
Task Order
50
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
Objectives
51
Seq
Task
Description
1
2
3
4
Activate Expired contract

Aged Expired Contract
Terminated Expired Contract
Suppress Termination Accounting
Transactions in Lease and Finance
Management
GL balance adjustments
Booked expired contracts using contract open interface.

Flag Billed and Accrual streams. Suppress Booking accounting.
Terminate Expired Contract using standard concurrent program
In order to avoid Termination accounting being posted to GL, set
POST_TO_GL flag to N on accounting distribution table.
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
Import contract with assets as NEW status
Create assets in FA through Lease and

Finance Management using API
Process termination contract without create

termination accounting transactions
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)
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.
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.

After processing expired or terminated contracts, GL balance needs to be
adjusted to reflect the proper balance of the contract and assets.
GL balance adjustments
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:
Tasks (Solution 1)
Create Installed Base (IB) record
Create Oracle Assets (FA) record
52
Capitalize or bill interim interest (from Approved Pre-funding Requests)
Generate invoices for interim interest if needed
Call accounting engine
Call tax engine
Generate invoices for upfront taxes
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 dont 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.
Tasks (Solution 1)
53
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.
Tasks (Solution 1)
54
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
Tasks (Solution 1)
Creates termination accounting entries.
55
Creates accrual accounting entries for catch-up (i.e., transfer accruals from nonincome bucket to income bucket). Only for Full Terminations.
Reverse loss provisions. Only for Full Terminations.
11i10+ Reverse accruals (if excess accruals exist). Only for Full Terminations.
Accelerate income accrual recognition for financed fees. Only for Full
Terminations.
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).
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.
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).
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.
Tasks (Solution 1)
Concurrent Program
Description
Terminate Expired Contracts concurrent

program
This program will create the off-lease

amortization transaction for each asset
56
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:
Table Name
Description
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
Tasks (Solution 1)
57
2. Customer or Vendor
notification of intent to return
3. System notification of
potential return
Below is the list of APIs for asset disposal:
Tasks (Solution 1)
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

disposal line in
OKL_TXD_ASSETS_V
OKL_TXD_ASSETS_PUB.CREATE_TXD_ASSET_DEF

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
58
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

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
Tasks (Solution 1)
59
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 offlease 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
Tasks (Solution 2)
60
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:
Tasks (Solution 2)
61
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
Tasks (Solution 2)
Description
62
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:
Tasks (Solution 2)
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.
63
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:
Table Name
Description
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:
Tasks (Solution 2)
API
Description
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

disposal header in
OKL_TRX_ASSETS
OKL_TXL_ASSETS_PUB.CREATE_TXL_ASSET_DEF

disposal line in
OKL_TXD_ASSETS_V
OKL_TXD_ASSETS_PUB.CREATE_TXD_ASSET_DEF

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.
64
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

item in Installed Base.
CSI_ITEM_INSTANCE_PUB.EXPIRE_ITEM_INSTANCE

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.
Task Order
65

11.9.1 Common Issues
Seq
Issue
Recommendations
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
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.
This option is to be considered when the volume of

terminated contracts is high percentage
Cons: For performance concern, this approach

may take much longer time.
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.
Common Issues & Recommendations
66
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:
Objectives
Contract ID and/or Asset ID
67
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
OKL_EXT_BILLING_INTERFACE
Description
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.
Tasks
68
Concurrent Program Name

Third Party Billing Import Program
Description
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
Description
Process the billing transactions from
internal tables to external tables.

None
Tasks
69
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
Description
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
Task Order
Flag billed streams and flag accrued streams (can be executed together)
Populate interface tables
Run third party billing import concurrent program
70
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 wont 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.
Reconciliation
71
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:
Objectives
Create Install Base instance records
Create Oracle Assets records
Calculate and capitalize or bill interim interest (for pre-funding requests)
Generate invoices for interim interest if needed
72
Call accounting engine
Call tax engine
Generate invoices for upfront taxes if needed
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.
Tasks
73

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
Tasks
74

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
Tasks
75
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 wont be
able to see the open receivable invoices in Lease Center (Lease and Finance Managements
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
Description
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
Tasks
76
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
Description
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
Tasks
77
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
Description
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
Description
Process prepares disbursement records
for Payables import and puts them in
the AP open interface table.

None
Tasks
78

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
Description
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

Task Order
79
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
Reconciliation
80
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.
Objective
81
Direct Finance Lease Accounting Example
Event
Accounting For
Phase
Module
Debit
Credit
Booking
Unbilled
Receivables
Unearned Income
Residual Value
Asset Cost
Asset Cost
Adjustment
Lease
Unbilled Receivables
Lease Funding
3
3
3
3
Lease
Lease
Assets
Assets
Lease Funding
Residual Value
Asset Cost
Asset Clearing
Unearned Income
Lease Funding
Asset Clearing
Asset Cost
Funding
Asset Funding
Payables
Lease Funding
Liability
Payment
Pay Invoice
NA
Payables
Liability
Bank
Billing
Rent
Receivables
Receivables
Unbilled
Receivables
Receipts
Receive Funds
NA
Receivables
Bank
Receivables
Accrual
Income Recognition
NA
Lease
Unearned Income
Finance Income
Termination
Residual Value
Residual Value
NA
NA
Assets
Lease
Asset Cost
Asset Clearing
Asset Clearing
Residual Value
Sale
Sale of Asset
Receive Funds
Sale of Asset
Retirement of Asset
Retirement of Asset
Gain / Loss on Sale
NA
NA
NA
NA
NA
NA
Receivables
Receivables
Assets
Assets
Assets
Assets
Receivables
Bank
Sale Proceeds
Depreciation Reserve
Sale Proceeds
Receivables
Loss on Sale
Asset Cost
Gain on Sale
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
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
Tasks
Credit
82
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
Lease Funding

phase 3.
phase 3.
Residual Value

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.
Tasks
83
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.
Interface Name
Description
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 nonOracle
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.
Tasks
84

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.
Task Order
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.
85

None identified
86
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.
87
16. Appendix A: Conversion Interfaces Reference Table
Phase
Task
Interface (import/API/concurrent
program)
Description
Phase 2 - Master
Data Load
Phase 2 - Master
Data Load
Load
Customers
Load
Customers
RA_CUSTOMER_INTERFACE
To import a customer, address, or business purpose
RA_CUSTOMER_PROFILES_I
NTERFACE
A customer level profile must exist in

RA_CUSTOMER_PROFILES_INTERFACE for
new customers.
Phase 2 - Master
Data Load
Phase 2 - Master
Data Load
Phase 2 - Master
Data Load
Phase 2 - Master
Data Load
Phase 2 - Master
Data Load
Phase 2 - Master
Data Load
Phase 2 - Master
Data Load
Load
Customers
Load
Customers
Load
Customers
Load
Customers
Load
Customers
Load
Customers
Load
Vendors/Suppli
ers
RA_CONTACT_PHONES_INTERF
ACE
RA_CUSTOMER_BANKS_INTERF
ACE
RA_CUST_PAY_METHOD_INTER
FACE
HZ_IMP_PARTIES_INT
To import telephone numbers for customers, addresses,

and contacts.
To import banks for customers and billto business
purposes.
To import payment methods for customers and billto
business purposes.
Party Information
HZ_IMP_ADDRESSES_INT
Party Address Information
HZ_IMP_CONTACTS_INT
Party Contacts
AP_SUPPLIERS_INT
Phase 2 - Master
Data Load
Load
Vendors/Suppli
ers
AP_SUPPLIER_SITES_INT
Phase 2 - Master
Data Load
Load
Vendors/Suppli
ers
Phase 2 - Master
Data Load
Load
Vendors/Suppli
ers
Load
Vendors/Suppli
ers
Load
Vendors/Suppli
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.
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.
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.
This Package provides APIs to allow users to import
suppliers, supplier sites, or supplier contacts records into
AP.
AP.
Phase 2 - Master
Data Load
Phase 2 - Master
Data Load
88
Phase
Phase 2 - Master
Data Load
Task
program)
ers
Load Items
MTL_SYSTEM_ITEMS_INTERFA
CE
Phase 2 - Master
Data Load
Phase 2 - Master
Data Load
Load Items
MTL_INTERFACE_ERRORS
Load Items
MTL_ITEM_REVISIONS_INTERF
ACE
Phase 2 - Master
Data Load
Load Master
Lease
Agreements
Phase 2 - Master
Data Load
Load Vendor
Program
Agreements
Load Credit
Lines
Load Credit
Lines
Contract
Import
Contract
Import
Contract
Import
Contract
Import
Contract
Import
Funding
Requests
Funding
Requests
Funding
Requests
Pay Invoice
Prepare for AP
Transfer
Validate
Contract
Generate
Stream
Generate Draft
Journal
Approve
Contract
Activate
Expired
Contracts
(solution1)
OKL_MASTER_LEASE_AGREEM
ENT_PUB.
CREATE_MASTER_LEASE_AGRE
EMENT
OKL_VENDOR_AGREEMENT_PU
B.
CREATE_VENDOR_AGREEMENT
OKL_CREDIT_PUB.CREATE_CRE
DIT
OKL_CREDIT_PUB.ACTIVATE_C
REDIT
OKL_HEADER_INTERFACE
Phase 2 - Master
Data Load
Phase 2 - Master
Data Load
Phase 3 - Initial
Load
Phase 3 - Initial
Load
Phase 3 - Initial
Load
Phase 3 - Initial
Load
Phase 3 - Initial
Load
Phase 3 - Initial
Load
Phase 3 - Initial
Load
Phase 3 - Initial
Load
Phase 3 - Initial
Load
Phase 3 - Initial
Load
Phase 3 - Initial
Load
Phase 3 - Initial
Load
Phase 3 - Initial
Load
Phase 4 Book &
Terminate
Expired
Contracts
(excluding
Evergreen
Contracts)
Phase 4 Book &
Terminate Expired
Contracts
(excluding
Evergreen
Contracts)
Activate
Expired
Contracts
(solution 2)
Description
AP.
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.
This table is used for error tracking of all items that the
Item Interface fails.
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.
The Master Lease Agreement API allows users to create
Master Lease Agreements in Lease Management.
The vendor Agreement API allows users to create Vendor

Agreements in Lease Management.
The API allows users to create credit line and credit limit
in Lease Management.
The API allows users to activate credit line in Lease
Management.
Contract header table
OKL_LINES_INTERFACE
Contract lines table
OKL_PAYMENTS_INTERFACE
Payments table
OKL_PARTY_ROLES_INTERFAC
E
OKL_TERMS_INTERFACE
Party Roles
OKL_FUNDING_PVT.CREATE_F
UNDING_HEADER
OKL_FUNDING_PVT.CREATE_F
UNDING_LINES
OKL_FUNDING_PVT.UPDATE_F
UNDING_HEADER
PAY INVOICE PREPARE FOR AP
TRANSFER CONCURRENT
PROGRAM
OKL_CONTRACT_BOOK_PUB.V
ALIDATE_CONTRACT
OKL_CONTRACT_BOOK_PUB.G
ENERATE_STREAMS
GENERATE_JOURNAL_ENTRIES
SUBMIT_FOR_APPROVAL
OKL_CONTRACT_BOOK_PUB.A
CTIVARE_CONTRACT
This program will create funding header
OKL_CONTRACT_STATUS_PUB.
UPDATE_CONTRACT_STATUS
Update contract status to APPROVED
Contract Terms & Conditions
This program will create funding lines

This program will activate the funding by updating the
status
This program will transfer Lease and Finance Management
internal invoice transactions to Lease and Finance
Management external invoice transactions table.
This program will submit the contract for validation
This program will submit the contract for stream
generation
This program will submit the contract for draft journal
entry generation
This program will submit the contract for approval
This private API will activate the contract; install base, and
fixed asset.
89
Phase
Task
program)
Description
Phase 4 Book &

Terminate Expired
Contracts
(excluding
Evergreen
Contracts)
Phase 4 Book &
Terminate Expired
Contracts
(excluding
Evergreen
Contracts)
Phase 4 Book &
Terminate Expired
Contracts
(excluding
Evergreen
Contracts)
Phase 4 Book &
Terminate Expired
Contracts
(excluding
Evergreen
Contracts)
Phase 4 Book &
Terminate Expired
Contracts
(excluding
Evergreen
Contracts)
Phase 4 Book &
Terminate Expired
Contracts
(excluding
Evergreen
Contracts)
Phase 4 Book &
Terminate Expired
Contracts
(excluding
Evergreen
Contracts)
Phase 4 Book &
Terminate Expired
Contracts
(excluding
Evergreen
Contracts)
Phase 4 Book &
Terminate Expired
Contracts
(excluding
Evergreen
Contracts)
Phase 4 Book &
Terminate Expired
Contracts
(excluding
Evergreen
Contracts)
Phase 4 Book &
Terminate Expired
Contracts
(excluding
Activate
Expired
Contracts
(solution 2)
Update contract lines status to APPROVED
Activate
Expired
Contracts
(solution 2)
OKL_ACTIVATE_ASSET_PUB.AC
TIVATE_ASSET
Activate
Expired
Contracts
(solution 2)
OKL_ACTIVATE_IB_PUB.ACTIV
ATE_IB_INSTANCE
Calls IB API to create an item instance in IB
Activate
Expired
Contracts
(solution 2)
Update contract status to BOOKED
Activate
Expired
Contracts
(solution 2)
CASCADE_LEASE_STATUS
Update contract lines status to BOOKED
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.
Terminate
Expired
Contracts
(solution 2)
OKL_AM_LEASE_TRMNT_PV
T.LEASE_TERMINATION
This API will terminate the expired lease contract.
Terminate
Expired
Contracts
(solution 2)
T.VALIDATE_LEASE
This API will validate the lease contract.
Terminate
Expired
Contracts
(solution 2)
T.PROCESS_EVERGREEN_CO
NTRACT
This API will process evergreen contract.
Terminate
Expired
Contracts
(solution 2)
T.PROCESS_CANCEL_INSUR
ANCE
This API will cancel insurance policy for the expired

contract.
Terminate
Expired
Contracts
(solution 2)
T.PROCESS_CLOSE_BALANC
This API will create AR adjustments for the expired

contract.
Create Asset Transaction from a ready to be Booked

Contract which has passed Approval
and
created assets in FA
90
Phase
Evergreen
Contracts)
Phase 4 Book &
Terminate Expired
Contracts
(excluding
Evergreen
Contracts)
Phase 4 Book &
Terminate Expired
Contracts
(excluding
Evergreen
Contracts)
Phase 4 Book &
Terminate Expired
Contracts
(excluding
Evergreen
Contracts)
Phase 4 Book &
Terminate Expired
Contracts
(excluding
Evergreen
Contracts)
Phase 4 Book &
Terminate Expired
Contracts
(excluding
Evergreen
Contracts)
Phase 4 Book &
Terminate Expired
Contracts
(excluding
Evergreen
Contracts)
Phase 4 Book &
Terminate Expired
Contracts
(excluding
Evergreen
Contracts)
Phase 4 Book &
Terminate Expired
Contracts
(excluding
Evergreen
Contracts)
Phase 4 Book &

Terminate Expired
Contracts
(excluding
Evergreen
Contracts)
Phase 4 Book &
Terminate Expired
Contracts
(excluding
Task
program)
Description
ES
Terminate
Expired
Contracts
(solution 2)
T.PROCESS_ACCOUNTING_E
NTRIES
This API will process the accounting entries that

related to the expired contract.
Terminate
Expired
Contracts
(solution 2)
FA_ADDITION_PUB.DO_ADD
ITION
This API will add an asset to a specific book in FA.
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
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
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
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
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.
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.
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.
Terminate
Expired
Contracts
(solution 2)
FA_RETIREMENT_PUB.DO_R
ETIREMENT
This API will partially or fully retire an asset in a

91
Phase
Evergreen
Contracts)
Phase 4 Book &
Terminate Expired
Contracts
(excluding
Evergreen
Contracts)
Phase 4 Book &
Terminate Expired
Contracts
(excluding
Evergreen
Contracts)
Phase 5 Load
Open Receivables
Task
program)
Description
Terminate
Expired
Contracts
(solution 2)
OKL_AM_ASSET_DISPOSE_P
VT.EXPIRE_ITEM
This procedure expires an item in installed base.
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.
Load Billing
Interface
OKL_EXT_BILLING_INTERFACE
Lease and
Finance
Management
Billing
Interface
Prepare
Receivable
Bills
Receivable
Bills
Consolidation
Concurrent Program Third Party

Billing Import
Prepares imported data from third party files for billing.

See Prepare Third-Party Billing Import File for Billing.
Concurrent program Prepare

Receivables Bills
Phase 6 Activation &

Aging (Active
Contracts Only)
Aging (Active
Contracts Only)
Activate
Contracts
OKL_CONTRACT_BOOK_PUB.A
CTIVARE_CONTRACT
Assigns to Receivables transactions appropriate attributes

used in Receivables, such as tax location and bill-to
information from the contract.
Assigns consolidated bill number to billing transactions
based on attributes--such as Customer, Currency, Bill-to
Location, Payment Method, Private Label, and Invoice
Group.
This private API will activate the contract; install base, and
fixed asset.

Aging (Active
Contracts Only)
Aging (Active
Contracts Only)
Aging (Active
Contracts Only)
Aging (Active
Contracts Only)
Aging (Active
Contracts Only)
Aging (Active
Contracts Only)
Activate
Contracts
Phase 5 Load
Open Receivables
Phase 5 Load
Open Receivables
Phase 5 Load
Open Receivables
Concurrent program Receivable

Bills Consolidation
Activate
Contracts
OKL_ACTIVATE_ASSET_PUB
.ACTIVATE_ASSET
Third party billing interface table
This is a public API. It creates an asset

Transaction record for each asset on the contract
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
OKL_INTEREST_CALC_PUB.
CALC_INTEREST_ACTIVATE
This is a public API. This procedure capitalizes or

bill interim interest
OKL_LA_JE_PVT.GENERATE
_JOURNAL_ENTRIES
This is a private API. This procedure calls the

accounting engine
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
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.
AR Auto
Invoice Master
Program
AR Concurrent program Auto

Invoice Master Program
Update Tax
Lines in AR
AR_ADJUST_PUB.
CREATE_ADJUSTMENT
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.
Use this procedure to create adjustments to invoices.
Activate
Contracts
Activate
Contracts
Activate
Contracts
92
Phase
Task
program)
Description
Update Tax
Lines in AR
AR_ADJUST_PUB.
MODIFY_ADJUSTMENT
Use this procedure to update an adjustment.
Update Tax
Lines in AR
AR_ADJUST_PUB.
REVERSE_ADJUSTMENT
Use this procedure to reverse an adjustment.
Update Tax
Lines in AR
AR_ADJUST_PUB.
APPROVE_ADJUSTMENT
Use this procedure to approve an adjustment.
Fetch AR
Invoice
Numbers
Concurrent program Fetch AR

Invoice Numbers
Pay Invoices
Transfer to AP
Invoice
Interface
Payables Open
Interface
Import
Pay Invoices Transfer to AP Invoice

Interface concurrent program
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.
external invoice transactions to AP interface tables.
AP concurrent program Payables

Accounting Process
Phase 7 Account
Balances Import
Payables
Accounting
Process
Payables
Transfer to GL
Phase 7 Account
Balances Import
Receivables
Transfer to GL
AR concurrent program Receivables

Transfer to GL
Phase 7 Account
Balances Import
Create
Receipts OnAccount /
Unapplied
Create
Unapplied
Create
Unapplied
AR_RECEIPT_API_PUB.Create_an
d_Apply
Aging (Active
Contracts Only)
Aging (Active
Contracts Only)
Aging (Active
Contracts Only)
Aging (Active
Contracts Only)
Aging (Active
Contracts Only)
Aging (Active
Contracts Only)
Aging (Active
Contracts Only)
Phase 7 Account
Balances Import
Phase 7 Account
Balances Import
Phase 7 Account
Balances Import

Open Interface Import

Transfer to GL
Login as Payable Manager and then run the Payables

Open Interface Import with source: Lease Management.
invoices to AP.
This program will prepare AP sub ledger for GL transfer.
Login as Payable Manager and then run the Payables
Transfer to GL. This program will post payable
transactions to General Ledger Module.
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.
Creates and Apply Receipts
AR_RECEIPT_API_PUB.Create_Ap
ply_On_Acc
Creates Receipts on Account
AR_RECEIPT_API_PUB.Create_cas
h
Creates Cash Receipts
93
17. Appendix B: Summary of Execution Phases
Seq
PreReq
1.1
Phase
Task
Mandatory
Method
Description
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.
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.
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.
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.
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.
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.
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
1.2
1.1
Phase 1 Extract
and Stage Legacy
Data
Data Standardization
Yes
Custom
1.3
1.2
Phase 1 Extract
and Stage Legacy
Data
Data Mapping
Yes
Custom
1.4
1.3
Phase 1 Extract
and Stage Legacy
Data
Conversion Download
Program
Yes
Custom
1.5
1.4
Phase 1 Extract
and Stage Legacy
Data
Staging tables
Yes
Custom
1.6
1.5
Phase 1 Extract
and Stage Legacy
Data
Conversion Upload Program
Yes
Custom
1.7
1.6
Phase 1 Extract
and Stage Legacy
Data
Oracle Interface tables/

temporary tables
Yes
Custom
94
Seq
PreReq
Phase
Task
Mandatory
Method
1.8
1.7
Phase 1 Extract
and Stage Legacy
Data
Interface Program (Open

Interface/Custom programs)
Yes
Custom
1.9
1.8
Phase 1 Extract
and Stage Legacy
Data
Production Table
Yes
Custom
1.10
1.9
Phase 1 Extract
and Stage Legacy
Data
Testing
Yes
Custom
2.1
1.10
Phase 2 - Master
Data Load
Load Customers
Yes
2.2
1.10
Phase 2 - Master
Data Load
Load Vendors/Suppliers
Yes
Receivabl
es
Customer
Interface
or
through
the TCA
Bulk
Import
Process
Supplier
Open
Interface
Import or
through
the
Suppliers
Package
public
APIs
2.3
1.10
Phase 2 - Master
Data Load
Load Items
Yes
Customer
Item and
Customer
Item
Cross
Reference
Interfaces
.
2.4
2.1,
2.2
Phase 2 - Master
Data Load
Load Vendor Program

Agreements
No
Lease and
Finance
Managem
Description
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.
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.
This is the final production data table
where the converted data resides. These
tables are identified early on when doing
the initial data mapping.
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.
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.
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.
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.
Program Agreements are contracts between
a lessor and an organizationally lower-level
vendor or manufacturer, such as a
95
Seq
PreReq
Phase
Task
Mandatory
Method
Description
ent API
companys divisions or dealers. A program

agreement between the lessor and a vendor
creates a specific financing program for the
vendors customers who desire financing.
A lease or loan contract can participate in
only one vendor program agreement.
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.
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.
Oracle Lease and Finance Management
(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.
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 placeholderfunding 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
2.5
2.1
Phase 2 - Master
Data Load
Load Credit Lines
No
Lease and
Finance
Managem
ent API
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
3.1
2.x
Phase 3 - Initial
Load
Contract Import
Yes
Lease and
Finance
Managem
ent
contract
import
interface
3.2
3.1
Phase 3 - Initial
Load
Funding Requests
No
Lease and
Finance
Managem
ent API
96
Seq
PreReq
Phase
Task
Mandatory
Method
3.3
3.2
Phase 3 - Initial
Load
Pay Invoice Prepare for AP

Transfer
No
Lease and
Finance
Managem
ent
concurren
t program
3.4
3.3
Phase 3 - Initial
Load
Validate Contract
Yes
Lease and
Finance
Managem
ent API
3.5
3.4
Phase 3 - Initial
Load
Generate Stream
Yes
Lease and
Finance
Managem
ent API
3.6
3.5
Phase 3 - Initial
Load
Generate Draft Journal
No
Lease and
Finance
Managem
ent API
Description
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.
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.
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.
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.
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
97
Seq
PreReq
Phase
Task
Mandatory
Method
3.7
3.6
Phase 3 - Initial
Load
Approve Contract
Yes
Lease and
Finance
Managem
ent API
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
4.1.
2
4.1.
1
Phase 4 Book &

Terminate
Expired Contracts
(excluding
Evergreen
Contracts)
Age Expired Contracts

(solution 1)
Yes
Custom
4.1.
3
4.1.
2
Terminate Expired Contracts

(solution 1)
Yes
4.1.
4
4.1.
3
Phase 4 Book &

Terminate
Expired Contracts
(excluding
Evergreen
Contracts)
Phase 4 Book &
Terminate
Expired Contracts
(excluding
Evergreen
Contracts)
Suppress Termination
Accounting Transactions in
Lease and Finance
Management (solution 1)
Yes
Lease and
Finance
Managem
ent
concurren
t program
Custom
4.1.
5
4.1.
4
Phase 4 Book &

Terminate
Expired Contracts
(excluding
Asset Cost Adjustment

(solution 1)
Yes
Custom
Description
generation.
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.
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.
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.
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.
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.
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
98
Seq
PreReq
Phase
Task
Mandatory
Method
Evergreen
Contracts)
Description
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
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
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
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.
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
API to add assets to FA directly from a
converted contract with NEW status.
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
5.1
3.1
5.2
5.1
Phase 4 Book &

Terminate
Expired Contracts
(excluding
Evergreen
Contracts)
Phase 5 Load
Open
Receivables
Asset Cost Adjustment

(solution 2)
Yes
Custom
Load Billing Interface
No
Custom
build to
load data
to Lease
and
Finance
Managem
ent
interface
table
Phase 5 Load
Open Receivables
Third Party Billing Import

Program
No
Lease and
Finance
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.
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.
Run the concurrent program Third Party
Billing Import to pass all records from the
99
Seq
PreReq
Phase
Task
Mandatory
Method
Description
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.
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.
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.
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).
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.
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.
5.3
5.2
Phase 5 Load
Open Receivables
Prepare Receivable Bills
No
Lease and
Finance
Managem
ent
concurren
t program
5.4
5.3
Phase 5 Load
Open Receivables
Receivable Bills
Consolidation
No
Lease and
Finance
Managem
ent
concurren
t program
6.1
3.7

Aging (Active
Contracts Only)
Activate Contracts
Yes
Lease and
Finance
Managem
ent API
6.2
6.1

Aging (Active
Contracts Only)
Suppress Booking & Billing

Accounting Transactions in
Lease and Finance
Management
Yes
Custom
6.3
3.5

Aging (Active
Contracts Only)
Flag Billed Streams
Yes
Custom
100
Seq
PreReq
Phase
Task
Mandatory
Method
6.4
3.5

Aging (Active
Contracts Only)
Flag Accrued Streams
Yes
Custom
6.5
5.3

Aging (Active
Contracts Only)
Receivables Invoice Transfer

to AR
No
Lease and
Finance
Managem
ent
concurren
t program
6.6
6.5

Aging (Active
Contracts Only)
AR Auto Invoice Master

Program
No
AR
concurren
t program
6.7
6.6

Aging (Active
Contracts Only)
Update Tax Lines in AR
No
AR API
6.8
6.7

Aging (Active
Contracts Only)
Fetch AR Invoice Numbers
No
Lease and
Finance
Managem
ent
concurren
t program
Description
This prevents billing the customers again
for past periods.
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.
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 wont
be able to see the open receivable invoices
in Lease Center (Lease and Finance
Managements 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.
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.
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.
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.,
101
Seq
PreReq
Phase
Task
Mandatory
Method
6.9
3.2

Aging (Active
Contracts Only)
Pay Invoices Transfer to AP

Invoice Interface
No
Lease and
Finance
Managem
ent
concurren
t program
6.10
6.9

Aging (Active
Contracts Only)
Payables Open Interface

Import
No
AP
concurren
t program
7.1
6.10
Phase 7 Account
Balances Import
Create Trial Balance from

Legacy System
Yes
Custom
7.2
7.1
Phase 7 Account
Balances Import
Identify Accounts for

Opening Balance Import
Yes
Custom
7.3
7.2
Phase 7 Account
Balances Import
Load Opening Balances
Yes
Custom
build to
load data
to GL
interface
table
7.4
7.3
Phase 7 Account
Account for Sub ledger
Yes
AP, AR
Description
previously unfetched records) within the
Lease and Finance Management invoice
grouping tables used to consolidate records
for invoice preparation.
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.
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.
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.
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.
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 nonadjusting period previous to the
planned live period.
Once the opening balances are imported
102
Seq
PreReq
Phase
Task
Balances Import
Journal Entries
Mandatory
Method
Description
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.
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.
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.
7.5
7.4
Phase 7 Account
Balances Import
Post Sub Ledger Journal

Entries to GL
Yes
GL
concurren
t program
7.6
7.5
Phase 7 Account
Balances Import
Create Trial Balance from

Oracle General Ledger
Yes
Custom
103

Oracle Lease and Finance Management Conversion Cookbook

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Oracle Lease and Finance

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

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

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

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

Stage 3 Prepare for Conversion .....................................................................................................24

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

Master Data ............................................................................................................................................ 24

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

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

Stage 4 Conversion Execution........................................................................................................27

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

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

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

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

Load Customers ..................................................................................................................................... 33

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

Common Issues & Recommendations .....................................................................................42

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

Determine Conversion Scope................................................................................................................. 29

Contract Import ...................................................................................................................................... 44

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

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

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

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

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

Common Issues & Recommendations .....................................................................................66

Phase 5 Load Open Receivables ....................................................................................................67

Import Contracts .................................................................................................................................... 60

Activate Expired Contracts .................................................................................................................... 52

Load Billing Interface ............................................................................................................................ 67

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

Common Issues & Recommendations .....................................................................................71

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

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

Common Issues & Recommendations .....................................................................................80

Phase 7 Account Balances Import ..................................................................................................81

Create Trial Balance from Legacy System ............................................................................................ 81

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

Common Issues & Recommendations .....................................................................................86

Conversion Cookbook- Plan, Prepare & Execute

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

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

Conversion Cookbook- Plan, Prepare & Execute

1. Disclaimer and Recommendation

Conversion Cookbook- Plan, Prepare & Execute

Figure 1: Stages in Conversion Process

Establish Strategy Objectives

Define Scope for Conversion

Design and Analyze Data

Develop Execution Script

Develop Reconciliation Approach

Develop a Recovery Plan

Identify Custom Builds

Develop Conversion Plan

Build Reconciliation Reports

Build Custom Objects and Processes

Conversion Cookbook- Plan, Prepare & Execute

Test Conversion Process

Extract and Stage Legacy Data

Master Data Load

Initial Contract Load