Unable to find deposit payment processing capability for Lease Out Scope Item 21Q

[NajAminuddin]

Unable to Fit-to-Standard if there is no capabilities for Deposit Payment processing within Lease-Out Scope Item 21Q under CLM module - causing delay in 21Q sprint timeline.

[andre_nakratzas]

Hi when you refer to a deposit what do you mean with this exactly? Is this a bond that is received prior to the lease commencement which is either partially or fully returned at the end of the lease?

Or are you referring to the first 2 months rent must be paid in advance prior to commencement of the lease contract?

In other words is the deposit considered a rent payment?

Regards, Andre

[NajAminuddin]

Hi @andre_nakratzas, thanks for your comment.

We are referring to scenario 1: "a bond that is received prior to the lease commencement which is either partially or fully returned at the end of the lease"

[andre_nakratzas]

Hi if you referring to public cloud in that case unfortunately this special GL indicator is not available in the configuration as you can see below.

This means you are limited in changing the subledger account for the customer. You can still change the target GL account by creating a new condition type so instead of rent, you can post to bond for example.

[NajAminuddin]

Hi Andre, When you said still can change the target gl account by creating condition type bond, this means it will post to reconciliation account or normal gl?

[andre_nakratzas]

Hi on the bond posting there will be 2 entries:

Debit Customer Recon GL

Credit Bond GL

With the special GL indicator there would be an option to change the Debit GL to instead use the standard Customer reconciliation account, to a separate Customer reconciliation account for Deposit Payments. This option is not available in Public Cloud.

However the Credit entry can go to any GL account that you want, as long as you create a separate set of Flow Types for the Bond Condition Type. The Flow Types will point to the Account Symbols and the Account Symbol will point to the GL account. For Bond the credit entry doesn't have to point to the Rent Revenue account, but can point to a separate GL for Bond.

That way you can manage the Credit entry, however the customer entry will go to the default Customer Recon Account.

Regards, Andre

[NajAminuddin]

Hi @andre_nakratzas, could we please receive your full response? Your latest comment seemed truncated somehow. Thanks for your support.

[andre_nakratzas]

Please refresh your screen as I had to edit my comment.