Defining Borrowing Interest Rate

To define default borrowing rates, use the Borrowing Rate Default component (RE_BORROW_RATE).

Page Name

Definition Name

Usage

Borrowing Rate Default Page

RE_BORROW_RATE

Define a default borrowing rate to be used in the classification of a lease.

Use the Borrowing Rate Default page (RE_BORROW_RATE) to define effective dated borrowing rates to be assigned to new leases.

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Set Up Financials/Supply Chain > Product Related > Lease Administration > General Definitions > LA Borrowing Interest Rate

This example illustrates the fields and controls on the Borrowing Rate Default Page. You can find definitions for the fields and controls later on this page.

 Borrowing Rate Default Page

Field or Control

Description

Borrowing Rate Percent

If an interest rate is not entered on the lease, then the borrowing rate percent is used to calculate the present value of lease payments. The borrowing rate percent default value can be overridden during lease entry.