Lessee Accounting (Release 9.2 Update)

Complete the fields on this tab if you are creating a lessee lease.

Lessee

Select this option to specify that this is a lessee accounting (payables) lease. When you select this option, the system enables the other fields on this tab for editing. Additionally, the system displays lessee-related fields in the detail area, and generates accounts payable transactions instead of accounts receivable transactions. Once the Lease Liability Status value is 10 or greater, the system disables this field.

Default Lease Classification

Specify the default lease classification for the items on the lease. The default value for this field is retrieved from the Real Estate Management Constants. You can override this value on the individual lines on the lease if necessary. This field must be set to Operating Lease or Finance Lease in order to create amortization schedules for leased assets.

Borrowing Rate

Specify the annual borrowing rate for the lease. You must enter a borrowing rate to create amortizations schedules. You can override this value on individual lease lines if necessary.

Reasonably Certain to Exercise Option

Select this option if you are reasonably certain to exercise the option on this lease. The default value for this field is retrieved from the Real Estate Management Constants. You can override this value on individual lease lines if necessary.

Category Codes 1 through 5

Use these fields to enter user-defined information for your lease.