This chapter contains the following:
How You Validate a Lease
Once you have created the lease and provided the asset and payment information, you must validate the lease.
You will receive the confirmation message on validation of the lease.
How You Generate a Lease Schedule
Once you have validated the lease, you must generate the schedules.
Click Generate Schedules.
You will receive the confirmation message on the generation of the schedules.
The following periodical schedules are generated:
Lease Liability and Right-of-Use are amortized between amortization start and end dates.
Currently, Daily Compounding Interest Method for Interest Calculation and Daily Amortization Method for Amortization are available.
For daily calculations, you can define an irregular calendar such as 4-4-5.
Based on the number of dates in a period, daily amortization differ from period to period.
The annual discount rate say 7% is converted to daily compounding rate as shown below and used for calculation of present values and daily interest.
7% annual rate = (1+Rate%)^(1/365 or 360)-1 = 0.00018538
How You Search for Existing Leases
Once you have created and activated a lease, you can search for it from the header section of the Leases page.
To search for the leases :
These fields are available as search parameters:
Search based on the business unit.
Search based on the lease number that the lease belongs to.
Select the lessor of the lease that the lease belongs to.
Lease Start Date
Search based on the start date of the lease.
Search based on the legal entity that the lease belongs to..
Search based on the name of the lease.
Search based on the type of asset.
Search based on the account class.
Search based on lease status.
The results are displayed in the body section of the Leases page.
Click the lease number to open the lease details.
Click Save to retain the search information.
If needed, you can use Reset to clear the search information.