Recording Lease Interest

The Record Lease Interest page lets you recognize the interest amount per period. The interest amount comes from the lease amortization schedule on the lease record. The interest journal includes a link to the related lease record.

To use this feature, you must create additional GL accounts. For more information, see Setting Up General Ledger Accounts for Lease Accounting

To record the interest incurred on your leased assets:

  1. Go to Fixed Assets > Leases > Record Lease Interest.

  2. Provide values for the following fields:

    • Date – Enter a date for the lease payments.

    • Subsidiaries – Select the subsidiaries of the leased assets.

  3. Click Record Interest.

    Note:

    You can record interest only for Lease records with an Asset Created status.

The system creates an interest journal for lease payments without a lease interest, dated on or before the date entered. A link to the interest journal entry is available in the Lease Amortization Schedule subtab in the Lease record.

The interest journal lines are as follows:

The GL accounts used in the interest journal is sourced from the accounts you set in the Posting Reference subtab of the Lease record. The generated journal is automatically approved if any of the following conditions are met:

Otherwise, the journal is set to Pending Approval.

General Notices