This activity is used to enter new periodical minimum lease payments (Fixed or Incremental) as a result of extending the lease term. These payment terms are known as Standard Terms in the lease accounting process.
Category of the Terms and Conditions represents payments that are agreed upon with the lessor in the lease agreement and that are used in the calculation of present value of minimum lease payments.
In the Type of Payment list, select the type of the periodical minimum lease payments agreed in the lease contract. This field is enabled if the Category is set to Standard Terms. The type of payments can be Fixed (i.e., the same payment amounts throughout the lease term) or Incremental (increased by a certain percentage or an amount from the first installment).
Non-Lease amounts may represent payments for services, maintenance, or any other such fee. These amounts can be entered just for information purpose and will not be considered in any calculation or posting. Further, Non-Lease Amounts can be entered only for the Category, Standard Terms.
In order to enter a Standard Term in the Terms and Conditions section using the Terms and Conditions dialog, the following information must have been completed:
As a result of this activity, a new Standard Term is available for the lease accounting process.