Enter Other Payments
Explanation
This activity is used to enter other payments relating to a lease contract.
The possible values for the other payments are as follows:
- Prepayment: The prepayments made before starting the lease contract.
- Direct Cost: Costs of obtaining a lease that would not have been incurred if the lease had not been obtained, except for such costs incurred by a manufacturer or lessor in connection with the lease contract. Example: Commissions paid to agents for establishing the lease.
- Incentive: In-cash or any kind of incentives connected
to the lease contract. Other Payments in this category will be considered as
negative values in calculations. Example: Free rent period(s).
Prerequisites
In order to enter information in the Other Payments section,
the general information must have been entered on the
Lease Accounting Contract page.
System Effects
As a result of this activity:
- Other Payments that are connected to the lease contract are not considered for the calculation of present value
of minimum lease payments (PVMLP). These payments should be handled using Manual Supplier Invoices, Manual Vouchers
or Direct Cash Payments and should be included in the Right-of-use asset manually.
- Other Payments are available only for information purpose if the
Leasing Type in the General tab of the
Lease
Accounting Contract page is Finance.
- If the Leasing Type in the General
tab of the Lease Accounting Contract page is
Operating, Other Payments registered
here will be used in calculating the periodical Lease Expense under Operating Lease in US GAAP.