Add One-Time Payments

Explanation

This activity is used to enter payments such as exercise price of an option to purchase the underlying lease asset, amounts payable under residual value guarantee in accordance with the lease agreement or any expected termination penalties to be able to apply them in the lease accounting process. These payments are known as One-Time Payments in the lease accounting process.

The One-Time Payment date should be within the date range of payments registered in the Category, Standard Terms. If the Payment Start Date of One-Time Payments does not match with a specific Payments Due Date in the schedule, those One-Time Payments are included in the next possible payments due date in the Amortization Schedule.

Prerequisites

In order to enter One-Time Payment in the Terms and Conditions section using the Terms and Conditions dialog, the following information must have been completed:

•  Information should be entered on the General tab of the Lease Accounting Contract page.
•  It is optional to have an amortization schedule created in the Amortization Schedule tab of the Lease Accounting Contract page. If the One-Time Payment is added as a modification to the lease contract it is required to have an amortization schedule in the aforementioned tab.
•  Status of the Lease Accounting Contract page should be in the status Preliminary.
•  Terms and conditions line should exist in the Category, Standard Terms in the Terms and Conditions section.

System Effects

As a result of this activity, One-Time Payment is available for the lease accounting process.

Pages

Lease Accounting Contract
Lease Accounting Contracts

Activity Diagrams

Modify Lease Contract