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.