Creating a Lease without generating Payables Invoices
SummaryWhat are the best practices?
When creating Leases in Fixed Assets, we are selecting Generate Invoices = No
This is because the Lessor sends us VAT invoices. In Payables, the Lease invoice is accounted as DR: Lease Clearing
What are some of the implications that other clients have experienced with this? I can think of the following;
- Broken link between Lease in Fixed Assets and Payables invoice
- Additional reconciliation of the Lease Clearing Account
- Lease invoices don't arrive on time, creating a need to accrue for the cost
Any other issues clients have come across in this space?