Knowledge Sharing | Calculate Monthly Lease Interest for Nonmonthly Asset Lease Payments
SummaryKnowledge Sharing | Calculate Monthly Lease Interest for Nonmonthly Asset Lease Payments
This feature is available in 20A
Calculate monthly accrued interest for leases with quarterly, semi-annual, or annual frequency. The application calculates the present value based on the lease payment frequency, and then allocates the calculated interest evenly to each month.
The Create Lease page includes a new option, Calculate monthly accrued interest. Normally, for a lease with a nonmonthly payment frequency, for example, a quarterly payment frequency, the application accounts for interest on lease liability at the end of each quarter as and when the payment occurs. As a result, there is no interest expense in other accounting periods. When you enable the Calculate monthly accrued interest option, the application accounts for interest on lease liability monthly instead of quarterly.