Lease with Arrears Payment
I am working an implementing Lease Accounting and have run into an issue. I have the following scenario:
Equipment Lease with
- Start Date of 6/1/21
- End Date of 5/31/26
- Amortization follows lease start and end dates
- Start 6/1/21
- End 5/31/26
Payment and Line
First payment is 7/1/21 for a total of 60 installment payments. This means the last payment would be made 6/1/26 (arrears payment paying for May principle and interest)
- I am unable to enter the 6/1/26 payment due to it being outside the Lease and Asset date range.
- Also with the start of the lease being in June and the first payment starting in July it errors because first payment is not in the same period. Not sure if it is right or not but to get around this issue I have add 1 payment line for $0.00. See attached Payment Line Example.