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    • Lease interest accrual as periodic compounding rate - 24D new feature - is not working accurately

    edited Dec 26, 2024 9:55AM in Lease Accounting 2 comments

    Hi All,

    We have enabled period compounding method for leases as per 24 D upgrade.

    We have below scenario for lease.

    Lease start date - 02 March 2023

    Lease end date - 01 March 2026

    Interest rate - 7.51075%

    installment amount - 143,419

    installment payment type in arrears

    1st payment date 01 April 2023

    no of installments - 36 months

    payment frequency - monthly

    I have attached lease calculation as per lease module and also created same lease in Fixed Asset module Lease functionality ( This also uses periodic compounding)

    We have below questions :

    1. Why is the Lease Accounting Module charging interest expense starting from the first month? interest payment is in arrears and there is not payment in 1st month. If you see asset lease in FA module it create interest expense from 2nd month onward but Lease accounting module starts from 1st month.
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