Rental Income [R0409]

The Rental Income report [R0409] lists income earned and/or initial direct costs amortized for each lease.

The report may be accessed through the Audit Control report menu [R04] and may be selected interactively for:

• All leases
• A portfolio
• A company
• A region
• An office
• A lease

 

Rental Income Selection

• ALL
  Enter X to report on all leases. Leave blank to report on a specific portfolio, company, region, office or lease.
  
  
• PORT
  Enter the number of the portfolio upon which to report. Leave blank if reporting across portfolios.
  
  
• COMP
  Enter the number of the company upon which to report. Leave blank if reporting across companies.
  
  
• REGN
  Enter the number of the region upon which to report. Leave blank if reporting across regions.
  
  
• OFFIC
  Enter the number of the office upon which to report. Leave blank if reporting across offices.
  
  
• LEASE
  Enter the number of the lease upon which to report. Leave blank if reporting across leases.

 

Rental Income Selection

• ALL
  Enter X to report on all income elements for the lease. If ALL is not selected, any combination of the following 5 options may be selected. If more than 1 item is selected, the column figures consist of the sum of the items selected.
  
  
• LESSOR
  Enter X to report on the lessor's portion of the income.
  
  
• VENDOR
  Enter X to report on the vendor's portion of the income.
  
  
• INVESTOR
  Enter X to report on the investor's portion of the income.
  
  
• RESIDUAL
  Enter X to report on the residual portion of the income.
  
  
• IDC
  Enter X to report on the book amortization of initial direct costs.
  
  
• IDR
  Enter X to report on the book amortization of initial direct revenue.

 

Rental Income Report

The Rental Income report [R0409] reports at the lease level and provides the following information:

• LEASE
  The lease number is displayed.
  
  
• LESSEE NAME
  The short form of the lessee name is displayed.
  
  
• ACT STAT
  The activity status of the lease is displayed (e.g., ANOR = Active Normal, NSKP = Non-Accrual Skip). Refer to the Status Codes document for a list of lease activity status codes and their meanings.
  
  
• ACCRUED TO DATE
  The date to which income has been accrued is displayed.
  
  
• MATURITY DATE
  The date the lease matures (calculated using the commencement date and the lease term) is displayed.
  
  
• ORIGINAL UNEARNED
  The original income amount to be earned over the life of the lease (for precomputed lease types only) and/or the original unamortized initial direct costs (for any lease type) are displayed for the income elements (e.g., lessor, vendor, etc.) selected. For example, if lessor and investor income elements are selected, the ORIGINAL UNEARNED shown is the total of the lessor and investor original unearned amounts.
  
  
• MTD EARNED INCOME
  The amount of income accrued month-to-date and/or the month-to-date amortized IDC/IDR are displayed for the income elements selected.
  
  
• YTD EARNED INCOME
  The accrued income earned year-to-date and/or the year-to-date amortized IDC/ IDR are displayed for the income elements selected.
  
  
• LTD EARNED INCOME
  The accrued income earned life-to-date (for precomputed lease types only) and/ or the life-to-date amortized IDC/IDR (for any lease type) are displayed for the income elements selected.
  
  
• CURRENT UNEARNED
  The amount of income to be accrued over the remaining life of the lease (for precomputed lease types only) and/or the current unamortized IDC/IDR (for any lease type) are displayed. Current unearned is calculated as follows:

  ORIGINAL UNEARNED
  - LTD EARNED INCOME

Leases with Operating type accrual methods will be amortized with straight line methods. All other accrual methods, will be amortized with a proportional income basis method. However, IDRC-Warranty Insurance will use only straight line methods.

Leases that were booked with precomputed methods use a straight line amortization schedule when the following applies:

If the Sum of Payment Schedule - Total Contract Acquisition Cost = (+/ -) 0.99

Leases that were booked with IBL type accrual methods must have the Estimated Unearned income manually entered into the L_EST_UE_D field in the RAP or the RLS tables in order to calculate the earned IDC/IDR:

New Earned IDC/IDR: ((Lessor Rental Income Y-T-D/Estimated Unearned) *Original IDC/IDR) - IDC/IDR Y-T-D

If there is nothing entered in this field, LeasePak will calculate the Estimated Unearned as follows:

Estimated Unearned = Minimum Payments Receivable - Total Contract Acquisition Cost

The Total Contract Acquisition Cost is calculated as follows:

+ Unguaranteed Residual
- (Acquisition Cost - Down Payment)
- Other Charges

Minimum Lease Payments Receivable is calculated as follows:

Number of Payments * payment amount (according to payment schedule)
+ Guaranteed Residual
+ Interim Rent (when Interim Rent is set to N in [U0212NL])

If the yield/rate (Total Interest Rate) is zero, a straight line amortization method will be used for IBLs.

Note: The INCLUDE IDC IN 'NPV' and 'OPR' PAYOFFS' switch in the Payoff Customizations option of the Portfolio [U0212] update have no affect on the new IDC/IDR fields.

• TOTALS
  Page totals for number of leases and all dollar amounts are shown by office. Region, company, portfolio, and grand totals are shown for the number of leases and all income amounts.

 

Additonal Information

The Rental Income report [R0409] is an informational report only; it is not intended to be used in the General Ledger reconciliation process. In most cases, it may not be used to prove the income earned each month as shown on the General Ledger because special functions, such as the Change Lease Key update [U0114] and the Accrual Reversal option of the Cycle Accrual update [U0301], can redistribute or reverse income earned in an office. Such redistribution and reversal are not reflected in this report, though they would be reflected on the General Ledger.

 

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