Cycle Accruals [U0301]
'B' Method IBLs: refer to the
Interest Accrual After Maturity section of the Interest Bearing Loans overview document for more information on how LeasePak accrues interest on loans after maturity.
Introduction
The Cycle Accruals update [U0301] is used to accrue or reverse accruals interactively for a lease. There is also the option to accrue for a selection of leases or for all leases in the entire LeasePak system. All leases selected are accrued to their current point, as determined by the system based on the current date. "Catch-up" accruals are performed if the lease has missed more than one accrual. Selected leases that are already current are not accrued. Therefore, a lease is never accrued past its current point, regardless of the number of times the Accrual option is selected for the lease.
The Cycle Accruals update is normally automatically run during the End of Period process [U04] according to predefined cycles. These cycles are specified through the Predefined Cycles Customizations option of the Portfolio update [U0212].
Cycle Accruals may also be performed interactively, without affecting the normal End of Period operation (if the leases are already accrued from the interactive update, the Exception report will list them as such). The update can be accessed through the LeasePak Update menu, Predefined Cycle option or by entering U0301 into the Fast Menu <F2>.
Cycle Accrual processing can not be applied to leases in non-accrual status.
The accrual process performs the following functions:
- Income
Recognition
Income is recognized for the lessor, vendor, investor, IDC/IDR and ITC for book purposes according to the specified accrual method(s). If a lease is in a suspended earnings status, income and receivables accrued are placed in the suspended General Ledger accounts. The amount of income accrued is accumulated in a field on the Master Financial (RLS) file, for later use if earnings are reinstated for the lease.
- Accounts Receivable
- Accounts receivable for lease payments is established if a payment is due.
- Use Tax Calculation and Accrual
Use tax is calculated and added to the accounts receivable. If there are multiple assets for the lease, the use tax for each asset is calculated separately based on the location of the asset, the appropriate tax rate for the location, and any use tax ceilings that may be in effect for the particular taxing entity. (A use tax ceiling is a maximum use tax amount per payment established by the taxing entity.)Use tax is calculated based upon the current tax payment code and location of the asset. Incorrect use tax may be calculated if the location and/ or tax payment code is changed during the period for which the accrual process is performed.
The Accounts Receivable (RAR) file contains fields which make it possible to prorate sales tax for partial payments. These fields (PRIN_STAX_C and INT_STAX_C) are automatically set to Y if sales tax is due for an item. If a partial payment of a taxable item is received, LeasePak calculates the portion of the payment which should be applied to sales tax. Thus sales tax receipts correspond closely to taxable gross receipts.
LeasePak may cause a $0.01 difference for IDC/IDR's on some IBL's when an accrual, accrual reversal and a re-accrual is performed.
LeasePak may cause a $0.01 difference for IDC/IDR's when the amortized IDC/IDR is reversed.
LeasePak always uses the tax rate applicable to the lease due date, not the tax rate applicable to the date on which the accrual occurred
Four reports are produced by the Accrual option of the Cycle Accruals update [U0301]:
- Precomputed
Income Accrual Register
All leases accrued with a precomputed income method (FASB level yield, Rule of 12/78ths, Rule of 12/78ths Half Month Convention, and straight line) are displayed on this report. Precomputed income accrual methods are characterized by the use of contract receivable and unearned income General Ledger accounts. The total amount of income to be earned over the term of the lease can always be determined at commencement.
- Simple
Interest Accrual Register
All leases accrued with a simple interest income method, fixed or floating, are displayed on this report.
- Operating
Lease Accrual Register
All operating leases are displayed on this report. Operating leases recognize the entire lease payment as income. Straight-line operating leases recognize an average monthly payment as income. The difference from the actual amount due is recorded as unbilled income.
- Accrual
Message Report
This report contains exception information for special messages and errors encountered during the accrual process. It should always be reviewed after any accrual process.
The Accrual Reversal option of the Cycle Accruals update [U0301] reverses the accrual process for a specific lease. For example, one use of the Accrual Reversal option occurs when adding an asset to a lease as of a past date. In this process, the accruals for the lease are reversed to the date the asset is to be added, then the asset is added using the Asset Add-on update [U0113], and the lease is re-accrued using the Accrual option of the Cycle Accrual update [U0301].
Another example of the use of the Accrual Reversal option is payment reschedule for a lease as of a past date. In this process, accruals for the lease are reversed to the date of the payment reschedule, then the payments are rescheduled using the Payment Reschedule update [U0104], and the lease is re-accrued using the Accrual option of the Cycle Accrual update [U0301].
No reports are produced by the Accrual Reversal option of the Cycle Accruals update [U0301].
Use tax is calculated based upon the current tax payment code and/or location of the asset. Incorrect use tax may be calculated if the location and/or tax payment code is changed during the period for which the accrual reversal process is performed.
If a previous payment schedule adjustment has been done, such as through the Asset Payoff/Termination options of the Payoff update [U0103], the Payment Reschedule update [U0104], or the Asset Add-on update [U0113], and accruals are reversed to before the date of the schedule change, incorrect income may be reversed.
LeasePak will allow for Multiple Due Day changes to be made to a lease via the Payment Due Day Change [U0118] update when the MULTI DUE DAY CHANGE RESTRICTION field is set to 'Y'. Every time the Due Date is changed, the final payment day will change, based on certain lease criteria. There will be no restriction on the number of times the Due Date can be changed throughout the life of the lease. An edit check will be in place so as to not allow a Due Date Change for more than 25 days per occurrence.
Also, the entire amount of recurring charges on the invoice(s) to reverse is waived. This includes any recurring charge amounts which may have been manually assessed.
Accrual Cycle
The accrual cycle serves 2 functions:
- defines the day(s) of the month on which a payment may be due
- determines when it is time to run the Cycle Accrual from the End of Period function [U04]
All possible payment due days are established in the accrual cycle through the Predefined Cycles Customizations option of the Portfolio update [U0212]. Lease payments may be due only on a valid payment due day. Payment due days also trigger the accrual process during the End of Period process [U04].
Accrual Day
The date on which any particular lease is accrued is based on 3 factors:
- the payment due day of the lease
- the accrual cycle established through the Predefined Cycles Customizations option of the Portfolio update [U0212]
- the accrual deferral days for the portfolio (established through the Miscellaneous Customizations option of the Portfolio update [U0212])
Late charge grace days at the lease level (established through the Book Lease option of the New Lease update [U0101]) is not used in accrual cycle calculations. It is used in late charge calculations only.
To determine the day on which a lease accrues:
- Add the portfolio accrual deferral days to the payment due day of the lease.
- If the resulting number is greater than 31, subtract 31 from the number.
- The first day in the accrual cycle on or after this day is the day the lease is accrued.
For example, assume that the accrual cycle is set up for the first, fifth, tenth, fifteenth, twentieth and twenty-fifth days of the month. A lease billed in advance with a payment due date of February 10 will accrue income for the February 10 payment on January 10 with an accrual deferral period of zero days, January 15 with an accrual deferral period of 5 days, or January 20 with an accrual deferral period of 10 days.
LT method leases do not accrue until the due day of the payment plus grace days has past.
With the 1994 JULE Fund the first accrual period may be longer than subsequent accrual periods for level yield leases billed monthly in arrears and for fixed rate IBLs using the principal and interest accrual method billed in arrears. This is accomplished by coding Y in the LEASE DATE AFFECTS YIELD switch in the New Lease screen of Portfolio update [U0212]. The first accrual period then begins on the lease date, earlier than the commencement date. Yield is reduced.
For IBL's with Capitalized Interest set to 'I', LeasePak will calculate interest on the interest that is paid after the due date.
Accrual Range
When the Accrual option of the Cycle Accruals update [U0301] is executed interactively, a specific range of payment due days is selected by the user; all leases with a payment due day on or between the specified start and end days are accrued.
When Cycle Accruals is executed through the End of Period process [U04], the accrual process computes the range of payment due days, based on the current date and the last End of Period Cycle Accrual. The start day for the range is the previous cycle accrual's end day plus one. The end day for the range is the current day. All leases with a payment due day on or between the calculated start and end days are accrued for payments due the following month.
This screen is used to select the Cycle Accruals update [U0301] option.
Accrual
This screen is used to select a lease or group of leases to accrue.
- ALL
Enter X to accrue all leases. Leave blank to accrue a particular portfolio, company, region, office, and/or lease.
- PORT
Enter the number of the portfolio to accrue. Leave blank to accrue across portfolios.
- COMP
Enter the number of the company to accrue. Leave blank to accrue across companies.
- REGN
Enter the number of the region to accrue. Leave blank to accrue across regions.
- OFFIC
Enter the number of the office to accrue. Leave blank to accrue across offices.
- LEASE
Enter the number of the lease to accrue. Leave blank to accrue across leases.
This screen is used to select the range of payment due days for the lease or group of leases to accrue.
The values in the START DAY and END DAY fields are initially defaulted to include all possible payment due days (1 through 31), but may be changed to produce a narrower range. If only leases with a particular payment due day are to be accrued, both START DAY and END DAY may be set to the same value.
Cycle Accrual Audit - Precomputed Income Accrual Register
The Cycle Accrual Audit report [U0301A] reports at the lease level and provides the following income accrual information for each precomputed interest lease accrued:
- LEASE
The number of the lease accrued is displayed.
- SE
This column designates if a lease is in suspended earnings status or is extended. An asterisk (*) is displayed if the lease is in a suspended earnings status. An R is displayed if the lease has been extended using the RES method on a cash basis.
- NET INVESTMENT
The net investment of the lease after the accrual process is displayed.
- LESSOR ACCRUED INCOME
The amount of income accrued to the lessor is displayed. If the lease has been extended using the RES method on a cash basis, this amount represents the amount of deferred income.If more than one month is accrued, each month's income accrual is shown on a separate line, up to a maximum of 10 months. If more than 10 months are accrued, the first 9 months' income accruals are shown and the remaining accruals are accumulated in the tenth line.
- RESIDUAL
ACCRUED INCOME
The amount of residual income accrued is displayed. See Note above. If the lease has been extended using the RES method on a cash basis, this amount represents the amount of deferred residual.
- VENDOR
ACCRUED INCOME
The amount of income accrued to the vendor is displayed. See Note above.
- INVESTOR ACCRUED INCOME
The amount of income accrued to the investor is displayed. See Note above.
- IDC
ACCRUED INCOME
The amount of initial direct costs (IDC) amortized is displayed. See Note above.
- ITC ACCRUED
INCOME
The amount of income accrued for investment tax credit (ITC) is displayed. See Note above.
- NET PAYMENT
The lease payment for each month accrued, not including use tax, is displayed.
- USE TAX
The use tax for the lease payment for each month accrued is displayed. If the Sales Tax On Assessment module is purchased, this will also include any sales tax calculated for recurring charges or other assessments.
- OTHER ASSESSMNTS
The total amount of other assessment charges for each month accrued is displayed. OTHER ASSESSMENTS are recurring charges or late charges.
- GROSS PAYMENT
The total payment is displayed. It is calculated as follows: - /IDC1
The total amount for IDC 1- Insurance Premium, is displayed.
NET PAYMENT
+ USE TAX
+ OTHER ASSESSMENTS
- /IDC2
The total amount for IDC 2 - Notary Fee, is displayed.
- /IDC
3
The total amount for IDC 3- Fixed Rate Reserves, is displayed.
- /IDC4
The total amount for IDC 4- Standard Reserves, is displayed.
- /IDC5
The total amount for IDC 5- Guaranteed Reserves, is displayed.
- /IDR1
The total amount for IDR 1- Insurance Fees, is displayed.
- /IDR 2
The total amount for IDR 2- Registration Fees, is displayed.
- /IDR3
The total amount for IDR 3- Vendor Subsidy, is displayed.
- /IDR 4
The total amount for IDR 4- Opening Commission is displayed.
- /IDR5
The total amount for IDR 5-Subvention, is displayed.
- /IDR
6
The total amount for IDR 6-Dealer Buy Down, is displayed.
- /IDR7
The total amount for IDR 7-Credit Life Insurance 1, is displayed.
- /IDR8
The total amount for IDR 8- Credit life Insurance 2, is displayed.
- /IDR9
The total amount for IDR 9- Credit Disability Insurance 1, is displayed.
- /IDRA
The total amount for IDR A-Credit Disability Insurance 2, is displayed.
- /IDRB
The total amount for IDR B- Acquisition Fee, is displayed.
- /IDRC
The total amount for IDR C- Warranty Insurance Fee, is displayed.When the Vehicle Finance module is purchased, LeasePak will display the IDC/IDRs totals.
When accruals or accrual reversals are being run for the first time with the new IDC/IDRs, the first lease with IDC/IDR fees may be $0.01 less than the amortization schedule generated. The penny difference will be recognized when all IDC/IDR's are fully amortized.
- TOTALS
The totals for each column show the total amount for active leases, the total amount for leases in a suspended earnings status, the total amount for leases extended on a cash basis (deferred), and the combined total for all 3. The numbers of active leases, suspended leases and deferred leases are displayed.
Cycle Accrual Audit - Simple Interest Accrual Register
The Cycle Accrual Audit report [U0301B] reports at the lease level and provides the following income accrual information for each simple interest lease accrued:
- LEASE
The number of the lease accrued is displayed.
- SUSPND
EARNGS
An asterisk (*) is displayed if the lease is in a suspended earnings status.
- PRINCIPAL
OUTSTANDING
The principal outstanding of the lease after the accrual process is displayed.
- LESSOR
ACCRUED INCOME
The amount of income accrued to the lessor is displayed. If more than one month is accrued, each month's income accrual is shown on a separate line, up to a maximum of 10 months. If more than 10 months are accrued, the first 9 months' income accruals are shown and the remaining accruals are accumulated in the tenth line.
- PRIN RECV/INT ADJUST
For floating rate simple interest leases with constant payments (LT accrual method only), the difference between the level payment and the actual payment due for each month accrued is displayed. Differences occur because of changes in the base rate from the original (quoted) lease rate. This value may be positive or negative. A positive value indicates the base rate has risen, compared to the original rate and therefore, the lessee actually owes more than the established constant payment. A negative value indicates the base rate has fallen, and therefore, the lessee actually owes less than the established constant payment.
For floating rate simple interest leases with variable payments (VV and VL accrual methods only), the interest adjustment due to fluctuations in the previous accrual's base rate is displayed. An interest adjustment is necessary, because accruals are calculated in advance and, therefore, projected base rates must be used. The next period's income accrual must adjust the last period's projected income accrued, if the actual base rate for the last period differs from the projected base rate.For example, assume on January 1 the accrual process executes for payments due on February 1, and the interest accrued for the period of January 1 through January 31 is $100 based on a projected base rate of 10%. On February 1, the actual base rate for the period of January 1 through January 31 is 9%, which results in an actual interest amount of $90. The interest adjustment displayed for the period is $10.
- INCOME
DUE
The income due for each month accrued is displayed.
- PRINCIPAL
ACCRUED
The principal portion of the payment for each month accrued is displayed.
- OTHER ASSESSMNTS
The total amount of other assessment charges for each month accrued is displayed. OTHER ASSESSMENTS are recurring charges or late charges.
- BILLED PRN RECEIV
For floating rate simple interest leases with constant payments (LT accrual method only), the last period adjustment for overages or shortages due to fluctuations in the base rate from the original (quoted) rate is displayed. This value is only shown if the lease has matured.
- TOTAL
PAYMENT DUE
The total lease payment due is displayed. It is calculated as follows:PRINCIPAL ACCRUED
+ INCOME DUE
+ OTHER ASSESSMENTS
+ PRINCIPAL RECEIV (LT method only)
+ BILLED PRIN RECV (LT method only) - TOTALS
The totals for each column show the total amount for active leases, the total amount for leases in a suspended earnings status, and the combined total for both. The numbers of active leases and suspended leases are displayed.
Cycle Accrual Audit - Operating Income Accrual Register
The Cycle Accrual Audit report [U0301C] reports at the lease level and provides the following income accrual information for each operating lease accrued:
- LEASE
The number of the lease accrued is displayed.
- SUSPND
EARNGS
An asterisk (*) is displayed if the lease is in a suspended earnings status.
- NET BOOK VALUE
The current net book value of the lease is displayed. The net book value is calculated as: - ACCRUED
INCOME OPERATING
The amount of operating income accrued to the lessor is displayed.If more than one month is accrued, each month's income accrual is shown on a separate line, up to a maximum of 10 months. If more than 10 months are accrued, the first 9 months' income accruals are shown and the remaining accruals are accumulated in the tenth line.
LEASED ASSETS - ACCUMULATED DEPRECIATION
- ACCRUED
INCOME UNBILLED
The amount of unbilled operating income accrued to the lessor is displayed. Unbilled operating income is the difference between the amount accrued on a straight-line basis and the amount due. See Note above.
- IDC
ACCRUED INCOME
The amount of initial direct costs (IDC) amortized is displayed. See Note above.
- NET PAYMENT
The lease payment for each accrual month, not including use tax, is displayed.
- USE TAX
The use tax for the lease payment for each accrual month is displayed. If the Sales Tax On Assessment module is purchased, this will also include any sales tax calculated for recurring charges or other assessments.
- OTHER ASSESSMENTS
The total amount of other assessment charges for each accrual month is displayed.
- GROSS
PAYMENT
The total payment is displayed. It is calculated as follows:NET PAYMENT
+ USE TAX
+ OTHER ASSESSMENTS - TOTALS
The totals for each column show the total amount for active leases, the total amount for leases in a suspended earnings status, and the combined total for both. The numbers of active leases and suspended leases are displayed.
Cycle Accrual Exception - Accrual Message
The Cycle Accrual Exception report [U0301D] reports at the lease level and displays messages on the status of accrual processing.
- PORTFOLIO/COMPANY/REGION/OFFICE/LEASE
The P/C/R/O and lease number are displayed.
- MESSAGE
Most messages indicate that the lease did not accrue (except those which specifically state that the accrual did complete). After accrual, each message appearing on this report should be examined and corrective action should be taken immediately, where warranted. Possible accrual messages and their meanings (in alphabetical order) are:ACCRUAL TYPES ARE NOT ALL APR
If one lessor, vendor, or investor accrual method for a lease is AAPR or RAPR, then all accrual methods must be of that type. This message indicates a data error. Notify your client services representative at NetSol.BASE RATES DO NOT EXIST FOR THE LEASE
This message is used for floating rate interest accruals only. It means that no record was found on the Base Rates (RPR) file for the base rate code for the lease. Reconfirm base rate code for the lease through the Master Financial update [U0202] and the base rates on the Base Rates (RPR) file through the Base Rates update [U0705].ERROR ENCOUNTERED DURING USE TAX ACCRUAL
Use tax could not be accrued for the lease because:
The record(s) on the Asset (REQ) file could not be found for the lease. This message indicates a possible data error. In this case, notify your client services representative at NetSol.
The record(s) on the Location (RLO) file could not be found for the lease. It is likely that the location record(s) were deleted through the Location update [U0701]. In this case, assess the use tax manually through the Assessment update [U0105], and re-add the location to the Location (DLO) file using the Location update [U0701] or change the location of the asset through the Asset update [U0210].
ERROR
IN NEXT PAYMENT DUE DATE. PLEASE NOTIFY NETSOL TECHNOLOGIES INC.
The next payment
due date for the lease is not correct. This message indicates a data error. Notify
your client services representative at NetSol.
ERROR
LIMIT (10,000) REACHED. PROCESSING HALTED.
The maximum number of messages
and/or errors (10,000) has been reached. Leases after the Portfolio/Company/Region/Office/Lease
number shown on the report were not accrued, and should be accrued interactively
using this update. If an invoicing run was also performed, the invoices for the
unaccrued leases do not show any payments scheduled to be accrued by this cycle.
Therefore, invoices should be regenerated using the Cycle Invoices update [U0302]
once the leases are interactively accrued.
GENERAL
LEDGER RECORD DOES NOT EXIST FOR THE OFFICE
The record for the office of the
lease was not found on the General Ledger (RGL) file. This message indicates a
data error. Notify your client services representative at NetSol.
IBL
HAS NEGATIVELY AMORTIZED BY $000,000.00 (PRN = $000,000,000.00)
A P&I
interest bearing loan has negatively amortized (interest amount due is greater
than the scheduled loan payment). The amount of the negative amortization (for
the current month only) is shown, as well as the new principal balance (including
the negative amortization amount). This message is informational only.
IBL
NET OUTSTNDG OF $000,000,000.00 > TARGET PRN BAL OF $000,000,000.00
The
net outstanding calculation (as defined through the Custom Calculations option
of the Portfolio update [U0212]) does not meet the target principal balance established
for this interest bearing loan. Target principal balances are set up during New
Lease booking and may be modified through the Master Financial maintenance update
[U0202]. This message is informational only.
LEASE
HAS ALREADY BEEN ACCRUED
The lease has already been accrued to its current
point. This message is informational only, and no action is needed.
LEASE
HAS BEEN TERMINATED EARLY
This message is used for floating rate/level lease
payments interest accrual only (LT accrual methods). It is informational and indicates
that the lease has matured earlier than its scheduled term due to a large build-up
in negative principal receivable. That is, the actual interest rate over the life
of the lease is considerably less than the scheduled interest rate, thereby allowing
the lessee to payoff earlier than scheduled. No refund of negative principal receivable
is required.
LEASE
HAS TERMINATED EARLY AND SOME MONEY MUST BE REFUNDED
This message is used
for floating rate/level lease payments interest accrual only (LT accrual methods).
It is informational and indicates that the lease has matured earlier than scheduled
and some negative principal receivable must be refunded to the lessee.
LEASE
IN GROUP CANNOT BE FOUND
The next lease in the group cannot be found. This
message indicates a data error. Notify your client services representative at
NetSol.
SOME MONEY
MUST BE REFUNDED ON THIS LEASE
This message is used for floating rate/level
lease payments interest accrual only (LT accrual methods). It is informational
and indicates that the lease has matured and some negative principal receivable
must be refunded to the lessee.
STATES
RECORD DOES NOT EXIST
This message is used for floating rate interest accrual.
It indicates that the state for the lessee's address does not exist on the State
(RST) file. Check the lessee's state using the Lessee update [U0203]. If the address
contains the correct state, use the State update [U0713] to see if the state exists
on the State (RST) file. NetSol provides a full State (RST) file at the initial installation.
It is maintained by the user.
TRANSACTION
IS IN PROGRESS
This message indicates that either the End of Period process
[U04] is already submitted for the portfolio or that a data file or record needed
for the accrual process is found to be locked by another user. Check to see if
the accrual process completed successfully.
UNABLE
TO ACCESS LEASE
This message indicates that the record for the lease on the
Master Financial (RLS) file is locked. Try executing the Cycle Accruals update
[U0301] for the lease again. This message should not appear if executing through
End of Period.
UNSUCCESSFUL
ACCESS OF NEXT UNLOCKED PORTFOLIO
This message appears only when executing
accruals interactively across portfolios. The program tried to access the portfolio
and failed because End of Period [U04] was submitted for the portfolio. During
the End of Period process [U04] the updates for the portfolio are locked. The
accrual process skips over the inaccessible portfolio and continues with the next
portfolio.
UNSUCCESSFUL
BEGIN TRANSACTION FOR FINAL UPDATING
This message indicates that initialization
is required before the final updating section may be completed. Final updating
is done to the End of Period (RAS) file if executing through End of Period or
the Operator (ROP) file if executing interactively. Contact your client services
representative at NetSol if this error occurs.
Totals for the Cycle Accrual Exception report [U0301D] show:
- MESSAGE COUNT
- TOTAL ACCRUED
Accrual Reversal
This screen is used to select the lease whose accrual is to be reversed.
This screen is used to enter the date back to which the accruals for the selected lease are to be reversed. Pertinent information about the lease is displayed.
All lease payments, use tax payments, vendor participation payments, and recurring charge payments made after the EFFECTIVE DATE must be reversed before accruals may be reversed for the lease. Use the Payment Reversal option of the Payments update [U0102] to reverse payments. The Accrual Reversal option does not reverse assessed late charges (and its associated sales tax, if the Sales Tax On Assessment module is purchased).
Assessed late charges must be waived using the Assessment Waiver option of the Assessment update [U0105].
This is the last screen of the Accrual Reversal option. When RETURN is pressed, the lease's accruals are reversed. If the accruals could not be reversed, a message is displayed indicating the problem, and no file updating is performed. If this occurs, correct the problem before attempting to reverse accruals again.
For example, if a payment due after the effective date is partially paid, a message indicating this is shown on the screen. Reverse the partial payment through the Payment Reversal option of the Payments update [U0102]. Then re-enter this update and try to reverse accruals again.
- LESSEE
SHORT NAME
The short name of the lessee is displayed.
- PAYMENT
DUE DAY
The payment due day of the lease is displayed.
- NUMBER
OF PAYMENTS ACCRUED
The current number of payments accrued for the lease is displayed.
- COMMENCEMENT DATE
The commencement date of the lease is displayed in MM/DD/YY or DD/MM/ YY format, depending on the Date Format Preference field in Security [U0706].
- CURRENT
ACCRUED TO DATE
The date to which the lease payments are currently accrued is displayed in MM/ DD/YY or DD/MM/YY format, depending on the Date Format Preference field in Security [U0706].
- EFFECTIVE
DATE
Enter the date in MM/DD/YY or DD/MM/YY format, depending on the Date Format Preference field in Security [U0706] to which the accruals for the lease are to be reversed. The EFFECTIVE DATE must be before the CURRENT ACCRUED TO DATE and on or after the COMMENCEMENT DATE. Also, the EFFECTIVE DATE must be a payment due date.For example, if lease payments are due monthly on the tenth of the month, the EFFECTIVE DATE must also be on the tenth of the month. If the lease payments are due quarterly (in January, April, July, and October) on the tenth of the month, the EFFECTIVE DATE must be either 1/10 or 10/01, 4/10 or 10/04, 7/10 or 10/07, or 10/10. It may not be 2/10 or 10/02, 3/10 or 10/03, etc.
LeasePak Documentation Suite
©
by NetSol Technologies Inc. All rights reserved.
The information contained in this document is the property of NetSol Technologies Inc. Use of the information contained herein is restricted. Conditions of use are subject to change without notice. NetSol Technologies Inc. assumes no liability for any inaccuracy that may appear in this document; the contents of this document do not constitute a promise or warranty. The software described in this document is furnished under license and may be used or copied only in accordance with the terms of said license. Unauthorized use, alteration, or reproduction of this document without the written consent of NetSol Technologies Inc. is prohibited.