Overviews

Accrual Base Recurring Charges

Accrual base recurring charges module allow users to account for recurring charges on accrual basis only. The difference in accrual and cash basis recurring charges is, using cash basis, the assessment income or payable is recorded in the general ledger when lessee pays the assessment whereas in an accrual basis, the assessment income or payable is recorded in the general ledger when the assessment is assessed to the lessee.

LeasePak maintains separate general ledger accounts for recurring charge receivable and recurring charge income/payable. The existing RCR1 accounts are as follows:

• ASSMT RECV – RCR CHG 1
• ASSMT INC/PAY – RCR CHG 1

The Assessed Fee general ledger account is currently used as a transitional account for assessments accounted for on cash basis. This is a substitute of crediting an income or payable account when an amount is assessed, the Assessed Fee amount is used as the offset to the recurring charge receivable general ledger account. When the recurring charge is paid by lessee, the amount will be recognized as an income or a payable. The assessed Fees will be cleared and the offsetting credit will be made to the recurring charge income or payable account. LeasePak will not use the Assessed Fee general ledger if the recurring charge is accounted for on an accrual basis.

Cash Basis G/Ls for RECR Type I, P, T

LeasePak support cash basis accounting for recurring charges and the applicable general ledger accounts for accruals and payments will be as follows:

Accrual Base G/Ls for RCR Type I, P, T

LeasePak support accrual base accounting for recurring charges and the applicable general ledger accounts for accrual and payments are as follows:

Assessed Fee accounts will be skipped when using accrual basis RCR types.

E - Escrow type RCR is already in accrual basis.