Accrual Precomputed Simple Interest Operating Message Reversal

Cycle Accruals [U0301]

• Accrual
  • Precomputed Income Accrual Register
  • Simple Interest Accrual Register
  • Operating Income Accrual Register
  • Accrual Message (Exception Report)


• Accrual Reversal

 

'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

Note: LeasePak maintains accrual, accrual reversal & accrual revesal (suspended) general ledger entries to amortize dealer bonus. To amortize the dealer bonus amounts LeasePak works same as is it does today for IDC3, Fixed Rate Reserve.

NOTE: LeasePak produces the following accrual general ledger entries to amortize dealer reserve. To amortize the dealer reserve amount LeasePak will work same as it does today for IDC3, Fixed Rate Reserve.

Alternate Accrual/Billing Cycles: For details of supported accrual methods for use with non-monthly accrual/billing cycle leases, refer to Alternate Accrual/Billing Cycles overview document.

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.
  
  The following table explains how earned income will be calculated for different accrual methods:
  
  

  Accrual Method	Accrual/Billing Cycle	Income
  AAPR, RAPR	Bi-Weekly	Earned income = Net Investment * Yield / 26
  	Monthly	Earned income = Net Investment * Yield / 12
  	Semi-Monthly	Earned income = Net Investment * Yield / 24
  	Weekly	Earned income = Net Investment * Yield / 52
  AOSL, ROSL	Bi-Weekly	Operating Income = Total Payments / Term (Months) / 12 *26
  	Monthly	Operating Income = Total Payments / Term (Months)
  	Semi-Monthly	Operating Income = Total Payments / Term (Months) * 2
  	Weekly	Operating Income = Total Payments / Term (Months) / 12 * 52

• 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.

LeasePak allows a user to create an advanced invoice, and checks for an advanced invoice that already exists and add to that invoice if it exists. When accruing an invoice that already exists an advanced invoice, LeasePak checks for any lease-level assessments that have been added and include them in the accrual by making the appropriate GL's and all updates that would be made through U0105 when assessed on accrued invoice, except increasing the manual assessment bucket on lease.

Running cycle accruals and an advanced invoice is to be created; LeasePak checks to see if an invoice is already exist for that due date. Because of the change where assessments can be placed on advanced invoice, and advanced invoice with only assessments on it can exists.

Performing accruals on an advanced invoice, LeasePak checks at the lease's payment schedule and recreates the invoice with the amount on the payment schedule. Checking payment schedule is important because the payment schedule may have been changed since the advanced invoice was created and the advanced invoice will not have changed to match the new payment schedule. It will also recalculate the sales tax in case the rates have changed. After recalculation, LeasePak cannot delete the advanced invoice and recreate it with the new payment schedule. The accrual process also includes additional assessments that have added and use the recurring charge amount on the advanced invoice instead of the recurring charge amount on the recurring charge payment schedule.

The accrual reversal process checks advanced invoices for additional assessments and leave them on the advanced invoice if they exist when reversing the other amounts.

Note: Once accrual reversal is done any changes to, the recurring charges on an invoice will be lost. When the invoice is re-accrued, the recurring charge will be reset to the amount on the recurring charge payment schedule. This is different from assessments on invoices, which will not be reversed during an accrual reversal, but will remain on the invoice and therefore no changes to them lost.

For Vertex O users only: To process cycle accruals and calculate tax for Vertex O lease using Vertex O interface. LeasePak uses Vertex O interface to send taxable information to the Vertex O server and Vertex O server returns the calculated tax. Following exceptions may occur while processing accruals for vertex O leases:

• ERROR ENCOUNTERED MISSING ASSET TAX AREA ID
  All assets on a lease being accrued using Vertex O must have tax area IDs for the equipment location in order to calculate tax.
  
  
• ERROR ENCOUNTERED MISSING VENDOR TAX AREA ID
  All leases being accrued using Vertex O must have a lease level vendor with a tax area ID on the vendor address.
  
  
• ERROR VERTEX O SERVER NOT RESPONDING
  when attempting to calculate tax using Vertex O, the Vertex server did not respond.

 

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.

 

If recurring charges are due to accrue and that particular recurring charge is set to use that accrual basis accounting as indicated in U0212 Portfolio → Assessment Customization then LeasePak maintains paid general ledger entry as assessment receivables - recurring charges to debit account and credits assessment income/payables - recurring charges. For accrual basis recurring charges users must own "Accrual Basis Recurring Charges" module.

If recurring charges accruals are in reversal and that particular recurring charge is set to use accrual basis recurring charges accounting as mentioned in U0212 Portfolio → Assessment Customizations then LeasePak maintains the paid general ledger entries as assessment income/payable - RCRs debit and credits assessment receivable - recurring charges.

This screen is used to select the Cycle Accruals update [U0301] option.

 

Accrual

End of Period: Refer to the End of Period section in this document for information on the corresponding EOP process.

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) for lease(s) with monthly accrual/billing cycle, 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. For non-monthly accrual/billing cycle lease(s) U0301 proceed with 1 and 31 as start and end date. The provided date range will be ignored by the system.

NOTE: LeasePak will maintain the accrual and accrual reversal general ledger transaction for the sets/records of subvention general ledger accounts records to accrue subvention income for each set of subvention. LeasePak will generate the following general ledger transactions to accrue subvention income:

Accrue subvention income for lease.

General Ledger Account	Amount
DR IDRD - D/L SUBVENTION1	Accrual Normal Cycle
CR IDRD - D/L SUBVENTION1 INCOME

To accrue suspended subvention income for a lease that has been suspended using U0115 suspended Earnings.

General Ledger Account	Amount
DR IDRD - D/L SUBVENTION1	Accrual Normal Cycle
CR IDRD - SUSP D/L SUBVENTION1 INC

To accrue reverse subvention income for lease.

General Ledger Account	Amount
DR IDRD - D/L SUBVENTION1 INCOME	Accrual Reversal Normal
CR IDRD - D/L SUBVENTION1

To accrue reverse suspended subvention income for a lease that has been suspended using U0115 Suspended Earnings.

General Ledger Account	Amount
DR IDRD - SUSP D/L SUBVENTION1 INC	Accrul Reversal Normal
CR IDRD - D/L SUBVENTION1

To accrue subvention income for an interest bearing loan.

General Ledger Account	Amount
DR IDRD - RETAIL SUBVENTION1	Accrual Normal Cycle
CR IDRD - RETAIL SUBVENTION1 INC

To accrue suspended subvention income for an interest bearing loan that has been suspended using U0115 Suspended Earnings.

General Ledger Account	Amount
DR IDRD - RETAIL SUBVENTION1	Accraul Normal Cycle
CR IDRD - SUSP RETAIL SUBVENTION1 INC

To accrue reverse subvention income for an interest bearing loan.

General Ledger Account	Amount
DR IDRD - RETAIL SUBVENTION1 INC	Accrual Reversal Normal
CR IDRD - RETAIL SUBVENTION1

To accrue reverse suspended subvention income for an interest bearing loan that has been suspended using U0115 Suspended Earnings.

General Ledger Account	Amount
DR IDRD - SUSP RETAIL SUBVENTION1	Accrual Reversal Normal
CR IDRD - RETAIL SUBVENTION1

NOTE: LeasePak produces the following accrual general ledger entries to amortize dealer reserve. To amortize the dealer reserve amount LeasePak will work same as is it does today for IDC3, Fixed Rate Reserve.

Following are the sample general ledger entry used to amortize dealer reserves

Following are the sample general ledger entry is use to amortize dealer reserve for a pre-computed lease:

General Ledger Account	Amount
DR IDC7 - AMORT D/L Dealer RESERVE	Amount - ACCRUAL NORMAL CYCLE
CR IDC7 - UNAMORT D/L DEALER RESERVE

Following sample general ledger entry is use to amortize the dealer bonus for an operating lease:

General Ledger Account	Amount
DR IDC7 - AMORT O/L Dealer RESERVE	Amount - ACCRUAL NORMAL CYCLE
CR IDC7 - UNAMORT O/L DEALER RESERVE

Following sample general ledger entry is used to amortize dealer reserve for an interest-bearing loan:

General Ledger Account	Amount
DR IDC7 - AMORT DEALER RESERVE	Amount - ACCRUAL NORMAL CYCLE
CR IDC7 - UNAMORT DEALER RESERVE

Following are the sample general ledger entry is used to amortize dealer reserve for a pre-computed lease that has been suspended using U0115, Suspended Earnings:

General Ledger Account	Amount
DR IDC7 - D/L SUSP DEALER RESERVE	Amount - ACCRUAL NORMAL CYCLE
CR IDC7 - UNAMORT D/L DEALER RESERVE

Following are the sample general ledger entry is used to amortize dealer reserve for a pre-computed lease that has been suspended using U0115, Suspended Earnings:

General Ledger Account	Amount
DR IDC7 - O/L SUSP DEALER RESERVE	Amount - ACCRUAL NORMAL CYCLE
CR IDC7 - UNAMORT O/L DEALER RESERVE

Following are the sample general ledger entry is used to amortize dealer reserve for an interest bearing-loan lease that has been suspended using U0115, Suspended Earnings:

General Ledger Account	Amount
DR IDC7 - SUSP DEALER RESERVE	Amount - ACCRUAL NORMAL CYCLE
CR IDC7 - UNAMORT DEALER RESERVE

Enhanced IDCs

Following are the general ledger transactions of additional IDC fields (IDC8–IDC9 and IDCA–IDCH) for accruals:

For a precomputed type lease:

Debit		Credit
624	IDC8 AMORTIZATION	523	IDC8–UNAMORT D/L RESERVES
654	IDC8 – ALT: LEASE INCOME ADJUSTMENT	527	ALT:IDC8–UNAMORT RESERVES

Debit		Credit
625	IDC9 AMORTIZATION	531	IDC9–UNAMORT D/L RESERVES
655	IDC9 – ALT: LEASE INCOME ADJUSTMENT	535	ALT:IDC9–UNAMORT RESERVES

Debit		Credit
626	IDCA AMORTIZATION	539	IDCA–UNAMORT D/L RESERVES
656	IDCA – ALT: LEASE INCOME ADJUSTMENT	543	ALT:IDCA–UNAMORT RESERVES

Debit		Credit
627	IDCB AMORTIZATION	547	IDCB–UNAMORT D/L RESERVES
657	IDCB – ALT: LEASE INCOME ADJUSTMENT	551	ALT:IDCB–UNAMORT RESERVES

Debit		Credit
628	IDCC AMORTIZATION	555	IDCC–UNAMORT D/L RESERVES
658	IDCC – ALT: LEASE INCOME ADJUSTMENT	559	ALT:IDCC–UNAMORT RESERVES

Debit		Credit
629	IDCD AMORTIZATION	563	IDCD–UNAMORT D/L RESERVES
659	IDCD – ALT: LEASE INCOME ADJUSTMENT	567	ALT:IDCD–UNAMORT RESERVES

Debit		Credit
630	IDCE AMORTIZATION	571	IDCE–UNAMORT D/L RESERVES
660	IDCE – ALT: LEASE INCOME ADJUSTMENT	575	ALT:IDCE–UNAMORT RESERVES

Debit		Credit
631	IDCF AMORTIZATION	579	IDCF–UNAMORT D/L RESERVES
661	IDCF – ALT: LEASE INCOME ADJUSTMENT	583	ALT:IDCF–UNAMORT RESERVES

Debit		Credit
632	IDCG AMORTIZATION	587	IDCG–UNAMORT D/L RESERVES
662	IDCG – ALT: LEASE INCOME ADJUSTMENT	591	ALT:IDCG–UNAMORT RESERVES

Debit		Credit
633	IDCH AMORTIZATION	595	IDCH–UNAMORT D/L RESERVES
663	IDCH – ALT: LEASE INCOME ADJUSTMENT	599	ALT:IDCH–UNAMORT RESERVES

For a suspended precomputed type lease:

Debit		Credit
634	IDC8 – SUSPENDED AMORTIZATION	523	IDC8–UNAMORT D/L RESERVES
635	IDC9 – SUSPENDED AMORTIZATION	531	IDC9–UNAMORT D/L RESERVES
636	IDCA – SUSPENDED AMORTIZATION	539	IDCA–UNAMORT D/L RESERVES
637	IDCB – SUSPENDED AMORTIZATION	547	IDCB–UNAMORT D/L RESERVES
638	IDCC – SUSPENDED AMORTIZATION	555	IDCC–UNAMORT D/L RESERVES
639	IDCD – SUSPENDED AMORTIZATION	563	IDCD–UNAMORT D/L RESERVES
640	IDCE – SUSPENDED AMORTIZATION	571	IDCE–UNAMORT D/L RESERVES
641	IDCF – SUSPENDED AMORTIZATION	579	IDCF–UNAMORT D/L RESERVES
642	IDCG – SUSPENDED AMORTIZATION	587	IDCG–UNAMORT D/L RESERVES
643	IDCH – SUSPENDED AMORTIZATION	595	IDCH–UNAMORT D/L RESERVES

For an operating type lease:

Debit		Credit
624	IDC8 AMORTIZATION	525	IDC8–UNAMORT D/L–O/L RESERVES
654	IDC8 – ALT: LEASE INCOME ADJUSTMENT	527	ALT:IDC8–UNAMORT RESERVES

Debit		Credit
625	IDC9 AMORTIZATION	533	IDC9–UNAMORT D/L–O/L RESERVES
655	IDC9 – ALT: LEASE INCOME ADJUSTMENT	535	ALT:IDC9–UNAMORT RESERVES

Debit		Credit
626	IDCA AMORTIZATION	541	IDCA–UNAMORT D/L–O/L RESERVES
656	IDCA – ALT: LEASE INCOME ADJUSTMENT	543	ALT:IDCA–UNAMORT RESERVES

Debit		Credit
627	IDCB AMORTIZATION	549	IDCB–UNAMORT D/L–O/L RESERVES
657	IDCB – ALT: LEASE INCOME ADJUSTMENT	551	ALT:IDCB–UNAMORT RESERVES

Debit		Credit
628	IDCC AMORTIZATION	557	IDCC–UNAMORT D/L–O/L RESERVES
658	IDCC – ALT: LEASE INCOME ADJUSTMENT	559	ALT:IDCC–UNAMORT RESERVES

Debit		Credit
629	IDCD AMORTIZATION	565	IDCD–UNAMORT D/L–O/L RESERVES
659	IDCD – ALT: LEASE INCOME ADJUSTMENT	567	ALT:IDCD–UNAMORT RESERVES

Debit		Credit
630	IDCE AMORTIZATION	573	IDCE–UNAMORT D/L–O/L RESERVES
660	IDCE – ALT: LEASE INCOME ADJUSTMENT	575	ALT:IDCE–UNAMORT RESERVES

Debit		Credit
631	IDCF AMORTIZATION	581	IDCF–UNAMORT D/L–O/L RESERVES
661	IDCF – ALT: LEASE INCOME ADJUSTMENT	583	ALT:IDCF–UNAMORT RESERVES

Debit		Credit
632	IDCG AMORTIZATION	589	IDCG–UNAMORT D/L–O/L RESERVES
662	IDCG – ALT: LEASE INCOME ADJUSTMENT	591	ALT:IDCG–UNAMORT RESERVES

Debit		Credit
633	IDCH AMORTIZATION	597	IDCH–UNAMORT D/L–O/L RESERVES
663	IDCH – ALT: LEASE INCOME ADJUSTMENT	599	ALT:IDCH–UNAMORT RESERVES

For a suspended operating lease:

Debit		Credit
634	IDC8 – SUSPENDED AMORTIZATION	525	IDC8–UNAMORT D/L–O/L RESERVES
635	IDC9 – SUSPENDED AMORTIZATION	533	IDC9–UNAMORT D/L–O/L RESERVES
636	IDCA – SUSPENDED AMORTIZATION	541	IDCA–UNAMORT D/L–O/L RESERVES
637	IDCB – SUSPENDED AMORTIZATION	549	IDCB–UNAMORT D/L–O/L RESERVES
638	IDCC – SUSPENDED AMORTIZATION	557	IDCC–UNAMORT D/L–O/L RESERVES
639	IDCD – SUSPENDED AMORTIZATION	565	IDCD–UNAMORT D/L–O/L RESERVES
640	IDCE – SUSPENDED AMORTIZATION	573	IDCE–UNAMORT D/L–O/L RESERVES
641	IDCF – SUSPENDED AMORTIZATION	581	IDCF–UNAMORT D/L–O/L RESERVES
642	IDCG – SUSPENDED AMORTIZATION	589	IDCG–UNAMORT D/L–O/L RESERVES
643	IDCH – SUSPENDED AMORTIZATION	597	IDCH–UNAMORT D/L–O/L RESERVES

For an interest–bearing loan:

Debit		Credit
604	IDC8 – FASB91 INCOME ADJUSTMENT	521	IDC8–UNAMORTIZED RESERVES
654	IDC8 – ALT: LEASE INCOME ADJUSTMENT	527	ALT:IDC8–UNAMORT RESERVES

Debit		Credit
605	IDC9 – FASB91 INCOME ADJUSTMENT	529	IDC9–UNAMORTIZED RESERVES
655	IDC9 – ALT: LEASE INCOME ADJUSTMENT	535	ALT:IDC9–UNAMORT RESERVES

Debit		Credit
606	IDCA – FASB91 INCOME ADJUSTMENT	537	IDCA–UNAMORTIZED RESERVES
656	IDCA – ALT: LEASE INCOME ADJUSTMENT	543	ALT:IDCA–UNAMORT RESERVES

Debit		Credit
607	IDCB – FASB91 INCOME ADJUSTMENT	545	IDCB–UNAMORTIZED RESERVES
657	IDCB – ALT: LEASE INCOME ADJUSTMENT	551	ALT:IDCB–UNAMORT RESERVES

Debit		Credit
608	IDCC – FASB91 INCOME ADJUSTMENT	553	IDCC–UNAMORTIZED RESERVES
658	IDCC – ALT: LEASE INCOME ADJUSTMENT	559	ALT:IDCC–UNAMORT RESERVES

Debit		Credit
609	IDCD – FASB91 INCOME ADJUSTMENT	561	IDCD–UNAMORTIZED RESERVES
659	IDCD – ALT: LEASE INCOME ADJUSTMENT	567	ALT:IDCD–UNAMORT RESERVES

Debit		Credit
610	IDCE – FASB91 INCOME ADJUSTMENT	569	IDCE–UNAMORTIZED RESERVES
660	IDCE – ALT: LEASE INCOME ADJUSTMENT	575	ALT:IDCE–UNAMORT RESERVES

Debit		Credit
611	IDCF – FASB91 INCOME ADJUSTMENT	577	IDCF–UNAMORTIZED RESERVES
661	IDCF – ALT: LEASE INCOME ADJUSTMENT	583	ALT:IDCF–UNAMORT RESERVES

Debit		Credit
612	IDCG – FASB91 INCOME ADJUSTMENT	585	IDCG–UNAMORTIZED RESERVES
662	IDCG – ALT: LEASE INCOME ADJUSTMENT	591	ALT:IDCG–UNAMORT RESERVES

Debit		Credit
613	IDCH – FASB91 INCOME ADJUSTMENT	593	IDCH–UNAMORTIZED RESERVES
663	IDCH – ALT: LEASE INCOME ADJUSTMENT	599	ALT:IDCH–UNAMORT RESERVES

For a suspended interest–bearing loan:

Debit		Credit
614	IDC8 – SUSP FASB91 INCOME ADJUSTMENT	521	IDC8–UNAMORTIZED RESERVES
615	IDC9 – SUSP FASB91 INCOME ADJUSTMENT	529	IDC9–UNAMORTIZED RESERVES
616	IDCA – SUSP FASB91 INCOME ADJUSTMENT	537	IDCA–UNAMORTIZED RESERVES
617	IDCB – SUSP FASB91 INCOME ADJUSTMENT	545	IDCB–UNAMORTIZED RESERVES
618	IDCC – SUSP FASB91 INCOME ADJUSTMENT	553	IDCC–UNAMORTIZED RESERVES
619	IDCD – SUSP FASB91 INCOME ADJUSTMENT	561	IDCD–UNAMORTIZED RESERVES
620	IDCE – SUSP FASB91 INCOME ADJUSTMENT	569	IDCE–UNAMORTIZED RESERVES
621	IDCF – SUSP FASB91 INCOME ADJUSTMENT	577	IDCF–UNAMORTIZED RESERVES
622	IDCG – SUSP FASB91 INCOME ADJUSTMENT	585	IDCG–UNAMORTIZED RESERVES
623	IDCH – SUSP FASB91 INCOME ADJUSTMENT	593	IDCH-UNAMORTIZED RESERVES

U0301 Accrual produces the following general ledger transaction for the amount of IDC ASC 842 if the IDC ASC 842 accounting method (I/A/B) is set to 'A' – AMOR or 'B' – AMR2.

When lease is at Active status:

Debit		Credit
669	IDC AMORTIZATION - ASC 842	666	UNAMORTIZED IDC COST - ASC 842

When lease status is suspended:

Debit		Credit
667	SUSPENDED IDC ACCRUED - ASC 842	666	UNAMORTIZED IDC COST - ASC 842

Following are the general ledger transactions when Prorate Incomer IDC/IDR field is set to 'Y' from U0212 Portfolio → Miscellaneous Customizations.

When lease is at Active status:

Debit		Credit
670	DEFERRED IDC AMORTIZATION - ASC 842	666	UNAMORTIZED IDC COST - ASC 842
669	IDC AMORTIZATION - ASC 842	670	DEFERRED IDC AMORTIZATION - ASC 842

When lease status is suspended:

Debit		Credit
669	IDC AMORTIZATION – ASC 842	670	DEFERRED IDC AMORTIZATION – ASC 842
671	DEFERRED SUSP IDC ACCRUED – ASC 842	666	UNAMORTIZED IDC COST – ASC 842
667	SUSPENDED IDC ACCRUED – ASC 842	671	DEFERRED SUSP IDC ACCRUED – ASC 842

For other leases to continue amortizing the unamortized IDC/IDR amounts, U0301 Accrual update will determine which IDCs and IDRs to accrue by lease Book IDC accounting method (I/A/B), IDC1-9, IDCA-H accounting method (I/A/B), and IDR1-9, IDRA-H accounting method (I/A/B).

AOPM/ROPM Accrual Method

Following are the general ledger transactions for leases that have not matured and extended with accrual base (A) lease extension accounting method:

Debit		Credit
60	DEFERRED OPER LEASE REVENUE	82	OPERATING LEASE INCOME
3	LEASE PAYMENTS RECEIVABLE	60	DEFERRED OPER LEASE REVENUE
60	DEFERRED OPER LEASE REVENUE	82	OPERATING LEASE INCOME

If the lease status is suspended:

Debit		Credit
40	SUSPENDED RECIEVABLE (INCOME)	60	DEFERRED OPER LEASE RVENUE
60	DEFERRED OPER LEASE REVENUE	103	SUSPENDED INCOME ACCRUED

LeasePak maintains the following general ledger transactions to clear the remaining balance if there are no more schedule payments to accrue and there is a remaining amount in "Deferred Operating Lease Revenue" general ledger account:

Debit		Credit
60	DEFERRED OPER LEASE REVENUE	82	OPERATING LEASE INCOME

If the lease status is suspended:

Debit		Credit
60	DEFERRED OPER LEASE REVENUE	103	SUSPENDED INCOME ACCRUED

ARES/RRES Accrual Method

The *RES lease accrual method will recognize income after the residual value on the lease has been reduced to 0 by the scheduled payment amount on an extended lease. Any excess payments that are accrued will be income. Following are the general ledger transactions.

Following are the general ledger transactions for leases that have matured and extended with accrual base (A) lease extension accounting method:

Debit		Credit
3	LEASE PAYMENTS RECEIVABLE	5	LEASE INCOME RECEIVABLE
5	LEASE INCOME RECEIVABLE	284	DEFERRED LESSOR INCOME - PRE
5	LEASE INCOME RECEIVABLE	80	LESSOR INCOME - PRECOMPUTED

If the lease status is suspended:

Debit		Credit
40	SUSPENDED RECEIVABLE (INCOME)	42	SUSPENDED INCOME RECV (UNBILLED)
42	SUSPENDED INCOME RECV (UNBILLED)	103	SUSPENDED INCOME ACCRUED
42	SUSPENDED INCOME RECV (UNBILLED)	286	DEFERRED SUSP INCOME ACCRUED
284	DEFERRED LESSOR INCOME - PRE	80	LESSOR INCOME - PRECOMPUTED

LeasePak maintains the following general ledger transactions to clear the remaining balance if there are no more schedule payments to accrue, and there is a remaining amount in the "Deferred Lessor Income - Pre" general ledger account:

Debit		Credit
284	DEFERRED LESSOR INCOME - Pre	80	LESSOR INCOME - PRECOMPUTED

If the lease status is suspended:

Debit		Credit
286	DEFERRED SUSP INCOME ACCRUED	103	SUSPENDED INCOME ACCRUED

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:

NET PAYMENT
+ USE TAX
+ OTHER ASSESSMENTS

• IDC1
  The total amount for IDC 1- Insurance Premium, is displayed.

• 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 Enhanced IDC/IDR 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.

• SUBVENTION 1
  The total amount for subvention 1 is displayed.

• SUBVENTION 2
  The total amount for subvention 2 is displayed.

• SUBVENTION 3
  The total amount for subvention 3 is displayed.

• SUBVENTION 4
  The total amount for subvention 4 is displayed.

• SUBVENTION 5
  The total amount for subvention 5 is 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.

• SUBVENTION 1
  The total amount for subvention 1 is displayed.

• SUBVENTION 2
  The total amount for subvention 2 is displayed.

• SUBVENTION 3
  The total amount for subvention 3 is displayed.

• SUBVENTION 4
  The total amount for subvention 4 is displayed.

• SUBVENTION 5
  The total amount for subvention 5 is 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:

LEASED ASSETS - ACCUMULATED DEPRECIATION

• 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.

• SUBVENTION 1
  The total amount for subvention 1 is displayed.

• SUBVENTION 2
  The total amount for subvention 2 is displayed.

• SUBVENTION 3
  The total amount for subvention 3 is displayed.

• SUBVENTION 4
  The total amount for subvention 4 is displayed.

• SUBVENTION 5
  The total amount for subvention 5 is displayed.

 

• 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

 

End of Period

EOP Only	No
Frequency	Predefined cycle
Sequential Updates	Yes
Skip Notes	See comments below

For more information about End of Period, refer to U04 End of Period Overview.

 

Sequential Updates: This EOP module runs as part of U0411 Sequential Updates.

 

This module is the same update that may be executed interactively through the Cycle Accrual update [U0301]. It accrues income, transfers long-term receivables to current receivables, and calculates and assesses use tax. Reports for each accrual category (precomputed, simple, and operating) are produced which show information on the leases accrued. Another report is produced which lists any messages and/or errors encountered during the accrual process.

Skip Notes: If this module is skipped, then both the Cycle Invoices update [U0302] and the Cycle Invoices (Formatting) update [U0457] should also be skipped. If they are not skipped, the End of Period Cycle Invoices do not invoice current charges for the group of leases that did not accrue. This group of leases is automatically accrued during the next End of Period Cycle Accrual.

The difference between the interactive Cycle Accrual update and the End of Period Cycle Accrual update is that the latter automatically determines the appropriate leases to accrue, whereas, in the former, the leases to accrue are specified by the user. This automatic determination is made using 3 items:

• The accrual deferral days at the portfolio level (specified through the ACCRUAL DEFERRAL DAYS parameter found on the second screen of the Miscellaneous Customizations option of the Portfolio update [U0212]),
  
  
• The accrual cycle (specified through the Predefined Cycles Customization option of the Portfolio update [U0212]), and
  
  
• An internal calendar maintained by LeasePak which stores information about the last End of Period accrual process.

In automatically determining the appropriate leases to accrue for a particular End of Period, LeasePak calculates a starting day and an ending day. All leases with due days on or between these starting and ending days are accrued. The starting day for a particular End of Period Cycle Accrual is calculated as:

ENDING DAY OF THE LAST END OF PERIOD CYCLE ACCRUAL + ONE DAY

If the starting day calculation is greater than 31, it is set to 1. The ending day for a particular End of Period Cycle Accrual is calculated as:

CURRENT ACCRUAL CYCLE - ACCRUAL DEFERRAL DAYS (portfolio level)

If the ending day calculation is zero, the number 31 is added to it. If the ending day calculation is negative, the number of days in the previous month is added to it. For example, if the current cycle accrual is March 9, and there is a 10 day accrual deferral period, the ending day calculation is as follows:

9 - 10 + 28 = 27 (assuming 28 days in February)

In this way, short months are handled automatically. For example, to determine the cycle accrual for any given day assume:

• The accrual cycle is every day of the month (i.e., payments may be due on any day of the month),
• The accrual deferral days at the portfolio level is 10 days.

The following dates would have the following accrual cycles:

Date	Cycle	Date	Cycle
02/01/95	22	02/22/95	12
02/02/95	23	02/23/95	13
02/03/95	24	02/24/95	14
02/04/95	25	02/25/95	15
02/05/95	26	02/26/95	16
02/06/95	27	02/27/95	17
02/07/95	28	02/28/95	18
02/08/95	29	03/01/95	19
02/09/95	30	03/02/95	20
02/10/95	31	03/03/95	21
02/11/95	1	03/04/95	22
02/12/95	2	03/05/95	23
02/13/95	3	03/06/95	24
02/14/95	4	03/07/95	25
02/15/95	5	03/08/95	26
02/16/95	6	03/09/95	27
02/17/95	7	03/10/95	28 - 31
02/18/95	8	03/11/95	1
02/19/95	9	03/12/95	2
02/20/95	10	.
02/21/95	11	.

To illustrate the automatic accrual cycle determination, assume the following information:

• The accrual deferral days at the portfolio level is 10 days,
• The accrual cycle is 10, 20 and 30 (i.e., payments may be due on any of these three days of the month),
• The ending day of the last End of Period Cycle Accrual is 30,
• The current date is the 20th of the month.

The starting day of the End of Period Cycle Accrual is the ending day of the last End of Period Cycle Accrual plus one:

STARTING DAY = 30 + 1 = 31

The ending day of the End of Period Cycle Accrual is the current accrual cycle less the accrual deferral days at the portfolio level:

ENDING DAY = 20 - 10 = 10

Therefore, leases with payment due days between the 31st of the previous month and the 10th of the current month are accrued.

Continuing this same example, assume the End of Period Cycle Accrual as shown in example 1 completes and it is now ten days later. The starting information is now:

• The accrual deferral days at the portfolio level is 10 days (same as before),
• The accrual cycle is 10, 20 and 30 (same as before),
• The ending day of the last End of Period Cycle Accrual is 10,
• The current date is the 30th of the month.

The starting day of the End of Period Cycle Accrual is the ending day of the last End of Period Cycle Accrual plus one:

STARTING DAY = 10 + 1 = 11

The ending day of the End of Period Cycle Accrual is the current accrual cycle less the accrual deferral days at the portfolio level:

ENDING DAY = 30 - 10 = 20

Therefore, leases with payment due days between the 11th and the 20th of the current month are accrued.

Continuing this same example one step further, assume the End of Period Cycle Accrual as shown in example 2 completes and it is an additional 10 days later. The starting information is now:

• The accrual deferral days at the portfolio level is 10 days (same as before),
• The accrual cycle is 10, 20 and 30 (same as before),
• The ending day of the last End of Period Cycle Accrual is 20,
• The current date is the 10th of the month.

The starting day of the End of Period Cycle Accrual is the ending day of the last End of Period Cycle Accrual plus one:

STARTING DAY = 20 + 1 = 21

The ending day of the End of Period Cycle Accrual is the current accrual cycle less the accrual deferral days at the portfolio level, adjusted by 31 if the resulting value is zero or negative:

ENDING DAY = 10 - 10 = 0 + 31 = 31

Therefore, leases with payment due days between the 21st and the 31st of the current month are accrued.

Continuing this same example one more step to show the complete cycle, assume the End of Period Cycle Accrual as shown in example 3 completes and it is an additional 10 days later. The starting information is now:

• The accrual deferral days at the portfolio level is 10 days (same as before),
• The accrual cycle is 10, 20 and 30 (same as before),
• The ending day of the last End of Period Cycle Accrual is 31,
• The current date is the 20th of the month.

The starting day of the End of Period Cycle Accrual is the ending day of the last End of Period Cycle Accrual plus one, adjusted by 31 if the resulting value is greater than 31:

STARTING DAY = 31 + 1 = 32 - 31 = 1

The ending day of the End of Period Cycle Accrual is the current accrual cycle less the accrual deferral days at the portfolio level, adjusted by 31 if the resulting value is zero or negative:

ENDING DAY = 20 - 10 = 10

Therefore, leases with payment due days between the 1st and the 10th of the current month are 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.

 

General Ledger

Following are the sample general ledger entry used to reverse the dealer reserve amortization of a pre-computed lease:

General Ledger Account	Amount
DR IDC7 - UNAMORT D/L DEALER RESERVE	Amount - ACC REV NORAML
CR IDC7 - AMOR D/L DEALER RESERVE

Following are the sample general ledger entry used to reverse the dealer reserve amortization of an operating lease:

General Ledger Account	Amount
DR IDC7 - UNAMORT O/L DEALER RESERVE	Amount - ACC REV NORAML
CR IDC7 - AMOR O/L DEALER RESERVE

Following are the sample general ledger entry used to reverse the dealer reserve amortization of an interest-bearing loan:

General Ledger Account	Amount
DR IDC7 - UNAMORT DEALER RESERVE	Amount - ACC REV NORAML
CR IDC7 - AMOR DEALER RESERVE

Following are the sample general ledger entry used to reverse the accrual for a suspended pre-computed lease:

General Ledger Account	Amount
DR IDC7 - UNAMORT D/L DEALER RESERVE	Amount - ACC REV NORAML
CR IDC7 - D/L SUSP DEALER BONUS

Following are the sample general ledger entry used to reverse the accrual for a suspended operating lease:

General Ledger Account	Amount
DR IDC7 - UNAMORT O/L DEALER RESERVE	Amount - ACC REV NORAML
CR IDC7 -O/L SUSP DEALER RESERVE

Following are the sample general ledger entry used to reverse the accrual for a suspended interest-bearing loan:

General Ledger Account	Amount
DR IDC7 - UNAMORT DEALER RESERVE	Amount - ACC REV NORAML
CR IDC7 -SUSP DEALER RESERVE

Enhanced IDCs

Following are the general ledger transactions of additional IDC fields (IDC8–IDC9 and IDCA–IDCH) for accrual reversal:

For a precomputed type lease:

Debit		Credit
523	IDC8–UNAMORT D/L RESERVES	624	IDC8 AMORTIZATION
527	ALT:IDC8–UNAMORT RESERVES	654	IDC8 – ALT: LEASE INCOME ADJUSTMENT

Debit		Credit
531	IDC9–UNAMORT D/L RESERVES	625	IDC9 AMORTIZATION
535	ALT:IDC9–UNAMORT RESERVES	655	IDC9 – ALT: LEASE INCOME ADJUSTMENT

Debit		Credit
539	IDCA–UNAMORT D/L RESERVES	626	IDCA AMORTIZATION
543	ALT:IDCA–UNAMORT RESERVES	656	IDCA – ALT: LEASE INCOME ADJUSTMENT

Debit		Credit
547	IDCB–UNAMORT D/L RESERVES	627	IDCB AMORTIZATION
551	ALT:IDCB–UNAMORT RESERVES	657	IDCB – ALT: LEASE INCOME ADJUSTMENT

Debit		Credit
555	IDCC–UNAMORT D/L RESERVES	628	IDCC AMORTIZATION
559	ALT:IDCC–UNAMORT RESERVES	658	IDCC – ALT: LEASE INCOME ADJUSTMENT

Debit		Credit
563	IDCD–UNAMORT D/L RESERVES	629	IDCD AMORTIZATION
567	ALT:IDCD–UNAMORT RESERVES	659	IDCD – ALT: LEASE INCOME ADJUSTMENT

Debit		Credit
571	IDCE–UNAMORT D/L RESERVES	630	IDCE AMORTIZATION
575	ALT:IDCE–UNAMORT RESERVES	660	IDCE – ALT: LEASE INCOME ADJUSTMENT

Debit		Credit
579	IDCF–UNAMORT D/L RESERVES	631	IDCF AMORTIZATION
583	ALT:IDCF–UNAMORT RESERVES	661	IDCF – ALT: LEASE INCOME ADJUSTMENT

Debit		Credit
587	IDCG–UNAMORT D/L RESERVES	632	IDCG AMORTIZATION
591	ALT:IDCG–UNAMORT RESERVES	662	IDCG – ALT: LEASE INCOME ADJUSTMENT

Debit		Credit
595	IDCH–UNAMORT D/L RESERVES	633	IDCH AMORTIZATION
599	ALT:IDCH–UNAMORT RESERVES	663	IDCH – ALT: LEASE INCOME ADJUSTMENT

For a suspended precomputed type lease:

Debit		Credit
523	IDC8–UNAMORT D/L RESERVES	634	IDC8 – SUSPENDED AMORTIZATION
531	IDC9–UNAMORT D/L RESERVES	635	IDC9 – SUSPENDED AMORTIZATION
539	IDCA–UNAMORT D/L RESERVES	636	IDCA – SUSPENDED AMORTIZATION
547	IDCB–UNAMORT D/L RESERVES	637	IDCB – SUSPENDED AMORTIZATION
555	IDCC–UNAMORT D/L RESERVES	638	IDCC – SUSPENDED AMORTIZATION
563	IDCD–UNAMORT D/L RESERVES	639	IDCD – SUSPENDED AMORTIZATION
571	IDCE–UNAMORT D/L RESERVES	640	IDCE – SUSPENDED AMORTIZATION
579	IDCF–UNAMORT D/L RESERVES	641	IDCF – SUSPENDED AMORTIZATION
587	IDCG–UNAMORT D/L RESERVES	642	IDCG – SUSPENDED AMORTIZATION
595	IDCH–UNAMORT D/L RESERVES	643	IDCH – SUSPENDED AMORTIZATION

For an operating type lease:

Debit		Credit
525	IDC8–UNAMORT D/L–O/L RESERVES	624	IDC8 AMORTIZATION
527	ALT:IDC8–UNAMORT RESERVES	654	IDC8 – ALT: LEASE INCOME ADJUSTMENT

Debit		Credit
533	IDC9–UNAMORT D/L–O/L RESERVES	625	IDC9 AMORTIZATION
535	ALT:IDC9–UNAMORT RESERVES	655	IDC9 – ALT: LEASE INCOME ADJUSTMENT

Debit		Credit
541	IDCA–UNAMORT D/L–O/L RESERVES	626	IDCA AMORTIZATION
543	ALT:IDCA–UNAMORT RESERVES	656	IDCA – ALT: LEASE INCOME ADJUSTMENT

Debit		Credit
549	IDCB–UNAMORT D/L–O/L RESERVES	627	IDCB AMORTIZATION
551	ALT:IDCB–UNAMORT RESERVES	657	IDCB – ALT: LEASE INCOME ADJUSTMENT

Debit		Credit
557	IDCC–UNAMORT D/L–O/L RESERVES	628	IDCC AMORTIZATION
559	ALT:IDCC–UNAMORT RESERVES	658	IDCC – ALT: LEASE INCOME ADJUSTMENT

Debit		Credit
565	IDCD–UNAMORT D/L–O/L RESERVES	629	IDCD AMORTIZATION
567	ALT:IDCD–UNAMORT RESERVES	659	IDCD – ALT: LEASE INCOME ADJUSTMENT

Debit		Credit
573	IDCE–UNAMORT D/L–O/L RESERVES	630	IDCE AMORTIZATION
575	ALT:IDCE–UNAMORT RESERVES	660	IDCE – ALT: LEASE INCOME ADJUSTMENT

Debit		Credit
581	IDCF–UNAMORT D/L–O/L RESERVES	631	IDCF AMORTIZATION
583	ALT:IDCF–UNAMORT RESERVES	661	IDCF – ALT: LEASE INCOME ADJUSTMENT

Debit		Credit
589	IDCG–UNAMORT D/L–O/L RESERVES	632	IDCG AMORTIZATION
591	ALT:IDCG–UNAMORT RESERVES	662	IDCG – ALT: LEASE INCOME ADJUSTMENT

Debit		Credit
597	IDCH–UNAMORT D/L–O/L RESERVES	633	IDCH AMORTIZATION
599	ALT:IDCH–UNAMORT RESERVES	663	IDCH – ALT: LEASE INCOME ADJUSTMENT

For a suspended operating type lease:

Debit		Credit
525	IDC8–UNAMORT D/L–O/L RESERVES	634	IDC8 – SUSPENDED AMORTIZATION
533	IDC9–UNAMORT D/L–O/L RESERVES	635	IDC9 – SUSPENDED AMORTIZATION
541	IDCA–UNAMORT D/L–O/L RESERVES	636	IDCA – SUSPENDED AMORTIZATION
549	IDCB–UNAMORT D/L–O/L RESERVES	637	IDCB – SUSPENDED AMORTIZATION
557	IDCC–UNAMORT D/L–O/L RESERVES	638	IDCC – SUSPENDED AMORTIZATION
565	IDCD–UNAMORT D/L–O/L RESERVES	639	IDCD – SUSPENDED AMORTIZATION
573	IDCE–UNAMORT D/L–O/L RESERVES	640	IDCE – SUSPENDED AMORTIZATION
581	IDCF–UNAMORT D/L–O/L RESERVES	641	IDCF – SUSPENDED AMORTIZATION
589	IDCG–UNAMORT D/L–O/L RESERVES	642	IDCG – SUSPENDED AMORTIZATION
597	IDCH–UNAMORT D/L–O/L RESERVES	623	IDCH– SUSPENDED AMORTIZATION

For an interest–bearing loan:

Debit		Credit
521	IDC8–UNAMORTIZED RESERVES	604	IDC8 – FASB91 INCOME ADJUSTMENT
527	ALT:IDC8–UNAMORT RESERVES	654	IDC8 – ALT: LEASE INCOME ADJUSTMENT

Debit		Credit
529	IDC9–UNAMORTIZED RESERVES	605	IDC9 – FASB91 INCOME ADJUSTMENT
535	ALT:IDC9–UNAMORT RESERVES	655	IDC9 – ALT: LEASE INCOME ADJUSTMENT

Debit		Credit
537	IDCA–UNAMORTIZED RESERVES	606	IDCA – FASB91 INCOME ADJUSTMENT
543	ALT:IDCA–UNAMORT RESERVES	656	IDCA – ALT: LEASE INCOME ADJUSTMENT

Debit		Credit
545	IDCB–UNAMORTIZED RESERVES	607	IDCB – FASB91 INCOME ADJUSTMENT
551	ALT:IDCB–UNAMORT RESERVES	657	IDCB – ALT: LEASE INCOME ADJUSTMENT

Debit		Credit
553	IDCC–UNAMORTIZED RESERVES	608	IDCC – FASB91 INCOME ADJUSTMENT
559	ALT:IDCC–UNAMORT RESERVES	658	IDCC – ALT: LEASE INCOME ADJUSTMENT

Debit		Credit
561	IDCD–UNAMORTIZED RESERVES	609	IDCD – FASB91 INCOME ADJUSTMENT
567	ALT:IDCD–UNAMORT RESERVES	659	IDCD – ALT: LEASE INCOME ADJUSTMENT

Debit		Credit
569	IDCE–UNAMORTIZED RESERVES	610	IDCE – FASB91 INCOME ADJUSTMENT
575	ALT:IDCE–UNAMORT RESERVES	660	IDCE – ALT: LEASE INCOME ADJUSTMENT

Debit		Credit
577	IDCF–UNAMORTIZED RESERVES	611	IDCF – FASB91 INCOME ADJUSTMENT
583	ALT:IDCF–UNAMORT RESERVES	661	IDCF – ALT: LEASE INCOME ADJUSTMENT

Debit		Credit
585	IDCG–UNAMORTIZED RESERVES	612	IDCG – FASB91 INCOME ADJUSTMENT
591	ALT:IDCG–UNAMORT RESERVES	662	IDCG – ALT: LEASE INCOME ADJUSTMENT

Debit		Credit
593	IDCH–UNAMORTIZED RESERVES	613	IDCH – FASB91 INCOME ADJUSTMENT
5599	ALT:IDCH–UNAMORT RESERVES	663	IDCH – ALT: LEASE INCOME ADJUSTMENT

For a suspended interest–bearing loan:

Debit		Credit
521	IDC8–UNAMORTIZED RESERVES	614	IDC8 – SUSP FASB91 INCOME ADJUSTMENT
529	IDC9–UNAMORTIZED RESERVES	615	IDC9 – SUSP FASB91 INCOME ADJUSTMENT
537	IDCA–UNAMORTIZED RESERVES	616	IDCA – SUSP FASB91 INCOME ADJUSTMENT
545	IDCB–UNAMORTIZED RESERVES	617	IDCB – SUSP FASB91 INCOME ADJUSTMENT
553	IDCC–UNAMORTIZED RESERVES	618	IDCC – SUSP FASB91 INCOME ADJUSTMENT
561	IDCD–UNAMORTIZED RESERVES	619	IDCD – SUSP FASB91 INCOME ADJUSTMENT
569	IDCE–UNAMORTIZED RESERVES	620	IDCE – SUSP FASB91 INCOME ADJUSTMENT
577	IDCF–UNAMORTIZED RESERVES	621	IDCF – SUSP FASB91 INCOME ADJUSTMENT
585	IDCG–UNAMORTIZED RESERVES	622	IDCG – SUSP FASB91 INCOME ADJUSTMENT
593	IDCH–UNAMORTIZED RESERVES	623	IDCH - SUSP FASB91 INCOME ADJUSTMENT

U0301 Accrual Reversal produces the following general ledger transaction for the amount of IDC ASC 842 if the IDC ASC 842 accounting method (I/A/B) is set to 'A' - AMOR or 'B' - AMR2.

When lease is at Active status:

Debit		Credit
666	UNAMORTIZED IDC COST - ASC 842	669	IDC AMORTIZATION - ASC 842

When lease status is suspended:

Debit		Credit
666	UNAMORTIZED IDC COST - ASC 842	667	SUSPENDED IDC ACCRUED - ASC 842

Following are the general ledger transactions for the amount is IDC ASC 842 accrual reversal when Prorate Inc. IDC/IDR, Depr field is set to 'Y' from U0212 Portfolio → Miscellaneous Customizations.

When lease is at Active status:

Debit		Credit
666	UNAMORTIZED IDC COST – ASC 842	670	DEFERRED IDC AMORTIZATION – ASC 842
670	DEFERRED IDC AMORTIZATION – ASC 842	669	IDC AMORTIZATION – ASC 842

When lease status is suspended:

Debit		Credit
670	DEFERRED IDC AMORTIZATION – ASC 842	669	IDC AMORTIZATION – ASC 842
666	UNAMORTIZED IDC COST – ASC 842	671	DEFERRED SUSP IDC ACCRUED – ASC 842
671	DEFERRED SUSP IDC ACCRUED – ASC 842	667	SUSPENDED IDC ACCRUED – ASC 842

AOPM/ROPM Accrual Method

Following are the general ledger transactions for leases using *OPM accrual method:

Debit		Credit
82	OPERATING LEASE  INCOME	60	DEFERRED OPER LEASE REVENUE
60	DEFERRED OPER LEASE REVENUE	3	LEASE PAYMENTS RECEIVABLE
82	OPERATING LEASE INCOME	60	DEFERRED OPER LEASE REVENUE

If the lease status is suspended:

Debit		Credit
103	SUSPENDED INCOME ACCRUED	60	DEFERRED OPER LEASE REVENUE
60	DEFERRED OPER LEASE REVENUE	40	SUSPENDEDE RECEIVABLE (INCOME)

If there was a last accrual transaction to clear the remaining balance in "Deferred Oper Lease Revenue" general ledger account, the following accrual reversal general ledger transaction will be done to reverse that:

Debit		Credit
82	OPERATING LEASE INCOME	60	DEFERRED OPER LEASE REVENUE

If the lease status is suspended:

Debit		Credit
103	SUSPENDED INCOME ACCRUED	60	DEFERRED OPER LEASE REVENUE

ARES/RRES Accrual Method

Following are the general ledger transactions for leases using *RES accrual method:

Debit		Credit
5	LEASE INCOME RECEIVABLE	3	LEASE PAYMENTS RECEIVABLE
284	DEFERRED LESSOR INCOME - PRE	5	LEASE INCOME RECEIVABLE
80	LESSOR INCOME - PRECOMPUTED	5	LEASE INCOME RECEIVABLE

If the lease status is suspended:

Debit		Credit
42	SUSPENDED INCOME RECV (UNBILLED)	40	SUSPENDED RECEIVABLE (INCOME)
103	SUSPENDED INCOME ACCRUED	4	SUSPENDED INCOME RECV (UNBILLED)
286	DEFERRED SUSP INCOME ACCRUED	42	SUSPENDED INCOME RECV (UNBILLED)
80	LESSOR INCOME - PRECOMPUTED	284	DEFERRED LESSOR INCOME - PRE

If there was a last accrual transaction to clear the remaining balance in the "Deferred Lessor Income - Pre" general ledger account, the following accrual reversal general ledger transaction will be done to reverse that:

Debit		Credit
80	LESSOR INCOME - PRECOMPUTED	284	DEFERRED LESSOR INCOME - PRE

If the lease status is suspended:

Debit		Credit
103	SUSPENDED INCOME ACCRUED	286	DEFERRED SUSP INCOME ACCRUED

For Vertex O users only: To process accrual reversal LeasePak checks that whether lease invoice is a Vertex O invoice or not. LeasePak reverse accruals on an invoice that was previously accrued by Vertex O interface tax calculations, and then the reversal process updates RVP database records with amount zero for the accrued tax and payment amounts. At the same time, LeasePak writes accrual reversal records to RVX table with a negative amount where the lease was originally accrued.

 

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.

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