Change Base Index

Explanation

This activity is used to change the base lease index value by using the right mouse button option Change Base Index in Amortization Schedule tab of the Lease Accounting Contract window.

Prerequisites

In order to change the base lease index value, the following must have been completed:

• Lease Index Type must have been created in the Lease Index Types window and it should be attached to a lease contract.
• Terms and conditions line should exist in the Category, Standard Terms in the Terms and Conditions sub tab for the same contract.
• An Amortization Schedule should have been created for that lease contract.
• Status of the lease contarct should be in the status Preliminary.
•  New base index values should be updated in the Lease Index Types window which is used in the selected contract

System Effects

As a result of this activity, the base lease index value will be updated to reflect it in the future cash flows and the present value calculations therein.

Also, it will show a difference in the Difference in Liability by comparing the Lease Liability Beginning Balance of the selected schedule line and the Lease Liability Ending Balance of the previous line.

Window

Lease Accounting Contract

Related Window Descriptions

Lease Accounting Contract/Amortization Schedule

Procedure

Use the following procedure to change the base lease index value of a lease contract:

1. Open the Lease Accounting Contract window and search for the lease contract of which you want to update the base index values.
2. Click on the Amortization Schedule tab in the same window.
3. Select the schedule line from which you want to update the base index value.
4. Select right mouse button option to open the Change Base Index dialog box.
5. Verify the values suggested in the Base Index Value and the New Base Index Value fields and adjust, if required.
   Note:
   Base Index Value: The value which is available in the Base Index column in Amortization Schedule is fetched by default. User can change the suggested values, if required. Zero and negative values are not allowed.
   New Base Index Value: The applicable value in Lease Index Type window for the Payment Due Date of the selected installment is fetched by default. User can change the suggested values, if required. Negative values are not allowed.
6. Click OK.