Enter Interest Rates

Explanation

This activity is used to enter interest(discount) rates applicable for lease accounting.

Prerequisites

In order to enter information in the Interest Rates sub tab, the information must have been entered in the Header and the General tab of the Lease Accounting Contract window.

System Effects

As a result of this activity, interest(discount) rates are available for the Lease Accounting process.

Annual interest (discount) rate is used to calculate the present value of minimum lease payments (PVMLP) and the periodic accrued interest values in the Amortization Schedule tab in the Lease Accounting Contract window.

Window

Lease Accounting Contract
Lease Contract Modification Detail

Related Window Descriptions

Lease Accounting Contract
Lease Accounting Contract/General
Lease Contract Modification Detail

Procedure

Use the following procedure to enter interest (discount) rates applicable for lease accounting:

1. Open Interest Rates sub tab in Lease Accounting Contract/General tab and create a new record (F5).
2. Enter the interest (discount) rate applicable for lease accounting in the Annual Interest Rate (%) field.
3. Enter the date from which the interest(discount) rate applies in the Valid From field.
4. Save the information (F12).

Note: The same procedure can be carried out for multiple contracts from Lease Accounting Contracts window by selecting RMB option Modify Lease Contract.