Enter Other Payments

Explanation

This activity is used to enter other payments relating to a lease contract.

Prerequisites

In order to enter information in the Other Payments 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:

• Other Payments that are connected to the lease contract are not considered for the calculation of present value of minimum lease payments (PVMLP). These payments should be handled using Manual Supplier Invoices, Manual Vouchers or Direct Cash Payments and should be included in the Right-of-use asset manually.
• Other Payments are available only for information purpose if the Leasing Type in the General tab of the Lease Accounting Contract window is Finance.
• If the Leasing Type in the General tab of the Lease Accounting Contract window is Operating, Other Payments registered here will be used in calculating the periodical Lease Expense under Operating Lease in US GAAP.

Window

Lease Accounting Contract

Related Window Descriptions

Lease Accounting Contract
Lease Accounting Contract/General

Procedure

Use the following procedure to enter other payments relating to a lease contract:

1. Open Other Payments sub tab in Lease Accounting Contract/General tab and create a new record (F5).
2. Enter a description for the other payment line in the Description field.
3. In the Category list, select the appropriate value for the other payment.
   The possible values are as follows:
   
   1. Prepayment: The prepayments made before starting the lease contract.
   2. Direct Cost: Costs of obtaining a lease that would not have been incurred if the lease had not been obtained, except for such costs incurred by a manufacturer or lessor in connection with the lease contract. Example: Commissions paid to agents for establishing the lease.
   3. Incentive: In-cash or any kind of incentives connected to the lease contract. Other Payments in this category will be considered as negative values in calculations. Example: Free rent period(s).
4. Enter the transaction amount applicable for the other payments which have been made in the Amount (in contract currency) field.
5. Enter the transaction date on which the other payments which have been made in the Transaction Date field.
6. Double click on the Notes check box if you want to enter notes.
7. Save the information (F12).