The Asset Leasing module is not able to account for partial months. Not all leases start at the beginning or end of the month. As a result, business either has to modify the lease schedule to reflect what the module is capable of handling.
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It is not appropriate for the Asset Leasing module to calculate a full month of Interest and Depreciation in the first month if the lease start date is not the first day of the month. This discrepancy can lead to material misstatement of the lease related balances in reports and the company financial statements.If the lease start date is the 15th there should be approximately half a month interest and depreciation in the first month.Please can you fix this inappropriate over simplification of the lease interest and depreciation calculations in the Asset Leasing module and ensure the calculations consider partial months for lease start/end dates.Thank you.
Category: Asset Leasing
We have the same issue here, as the banks may calculate the 1st period interest only for the remaining days of the month, when the contracts start from the middle of the month. It is hard to find a walkaround for this. Appreciate if someone can also share some ideas on how to handle this discrepancy.
Category: Asset Leasing