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Questions Capital Lease Tracking
Has anyone found a good solution to tracking Capital Leases in Acumatica? As you may know, a Capital Lease is treated as a financing activity, where payments are made for an asset. As part of that payment, a portion is applied to interest, and the rest is applied to the principle (very similar to long term debt).
The ideal solution is to avoid having an amortization table in excel to determine the payment breakdown for each monthly payment.
I am just theorizing a solution here. You could create the liability for the cost of the item being leased. You then create a generic inquiry that calculates the interest and principal based on the remaining balance. An import scenario could be created against the genetic inquiry to add the bill each month. If you had many of these, you could base your inquiry on the journal entry that created the liability and use part of the description as your interest rate. You could then use that as part of your formula.
@ryanxbyte thanks for your feedback. This ended up being very close to the solution that we put together. When creating the initial entry in AP, the user would debit the fixed asset clearing account, and credit the capital lease account. The debit to fixed asset clearing sends the transaction to be converted to an asset for depreciation in FA, and the credit to capital lease is captured in a GI that calculates the principle and interest (interest rate and terms are added as UDFs on the AP Bill) based on the remaining balance. Each month, a lease payment is made in AP against that original acquisition, which debits the capital lease account. Ultimately, at the end of the lease, the account balance would be zero.
@timrodman - thanks for pointing that solution out, it does seem like a good solution if integrated with Acumatica. Definitely something worth looking into more