Payment schedules
A payment schedule lists every payment on the lease to the end date, including its due date and payment amount. Non-lease components must be in the payment schedule with the correct non-lease component code.
Payment schedules are used to keep track of what payments are due each period and what payments have been invoiced and sent to Payables. It is also used to determine the obligation that remains on each lease. The classification test also uses the data in the payment schedule to calculate the net present value of lease payments. This amount is used to determine the debt obligation and, for long-term operating and finance leases, the book value of the associatetd right-of-use asset. You must set a payment schedule for each lease.
Use a straight-line flag to indicate that for escalating lease payments, you must record straight-line amounts over the life of the lease. This is also referred to as recording a payment schedule on a straight-line basis.