Operating lease
Because an operating lease is a straight expense, the Accounts Payable application is responsible for posting all journal entries to the General Ledger application.
Example
Monthly payment of $1,000.00, including an non-lease component of $50.00.
Program creating entries: AP175
When created: After lease payments have been interfaced to Accounts Payable
| Account name | Debit | Credit |
|---|---|---|
| Lease expense account* | 950.00 | |
| Non-lease component expense account** | 50.00 | |
| Accounts payable account*** | 1,000.00 | |
|
* You can define the lease expense account on the Payments form tab of Lease Addition and Adjustments (LM21.1). ** You can define the non-lease component expense account on the Components tab of Lease Addition and Adjustments (LM21.1). *** You can define the accounts payable account as an accrual code on Payment Schedule Miscellaneous (LM30.5), or on Invoice Adjustment (LM31.1); or you can use the Accounts Payable application to define the accrual code. |
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