Creating a payment schedule

After you add the lease, you must create a payment schedule. You cannot run a FAS 13 test on the lease if a payment schedule does not exist.

  1. Select Payment Schedule (LM30.1).
  2. Specify this information:
    Company

    Select the name of the lessor company. If you click Payment Schedule from LM21.1, then the field from LM21.1 is set as the default.

    Lease

    Select the lease name. If you click Payment Schedule from LM21.1, then the field from LM21.1 is set as the default.

    Payment Vendor

    Select the Accounts Payable vendor that is associated with the lease invoice.

    Straight Line

    Select Y to indicate that the payment schedule must be recorded on a straight-line basis.

    Note: If the straight-line flag is selected, when a payment schedule is added or changed, then all of the payments that do not have an non-lease component are added together. The total is divided by the total number of payments to derive the straight-line amount.
    Payment Number

    If you do not use a recurring payment schedule for this lease, then you must select at least one payment number. To include a principal and interest lease cost and an non-lease component payment in the same payment, assign the same payment number to them.

    Non-Lease Component

    If this payment line is for a non-lease component payment, then select one of the non-lease components you have assigned to the lease on the Components tab of LM21.1.

    Authority Code

    Select the authority code of the person responsible for releasing the lease invoice for payment. Lease payments must be approved before the invoices that are associated with them are released.

    Due Date

    Select the due date for the payment.

    Payment Amount

    Specify the lease payment amount.

    Compute

    Select a compute name to calculate the payment amount.

    Note: If you do not specify a payment amount, then this field is required. If you define both a payment amount and a compute name, then the scheduled payment is the sum of both the payment amount and the amount derived from the compute name.
  3. Click More to define parameters for the Compute statement on LM30.1. Use this form only if you select a compute name for a payment line on Payment Schedule (LM30.1) or Recurring Payment (LM31.2).
  4. Click Miscellaneous.
  5. Specify this information:
    Process Level

    Select a process level. Process levels are used when processing the leased invoice in Accounts Payable.

    Accrual Code

    Select an accrual code.

    Handling Code

    Select a handling code for the payment.

    AP Vendor Location

    Select a code that represents a vendor's remittance address.

    Straight Line Amount Override

    Specify a straight-line amount override value. You must unrelease the lease to change the calculated straight-line amount.

  6. Click OK.
  7. Click Recurring and define one or more recurring payments for those payments that are identical.
    Note: You can change non-lease component lines on a payment schedule at any time, even after the lease is released. But you cannot change payments that were already processed.
  8. Verify the accuracy of the payment schedule using Payment Schedule Listing (LM230).
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