Payment schedules

A payment schedule lists every payment on the lease to the end date, including its due date and payment amount. If the payment includes non-lease components, then the payment schedule must also include non-lease component payments.

Payment schedules are used to keep track of what payments are due each period and what payments were invoiced and sent to Accounts Payable. It is also used on what obligation remains on each lease. The FAS 13 test also uses the data in the payment schedule to specify whether the lease is Finance or Operating. You must set a payment schedule for each lease that you specify.

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.