Interaction between Lease Management and Accounts Payable

After you run LM140 and lease invoice payments are successfully interfaced to the Accounts Payable application, there is no interdependency between the Accounts Payable processes and the Lease Management processes. Each application can continue processing in parallel with the other, and without waiting on the other.

• Accounts Payable assumes responsibility for these actions:

  • Transferring payment amounts to the General Ledger application

  • Processing payments

    See the information about processing invoice payments in the Accounts Payable User Guide.

• Lease Management assumes responsibility for these actions:

  • Keeping track of payment schedules

  • Keeping track of lease obligations

  • Calculating the interest for finance leases

  • Transferring the interest amounts to the interest account

  • Adjusting the debt account by the interest amount

For examples of journal entries created to the General Ledger by an operating lease and a finance lease, seeGeneral Ledger journal entries.