Lease Amortization Schedule Subtab

The Lease Amortization Schedule subtab shows information about lease payments, interest, and related journals for this lease. The subtab displays the following columns:

• Date – Shows the lease payment date.

• Lease Payments – Shows the lease payment amount.

• Net Present Value – This value is calculated based on the rental frequency:

  • For annual rentals: NPV = lease payment / (1+annual interest rate) ^ period

  • For monthly rentals: NPV = lease payment / (1+(annual interest rate / 12)) ^ period

• Balance – This value is calculated by subtracting the principal from the previous balance. The starting balance is equal to the total net present value.

• Interest – This value is calculated by multiplying the interest rate by the previous balance. The computation varies depending on the rental frequency:

  • For annual rentals: Interest = interest rate * previous balance

  • For monthly rentals: Interest = (interest rate * previous balance)/12

  • If the first lease payment is between the 1st and the 15th of the month, it falls under Period 0. No interest is calculated, and the principal amount equals the lease payment amount.

  • If the first lease payment is between the 16th and the end of the month, it falls under Period 1. The existing calculation for the interest and principal is followed.

• Principal – This value is calculated by subtracting the interest from the lease payments.

• Journal – This column shows the link to the journal for each lnterest lease payment.

At the end of the schedule, the rounding off difference is applied to the principal. The calculation is as follows:

• Principal Amount = Previous Balance

• Interest Amount = Payment Amount – Principal Amount

• Balance = Previous Balance – Principal Amount

General Notices