NavigateERP for African business

Lease interest, payments and termination

Each period of a lease we hold.

Steps

  1. Interest: on Leases we hold, an approver chooses the month and clicks Recognise interest - every period ended by then: Dr interest on lease liabilities (7120) / Cr lease liabilities. Each period is booked once.
  2. Payments: on the lease, click Pay on the period, with the money account and date - it reduces the liability (an exempt lease: the expense 6194).
  3. The lease ends when every payment is made and every period's interest recognised.
  4. Ending early: Terminate with the date and reason - interest is recognised to that date, the right-of-use asset is disposed of (its book value written off) and the liability still owed is released as a gain (4570).

Good to know

  • The Leases we hold page shows the liabilities split current / non-current and the undiscounted payments due within a year, in 1–5 years and after 5 years - for the notes to your financial statements.
  • To change a lease's terms, terminate it and enter the new terms as a new lease.