How to enter a Leasing Loan

This article will guide you step by step on how to enter a Leasing Loan.

Go through the tabs  fill in appropriate information and save to create the loan.

1. Enter Legal entity and Counterparty of the Leasing Loan

2. Choose Loan if the legal entity are borrowing from a counterparty and Deposit of the Legal entity are lending to a counterparty. 

3. Select amortisation type. 

• Annuity (Fixed total repayment) =The total of the interest amount and amortisation will be a fixed amount. If floating interest the amortisation will change and total repayment will stay the same.  
• Annuity (Fixed amortisation amount)= With fixed interest rate same as above. If the loan has floating interest rate the amortisation will not be updated when the interest % and amount is updated. 
• Annuity (recalculate)= will recalculate the annuity if anything on the loan is changed.  

4. Fill in the Down payment. Some leasing contract have an increased first down payment in the beginning of the loan. If that is the case, enter the amount in this field. 

5. Enter the total loan amount (including the down payment)

6. Enter the residual loan amount, that is left on the loan on deals end date (maturity date) 

7. Enter deal date begin date and end date (maturity date)

8. Enter amortisation period and first amortisation date if the first period is broken

9. In tab Interest enter the interest calculation information

10. The tab Bank account will be filled out with default bank accounts change if needed. 

11. Enter  applicable tags. If there is both Financial leasing loans and Operational leasing loans which should be accounted for differently, you need to enter 2 different tags e.g. Financial lease (market value) & Operational lease and set up 2 different accounting rules. 

12. Save the deal

Loan summary