Lease Maintenance and General Ledger Integration
Purpose
Monthly it is necessary to verify the maintenance posting to the General Ledger
Process
Run the Print Leased Assets Maintenance and Instalments Report
For ease of use to process the journal entries posted to the General Lodger at month end the report should be printed with the following parameters:
Field | Explanation |
| Report Status | Asset Status |
Asset Status | All |
Summary Only | Tick on |
The resulting report will provide the details required for the General Ledger month end journal posting
The report can be reprinted in details to understanding the individual amounts per lease account and to verify these are correct
The month end General Ledger Journal that is posted is in two parts and is structured as:
1. Post Maintenance Provisions
Process all Lease Assets that:
- Are not sold
- AND are not on-leased;
This means all assets that are At Client or Returned to Stock.
For each account type, company and currency combination:
- Add together the Maintenance Provision Expired and the Prior Lease Maintenance Provision from these Lease Assets
- Post using the GL Codes from the Account Type, setting the new balance to the calculated figure
An example of this system created journal entry is:
2. Post Maintenance on Sales
Process all Lease Assets that:
- Are Sold
- AND were Sold within the month
For each account type, company and currency combination:
- For actual maintenance, add together the Lease Maintenance and Prior Lease Maintenance figures from the Lease Assets
- For maintenance provision, add together the Maintenance Provision Expired and Prior Maintenance Provision Expired from the Lease Assets
- Post to the General Ledger, adding a Journal line for actual maintenance, maintenance provision, and maintenance expense where the maintenance expense is the difference between actual and provision
An example of this system created journal entry is:
Maintenance by Instalments
Maintenance content may be spread evenly over the life of the lease using the Lease Post Instalments Due routine
When the lease instalment posts, an invoice (maintenance component of the instalment + GST) is posted to the Accounts Payable System for the Lease Assets with an associated Payable Account
The following setup structures and rules apply to this processing:
- The Account must be an operating lease
- The Account Type
dialog must have specified:
- A Maintenance transaction type
- An ACTUAL Maintenance Exp GL Code
- The Accounts Payable account must be specified on the lease asset
Related Articles
Lease Maintenance Types Details
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