AssetAccountant allows for the refinancing of leases that have been used to purchase a fixed asset for the business. (For modifications to right-of-use assets, please use this article - Manually modify a right-of-use asset).
To refinance an existing lease, navigate to the "Refinance Lease" option in the "Actions" menu:
AssetAccountant will then bring up the following side menu:
From here, you can follow these steps:
- Select whether you are refinancing at the start or the end of the day (i.e. before or after any payment that was previously scheduled on that day)
- Review the amount to be financed (the screen will show you the outstanding principal and any accrued interest as of that day) and correct it if necessary
- Click the "Generate Schedule" button
This will the allow you to enter the new schedule of payments for the refinance of the lease:
Once you have completed this, click the "Generate Schedule" button followed by the "Refinance Lease" button at the bottom of the first side panel and the lease will be refinanced.
Note that any difference between the amount outstanding and the amount refinanced will be charged to the clearing account and will most likely be an adjustment to interest charged in the month of the refinance. You can also enter this amount in the "Starting Interest" box above if you have not already paid this interest amount.
For audit purposes, when you run the Lease Schedule Report, it will show the refinanced lease details as part one and the initial lease information as part two. This will be repeated for all refinances so you always have a history of the lease.