Asset leasing journal
All journal entries that are created in Asset leasing are in the Asset leasing journal.
On the Asset leasing > Journal entries > Asset leasing journals page, you can filter by posting status, view specific journal entries and the vouchers, and post the unposted journal entries. These journals can be manually posted or generated and posted through Asset leasing > Periodic > Batch journal creation.
On the Asset leasing journals page, there is an option to create a new journal and eventually post it. In the Lines for the journal, there are multiple fields that can be edited before posting the journal.
For example, the Invoice number, Description, Date, Sales tax group, and Item sales tax group fields can be filled out in the journal. There are also select fields that are not able to be edited in order to maintain accuracy and reduce an error that could be caused by a change in the journal line. Some examples of the fields that cannot be edited include the Amount, Account, and Financial dimension.
Initial recognition journal
The initial recognition of a leased asset uses the calculated present value so that it can be reported on the balance sheet. This transaction debits the right-of-use asset account and credits the operating lease liability account as follows.
Make sure that you create and post the Initial recognition journal prior to making any transactions against the lease. Create the journal with the following steps.
- Go to Asset leasing > Leases > Lease summary and select the correct lease.
- Select the Books link in the Action Pane.
- Select the correct Book > Function > Initial recognition. You will receive a message that the journal is created.
- Select Journals > Asset leasing journals.
- Review the details of the journal.
- If the journal is correct, select Post in the Action Pane.
