Accounts: Lease - Buyout (Schedule)
This is used provide a buyout schedule for a lease. It typically follows the amoritization for the lease, but is programmed to include all remaining "profit" in the buyout calculations.
Profit Per Each Term
This is the periodic profit on each payment. You need to enter this amount as ALMSys will not attempt to determine what it is supposed to be.
This allows you to include interest on the buyout calculations. All Remaining Interest is all of the remaining interest in the amortization schedule. Next 3 Terms of Interest is the sum of the next 3 interest entries in the amortization schedule.
The first line of the grid is populated with the net lease capitalized cost and the total profit to be collected over the life of the lease.
All lines after that run on a payment due-to-payment due calculation.
Column values are as follows:
Principal Balance. The current amortization balance of the lease after this term's lease payment has been made.
Remaining Profit. The remaining profit after this term's lease payment has been made.
Remaining Interest. The remaining interest after this term's lease payment has been made.
Subtotal. Principal Balance plus Remaining Profit plus Remaining Interest.
Tax. The calculated sales tax, based on the Subtotal and the current tax rate on the lease.
Buyout. Subtotal plus Tax.