Most leases are paid once a month (or once per quarter or year). Since months have varying numbers of days, this means that a daily calculation of the rent (and other expenses) can result in variability that may be undesirable. Conversely, making the daily activity consistent will result in monthly variability.
EZLease offers multiple options to make the accrual of rent, depreciation, and interest fit best with your organization’s fiscal calendar. Most users with fiscal calendars that match calendar months (i.e., your fiscal period ends at the end of a calendar month, or the same day every month) will get most consistent results from month to month by selecting the System Options of Accrual calculation period: Month, and 360-day year for rent and interest accrual: checked. Users with fiscal periods that are week-based (for instance, 13 4-week periods per year, or 4-4-5 week quarters) will get most consistent results from period to period by selecting Accrual calculation period: Day. (Choosing Month for the accrual period without 360-day year gives income statement activity every day, but the daily activity amount varies depending on the length of the month, while the total from one month to the next is the same.) Note that if a lease is paid in the middle of a month, the rent accrual will vary from calendar month to month unless Month and 360-day year are both chosen.