The amortization expense for the report period is shown as a debit. The amortization expense may vary by a penny from month to month, if the total amortization does not divide evenly into the length of time the lease is amortized over the economic life for a lease with ownership transfer or a reasonably certain purchase option; otherwise the lease term.
You may select in System Options whether amortization expense should be calculated on a monthly or daily basis. Generally, if your fiscal periods are calendar months or quarters, calculating amortization by month is best; if you use fiscal periods of other lengths (such as 13 4-week periods, or a 4/5/4-week schedule), amortization calculated daily is best. If amortization is calculated monthly, then each month has an equal amount of amortization, no matter how many days in the month. Within the month, amortization is recognized at a rate of 1/30 of the monthly amortization per day; no amortization is booked for the 31st day of the month (if any). In February, the last day of the month gets 1 (leap years) or 2 (non-leap years) days extra amortization to fill out the month.
EZLease keeps track of the fractions of a cent to guarantee completely accurate reporting.