The depreciation expense for the report period is shown as a debit. The depreciation expense may vary by a penny from month to month, if the total depreciation does not divide evenly into the length of time the lease is depreciated 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 depreciation expense should be calculated on a monthly or daily basis. Generally, if your fiscal periods are calendar months or quarters, calculating depreciation 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), depreciation calculated daily is best. If depreciation is calculated monthly, then each month has an equal amount of depreciation, no matter how many days in the month. Within the month, depreciation is recognized at a rate of 1/30 of the monthly depreciation per day; no depreciation 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 depreciation to fill out the month.
EZLease keeps track of the fractions of a cent to guarantee completely accurate reporting.