If you have leases with ownership transfer or reasonably certain purchase option, they are to be depreciated over their economic life, which is typically longer than the lease term. (The concept is that because you will own the asset at the end of the lease, you can continue to use and depreciate it over the full economic life.) Once the lease expires, the lease no longer appears on regular accounting reports in EZLease. However, you can use this report to track the depreciation after the lease expires until the end of its economic life.
This report is not available if the option “Report depreciation after lease expiration” is unchecked in System Options.
Only leases that are in their extended depreciation period (after lease expiration, but before end of economic life) are included on this report. By definition, all leases listed are finance.
For each lease, the right-of-use asset is shown, with the accumulated depreciation on the date the lease expired, current period depreciation expense, and accumulated depreciation at the end date of the report.
If the lease expiration date is during a report period, an extra line is displayed noting this fact and the amount of asset that is being carried over from leased to owned assets.
You are permitted to enter an early termination any time up to the end of the economic life. If you do so, and the early termination date is during the report period, the report shows the amount of termination loss due to the premature termination and writing off of the asset. If you enter a correction termination, the reversal of activity goes only back to the expiration of the lease and affects only the depreciation; it is not possible to reverse the actual lease activity through a correction termination dated after the lease expires.
Report depreciation after lease expiration
Your report title
Enter any title you want to give to the report. The type of report is always displayed at the top left corner; you can use this title to describe the report (such as “Period 2, Midwest Division”).
You may get lease by lease detail, or just the totals for all leases.
Group of leases to use
You may choose All leases, a Group of leases starting with the same characters, or a Single lease. If you choose Single lease, a popup displays the leases in the file; choose the one you want. If you choose Group, you are prompted for the beginning characters to search for.
You can create a text report that displays on the screen (and which can then be exported in HTML, PDF, Rich Text Format (.rtf), Microsoft Word® (.doc), Microsoft Excel® (.xls), and Crystal Reports (.rpt) formats). Please note that the Excel output exported from a text report is laid out the same way as the text report, which is generally not well-suited for sorting and otherwise manipulating the data inside Excel. If you export a text report, please wait for the “Export completed successfully” message to display before continuing with EZLease.
You can also create spreadsheet output. This is specifically designed to manipulate inside a spreadsheet program; a report period is displayed on a single line, so you can select, sort, and sum results. The same information is provided as on the text report, but the layout is considerably different to facilitate data manipulation. The spreadsheet format includes all the fields shown in the text layout, as well as the lease's account numbers, if any are defined. If you select spreadsheet output, you are prompted to specify an output filename.
In System Options, you can select whether the spreadsheet output should be generated as an Excel .xls file, or as an XML-format spreadsheet. Output in Excel format requires that you have a licensed copy of Excel on your computer.
Enter the beginning day of the first period of the report.
Select Fixed if you want one or more whole calendar periods: months, quarters (3 months), years, or 28-day periods. Select Fiscal to use fiscal periods (calendar months or 4- or 5-week periods based on your company’s calendar). Select Variable if you want to enter each report end date.
If you choose Fixed, select which type of period (months, quarters, years, or 28-day periods) and how many of those periods you want. The end date of the last report period is automatically calculated and displayed. The default is 1 month. You may enter up to 999 periods.