Asset lease interest Payment schedule

(2) Share

Report

Posted on by CU20101146-0

I would like to raise a business case scenario regarding the asset lease with the following details:

Fair value of the asset: 1,889,040.00
Asset useful life: 43 months
Annuity type: Annuity Due
Lease start date: 1 May 2026

Please note that the interest rate was not provided in the contract. However, I have attempted to calculate it manually, and the approximate rate is 14.7%.
The payment structure is as follows:

41,500 for 42 monthly periods
146,040 in the final period

The payment schedule in the system has been generated without any errors. However, the liability amortization schedule does not match the amortization schedule stated in the contract.
Kindly find attached:

the liability amortization schedule in contract:

The system's liability amortization schedule:

The contract input details
My system input

I would appreciate your review and clarification on the discrepancy.

Categories:

Dynamics 365 Finance

I have the same question (0)

All responses (1)

Answers (1)

Verified answer

CU20101146-0 28 on at

Like (0)

Report
Copy link

Link copied!

Please note that in the business case scenario, the vendor has granted a three-month grace period. Accordingly, the first interest payment due on 01/05 should cover the interest accrued over the preceding three months.

but still not equal same as the contract

Was this reply helpful? Yes No