Off-balance Accounting

Off-balance Accounting

1. PURPOSE

The off-balance accounting functionality allows to post and monitor unused credit line limit and approved amount financed in off-balance G/L accounts.

2. SETUP

Navigate to Leasing Setup page.

Assign Off-balance Posting No. Series on Numbering tab.

Navigate to Source Code Setup page.

Assign Contract Off-balance and Credit Line Off-balance source codes on Leasing tab.

Navigate to Fin. Product Setup and enable flags on Accounting and Tax tab:

• Post Off-balance Before Activation
• Post Credit Line Off-balance Unused Limit

Navigate to Leasing Posting Setup and assign G/L accounts to the following fields:

• Off-balance Dr. Account
• Off-balance Clearing Cr. Account
• Credit Line Off-balance Dr. Account
• Credit Line Off-balance Clearing Cr. Account
  

3. Post Off-balance before Activation

Create new application and input Contract Inception date. Contract Inception date is an indication that leasing contract is already signed with customer and leasing company can recognize liability to off-balance account for approved amount finance. Indication itself can be extended via extension in case of different business case.

To post off-balance amounts run procedure Post Off-balance Amounts:

See posted amounts in G/L Summary per application:

Off-balance amounts are cleared on application activation:

4. Post Off-balance Unused Credit Line Limit

Create and confirm new credit line.

To post off-balance amounts run procedure Post Off-balance Amounts:

See posted amounts in G/L Summary per credit line:

Create and activate new application under credit line:

To update off-balance amounts run procedure Post Off-balance Amounts:

See updated amounts in G/L Summary per credit line: