Processing Partial Termination on Non-Accrual Direct Finance Lease

Processing Partial Termination on Non-Accrual Direct Finance Lease

This article was derived from a Community Posting asking the question - How do we process a partial termination on a Non-Accrual contract and what should we expect ASPIRE to produce for journal entries?

Attached are the journal entries for the following processing steps in ASPIRE.
1. Direct Finance lease booked with two assets as of 1/1/23
2. 2/1 rental invoice generated and paid
3. February earnings accrued via Month End processing
4. 3/1 rental invoice generated and paid
5. March earnings accrued via Month End processing
6. 4/1 rental invoice generated
7. April earnings accrued via Month End processing
8. Contract placed on non-accrual with a 5/1 effective date (one day of earnings taken to non-accrual account at time of processing)
9. May earnings accrued via Month End processing (non-accrual earned income account credited per configuration)
10. Single asset disposal processed to abandon one asset as of 6/15 (June earnings accrue through effective date at time of disposal processing)​

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