Suspending Residual Earnings on Sold Contract in ASPIRE

Suspending Residual Earnings on Sold Contract in ASPIRE

Suspending Residual Earnings on Sold Contract in ASPIRE

When a lease is sold to a funding source with the residual retained, FASB ASC 860 states that the lessor cannot recognize earnings on the residual until maturity ( The attached document is an example of meeting this requirement by doing the following in ASPIRE v5:

1. Booking the contract
2. Processing a contract modification to place the contract on non-accrual
3. Creating and posting a sale funding for the contract

The document also provides an example of the lifecycle of the transaction through maturity with the following processes:

1. Processing first month end accrual of earnings
2. Processing earnings through maturity
3. Terminating the contract

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