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

    • Related Articles

    • Adjustment Item Earnings Method

      Adjustment Item Earnings Method tells the system how to calculate earnings on Contract Items (such as IDC and the Loan item for loans).  It defaults to "Customer" but there are 3 choices, all explained below.  All three are applicable to Leases but ...
    • Adding and Booking a Contract in ASPIRE

      See the attached document for complete details. The purpose of the attached How to Guide is to show a generic example of how one can go about adding a contract to ASPIRE, and subsequently how to book that contract. Note: This document outlines only ...
    • ASPIRE Sales Tax

      See the attached document for complete details.  1.       Overview The attached document is intended to be a high to medium level overview of standard ASPIRE sales tax calculation, including an overview of tax related configuration, how tax is ...
    • Processing Earnings in ASPIRE Video

      See linked video for complete details.        The linked video shows the different methods of processing earnings. Click here for the 17 minute video. 
    • How to build a new User in ASPIRE v5

      See Attachment for detailed information on each step BASICS:   1.  Build a new Account 2.  Fill out the Login screens for that user, which will assign them to an existing Security Profile 3.  If the user needs to be able to process  Payments, ...