How to Handle Pro-Rata Payments

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Option First Period Lease Liability Schedule: Lease Right-of-Use Schedule: Option First and Last Period Lease Liability Schedule: Lease Right-of-Use Schedule:

Pro-Rata payments are used when the lease commencement day is in the middle of the first period, and the payment amount and depreciation depend of the number of days left in the period.

To enable Pro-Rata functionality, from the Role Center, navigate to Admin → Setup → Lease Setup. In the opened page, find the System Feature Configuration tab and enable option Use Pro-rata Payments. If you also want to calculate depreciation split, also enable option Use Pro-rata for RoU.

To use Pro-Rata, the Commencement Date of the Lease Agreement has to be somewhere between the first and last day of the month. In the Lease Agreement Card, choose one of the options for Pro-Rata calculation - either First Period or First And Last Period.