I am here writing blog about not so common yet useful process of Lease accounting.
Starting with brief over-view about the process of Lease accounting.
Leased asset remains property of the lessor. They are special form of rented asset.This blog covers how Lessee can handle Leased asset in FI-AA.
This configuration is from the point of view of Lessee. There are two type of leasing.
Capital lease is shown in balance sheet and operating lease is treated as expense and not shown in balance sheet. Configuration steps are same for both, the difference arrive while settling the asset. Configuration is covered in this blog and other process will be covered in part 2.