Leases

FD4Cast calculates interest and repayments on finance leases, based on the information you enter into the model. Finance Leases work quite similar to the Loans.

5.2.1 ENTERING LEASES

To enter lease information, go to Finance > Leases:

 

Lease Items: On the left hand side of the screen (orange region) we see different lease items. These belong to Finance Lease category which can be added as shown at 1.4.2 Add/Remove Category Rows and renamed as shown at 1.5 Admin Sheet. (You cannot model a new lease on the same line as an existing lease which appears on your Opening Balance Sheet. Instead you need to create a new line in the category of Finance Lease)

New Leasing Inputs: In this section on the top (green region) we can input new leases in the month that lease is drawn. Please note that this section is for new leasings only. All existing leasings drawn before the financial period start should be entered in the opening balance (See: 2.1 Opening Balance)

Lease Repayment Inputs: This section on the bottom of the screenshot (blue region) is used to input monthly repayments of leasings.

Repayments of new and existing leases should be entered here to be taken into account for cash flow and other financial statements. In the example below, you can see both the repayment of new and existing leasings, and the output reports being created accordingly:

 

5.2.2 ENTERING LEASE INTERESTS

Lease interests can be input either as a percentage or an absolute value as shown below:

Interest rate percentages can be input per month to the second table in the screenshot above.

The common method is to use the percentages for lease interest calculations. So, the default value for Manual (absolute) lease interests is FALSE. However, in some cases the user may want to input absolute values per month for interest calculation. In this case:

After making the inputs, these interest payments are reflected on reports which affect both P&L and Cash Flow Statements as seen below:

5.2.3 Amounts Falling Due Within a Year

You also have the option to define the months for distributing lease effect to the balance sheet. Using the same figures from previous examples, you can see below the effect of change for two different scenarios: