![]() ![]() collateral The additional security provided by the borrower for availing the credit facility provided by the lender. closed item An invoiced item that was paid. catch-all A placeholder used at the top of a territory hierarchy when no other is defined in Territory Management. A related pass-through disbursement is created when cash is applied against an invoice. cash basis An event initiated based on when cash is received. The total capitalized cost-or basis-is the amount upon which the tax benefits or depreciation on the equipment are based. capitalized cost The cost of equipment to be leased plus various fees, charges, or interest that may be added to the equipment cost. ![]() ![]() ![]() It is treated as debt and an offsetting depreciable asset for book accounting purposes. It must meet at least one of the criteria outlined in paragraph 7 of FASB 13. capital lease A type of lease classified and accounted for by a lessee as a purchase and by the lessor as a sale or financing. cancellation When a customer has the contractual right to end an agreement (that is, the customer is at the end of term in month-to-month status, non-appropriation clause, or rental agreement). buyout amount This is the amount necessary for the customer to pay in order to consider the contract paid in full. buyout customer buys equipment from lessor at the end of the contract's full life. The business unit can span multiple product lines and geographies. business unit A business unit is an entity created by a company to manage a certain segment or segments of its business. These leases are often referred to as dollar buyout or buck-out leases. buck-out lease Full payout, net leases structured with a bargain purchase option for the lessee to purchase the equipment for one dollar at the expiration of the lease. broker A person or organization acting as an agent to vendor, dealer, or lessor in negotiating a transaction. booking The process of preparing and recording accounting records associated with a contract. billing frequency The frequency with which bills are presented to a customer. billing The process of notifying the responsibility party of amounts due. billed basis An event initiated based on when the item is billed. This process is automated by running a concurrent program. auto-terminate The process of automatically terminating a lease contract when it reaches its end of term. This process can be automated by running a concurrent program. auto-invoice The process of automatically invoicing the lessee for a payment due. authoring A process of creating a contract. asset disposition Sale or disposal of assets. as-due basis An event initiated based on when the invoice is due. articles Textual sections of contract terms and conditions. asset item Anything you make, purchase, or sell including components, subassemblies, finished products, or supplies that carries a cost and is valued in your asset subinventories. approver The person who is authorized to approve the document before the next activity may be carried out. amortization The systematic method for recording financial elements to income or expense over a defined period, typically the lease or loan term. advance/arrears indicator Shows if the rents are billed in advance or in arrears of the rental period. advance rent Rent received at the start of the lease that will be adjusted against the last rents. accrual accounting Recognizes economic events regardless of when actual cash transactions occur. A $1 buyout is used in conjunction with a $1 purchase option. 44/45 Glossary $1 buyout The end of term purchase option given to the lessee where the fixed purchase option is at a value of $1. ![]()
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