What is the best way to record a lease (loan)?

david luther's Avatar

david luther

17 May, 2009 10:41 PM

I have an auto lease and I was curious if there was a better way to record this than by simply creating another standard loan account? Is there a feature in MD that will help keep track of the cap cost, residual value, or money factor of my lease? Thank you for any replys.

  1. 1 Posted by Ben Spencer on 21 May, 2009 09:18 PM

    Ben Spencer's Avatar

    Hi David

    Thats a good question. There is nothing built into the Moneydance software that can facilitate the tracking of a lease. The way I understand it a lease is not a loan. A lease does not involve you borrowing money from an institution and paying it back in installments at interest. And therefor should not be accounted for as a Loan (liability). I do not believe it is the case that you owe a chunk of money to your auto dealer, rather that you have agreed to pay them a fixed amount each month for a service (i.e. the use of their car) Therefor it is my belief that the lease payments should be accounted for as transactions to an expense category.

    If I am incorrect in my understanding of the agreement you have with please forgive me and provide me with more information such that I might better assist you.

    Sincerely

    Ben Spencer

  2. Ben Spencer closed this discussion on 21 May, 2009 09:18 PM.

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