In your case, the lease would not be a direct financing lease or a sale-type lease, it would be an operating lease,so there is no COGS for such products. Instead, the costs the leased product should be capitalized and depreciated over its useful life.The revenue from the lease is recognized as rental income on a straight-line basis over the lease term. In addition, the initial direct costs (such as commissions, legal fees, document preparation fee for new leases etc) shall be deferred and amortized over the least term in proportion to the recognized rental income.
-homedream(古风);
2013-10-11{455}(#76569@41)
Thank you. It is really helpful
-henryczw(henryczw);
2013-10-11(#76573@41)
Thanks again. Do i have to setup a new account to distinguish inventory for sale and inventory for rent? How to book this entry
-henryczw(henryczw);
2013-10-11(#76577@41)
首先要区分是operation lease 还是finance lease。如果是operation lease,就是用ABBA的方法;如果是finance lease,那么COGS就是perpetual system 那样记,discount future value to present value, Cr sales revenue, Dr Notes Receivable,每次收钱需要记 Dr Cash, Cr Notes receivable and Interest Revenue. 刚刚好正在学,理论上是这样的,实际工作中没经验。
-pastrychef(蛋糕);
2013-10-12{192}(#76591@41)