Instead of using amalgamated accounts, the LeaseWave® lease accounting software system meticulously tracks all lease receivables individually; therefore, two separate outstanding lease payments worth $500 each on a particular lease have two distinct balance accounts. This specific receivable-based level of lease accounting treats every lease receivable, irrespective of whether it is a miscellaneous payment or lease payment, with its own balance. It is the most detailed level of lease receivables management that is possible. It is this level of detail that makes the discounting / securitization process very powerful. It is possible, for instance, to earmark the first 10 payments of a lease towards one buying entity and the next 5 towards another. In addition, the invoicing system can be automatically notified to stop billing the discounted payments, if servicing on the lease is scheduled to stop.
The LeaseWave® lease accounting software system’s entire discounting process is presented on an easy-to-use interface, allowing users to visually understand the impact of their lease accounting selections. Users can also run and save multiple analyses on the program to generate speculative discount amounts, buy rates and sell rates before actually activating the desired discount.
The LeaseWave® leasing system also makes it possible to discount the residual independently from the lease payments. Any discount can be “bought back” from the funding source and re-discounted. As long as the lease has outstanding lease payments on it, this process can continue an unlimited number of times. The GL impact of each transaction is automatically carried out internally by the lease accounting software system.