What are the options for handling 13 period accounting in Lease Accounting software?
This article covers options for 13-period and 4-4-5 period accounting
Crunchafi Lease Accounting reports run on calendar month periods. If your periods are not based on calendar months, the following options are available to you:
- Book entries on a calendar month basis, lining up the 12 entries with the periods that most closely line up with the calendar months.
- Book entries in the first 12 periods, skipping the last period.
- Book entries in the first 12 periods and have a standing Journal Entry to offload 1/13th of the expense each month to a clearing account that accumulates through the year and then is expensed in the 13th period.
- Use our Cost Center Allocation to split each Expense account 12/13 to expense and 1/13 to an asset account that is then expensed in the 13th period.
Note that leases where the lease term does not line up with the calendar period will create a bit of a mismatch; however, we believe the difference is likely immaterial.
