Operating and financial leases. Practical planning

Algorithm for planning leased products

The acquisition of an asset under a finance or operating lease must be economically viable. Therefore, before deciding on a financial or operational lease, it is recommended to perform calculation options that would consider at least two options - the acquisition of an asset on lease or the purchase of an asset. Simply put, you need a comparative analysis of several project options, comparative economic efficiency, for example, in the medium term (3-4 years).

Also, for example, after making a decision to purchase a product on lease, you can perform additional calculations that will help you choose the best leasing option, taking into account various offers and terms of the lease agreement.

Lease product planning is the planning of finance or operating lease options for 36 months (standard planning horizon) to acquire assets.

☛ Please note, unlike the standard planning horizon, the horizon for calculating project performance indicators is 15 years (180 months). This horizon allows you to correctly assess the performance indicators, since the investment does not always pay off in the first three years of the project. The horizon for calculating performance indicators is configured in the "general settings" form in the "investment analysis" tab.

Important! An additional conditional future period has been added to all plans. However, only some plans use a long-term calculation horizon, for example, when planning loan and rental products (calculation horizon - up to 10 years) or when planning assets (depreciation period - up to 50 years). At the same time, all calculations outside the standard horizon will be taken into account in the conditional future period. That is, the future period will accumulate all the calculations that will go beyond the 36 months of the project.

☛ Please note that for calculating loan interest and other lease payments, the same formulas are used as for calculating loan products (see "Loan products. Calculation methods and algorithms").

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General planning algorithm

1. We enter the form for planning rental products (line "Operating and financial lease"). First of all, let's add a new rental product using the "add" edit menu item, or press F2.

2. In the “rental product” tab, select the type of product, enter the contract amount, interest rate, duration (start and end). You can specify the start and duration in months (if necessary, you can specify exact dates).

When choosing a product type, you choose a loan formula. The program presents three main formulas that are used in lending practice - "Standard", "annuity" and "consumer". For detailed information on the formulas for calculating loan products, see the section "Calculation methods and algorithms".

3. Select the "settings" tab. Here you can specify the parameters for calculating the loan interest and other payments - the calculation step (in months or days), the method of accounting for the annual cycle, the calculated interest (complex or simple) and the currency for calculating lease payments.

☛ Important. In case of asset redemption, check the box opposite the “asset redemption” item. If the checkbox is not specified, in this case only interest and other rental payments will be calculated.

☛ Also, please note that all calculations in another currency, in the business plan tables, will be displayed in the system currency, for example, in rubles. The calculated currency is not indicated in the financial tables, it is converted to the system currency.

For currency payments, exchange rate differences are determined for each month (the rate is calculated automatically according to the table of rates, which the user fills in on the "financial analysis" page). You can view the calculation of currency payments, for example, in dollars, in the tab "table of payments".

4. In the following tabs (basic and other payments), you can complete the settings. Here you can specify the frequency of payments (for example, month, quarter, half year, and so on), deferred payments, additional one-time and recurring payments, etc.

☛ Note! You can specify your payment schedule instead of using the program's calculations. To do this, in the payments table, you need to set the checkbox "Payments in accordance with the schedule" ... and after that the payments table can be edited.

5. Now it remains to perform the calculations. Here you can perform both test calculations and the final calculation of all products. Test calculations allow at the stage of financing selection to determine the best option for lease financing.

☛ Every time, after a test calculation, perform a "cleanup" of the table data.

After you have verified that your lease products meet the financing requirements, calculate all products.

And finally, after the entire financial plan has been built, when the plans for "operating and financial leases", "reserves for future expenses" and "financial instruments" have been determined ... then the entire financial plan can be calculated and it will be included in the final calculation of the business plan (Data → Calculate, or F9).

☛ Important! Additionally, you can record the asset in accounting if the asset accounting is provided for by the lease agreement (depreciation, revaluation, disposal, and so on). This can be done in the form of "planning and accounting for assets" in the investment plan, where it is necessary to indicate the method of receipt of "other receipts of the asset". That is, you can display the asset as correctly as possible in the financial reports.

☛ Important! It is recommended to calculate the financial and investment plan together with other financial plans - with profit and loss statements, cash flow statements and balance sheets.

See further in this section for examples of calculating leasing products.

Method for calculating leasing payments

In IFRS 17, leases are classified into financial and operating leases:

Finance lease

Operating leases

In the settings of the program interface, financial lease differs from operating flag is set to "Redemption of asset". In addition, a Finance lease involves accounting asset (see "fixed assets and other assets").

Lease accounting in the financial statements varies depending on the type of lease:

Type of lease	The order of reflection in the financial statements	Implementation in Budget-Plan Express
Financial leases	It is reflected in the balance sheet as an asset (leased property) and an obligation (lease obligation). Initial costs are included in the cost of the leased asset. During the lease period, depreciation is charged on the leased property. Financial costs are reflected in the statement of cash flows in the line "Payment of finance leases."	Financial plan → Operating and financial leases → Settings Tab → to Set the flag "Redemption of the asset.". Tools leasing payment calculations. Investment plan → fixed assets and other assets → Planning and accounting of assets: accumulated depreciation, cost, salvage, purchase, other transactions with the assets. Investment plan → Investment assets → Investment property: reflection and accounting of investment property.
Operating leases	Lease payments are accounted for and recognised in the statement of profit and loss as expenses over the term of the lease as incurred.	Financial plan → Operating and financial leases. Tools leasing payment calculations.

The methodology for calculating leasing payments and scheduling their payments is almost the same as the methodology for calculating loans.

To account for financial leases, you need to set the flag " Redemption of an asset ".

Both for financial and operational leasing, a standard interface is used, described in the section: «Credit products. Planning tools», а также – алгоритмы расчетов и формулы, приведенные в разделе «Credit products. Methods and algorithms of calculation».

Purpose of the "payments" table

Each specific rental product includes its own "payment table". The "payment table" provides two modes - "calculation" and "data editing". Modes are switched depending on the setting of the flag "Payments, in accordance with the schedule":

If the flag is disabled, the "Payment Table" will be blocked for editing, and is available for calculations.
If the flag is set, the "payments" table will be available for editing, and vice versa, it is blocked for calculations.

Regardless of the flag setting, the lines "plan-factual deviations" are always available for editing.

If you use the edited table (that is, the "Payments, according to the schedule" flag is set), you must specify 2 parameters for the calculation:

Amount of financing.

Funding period (start month, end month and duration).

specified period will be considered

Planning of leasing (rental) products

The parameters of the product, in most cases, include:

Amount of financing,
Lease Term,
Advance payment (% of the amount of financing),
Leasing interest (% per annum),
The amount of depreciation of leased property for the entire period (usually a percentage of the contract),
Commission.
Payment calculation formula (annuity, standard) and other settlement conditions,
Periodicity of payments (month, quarter, half year, year),
Payment Schedule .

Additionally, in planning a Finance lease, it is necessary to specify the costs associated with the use of the asset (depreciation and other costs): "Investment plan → fixed assets and other assets". In this case, the method proceeds of asset is considered as "other income" (switch).

The program can take into account the various options and conditions for the provision of leasing: the term of leasing, down payment, leasing interest, calculation formula, etc. At the stage of concluding a lease agreement, you can consider different scenarios of leasing payments and try to optimize costs.

If the contract is already concluded, and a payment schedule is drawn up, the ready schedule should be entered in the "payments" table.

VAT calculation of the lease payments is not taken into account and corrected in "the Plan of settlement with creditors".

Examples of scheduling payments. Finance lease

Example 1. Example of calculating the schedule of payments under a financial leasing agreement.

Conditions on the financial leasing contract: the contract terms, the equipment recorded on the balance sheet of the lessee, and at the end of the term of the agreement ownership passes to the lessee. The cost of the equipment 4 356 284, the term of the loan is 24 months, payment monthly. Designed schedule of payments during the whole period of the agreement: first payment is 20% of the amount of funding that is 856 871. The following months payments up 7/225 of the principal amount of debt (133 291), the sum of the last four payments is calculated as 10/225 (190 416) of the principal amount of the debt, and in the last month – 20/225 (380 832) of the principal amount of the debt.

Payment schedule for 1 and 2 years, by months:

Financial leasing – planning Budget-Plan Express

step. Add new product: the item "add" (F2).

step. Set the amount of "Rental product → Amount = 4 284 356".
step. Set the period start – "product Rental → period"
step. Set loan term – "product Rental → Duration = 24"

step. Go to the "table of payments" and check the box to access the editing table: "Table of payments → flag Payments in accordance with the schedule"
step. Make the payment schedule in a table as shown:

Make the payment schedule in a table as shown

step. Clear (reset) the table from the previous calculations. "Clear button → the Final table → ОК"
step. Calculate. The "Calculation button → list box item Selected → ОК"

A fragment of the calculation result table in the "financial plan":

Schedule of payments for the entire period of the lease – Budget planning-Plan Express

Example 2. Example of calculation of the uniform payments under the contract of financial leasing.

Conditions on the financial leasing contract: the contract terms, the equipment recorded on the balance sheet of the lessee, and at the end of the term of the agreement ownership passes to the lessee. The cost of equipment 15 432 000, the term of the contract is 37 months at the rate 13,40%, first payment – 35% of the funding, then the payment of monthly annuities. Calculate annuities using different formulas for complex percent.

step. Add new product: the item "add" (F2).
step. Select a product from the list – "product Rental → product Type → Annuity".

step. Set complex percent – the "General Settings → the Estimated percentage → complex".
step. Set the amount of "Rental product → Amount = 15 432 000".
step. Set rate – "Lease product → Rate = 13,40%"
step. Set loan term – "product Rental → Duration = 37"

step. Set the frequency of payments – the "Principal payments → payment Frequency → month"
step. Calculate the amount of the first payment – "15 432 000 * 0,134 = 5 401 200"
step. Set the amount of the first payment – "Principal payments → fixed amount → 5 401 200"

step. Clear (reset) the table from the previous calculations. "Clear button → the Final table → ОК"
step. Calculate. The "Calculation button → list box item Selected → ОК"

Result

339 913

A fragment of the calculation result table in the "financial plan":

The same conditions is calculated according to the formula of "consumer" credit, when not accounted for interest money, less favorable for the tenant:

Result - the interest Paid over the entire period of the contract = 7 309 165 total payment = 22 741 165, annuity payment = 476 178.

Example 3. Example of the calculation of annuities, taking into account interest money when advance payment are not included in the calculation of interest.

Conditions on the financial leasing contract: the contract terms, the equipment recorded on the balance sheet of the lessee, and at the end of the term of the agreement ownership passes to the lessee. The cost of equipment 500 000, at the rate of 15.00%, the contract period is 30 months, down payment – 15% of the funding. The payment of monthly annuities. In addition to interest payments, the insurance premium is 1.5% and the monthly amortization and depreciation of 3.45%. To calculate the annuities for complex percent.

step. Add new product: the item "add" (F2).
step. Select a product from the list – "product Rental → product Type → Annuity".
step. Set complex percent – the "General Settings → the Estimated percentage → complex".

step. Calculate the amount. As an advance, paid prior to the transfer of the product into rent, interest and money and other benefits will be calculated with the remaining amount. Advance (15%) = 500 000 * 0,15 = 75 000. The remaining amount = 500 000 - 75 000 = 425 000
step. Set the amount of the debt is "Rental product → Amount = 425 000".
step. Set the amount of the advance – "table of payments → "PAD – duty" in the first month of the contract = 75 000".

step. Set loan term – "product Rental → Duration = 30"
step. Set rate – "Lease product → Rate = 15,00%"
step. Set the frequency of payments – the "Principal payments → payment Frequency → month"

step. Set the insurance premium is 1.5% of "other payments → one-time payment → Rate = 1,50%"
step. Set the monthly depreciation of 3.45% – "other payments → recurring payments → Rate = 3,45%"

Specify other payments, as shown in the picture

step. Clear (reset) the table from the previous calculations. "Clear button → the Final table → ОК"
step. Calculate. The "Calculation button → list box item Selected → ОК"

Interest money and other benefits will be calculated with the remaining amount

Result

17 665

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