Video length: 3 minutes

Alternatively, you can read the steps below to learn how the present value of the lease receivable & Unguaranteed residual value, are calculated in Cradle.

Step 1: Go to “Overview” tab within an agreement

Step 2: Click “Download Audit Schedule” then open the excel file

Step 3: Filter the “Payment” column

Step 4: Start a new tab in the Excel file then copy the date column and the payment column to the new tab

Step 5: Go back to Cradle and go to “Initial Recognition” tab to copy the discount rate to the excel file

Step 6: Use the XNPV to calculate the Lease Receivable Opening Balance. The formula is form with XNPV( Discount %, All Lease Payments, All Payment Dates)

Step 7: Cross Check Cradle’s Lease Receivable Opening Balance against the calculated number from Step 6 & the journal entry as of the start date of the lease, confirm if they match

Step 1: Use the same excel audit schedule and copy the date and amount of the unguaranteed residual value then paste to a new sheet

Step 2: Capture the opening balance for the unguaranteed residual value and enter above the ending balance

Step 3: Copy and paste the discount rate from Initial Recognition from Cradle

Step 4: Use the XNPV to calculate the Unguarantee Residual Value Opening Balance. The formula is form with XNPV( Discount %, All Lease Payments, All Payment Dates)

Step 5: Cross Check Cradle’s Unguaranteed Residual Value Opening Balance against the calculated number from Step 6 & the journal entry as of the start date of the lease, confirm if they match