Using purchase options
You can use purchase options for leases where the lessee has the possibility to buy the leased asset at a specified price at the end of the lease term. The ownership is then transferred to the lessee. Purchase options can be added and linked to a contract in > > . Purchase options can be set to 'reasonably certain'.
 | There can be only one 'reasonably certain' purchase option per contract. This also applies to the combination of purchase options with termination options and renewal options: there can only be one 'reasonably certain' option. |
| | For more information on working with contract options in Planon, refer to the Contracts user documentation. |
For leases to which a 'reasonably certain' purchase option is linked:
• The accounting commitments are calculated based on the next possible end date; lease payments are still registered until the contract line's end date.
• The execution amount is taken into account in the calculations. The execution amount is the amount that must be paid for the transaction to purchase the leased asset.
• The depreciation is calculated based on the economic life span. This means that the depreciation can be extended until after the end date of the lease.
• the contract line fields Bargain option and Transfer ownership are automatically set to Yes. Note that these two fields are also automatically set to Yes after you have exercised a purchase option. For more information, see Contract line fields for lease accounting.
After you exercised a purchase option, you should change the contract line's status to Return of asset. For more information, see Returning an asset.