Assets recorded in Pinnacle are assets that are under the control of your organisation. The assets may be assets that were purchased, or assets that were leased from another organisation. Assets that are leased are still under the control of your organisation, and should still be recorded in Pinnacle for accountability and maintainability.
Leased assets are held by your organisation under a lease arrangement, which normally involves a regular lease payment. Asset Leasing in Pinnacle allows you to record all the details of all leases, and can schedule your lease payments.
There are two types of leases available in Pinnacle:
Financial Lease - Assets held under a financial lease are being purchased for your organisation. The financial lease typically involves recording the financed amount, and an interest rate for the lease. Lease payments involve an interest and principal component. At the end of the lease term, the assets are owned by your organisation.
Operating Lease - Assets held under an operating lease are being rented for the duration of the lease. Lease payments are made at a simple flat rate per payment. At the end of the lease term, the assets return to the leasing company.