<PAGE>   1



                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                    Form 10-Q
                        Quarterly Report Under Section 13
                           or 15 (d) of the Securities
                              Exchange Act of 1934



For the Quarter Ended          
 September 30, 1998                             Commission File Number  0-18650
---------------------                           -------------------------------


                   DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
             ------------------------------------------------------
             (Exact name of Registrant as specified in its charter)

<TABLE>
<S>                                      <C>    
   Delaware                                        36-3639399
-----------------                        ---------------------------
 State or other                          IRS Employer Identification
 jurisdiction of                                    Number
 incorporation or
 organization

1300 E. Woodfield Road, Suite 312        Schaumburg, Illinois 60173
---------------------------------        --------------------------
 Address of principal                        City, State, Zip Code
 executive offices

Registrant's telephone number:                  (847) 240-6200
                                         --------------------------
</TABLE>



   Indicate by check mark whether the Registrant (1) has filed all reports
   required to be filed by Section 13 or 15(d) of the Securities Exchange
   Act of 1934 during the preceding 12 months (or for such shorter period
   that the Registrant was required to file such reports), and (2) has
   been subject to such filing requirements for the past 90 days.



                           (1)  Yes  x   No

                           (2)  Yes  x   No




<PAGE>   2



                   DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
                                    FORM 10-Q
                    FOR THE QUARTER ENDED SEPTEMBER 30, 1998

PART I -- FINANCIAL INFORMATION

<TABLE>
<S>                                                                <C>    
Item 1.

  Index to Financial Statements                             

    Balance Sheets

      September 30, 1998 (unaudited)                               3

      December 31, 1997                                            4

    Statements of Revenue and Expenses (unaudited)

      For the three months ended September 30, 1998                5

      For the three months ended September 30, 1997                6

      For the nine months ended September 30, 1998                 7

      For the nine months ended September 30, 1997                 8

    Statements of Changes in Partners' Equity

      For the nine months ended September 30, 1998
         (unaudited)                                               9

    Statements of Cash Flows (unaudited)

      For the nine months ended September 30, 1998                10

      For the nine months ended September 30, 1997                11

    Notes to Financial Statements (unaudited)                12 - 13

Item 2.


  Management's Discussion and Analysis of
    Financial Condition and Results of Operations            14 - 16

PART II -- OTHER INFORMATION

Items 1-6.                                                        17
</TABLE>



                                        2

<PAGE>   3



                   DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
                                 BALANCE SHEETS
                               September 30, 1998
                                  (Unaudited)

<TABLE>
<CAPTION>
                                  Liquidating      Continuing
                                    Limited          Limited
                                   Partners         Partners           Total
                                  ------------     ------------     ------------
<S>                                 <C>             <C>              <C>    
ASSETS

Cash and cash equivalents           $2,152,684      $6,034,140       $ 8,186,824
Net investment in direct
  financing leases                          --         442,260           442,260
Residual interest in CRCA                   --              --                --
Diverted and other assets, net         340,788       1,191,530         1,532,318
Datronic assets, net                        --              --                --
                                    ----------      ----------       -----------

                                    $2,493,472      $7,667,930       $10,161,402
                                    ==========      ==========       ===========



LIABILITIES AND PARTNERS' EQUITY

Accounts payable and
  accrued expenses                  $   14,394      $    60,943      $    75,337
Lessee rental deposits                  11,271           59,663           70,934
                                    ----------      -----------      -----------

Total liabilities                       25,665          120,606          146,271

Total partners' equity               2,467,807        7,547,324       10,015,131
                                    ----------      -----------      -----------

                                    $2,493,472      $ 7,667,930      $10,161,402
                                    ==========      ===========      ===========
</TABLE>




















                See accompanying notes to financial statements.

                                       3

<PAGE>   4




                   DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
                                 BALANCE SHEETS
                               December 31, 1997



<TABLE>
<CAPTION>
                                Liquidating       Continuing
                                  Limited           Limited
                                 Partners          Partners          Total
                                ------------      ------------     -----------
<S>                               <C>               <C>            <C>    
ASSETS

Cash and cash equivalents         $2,253,955        $5,662,905     $ 7,916,860
Net investment in direct
  financing leases                        --         1,045,601       1,045,601
Residual interest in CRCA                 --                --              --
Diverted and other assets, net       340,788         1,191,530       1,532,318
Datronic assets, net                      --                --              --
                                  ----------       -----------     -----------

                                  $2,594,743        $7,900,036     $10,494,779
                                  ==========        ==========     ===========


LIABILITIES AND PARTNERS' EQUITY

Accounts payable and
  accrued expenses                $   15,101        $   68,413     $    83,514
Lessee rental deposits                18,786            94,702         113,488
                                  ----------        ----------     -----------

     Total liabilities                33,887           163,115         197,002

Total partners' equity             2,560,856         7,736,921      10,297,777
                                  ----------        ----------     -----------


                                  $2,594,743        $7,900,036     $10,494,779
                                  ==========        ==========     ===========
</TABLE>




















                See accompanying notes to financial statements.


                                       4

<PAGE>   5



                   DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
                       STATEMENTS OF REVENUE AND EXPENSES
                 For the three months ended September 30, 1998
                                  (Unaudited)

<TABLE>
<CAPTION>
                              Liquidating        Continuing
                                Limited           Limited
                               Partners           Partners          Total
                              -----------        ----------       ---------
<S>                            <C>               <C>               <C>    
Revenue:
  Lease income                 $     115         $  21,681        $  21,796
  Interest income                 21,942            82,280          104,222
                               ---------         ---------        ---------

                                  22,057           103,961          126,018
                               ---------         ---------        ---------

Expenses:
  General Partner's expense
    reimbursement                 34,087           144,896          178,983
  Professional fees                4,304            22,185           26,489
  Other operating expenses         1,465             5,153            6,618
  Credit for lease losses         (2,839)           (9,927)         (12,766)
                               ---------         ---------        ---------

                                  37,017           162,307          199,324
                               ---------         ---------        ---------


Net loss                       $ (14,960)        $ (58,346)       $ (73,306)
                               =========         =========        =========

Net loss --
  General Partner              $    (150)        $    (583)       $    (733)
                               =========         =========        =========

Net loss --
  Limited Partners             $ (14,810)        $ (57,763)       $ (72,573)
                               =========         =========        =========


Net loss per limited
  partnership unit                $ (.33)          $  (.37)
                                  ======           =======

Weighted average number
  of limited partnership
  units outstanding               44,468           155,509
                                  ======           =======
</TABLE>















                See accompanying notes to financial statements.

                                       5

<PAGE>   6



                      DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
                          STATEMENTS OF REVENUE AND EXPENSES
                     For the three months ended September 30, 1997
                                     (Unaudited)

<TABLE>
<CAPTION>
                                  Liquidating       Continuing
                                    Limited          Limited
                                    Partners         Partners          Total
                                  -----------       ----------       ---------
<S>                               <C>               <C>              <C>    
Revenue:
  Lease income                    $   1,009         $  65,770        $  66,779
  Interest income                    20,840            76,384           97,224
                                  ---------         ---------        ---------

                                     21,849           142,154          164,003
                                  ---------         ---------        ---------

Expenses:
  General Partner's expense
    reimbursement                    58,564           230,977          289,541
  Professional fees                  30,927           108,997          139,924
  Other operating expenses            4,075            14,390           18,465
  Credit for lease losses           (60,925)         (213,016)        (273,941)
                                  ---------         ---------        ---------

                                     32,641           141,348          173,989
                                  ---------         ---------        ---------


Net earnings (loss)               $ (10,792)        $     806        $  (9,986)
                                  =========         =========        =========


Net earnings (loss) --
  General Partner                 $    (108)        $       8        $    (100)
                                  =========         =========        =========


Net earnings (loss) --
  Limited Partners                $ (10,684)        $     798        $  (9,886)
                                  =========         =========        =========


Net earnings (loss) per limited
  partnership unit                   $(0.24)          $  0.01
                                     ======           =======

Weighted average number
  of limited partnership units
  outstanding                        44,468           155,509
                                     ======           =======
</TABLE>













                See accompanying notes to financial statements.

                                       6

<PAGE>   7



                   DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
                       STATEMENTS OF REVENUE AND EXPENSES
                  For the nine months ended September 30, 1998
                                  (Unaudited)


<TABLE>
<CAPTION>
                                 Liquidating     Continuing
                                  Limited          Limited
                                  Partners        Partners          Total
                                ------------     -----------      ----------
<S>                              <C>              <C>             <C>    
Revenue:
  Lease income                   $  10,643        $ 126,677       $  137,320
  Interest income                   66,200          245,417          311,617
                                 ---------        ---------       ----------

                                    76,843          372,094          448,937
                                 ---------        ---------       ----------

Expenses:
  General Partner's expense
    reimbursement                  124,030          501,155          625,185
  Professional fees                137,677          494,059          631,736
  Other operating expenses           7,425           26,460           33,885
  Credit for lease losses          (99,240)        (459,983)        (559,223)
                                 ---------        ---------       ----------

                                   169,892          561,691          731,583
                                 ---------        ---------       ----------


Net loss                         $ (93,049)       $(189,597)      $ (282,646)
                                 =========        =========       ==========

Net loss --
  General Partner                $    (930)       $  (1,896)      $   (2,826)
                                 =========        =========       ==========

Net loss --
  Limited Partners               $ (92,119)       $(187,701)      $ (279,820)
                                 =========        =========       ==========

Net loss per limited
  partnership unit                  $(2.07)         $ (1.21)
                                    ======          =======

Weighted average number
  of limited partnership
  units outstanding                 44,468          155,509
                                    ======          =======
</TABLE>

















                See accompanying notes to financial statements.

                                       7

<PAGE>   8



                   DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
                       STATEMENTS OF REVENUE AND EXPENSES
                  For the nine months ended September 30, 1997
                                   (Unaudited)


<TABLE>
<CAPTION>
                              Liquidating     Continuing
                                Limited         Limited
                               Partners        Partners           Total
                              -----------     -----------      -----------
<S>                            <C>             <C>             <C>    
Revenue:
  Lease income                 $   7,492       $  258,328       $  265,820
  Interest income                 53,094          209,639          262,733
                               ---------       ----------       ----------

                                  60,586          467,967          528,553
                               ---------       ----------       ----------

Expenses:
  General Partner's expense
    reimbursement                241,928          888,810        1,130,738
  Professional fees               66,759          242,598          309,357
  Other operating expenses         8,711           31,679           40,390
  Credit for lease losses       (231,503)        (704,426)        (935,929)
                               ---------       ----------       ----------

                                  85,895          458,661          544,556
                               ---------       ----------       ----------


Net earnings (loss)            $ (25,309)      $    9,306       $  (16,003)
                               =========       ==========       ==========


Net earnings (loss) --
  General Partner              $    (253)      $       93       $     (160)
                               =========       ==========       ==========


Net earnings (loss) --
  Limited Partners             $ (25,056)      $    9,213       $  (15,843)
                               =========       ==========       ==========


Net earnings (loss) limited
  partnership unit                $ (.56)        $    .06
                                  ======         ========

Weighted average number
  of limited partnership units
  outstanding                     44,468          155,509
                                  ======          =======
</TABLE>













                See accompanying notes to financial statements.

                                       8

<PAGE>   9



                   DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.

                    STATEMENT OF CHANGES IN PARTNERS' EQUITY
                                  (Unaudited)



<TABLE>
<CAPTION>
                                          Liquidating  Continuing
                                General     Limited      Limited       Total
                               Partner's   Partners'    Partners'     Partners'
                                Equity      Equity       Equity        Equity
                              ----------  -----------  ----------   -----------
<S>                           <C>         <C>          <C>          <C>        
Balance, December 31, 1997*   $      --   $2,560,856   $7,736,921   $10,297,777

  Net loss                       (2,826)     (92,119)    (187,701)     (282,646)
  Allocation of General
    Partner's Equity              2,826         (930)      (1,896)           --
                              ---------   ----------   ----------   -----------

Balance, September 30, 1998   $      --   $2,467,807   $7,547,324   $10,015,131
                              =========   ==========   ==========   ===========
</TABLE>



[FN]

*   Balances are net of $57,257 and $298,788, of General Partner's equity
    previously allocated to Liquidating and Continuing Limited Partners' Equity.

</FN>

































                See accompanying notes to financial statements.



                                       9

<PAGE>   10



                   DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
                            STATEMENTS OF CASH FLOWS
                  For the nine months ended September 30, 1998
                                  (Unaudited)



<TABLE>
<CAPTION>
                                        Liquidating    Continuing
                                          Limited        Limited
                                         Partners       Partners        Total
                                       ------------    -----------   ----------
<S>                                     <C>             <C>          <C>    
Cash flows from operating activities:
  Net loss                              $  (93,049)     $ (189,597)  $ (282,646)
  Adjustments to reconcile
    net loss to net cash used
    in operating activities:
      Credit for lease losses              (99,240)       (459,983)    (559,223)
      Changes in assets and
        liabilities:
        Accounts payable and
          accrued expenses                    (707)         (7,470)      (8,177)
        Lessee rental deposits              (7,515)        (35,039)     (42,554)
                                        ----------      ----------   ----------

                                          (200,511)       (692,089)    (892,600)
                                        ----------      ----------   ----------

Cash flows from investing activities:
  Principal collections on leases           99,240       1,063,324    1,162,564
                                        ----------      ----------   ----------


Net increase (decrease) in cash
  and cash equivalents                    (101,271)        371,235      269,964

Cash and cash equivalents:
  Beginning of year                      2,253,955       5,662,905    7,916,860
                                        ----------      ----------   ----------


  End of third quarter                  $2,152,684      $6,034,140   $8,186,824
                                        ==========      ==========   ==========
</TABLE>


















                See accompanying notes to financial statements.

                                       10

<PAGE>   11



                   DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
                            STATEMENTS OF CASH FLOWS
                  For the nine months ended September 30, 1997
                                  (Unaudited)


<TABLE>
<CAPTION>
                                          Liquidating  Continuing
                                            Limited      Limited
                                           Partners     Partners       Total
                                         ------------  -----------  ----------
<S>                                        <C>          <C>         <C>    
Cash flows used for operating activities:
  Net earnings (loss)                      $  (25,309)  $    9,306  $  (16,003)
  Adjustments to reconcile net earnings
    (loss) to net cash used in
    operating activities:
    Credit for lease losses                  (231,503)    (704,426)   (935,929)
    Changes in assets and liabilities:
      Accounts payable and accrued
        expenses                              (43,106)    (165,570)   (208,676)
      Lessee rental deposits                  (16,980)     (72,718)    (89,698)
      Due from management company              12,674       47,002      59,676
                                           ----------   ----------  ----------

                                             (304,224)    (886,406) (1,190,630)
                                           ----------   ----------  ----------

Cash flows from investing activities:
  Principal collections on leases             235,994    2,312,851   2,548,845
                                           ----------   ----------  ----------


Net increase (decrease) in cash and
  cash equivalents                            (68,230)   1,426,445   1,358,215

Cash and cash equivalents:
  Beginning of year                         2,357,430    3,986,042   6,343,472
                                           ----------   ----------  ----------


  End of third quarter                     $2,289,200   $5,412,487  $7,701,687
                                           ==========   ==========  ==========
</TABLE>




















                See accompanying notes to financial statements.

                                       11

<PAGE>   12



                   DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
                          NOTES TO FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1998
                                   (Unaudited)


NOTE 1 - ORGANIZATION:
----------------------
Datronic Equipment Income Fund XVIII, L.P., a Delaware Limited Partnership (the
"Partnership"), was formed on April 12, 1989 for the purpose of acquiring and
leasing both high- and low-technology equipment. See Notes 5, 8, and 10 to the
Partnership's financial statements included in the 1997 Form 10-K for a
discussion of the alleged diversion of Partnership assets in 1991 and 1992 and
the subsequent litigation and settlement, change in general partner, new classes
of limited partners established and amendments to the Partnership Agreement that
occurred.

NOTE 2 - BASIS OF FINANCIAL STATEMENTS:
---------------------------------------
The accompanying financial statements should be read in conjunction with the
Partnership's financial statements included in the 1997 Form 10-K. The financial
information furnished herein is unaudited but in the opinion of Management
includes all adjustments necessary (all of which are normal recurring
adjustments) for a fair presentation of financial condition and results of
operations. See Note 2 to the Partnership's financial statements included in the
1997 Form 10-K.

NOTE 3 - LIMITED PARTNERSHIP DISTRIBUTIONS:
-------------------------------------------
Distributions to Liquidating Limited Partners were suspended after payment of
the July 1, 1995 distribution. Distributions to the Continuing Limited Partners
were suspended after payment of the April 1, 1996 distribution.

NOTE 4 - SETTLEMENT OF LITIGATION:
----------------------------------
On May 5, 1998, Lease Resolution Corporation (LRC), on behalf of Datronic
Equipment Income Funds XVI, XVII, XVIII, XIX, XX and Datronic Finance Income
Fund I, reached an agreement to settle all claims of the aforementioned
partnerships against Weiss & Co. The settlement was contingent upon the
subsequent approval by the United States District Court for the Northern
District of Illinois, Eastern Division (the "District Court") dismissing Weiss &
Co. as a party defendant. On August 19, 1998, the District Court entered an
order dismissing Weiss & Co. as a party defendant, and on September 20, 1998,
$2,437,331 was transferred to LRC in full and final settlement of the Weiss
matter. In connection with this matter, a total of $1,410,950 of expenses
($708,600 for the nine months ended September 30, 1998) consisting primarily of
legal fees, was incurred. After payment of contingent legal fees of $609,333, a
total of $1,827,998 is available for transfer to the Datronic Partnerships. LRC
will determine the appropriate allocation of these amounts among the
Partnerships after

                                       12

<PAGE>   13



resolution of the post-trial motions filed in the Price Waterhouse
matter.

On June 10, 1998 a verdict was rendered finding Price Waterhouse liable for
negligence, but not guilty of breach of contract. On July 20, 1998, LRC and
Price Waterhouse both filed post-trial motions requesting relief from the Court.
The Court is not expected to rule on these motions for several months.



                                       13

<PAGE>   14



PART I

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
         -----------------------------------------------------------
AND RESULTS OF OPERATIONS
-------------------------
The following discussion and analysis of liquidity and capital resources covers
material changes in the Partnership's financial condition from December 31, 1997
through September 30, 1998. The discussion and analysis of results of operations
is for the three and nine month periods ended September 30, 1998 as compared to
the corresponding periods in 1997.

Liquidity and Capital Resources
-------------------------------
During the nine months ended September 30, 1998, Partnership assets continued to
be converted to cash in order to pay Partnership operating expenses, liquidate
Partnership liabilities and increase cash balances for the ultimate liquidation
of the Partnership.

During the nine months ended September 30, 1998, the Partnership's cash and cash
equivalents increased by $270,000 to $8,187,000 at September 30, 1998 from
$7,917,000 at December 31, 1997. This increase is primarily due to cash receipts
from collections on leases of $1,163,000 which includes a $384,000 recovery of a
portion of the Partnership's residual interest in CRCA, partially offset by cash
used in operations of $893,000.

The Partnership's sources of liquidity on both a long-term and short-term basis
are expected to come principally from cash-on-hand and cash receipts from leases
owned by the Partnership. The lease portfolio is scheduled to be substantially
run out by the end of 1999, unless it is determined that it is in the
Partnership's best interest to dispose of the remaining portfolio earlier. In
addition, the Partnership's sources of liquidity on a long-term basis include
proceeds from the sale of Diverted and other assets. Management believes that
these sources of liquidity in the short and long-term are sufficient to meet
operating cash requirements, provide for ongoing pursuit of litigation, and an
orderly liquidation of the Partnership.

The continued operation and eventual liquidation of the Partnership involves
complex issues some of which have been resolved. These issues relate to the
timing and the amount to be realized from the liquidation of lease-related
assets, Diverted and other assets, Datronic assets, litigation and the
liquidation of the other Datronic Partnerships. These issues make it difficult
to predict the time and costs necessary to operate and liquidate the Partnership
in an orderly manner. Through the second quarter of 1998, it appeared unlikely
that the Partnership would make any additional distributions until such time as
its remaining assets were liquidated and the pending litigation was resolved.
Now that additional assets have been liquidated the General Partner has
determined that an interim cash distribution will be paid to the Limited
Partners shortly after the end of the first quarter 1999. The General Partner is
in the process of determining the amount that will be available for this
distribution

                                       14

<PAGE>   15



and its allocation among each class of Limited Partner. This distribution will
be made to owners of record as of December 31, 1998 even if their units are
subsequently sold.

Results of Operations
---------------------
The Partnership had a net loss of $73,000 and $283,000 for the three and nine
months ended September 30, 1998, respectively, in the aggregate for all classes
of partners. This compares to a net loss of $10,000 for the three months ended
and $16,000 for the nine months ended September 30, 1997. Differences in
operating results between Liquidating and Continuing Limited Partners are
attributable to lease income, acquisition costs, and expenses associated with
new lease investments made since the March 4, 1993 Settlement. Liquidating
Limited Partners do not participate in these post Settlement activities.
Significant factors affecting overall operating results for the three and nine
month periods ended September 30, 1998 as compared to the same periods in 1997
include the following:

Lease income:
Since April 1995, the Partnership has been in its Liquidation Phase which
prohibits investing in any new leases. Accordingly, the lease portfolio has
continued to decrease as collections are made, resulting in a continued decline
in lease income for the three and nine months ended September 30, 1998 as
compared to the corresponding periods in 1997.

Interest income:
Interest income increased for the three and nine month periods ended September
30, 1998 as compared to the corresponding periods in 1997 as a result of
increased invested cash balances.

General Partner's expense reimbursement:
The decrease for the three and nine month periods ended September 30, 1998 is
primarily due to the elimination of premium payments for D&O insurance and
relocation costs as well as reductions in staff and related costs. Through the
first quarter 1997, D&O insurance premiums were paid on an annual basis;
however, in September 1997 a one-time premium was paid that extended coverage
through the ultimate liquidation date of the Partnership. Included in the second
quarter 1997 is a one-time charge for relocating staff to reduced office space.

Professional fees:
The increase for the nine month period ended September 30, 1998 primarily
reflects fees paid during the second quarter of 1998 in connection with the
trial against one of the Partnership's former accountants. This increase is
partially offset by the decreasing level of professional services required in
such areas as collections, consulting and auditing. These decreases are the
result of the decrease in the Partnership's lease portfolio and related
activities. The decrease for the three months ended September 30, 1998 primarily
reflects the reduction in fees paid in connection with the ongoing litigation.
There was little activity while awaiting rulings on post-

                                       15

<PAGE>   16



trial motions filed in July 1998. See Note 4 to the Partnership's financial
statements included in item 1.

Credit for lease losses:
The credits for 1998 and 1997 reflect recoveries of lease balances previously
reserved. 1998 and 1997 amounts also include $384,000 and $936,000,
respectively, of recoveries on the residual interest in CRCA. See Note 4 to the
Partnership's financial statements included in the 1997 Form 10-K.

                                       16

<PAGE>   17



PART II - OTHER INFORMATION


ITEM 1.  LEGAL PROCEEDINGS

Reference is made to Item 3 - Legal Proceedings in the Partnership's December
31, 1997 Form 10-K, for a discussion of material legal proceedings involving the
Partnership.

Reference is made to Part I, Item 1, Note 4 for a discussion of legal
proceedings involving claims against Weiss & Co.

ITEM 2.  CHANGES IN SECURITIES


None.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None.

ITEM 5.  OTHER INFORMATION

None.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K


(a)  Exhibits


See Exhibit Index.

(b)  Reports on Form 8-K


None.




                                       17

<PAGE>   18



                                   SIGNATURES



Pursuant to the requirements of the Securities Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized, on the 16th day of November 1998.





            DATRONIC EQUIPMENT INCOME FUND XVIII, L.P.
            Registrant





       By:  /s/ DONALD D. TORISKY
            --------------------------------------------
            Donald D. Torisky Chairman and Chief Executive Officer, Lease
            Resolution Corporation General Partner of Datronic Equipment Income
            Fund XVIII, L.P.



       By:  /s/ ROBERT P. SCHAEN
            --------------------------------------------
            Robert P. Schaen
            Vice-Chairman and Chief Financial Officer, Lease Resolution
            Corporation General Partner of Datronic Equipment Income Fund XVIII,
            L.P.








                                       18

<PAGE>   19


                                  EXHIBIT INDEX
                                  -------------

<TABLE>
<CAPTION>
EXHIBIT NO.                   DESCRIPTION
-----------                   -----------
   <S>                        <C>                                                           
   27                         Financial Data Schedule, which is
                              submitted electronically to the
                              Securities and Exchange Commission
                              for information only and not filed.
</TABLE>


                                       19