NetLease - Fees

Overview

The Lease Fees feature in NetLease allows users to apply additional recurring fees to a lease's monthly amortization and billing processes. Unlike non-lease payments, there is no cap on the number of lease fees that can be associated with a lease, and the fees are not associated with base lease payment, offering significantly more flexibility in managing variable charges such as CAM fees.


Prerequisites

  • Fee Types must be defined in the system before they can be used on a lease.

  • A valid expense account must be designated for each fee type.

  • Users must have access to NetLease > NetLease Setup > Manage Fee Types.

Step-by-Step Process

1. Create a Fee Type
Navigate to NetLease > NetLease Setup > Manage Fee Types.

  • Click New to add a fee type.

  • Provide the following details:

    • Name (e.g., CAM Fees)

    • Default Quantity (optional)

    • Default Frequency (optional)

    • Default Item (optional; used if billing items are needed)

    • Default Expense Account (required)

    • Default Rate (optional)

    • Default Amount (optional)

  • Click Save.

2. Add Lease Fee to a Lease

  • Open a lease record.

  • Go to the new Fees sub-tab.

  • Click New Fee and input:

    • Fee Status: must be active to have any GL impact

    • Fee Type: select from the list

    • Start Date: date when fee will begin

    • Item: will default in from fee type, leave blank if not using billing items

    • Quantity: (e.g., 1)

    • Rate: (e.g., 100)

    • Amount: will auto-calculate based on rate and quantity combo, or can be overriden.

    • Frequency: will default from the fee type but can be changed.

    • End Date: Indicate the last day the fee should be charged on the lease, leave blank if the fee should persist through the entire lease

  • Click Save.

3. Process Amortization

  • Process journals to review financial impact.

  • Navigate to the processed month’s amortization entry.

  • Additional lines will appear:

    • One line hitting the clearing account.

    • One line hitting the expense account from the fee type.

  • Each fee type adds a separate set of lines.

5. Generate a Bill

  • Generate a bill for a specific month as detailed in - NetLease Automated Billing.

  • Open the bill to see:

    • Standard lease payable clearing entry (e.g., $1,000).

    • Additional line for the lease fee (e.g., CAM fee).

Limitations/Things to Be Aware Of

  • Lease fees do not appear in the payment summary as non-lease payments do.

  • Although similar to non-lease payments, lease fees are separate custom records and operate independently.

  • There is no limit to the number of fee types that can be added to a lease.

  • If more than three non-lease payments are needed on a lease, lease fees are the preferred method.

Troubleshooting

  • Lease fees not appearing on amortization or bill: Confirm the fee status is Active and that the start date is within the processed period.

  • Missing financial impact: Ensure an expense account is set on the fee type.

  • Incorrect fee amount: Verify quantity and rate values; confirm defaults from fee type are correctly populated.


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