NetLease - Foreign Exchange Journal Entries
Use Case: When the contract currency of a lease differs from the subsidiary's functional currency, FX adjustment entries will be booked by NetLease.
Prerequisites: To view the FX adjustment entries from the lease record, the "Operating Schedule-FX" and "Financing Schedule-FX" sublists must be unhid. To do this, navigate to Customization > Lists, Records, & Fields > Record Types.
- Select NetLease Lease.
- Navigate to your preferred form, and select Edit.
- Navigate to Sublists, then check the boxes for "Operating Schedule-FX" and "Financing Schedule-FX".
Step-by-Step Process: FX adjustment entries will show whenever there is a remeasurement related to the lease. For example, the ROU asset is remeasured when monthly amortization entries are run.
- To see FX adjustment entries from the lease record, navigate to Amortization Schedules > Operating Schedule-FX or Financing Schedule-FX (depending on whether the lease is classified as operating or financing). At the far right will be linked to the FX adjustment entries.
- Clicking the FX journal link will show the details of the FX adjustment entry. In this example, a debit was made to the ROU Accumulated Amortization account, and a corresponding credit was made to the FX Gain/Loss account.
- To see the FX rate used in the adjustment entry, select the Schedule Line link (pictured above "LSE01078"). Scroll down to System Notes.