NetLease - Generate the Amortization Schedule

Overview

Once initial information related to a lease is saved and a lease record is created, the lease amortization schedule can be generated. The schedule highlights the future balances and activity expected to be recorded as lease payments, ROU Asset, Lease Liability, Amortization/Expense, etc.

Prerequisite 

Ensure that all variable payments are entered and that the lease terms reflect the likelihood of exercising any options.

Step by Step

Option 1: Generate a Schedule for a Single Lease

  • After saving required data for a lease record, select the Generate Schedulebutton at the top of the lease record to initiate the generation of the lease schedule for that record.
    • The Generate Lease Schedule script can take up to a minute to generate the lease schedules.

  • The screen will show a loading icon while the schedule is generating. Once complete, the page will reload automatically and a banner will show at the top of the page that the schedule as generated. 

Option 2: Generate Schedules for Multiple Leases

You can generate schedules for multiple leases at once via the mass processing page.

  • Navigate to NetLease > Mass Update Leases > Mass Lease Schedule Generation.
  • To generate (or re-generate) schedules for only a subset of pending leases, enter any desired filters. Once you are satisfied with the leases displaying in the sub-list, click the checkbox for individual leases or Mark All, then Generate.

  • You will be redirected to a status page. Refresh periodically to see the leases with updated amortization schedules.

  • Once the status is Complete, click Export to save the processed results as a .csv file.

Review the Schedule

    • On the lease record, scroll down to the Amortization Schedules section of the page to see the newly updated schedule. The subtabs populate based off the Classification of the lease, so navigate to the correct schedule tab to see the amortization schedule.

  • The Period 0 line establishes the ROU Asset and Lease Liability at the commencement date. Any net differences at commencement are due to Lease Incentives, Initial Direct Costs, or Prepaid Lease Payments input on the header.
  • Periods 1 onward correspond to subsequent monthly activity, which includes the following depending on lease type:
    1. Financing (All IFRS) > Payments, ROU Amortization, Lease Liability Accretion, and Interest Expense
    2. Operating (US Only) > Payments, Single Lease Expense, Lease Liability Accretion, and ROU Adjustments
  • All monthly periods have activity, even if no payment is made in that month.
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