NetLease Non-Lease Payments
Overview
NetLease supports tracking of non-lease payments associated with individual leases, such as CAM charges or insurance. The system accommodates up to three non-lease payments per lease. When monthly amortization journal entries are run, NetLease automatically generates corresponding journal entries for any configured non-lease payments.
Note: If more than three non-lease payments are required on a lease, NetLease Fees can be used as an alternative.
Prerequisites
The Non-Lease Payments feature must be enabled before beginning configuration. Navigate to NetLease > NetLease Setup > System Setup and select the System Features subtab. Check the Non-Lease Payments checkbox.
Step-by-Step Process
Rename Non-Lease Payments
- Navigate to NetLease > NetLease Setup > System Setup and select the Non-Lease Payments subtab.
- Enter the desired names for each non-lease payment field (e.g., CAM, Insurance). These labels will be used to identify each payment type.
- Click Save.
Update Form Labels on the Lease Payment Record
When creating a new NetLease Lease Payment, the field labels on the record form default to the standard Non-Lease Payment 1, Non-Lease Payment 2, and Non-Lease Payment 3 labels rather than the custom names configured above. To align the form labels with the configured naming convention, the field labels must be updated on the NetLease Lease Payment record form.
- Navigate to Customization > Lists, Records, & Fields > Record Types.
- Select the NetLease Lease Payment record hyperlink.
- On the Forms subtab, select Customize to the left of the Standard NetLease Lease Payment Form.
- On the Custom Entry Form record, navigate to the Fields subtab and select the Main sublist.
- Locate the non-lease payment fields and update each Label to match the names configured in System Setup (e.g., CAM, Insurance).
- Enter a name for the custom form and click Save.
Create a Billing Item (Optional)
A dedicated billing item may be created for each non-lease payment expense type to support more granular tracking on vendor bills.
- Navigate to Lists > Accounting > Items > New.
- Under the Non-inventory Item section, select For Purchase.
- Enter the item name and any relevant classification information.
- Under the Accounting subtab, enter the lease payable clearing account as the Expense Account and assign the appropriate Tax Schedule.
- Click Save.
Note: NetSuite vendor bills cannot contain both expense lines and item lines simultaneously. If a NetLease Payment Billing Item for the standard lease payment is configured on the lease type record, NetLease will use billing items for all non-lease payments on the bill. If no billing item is configured, non-lease payments will post as expense lines against the Lease Payable Clearing Account. To avoid conflicts, ensure the billing item setup is consistent across the standard lease payment and all non-lease payments.
Configure Lease Type Accounts
Expense accounts and billing items for non-lease payments must be assigned at the lease type level.
- Navigate to the appropriate lease type record and click Edit.
- Select the Non-Lease Payment Accounts subtab.
- For each non-lease payment, assign the corresponding Expense Account and/or Billing Item (if applicable).
- Click Save.
Update Lease Payment Sublist Labels on the Lease Record
The Lease Payments sublist on the lease record displays non-lease payment columns using the default labels (Non-Lease Payment 1, Non-Lease Payment 2, Non-Lease Payment 3). These column labels can be updated to reflect the custom names configured in the System Setup.
- Navigate to NetLease > Lease Management > Lease List and open a lease record.
- Under the Amortization Schedules subtab, select the Lease Payments sublist.
- Click Customize View.
- On the custom search view, under the Results subtab, update the column labels for each non-lease payment field to match the desired names.
- Click Save.
The Lease Payments sublist will now display the updated column labels.
Considerations
- Non-lease payments are entered on the lease record in the same way as standard lease payments. Once the lease is saved with non-lease payment amounts configured, those payments will be included when the schedule gets generated.
- When amortization journal entries are run for a lease that includes non-lease payments, the resulting journal entry will include additional lines for each configured non-lease payment.
- If non-lease payment amounts need to be updated mid-lease, this can be accomplished via a Non-Lease Payment Modification or a Complete Lease Modification.