NetLease Non-Lease Payments
Overview
NetLease has the ability to keep track of non-lease payments associated with specific leases. The system allows for up to three non-lease payments per lease. NetLease will create monthly journal entries related to these non-lease payments when the monthly amortization journal entries are run.
Prerequisites
- The Non-Lease Payments feature must be enabled in NetLease > NetLease Setup > System Setup > System Features.
Step By Step Process
- Rename the non-lease payments in NetLease > NetLease Setup > System Setup > Non-Lease Payments.
- Create a new billing item for the expenses. Navigate to Lists > Accounting > Items > New. Under the Non-inventory Item section, select For Purchase.
- Enter the name for the billing item and any tagging information desired. Under the Accounting subtab, you will need to enter the lease payable clearing account as the expense account and tax schedule associated with the item. Click Save.
- Edit the lease types to include the accounts and items for the non-lease payments. Navigate to the lease type record and select Edit. Select the Non-Lease Payment Accounts subtab at the bottom and assign the expense account and billing item for each non-lease payment.
Results
- The monthly amortization journal entry will include extra lines for the non-lease payments. See our guide for running monthly journal entries for help with that process.
- It will show a Debit to the expense account assigned in the lease record and a Credit to Lease Payable Clearing Account.