Establish Payment Details

Use Case: By default, NetLease assumes a monthly payment and carries forward the Initial Payment Amount to each period throughout the entire Lease Term. If any variability exists in the timing or amounts of lease payments (including rent holidays, escalating rents, or non-monthly payments), that variability needs to be documented and reflected in the Lease Component Payments sublist on the Amortization subtab of the lease record.

STEP BY STEP PROCESS

  • During initial lease setup or in edit mode of any existing lease record, indicate the initial lease payment amount during the month of commencement in the Initial Lease Payment field within the Schedule Information header section.
  • To edit future payments, navigate to the Lease Payments sublist on the Amortization Schedules subtab

                

  • Select the effective date field of the change in lease payments and input the first date of the period that a payment is due.
  • Input the amount and indicate the frequency of the payment. Each future period entry will override all previous payment inputs
    1. One-Time > The payment will be captured for that period, but not in subsequent months, which will default to zero unless another payment is entered
    2. Monthly > The amount will carry forward each month with the amount input
    3. Bi-Monthly > The amount will be applied every two months starting from the effective date, with zero for the months between payments
    4. Quarterly > The amount will be applied every three months starting from the effective date, with zero for the months between payments
    5. Semi-Annually > The amount will be applied every six months starting from the effective date, with zero for the months between payments
    6. Annually > The amount will be applied every 12 months starting from the effective date, with zero for the months between payments
  • An example payment schedule is shown below:

  • Also, any restoration costs or other expected outflows of cash at the end or likely to be near the exercise termination date of a lease can be input as a higher amount on this schedule.
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