Commence Leases

Overview

The lease commencement date is the date on which a lessor makes an underlying asset available for use by a lessee. At this date, the associated accounting will need to be triggered to establish that the entity has the right to use an asset and corresponding liability for future lease payments

Prerequisite: All lease details and the generated schedule should be double checked to ensure amounts and data is correct—specifically lease payment amounts and discount rates. Note that any desired changes to lease schedules after a lease has been commenced and journals have been recorded will need to take place via a lease modification.

Commence Individual Lease

Process Steps

Step 1: 

  • Navigate to the desired NetLeaseGo Lease record
  • Perform a final review to validate the following information is correct:
    1. Payment details, including prepayments, last month payments, etc.
    2. Discount rate
    3. Ensure the lease table and balances/amortization activity is correct

Step 2: 

  • Click the Commence Lease button at the top of the page to update the status of the lease record to Commenced.

                 

  • The status of the lease will update to Commenced

Mass Commence Leases

Use Case

Multiple leases need to be commenced at the same time or segregation of duties requires a separate person to validate newly created lease and commence them.

Process Steps

Step 1:

  • Navigate to the Commence Leases page by selecting Mass Update Leases > Mass Commence Leases
  • Enter any desired filters and click Filter Results if you would only like a subset of pending leases to be commenced

Step 2:

  • Once you are satisfied with the lease displaying in the sub list, click the Mark All button then click the Commence button


  • You will be redirected to a status page where you can refresh periodically to see the newly commenced leases

Step 3:

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