NetLessor Lease Type Configuration

OVERVIEW

NetLessor enables users to set up multiple lease types and configures the classification of your lease to either operating, sales-type, direct financing, or cash leases. Each lease type allows for separate mapping of transactions to your chart of accounts.

PREREQUISITES

All required accounts should already be set up and configured in the chart of accounts

• Refer to the Accounting Decisions & Account Usage article for additional details on each account type.

STEP BY STEP PROCESS

• Navigate to the account mapping setup page by accessing NetLessor > NetLessor Setup > Manage Lease Types
• Select the New NetLessor Lease Type button to bring up the account mapping setup page View full size
• Input the following Primary Information into the form:
  • Name for the lease type (Example: equipment, real estate, vehicles, or software)
  • Lease Income Convention
    • Select whether a full month's worth of lease income should be calculated in the first and last month of the lease (Full Month) or whether lease income calculation should be proportioned in the first and last month of the lease by how many days in the month the lease is active (Partial Month)
  • Other optional fields (defaults can be overridden at the lease record level): 
    • Default Lease Classification such as Operating, Sales-Type, Direct Financing, or Cash (Non-GAAP)
    • Default Leases Asset Economic Life
    • Default Contract Rate
  • Lease Payment Invoicing Item. This item is optional and used to automate invoicing. See our guide on automated invoicing for more detail.
• Complete the Account Mapping Information section by mapping each account to the corresponding or appropriate account in your chart of accounts
  • Account Mappings: All Lease Classification – accounts mapped to all lease types
  • Account Mapping: Operating Leases – accounts mapped to Operating leases only.
  • Account Mapping: Sales-Type & Direct Financing Leases – accounts mapped to Sales-Type and Direct Financing leases only
• Click Save

EDIT OR VIEW ACCOUNT TYPES

To edit or view existing account mappings, navigate to the lease through NetLessor > NetLessor Setup > Manage Lease Types. Click Edit or View to the far left of the screen for the desired lease.

View full size