Assign Accounting Information to Lease Record

Overview

NetLeaseGo allows flexibility in the accounting for a lease.

Key Data

Primary Information

The Primary Information Section captures data that is used to properly account for the lease over time.

Field Name	Description	Example
Department	Select the appropriate DEPARTMENT where all lease transactions should be recorded to. This list references the existing accounting structure.	Finance
Class	Select the appropriate CLASS where all lease transactions should be recorded to. This list references the existing accounting structure.	Services
Location	Select the appropriate LOCATION where all lease transactions should be recorded to. This list references the existing accounting structure.	US: Denver
Currency	Select the type of Currency from the drop down menu	Defaults from Vendor's primary currency

Disclosure Information

The Accounting subtab > Disclosure Information and Accounting Overrides sections captures information to assist with disclosures as well as additional functionality as indicated in the field descriptions.

Field Name	Description	Example
Variable Rate Index	If the Variable Rate Lease box is checked, select the variable rate index the variable payments of the lease are dependent upon. (e.g., Bond, CPI, Libor, Prime, Treasury Rate, etc.) Lease payments in the payments schedule should include variable lease payments that depend upon an index or a rate (such as the CPI or a market interest rate), initially measured using the index or rate at the commencement date. (ASC 842-10-30-5 & IFRS 16-27). Note that this field is currently informational to support reporting & disclosures.	Libor
Residual Value Estimate	Input the estimated residual value of the leased asset. This field is informational to capture information for disclosure reporting. Note that the lease payment schedule below should include in the final month of the lease any estimated payments for the shortfall between the estimated residual value and the residual value guarantee.	$20,000.00
Residual Value Guarantee	This field is informational; any residual value guarantees expected to be incurred should be included in the lease payment schedule. A lessee must include the amount it is probable it will owe to a lessor under a residual value guarantee as lease payments. Lease Payments include: ASC 842: For a lessee only, amounts probable of being owed by the lessee under residual value guarantees (see paragraphs 842-10-55-34 through 55-36). IFRS 16:27 (c) amounts expected to be payable by the lessee under residual value guarantees	$10,000.00
Payment Timing (NPV Calc)	For the Net Present Value calculation - select whether the lease payments will be made at the beginning of period (In Advance) or at the end of period (In Arrears).	In Arrears

System Controls Information

Field Name

Description

Example

Flagged for Mass Update

Check this box to facilitate isolating a lease to be picked up in a batch processing job.

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