NetLease - Lease Proposals

Use Case: To automate the calculation of the Lease Classification and/or facilitate the segregation of duties between creating a new lease and proposing a new lease.

Prerequisite: Make sure the System Feature, Enable Lease Proposals, is checked. If the Accounting Standard is ASC 842, also make sure Classification Thresholds are as desired (saving the NetLease Setup with the proper accounting standard and checking the Enable Lease Proposals box will reveal the Classification Thresholds subtab). The following are the default thresholds:  

Step By Step Process:

  • Select NetLease > Lease Management > Lease Proposal List > New

 

  • A blank NetLease Lease Proposal Form appears, from which you can create a new lease
    • Netgain ASC 842 Lease Proposal Form
      • The Calculated Lease Classification field is dynamically updated in real-time as the criteria (1-5) are entered on the form
    • Netgain IFRS 16/GASB 87 Lease Proposal Form
      • Lease Classification is always calculated to be Financing given the global accounting standard is set to IFRS 16 or GASB 87


  • Once you are satisfied with the values entered on the lease proposal, click Save
  • If the status is approved, a Create Lease button will be added to the Lease Proposal record view
    • Note: a workflow can be configured to the lease proposal to drive a proper approval process should one be required

  • Clicking Create Lease will generate a new lease with the values from the lease proposal
  • The lease proposal will also be updated with the newly created lease

 

 

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