Create a New Lease Record

Overview

These steps can be followed to create a new lease record

Process Steps

Step 1:

Select Lease Management > Lease List > New
A blank New NetLease Lease Form appears, from which you can create a new lease
NOTE: In order to review an existing lease, you can select the List link in the top right to search for or select an existing lease record.

Step 2:

Manually update the Primary Information form section and fields as indicated below

Field Name	Required	Description	Example
Lease ID	Auto-generated	A unique ID for the lease and the primary identifier within NetLease for the lease record.	LA00370
Lease Name	Yes	Free form input for NetLease users. This can be used for the lessor’s contract # or other identifying information for the leased asset.	17 Cherry Tree Lane, London KY
Lease Classification	Yes	US GAAP Companies select from Operating or Financing; IFRS Companies always select Financing.	Financing
Lease Type	Yes	Drop-down list of Lease Types.	Vehicle
Subsidiary	Yes	The subsidiary where the ROU asset and Lease Liability will reside.	Honeycomb Holdings, Inc.
Department	No	Select the appropriate department where lease transactions should be recorded in the existing accounting structure.	Admin
Class	No	Select the appropriate class where lease transactions should be recorded in the existing accounting structure.
Location	No	Select the appropriate location where lease transactions should be recorded in the existing accounting structure.	Boston, MA
Vendor	Yes	The Lessor for the leased asset. This is the vendor to whom lease vendor bills will be paid. Note: This information is required to use the Bill feature.	McGeever Properties
Currency	Yes		USA
Notes	No	A text area field to include any relevant notes or lease-related information.	NNN; no renewal

Step 3:

Update the Schedule Information form section and fields as indicated below

Field Name	Required		Description	Example
Status	Yes	Pending = tables can be created, Commenced = the lease is ready for postings. Complete = the lease has reached termination date. Terminated = the lease was terminated early		Commenced
Commencement Date	Yes	The date on which a lessor makes an underlying asset available for use by a lessee NOTE: NetLease uses a full month convention to generate schedules; i.e., mid-month dates will not result in partial month calculations.		01-Jan-2019
Lease Term	Yes	The anticipated duration (in months) of the lease (i.e., noncancelable period adjusted for options the lessee is reasonably certain to exercise).		36
End Date	Calculated	The anticipated ending date of the lease, which is calculated (commencement date + lease term).		31-Dec-2021
Initial Lease Payment	Yes	Payments made by a lessee for the leased asset. For fixed payment leases, this represents the monthly payment for the duration of the lease. For variable payments (any NOT paid monthly at a fixed rate), this represents the first payment following commencement.		$8,000.00
Discount Rate	Yes	The annual discount rate used to determine the present value of the lease liability calculations (i.e., implicit rate of lease or incremental borrowing rate).		5.0%
Prepaid Lease Payment	Yes	Any lease payments made before the commencement date (increases ROU asset; offset to ROU clearing).		$8,000.00
Initial Direct Costs	Yes	Incremental costs of obtaining a lease that would not have been incurred if the lease had not been obtained (increases ROU asset; offset to ROU clearing).		$500.00
Lease Incentives	Yes	Payments made by a lessor to a lessee associated with a lease, or the reimbursement or assumption by a lessor of costs of a lessee (reduces ROU asset; offset to ROU clearing).		$1,000.00
Asset Balance	Calculated	The ROU Asset Balance of the current period.		$274,425.61
Liability Balance	Calculated	The Liability Balance of the current period.		$266,925.61
Net Balance	Calculated	Asset Balance – Liability Balance		$7,500.00

Step 4:

Click Save to establish the lease and generate a Lease ID
The saved lease record header details may appear as follows

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