NetLessor - Non-Lease Payments
Overview
NetLessor has the ability to keep track of non-lease payments associated with specific leases. The system allows for up to five non-lease payments per lease. NetLessor will create monthly journal entries related to these non-lease payments when the monthly amortization journal entries are run.
Prerequisites
- The Non-Lease Payments feature must be enabled in NetLessor > NetLessor Setup > System Setup > System Features.
Step By Step Process
- Once enabled, the next step is to rename the non-lease payments in NetLessor > NetLessor Setup > System Setup > Non-Lease Payments
- If there are any non-lease payments that should be included in the implicit rate calculations or excluded from the amortization journal this can also be indicated on this screen
- (Optional) Create a new item for the revenue. Navigate to Lists > Accounting > Items > New. Under the Non-inventory Item section, select For Sale.
- Enter the name for the item and any tagging information desired. Under the Accounting subtab, you will need to enter the lease receivable clearing account as the income account and tax schedule associated with the item. Click Save.
- After all relevant items have been created or edited in the system, the lease type can be updated to include the accounts and items for the non-lease payments.
- Navigate to NetLessor > NetLessor Setup > Manage Lease Types and select Edit. Select the Non-Lease Payment Accounts subtab at the bottom and assign the income account and invoicing item (if applicable) for each non-lease payment.
Results
- The monthly amortization journal entry will include extra lines for the non-lease payments. See our guide for running monthly journal entries for help with that process.
- It will show a Credit to the revenue account assigned on the lease type record and a Debit to Lease Receivables Clearing Account. Note, that all payments (lease and non-lease) will be concatenated into one debit line to the Lease Receivables Clearing Account.
- It will show a Credit to the revenue account assigned on the lease type record and a Debit to Lease Receivables Clearing Account. Note, that all payments (lease and non-lease) will be concatenated into one debit line to the Lease Receivables Clearing Account.