NetLease - Accounts Payable Process Guide

Overview

This article will walk you through various accounts payable processes. Below you will find instructions on how the following topics are handled in the NetLease software:

  1. Pre-Commencement Transactions
  2. Monthly Lease Payments - either manual or automated
  3. Accounts Payable Reconciliations Reports

Prerequisite:

1. NetLease Lease Types and Chart of Accounts have been configured.

2. Vendor Bill customization and configuration. 

Pre-Commencement Transactions

When Accounts Payable records initial direct costs, prepayments, and incentives prior to lease commencement, as well as amounts receivable upon termination of a lease, the transaction must debit/credit the ROU Clearing account and tag the related lease.

Step-by-Step Process

  • Navigate to your preferred vendor bill form
  • Enter in all the desired primary information 
  • Enter the ROU Clearing Account on the expense line of the vendor bill or select the applicable item
  • Tag the lease on the expense/item line of the vendor bill

  • The vendor bill will now be tagged to the related records subtab of the lease
  • Navigate to the lease record and select on the Related Records subtab

Monthly Lease Payments

The Accounts Payable process for leases can be completed in two ways:

  1. Generate bills through the existing Accounts Payable process, tagging them to the appropriate accounts and lease records; or

  2. Automate vendor bill creation in the NetLease software based on lease data.

The first method is described below to support AP teams in evaluating their process. For more details on the second method, please refer to the link above.

Step-by-Step Process - Existing AP Process

When Accounts Payable records monthly lease payments, the transaction must debit the Lease Payable Clearing account and tag the related lease.

  • Navigate to your preferred vendor bill form
  • Enter in all the desired primary information 
  • Enter the Lease Payable Clearing Account on the expense line of the vendor bill or select the applicable item
  • Tag the lease on the expense/item line of the vendor bill

  • The vendor bill will now be tagged to the related records subtab of the lease
  • Navigate to the lease record and select on the Related Records subtab

Accounts Payable Reconciliation Reports

NetLease has two reconciliation reports related to the lease clearing accounts: the ROU Clearing Reconciliation and the Lease Payable Clearing Reconciliation. 

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