NetLease - Lease Transfers

INDIVIDUAL LEASE TRANSFERS

Use Case: A lease transfer should be utilized whenever a lease's balances need to be re-established in a new subsidiary, department, class, or location.

STEP BY STEP PROCESS

• Navigate to a NetLease record where the transfer is to be recorded and click the Transfer button to be redirected to the Transfer Leases page.
• Once you have navigated to the Transfer Leases page, you will notice that a few of the cells, such as Location, Department, and Class, automatically list "Do Not Update" under Transfer Destination Information.
• "Do Not Update" tells the system, that unless otherwise manually updated by the user, the information for this cell will remain the same once the transfer is submitted.

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• Next, update the fields as necessary for the lease transfer.

• After double-checking inputs for the transfer, click the Transfer button.
• You will be redirected back to the lease page where the Processing Status field will read Processing Transfer. Refresh the page periodically until the Processing Status is blank.
• If NetLease is configured to book a transfer journal when the classification is updated,  the Effective Transfer Date Period will be split into three schedule lines, one to record the GL Impact of the Transfer out and one to record the GL impact of the transfer in, and one for the normally scheduled amortization. Otherwise, the classifications will simply be updated on the lease header and schedule lines. View full size
  
• Click on the hyperlink to the NetLease Transfer Entry to see the reversal of the lease's current Accumulated Amortization, Right of Use Asset Account (Gross), and Lease Liability balances as well as the re-establishment of these balances with the new classifications.

• Debit the new Lease Classification's “Right of Use Asset Account” for the Gross Asset Value with the new subsidiary, department, class, and/or location
  
• Credit the new Lease Classification's  “ROU Accumulated Amortization Account” for the effective period accumulated amortization with the new subsidiary, department, class, and/or location
• Credit the new Lease Classification's  “Lease Liability” for the Gross Lease Value with the new subsidiary, department, class, and/or location
• Credit the old Lease Classification's  “Right of Use Asset Account” for the Gross Asset Value with the old subsidiary, department, class, and/or location
• Debit the old Lease Classification's  “ROU Accumulated Amortization Account” for the effective period accumulated amortization with the old subsidiary, department, class, and/or location
• Debit the old Lease Classification's  “Lease Liability” for the Gross Lease Value with the new subsidiary, department, class, and/or location
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NOTE: Transfers to a different subsidiary will require an Advanced Intercompany Journal Entry instead of an NetLease Transfer Entry.

MASS LEASE TRANSFERS

Use Case: Multiple leases need to be transferred at the same time or segregation of duties requires a separate person handle lease transfers.

STEP BY STEP PROCESS

• Navigate to the Transfer Leases page by selecting NetLease > Mass Update Leases > Mass Transfer Leases
• Enter any desired filters and click Filter Results if you would only like a subset of leases to be transferred. Once you’re happy with the leases selected in the sublist, click the Transfer button.
• NetLease also offers mass processing through transfer proposals. If desired, transfer proposals can be uploaded via NetSuite's native CSV process and processed in mass from this page. Simply click the "Proposals Only" option and select the desired transfer proposals to process. (Transfer Proposals must be in an "Approved" status prior to processing).

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NOTE: When bulk processing transfers, entries will automatically post to the first open period on the lease's amortization schedule.