Establish the Amortization Schedule

Overview

Once initial information related to a lease is saved and a lease record is created, the lease amortization schedule can be generated, which highlights what future balances and activity is expected to record as lease payments, ROU Asset, Lease Liability, Amortization/Expense, etc.

Prerequisite: Ensure that all variable payments are entered and that the lease terms reflect the likelihood of exercising any options.

NOTE: Adjustments can only be made via modification or termination.

Process Steps

Step 1:

• After saving required data for a lease record, select the Generate Schedule button at the top of the lease record to initiate the generation of the lease schedule for that record
• Once clicked, the Generate Lease Schedule script will typically take less than one minute to generate the lease schedules. 
• While the schedules are being generated, the Processing Status indicator on the lease header will highlight “Processing Amortization Schedules…”

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STEP 2:

• Refresh the page until the Processing Status is blank again, indicating that the schedule generation is complete 

STEP 3: 

• To review the lease schedule, navigate to the Amortization Schedules subtab, then to the Operating Schedule sublist

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• Note that the Period 0 line establishes the ROU Asset and Lease Liability at the commencement date
• Any net differences at commencement are due to Lease Incentives, Initial Direct Costs, or Prepaid Lease Payments input on the header
• Periods 1-### correspond to subsequent month activity, which includes the following, depending on lease type
  1. Financing (All IFRS) > Payments, ROU Amortization, Lease Liability Accretion, and Interest Expense
  2. Operating (US Only) > Payments, Single Lease Expense, Lease Liability Accretion, and ROU Adjustments
  3. Note that all monthly periods have activity, even if no payment is made in that month