NetLessor - Run Monthly Short-Term/Long-Term Reclass
Use Case: Financing lease transactions are recorded within NetLessor against the Net Investment in Lease - Lease Receivable account set up during configuration. This lease receivable should be classified on the balance sheet as a long-term asset account. On a period basis, a reversing journal entry is recorded and tagged to each lease reclassing the short-term portion of the lease receivable from long-term to the defined short-term lease receivable.
Prerequisite: All lease transactions that impact the lease subledger details (setup, modifications, impairments, terminations, etc.) should be completed prior to processing reclass journals. Additionally, the status for commenced leases should be updated to reflect a commenced status. The reclass of ST/LT lease receivables typically also takes place AFTER the amortization entries.
STEP BY STEP PROCESS
- Open to the Reclass Journal Entry Posting Page by navigating to NetLessor > Process Monthly Transactions > Monthly Reclass Journals
- You are navigated to the NetLessor Monthly Reclass Processing page
- Select the appropriate filters to run the journal entries
- Select the leases for which you want to run reclass journal entries. You can select all by clicking Mark All.
- Press Generate Transactions to run the journal entries for the selected leases
- Refresh the page until the Processing Status indicates Complete and the journal entries are listed in the batch summary
- You can select the Journal Entry link to review the journal entry
- Note that the reclass journal entries are tied to the lease record and can be viewed by navigating back to the lease record and looking at the Other Related Transactions sublist within the Related Records subtab