NetLessor - Multi-Book Lease Journals

Use Case: Users utilizing NetSuite’s multi-book functionality may desire to adjust a secondary book to record something different from what was recorded in the primary books. The most common cause of this is when a customer has dual reporting requirements: (1) US GAAP and (2) IFRS. In those instances, they may want the primary book to have one GAAP treatment, while the secondary book has an alternate treatment. NetLessor calculates and supports the posting of all lease types for US GAAP and IFRS with the NetLessor System Setting: Generate Book-Specific Journals.

NetLessor uses NetSuite’s custom transactions, which are book-generic (i.e., they post across all NetSuite books). Therefore, for multi-book customers, the NetLessor transactions post to all books. When a customer wants to adjust the secondary book, there are two options that NetLessor provides:

  1. Reverse NetLessor  journals with a book-specific journal tagged to the secondary book
  2. Reverse NetLessor journals and repost alternate classification with a book-specific journal tagged to the secondary book (all within the same journal)

Prerequisites: Verify Full Multi-Book Accounting is enabled in NetSuite itself (located in Setup > Company > Enable Features). Enable multi-book in the NetLessor settings by navigating to NetLessor > NetLessor Setup > System Settings. Select the System Features subtab and check the box for Multi-Book.

Step By Step Process:

  • Prior to running any journals, update the Primary Information for Secondary Classification and Secondary Book. 


                 

  • Entering a Secondary Book causes any future transactions booked against the lease to also be booked into the secondary book as reversals
  • There is no GL Impact recorded to the main journal entry, the GL Impact for Multi-Book adjustments is instead split out onto a separate book specific journal entry tagged to the schedule entry record

  • Note no changes to the normal amortization entry

  • The Book Specific Journal lines being reversed are prefixed with “REV - “ in the memo for ease of reporting with the opposite lease classification lines following the normal memo convention

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