NetLease - Full Multi-Book Combinations and Implications
Overview
Multi-book generates journal entries based on the value specified in the Accounting Book and Secondary Book fields on the lease record. This article outlines various scenarios and provides examples of the corresponding journal entries that are created in each case.
Prerequisites
In order to post a journal entry to both the primary and secondary books, you have to first ensure that you have correctly configured your multi-books accounting within a lease record, generated amortization schedules and commenced said lease.
General Ledger Impact of Multi-Book Combinations
No Accounting Book Specified
This scenario applies when none of the Accounting Book fields are populated.
In this case, when you run an initial journal entry the system will generate a NetLease Initial Balance Journal Entry on the main schedule, booking to every accounting book that has been configured in NetSuite.
The accounting books must be both available and active under the applicable subsidiary for the respective lease record.
Accounting Book Specified
This scenario applies when both the Accounting Book field and the Secondary Book (and secondary classification) fields are populated.
In this case, when you run journal entries, the system will generate Book Specific Journal Entries for each specified accounting book, separately. Navigate to the Multi-Classification Schedule tab to view the journals entries for each book.
Accounting Book Specified in Alternate Schedule Only
This scenario applies when the "Accounting Book" field on the Primary Information section is left blank, but the "Secondary Book" and "Secondary Classification" fields are populated.
In this case, when you run journal entries, the system will generate a NetLease custom transaction entry for the main schedule, hitting all books, and a book specific journal entry posting to the secondary book for the secondary schedule, separately. Navigate to Multi-Classification Schedule tab to view the set of the journal entries.
The NetLease custom transaction entry includes journals for both books.
The book specific entry for the secondary schedule only hits the secondary schedule.
Because the secondary book is hit by both journal entries, the system automatically generates reversal lines to avoid double booking in the Secondary Book. You can view the entry by navigating to the book specific journal on the lease record, which includes the reversal for the secondary book.