NetLease Global Settings
Overview:
As part of the initial setup, a user must navigate and set the global accounting preferences. These preference selections serve two important functions:
- Dictate how NetLease will perform its calculations and record lease transition entries, transactions, and modifications
- See NetSuite Accounting Preferences article for more guidance
- Provide links to the Suitelets that NetLease uses in order to edit access preferences to each activity
Step By Step Process:
- Once the NetLease bundle is installed, navigate to the NetLease setup page via NetLease > NetLease Setup > System Setup
- The navigation will bring you to a page that has a few key tabs:
General Tab:
The General tab for NetLease Setup constitutes your global settings.
General Settings Descriptions:
- Select the appropriate settings under the General tab, which are described in more detail below:
Field Name
Required
Description
Example
Accounting Standard
Yes
The accounting standard to apply to all lease schedules and transactions for your instance, whether IFRS or US GAAP.
ASC 842
Accounting Standard Adoption Date
Yes
The beginning day of the period in which the new lease accounting standard IFRS 16 or ASC 842 is effective for your company.
1-Jan-21
NetLease Go-Live Date
Yes
The beginning day of the period in which leases will be booked to the general ledger. No journal entries will be recorded to the G/L prior to the date indicated in this field.
1-Oct-22
Default FX Historical Exchange Rate Calculation Date
Yes
Indicate the default date the FX Historical Exchange Rate will be calculated for leases where the contract currency differs from the functional currency of the lease's subsidiary.
Note that regardless of the selection, the commencement date will always be used if it is later than the selected date. The exchange rate calculated can be overridden on the lease record.Adoption Date
Allow ROU Asset Useful Life Override
No
Check this box to allow the user to override the ROU Asset Useful Life (used in lease expense calculations) at the lease level. If left unchecked ROU Asset Useful Life will default to the Lease Term.
✓
Automatically Determine Lease Classification
No
Check this box to automatically determine the lease classification based on the latest criteria provided by the guidance.
✓
Prorate Payments
No
Check this box to prorate any payments in partial months and to prorate change that happens mid-month.
✓
Allow Mid-Month Modifications
No
Check this box to allow mid-month lease changes.
✓
Automate Close Out Journals
No
Check this box to enable the automatic creation of a Close Out Entry that clears out accumulated amortization when the final period amortization is run. Recommended setting is off to allow review of leases pending close out via Mass Update Leases > Mass Close Out Leases.
✓
Automated Renewal
No
Indicate whether modification proposals generated from lease auto-renewal settings will be and processed by default, created but pending approval, or not enabled as an option.
Automatically Processed
Renewal Option Creation Search
No
Default system search for renewal option
- Preferred Form -
Renewal Option Form
No
Default system form for renewal option
- Preferred Form -
Book Transfer Journal on Department Change
No
Require the automated creation of an NetLease Transfer Entry to re-establish the lease account balances with the updated department in order to change the department on an asset.
✓
Book Transfer Journal on Class Change
No
Require the automated creation of a NetLease Transfer Entry to re-establish the lease account balances with the updated class in order to change the class on an asset.
✓
Book Transfer Journal on Location Change
No
Require the automated creation of a NetLease Transfer Entry to re-establish the lease account balances with the updated location in order to change the location on an asset.
✓
Book Transfer Journal on Segment Change
No
Require the automated creation of a NetLease Transfer Entry to re-establish the lease account balances with the updated segment in order to change the segment on an asset.
✓
Delay Termination Posting
No
Check this box to delay posting of termination journals until the monthly journal processing run. Note that termination cannot be delayed for FX or Multi-Book leases.
✓
Auto Approve Transactions
Yes
Indicate the lease transactions to automatically approve upon generation within the NetLease module. Note that systematic transactions are typically approved automatically, however, users may default to pending approval and plug into workflow or choose an alternative approval approach.
Our recommendation is to approve all, as the entries are system-generated. Many journal entries are created on a lease-by-lease basis, which may require a more extensive approval process.Approved
Default Lease Transaction Booking Date
Yes
Indicate the default date to book all transactions created by NetLease. "From Lease" will set the transaction date based on the Lease Amortization Schedule. "From Accounting Period" will set the transaction date based on the accounting period being run.
From Lease Record
Default Lease Transaction Booking Day
Yes
Indicate the default day of the month to book all transactions created by NetLease. For 4-4-5 (or similar) calendars, a mid-month day (e.g. 15th) is recommended to ensure that the transaction books to the correct accounting period.
Note that initial balance journals will book on the commencement date, go-live journals will book on the go-live date, and reclass journals will book to the last day of the accounting period.31st (or last day of month)
Default Lease Transaction Billing Day
Yes
Indicated the default day to book all vendor bills. Note that this day can be overridden at the lease level
31st (or last day of month)
Reclass Transaction Form
No
Specify the form to use when generating reclass journal entries.
- Preferred Form -
Bill Transaction Form
No
Specify the transaction form to use when creating vendor bills.
- Preferred Form -
Book-Specific Transaction Form
No
Specify the form to use when generating book-specific journal entries.
- Preferred Form -
Allow Closed Period Selection
No
Check this box to enable the selection of closed period for processing on the monthly journal and time machine pages.
✓
Automatically Filter Sublists
No
Automatically apply filters entered on lease selection pages (recommended unless volume is very high).
✓
Journal Deletion Control
No
Check this box to disable the system from deleting any NetLease journal entries. This is currently done when reversing out a modification.
✓
System Features Tab:
The System Features tab allows users to select the appropriate NetLease features to enable. The features are described in more detail below:
System Features Descriptions:
Field Name | Required | Description | Example |
Automated Billing | No | Check this box to enable the ability to automate the creation of vendor bills based on lease data. | ✓ |
Custom Calendars | No | Check this box to turn on the ability to create custom accounting calendars (e.g. 4-4-5) that will drive the amortization schedule line period start and end dates. | ✓ |
Lease Proposals | No | Check this box to enable the use of lease proposals which separates out the creation of a lease into two steps and automates the determination of the lease classification. | ✓ |
Multi-Book | No | Check this box to enable the book-specific journals system feature. This feature activates the ability to create Book Specific Journal entries for Leases. | ✓
|
Non-Lease Payments | No | Check this box to enable the ability to account for non-lease payments. | ✓ |
Payment Uplifts | No | Check this box to turn on the ability to specify a percentage to uplift payments every time a certain interval goes by (e.g. annually) and automate the creation of payment records based on the uplift defined. | ✓ |
Percentage Rent | No | Check this box to enable accounting for Percentage Rent clauses. This feature activates the ability to add a percentage rent clause to a lease, calculate sales, and run journals for percentage rent lease liabilities. | ✓ |
AI Upload | No | Check this box to enable AI Upload. Our AI Upload (lease abstraction) feature utilizes AI to scrape and populate key lease information for new lease contracts to a new lease record. | ✓ |
Bill Lease | No | Check this box to enable the ability to indicate whether a "Bill" button should be added to the lease record to allow a user to quickly create a vendor bill for the next lease payment that is due. | ✓ |
Calculate Sales | No | Indicate whether a "Calculate Sales" button should be added to the lease record to allow a user to quickly calculate percentage rent sales for a single lease. | ✓ |
Close Out Lease | No | Check this box to indicate whether a "Close Out" button should be added to the lease record to allow a user to quickly update the status of a "Pending Close Out" lease to "Complete". | ✓ |
Commence Lease | No | Indicate whether a “Commence Lease” button should be added to the lease record to allow a user to quickly update the status of a "Pending" lease to "Commenced". | ✓
|
Export Lease | No | Indicate whether a "Export" button should be added to the lease record to allow a user to quickly export the amortization schedule for analysis or re-import. | ✓ |
Generate Schedule | No | Indicate whether a “Generate Schedule” button should be added to the lease record to allow a user to quickly perform the schedule generation on a lease. | ✓
|
Modify Lease | No | Indicate whether a “Modify Lease” button should be added to the lease record to allow a user to quickly perform a modification of a lease. | ✓ |
Run Journals | No | Indicate whether a “Run Journals” button should be added to the lease record to allow a user to quickly run monthly amortization journals for the specific lease. | ✓ |
Terminate Lease | No | Indicate whether a “Terminate Lease” button should be added to the lease record to allow a user to quickly perform a termination of a lease. | ✓ |
Transfer Lease | No | Indicate whether a "Transfer" button should be added to the lease record to allow a user to quickly perform a lease transfer. | ✓ |
Restrict Feature Permissions:
Restrict Feature Permissions allows customization for segregation of duties for specific people or roles to have access to each feature. Refer to the NetLease Suitelet Access article for more information.
Import Tools Tab:
This tab houses various tools and links that a user might find helpful with regards to the import process. The tools/links are described in more detail below:
Import Tools Descriptions:
Field Name | Description |
Default Accounts and Lease Types Import | Click the link to open a tool that will help you get started in NetLease by importing a recommended chart of accounts and lease type account mapping. |
Update Lease Types Saved Search | Click the link to run a saved search on all lease types, which can be downloaded as a CSV and re-imported in order to update existing lease type records. |
Add Leases CSV Import Template | Click the link to download a CSV import template, which can be used to import lease records. |
Update Leases Saved Search | Click the link to run a saved search on all leases, which can be downloaded as a CSV and re-imported in order to update existing lease records. |
Add Lease Payments CSV Import Template | Click the link to download a CSV import template, which can be used to import lease payment records. |
Update Lease Payments Saved Search | Click the link to run a saved search on all lease payments, which can be downloaded as a CSV and re-imported in order to update existing lease payment records. |
Bulk Custom Role Permissions Import | Click the link to open a tool that will help you get started in NetLease by allowing you to bulk import role permissions to NetLease custom records and transactions. |
Request Knowledge Base Access | Click the link to request user access to Netgain's knowledge base. |
Classification Thresholds Tab:
This tab is used to set your lease classification thresholds.
Classification Thresholds Descriptions:
Field Name | Description | Example |
Threshold % for Major Portion of Economic Life | Indicate the percentage the lease term should be of the economic life of the underlying asset in order to be considered a financing lease. | 75.0% |
Threshold % for Present Value as a Substantial Portion of Fair Value | Indicate the percentage by which the present value of payments and the guaranteed residual value must equal or exceed the fair value of the underlying asset in order to be considered a financing lease. | 90.0% |
Non-Lease Payments Tab:
This tab is used to set the name of your non-lease payments.
Classification Thresholds Descriptions:
Field Name | Description | Required |
Non-Lease Payment Name 1 | Indicate the name of the non-lease payment field users will see when entering non-lease payment information. | No |
Non-Lease Payment Name 2 | Indicate the name of the non-lease payment field users will see when entering non-lease payment information. | No |
Non-Lease Payment Name 3 | Indicate the name of the non-lease payment field users will see when entering non-lease payment information. | No |
Percentage Rent Tab:
This tab is to set up you percentage rent calculation.
Classification Thresholds Descriptions:
Field Name | Description | Example |
Default Sales Transactions Saved Search | The default search used to identify sales for a given lease's location. The specific lease's location will be filtered for automatically. | NetLease Percentage Rent Sales |
Lease Location Identifier | Indicate which field on the lease record will be used to identify the physical location being leased. This field will be used to identify sales transactions. | Location |
Sales Transaction Location Identifier | The field on the invoice record used to identify the physical location being leased. This will have a corresponding field on the lease. | Location |
Default Months in Arrears | The difference in months from the relevant sales transaction period to the invoice on which the percentage rent payment is paid. | 1 |
Default Payment Frequency | Indicate how frequently payments are due. | Monthly |
Licensing Tab:
This tab is used to see your licensing information:
Licensing and Usage Info Descriptions:
Field Name | Description | Example |
Tier | The tier of NetLease product that has been purchased. In sandbox, this can be modified. In production accounts this is set by the product tier you have purchased. | NetLease Max |
License Status | Indication of if your license is active or not. | Active |
Date Last Synced | This field shows the date that your product was last upgraded. | 11/15/2023 3:24:26 pm |
Lease Count Limit | The number of leases purchased with your current license. | 100 |
Lease Count Towards Limit | The current number of leases (pending + commenced - inactive) that count toward your lease limit. | 302 |
Manage Upgrades Tab:
This tab is used to set your preferences for managed bundle upgrades:
Manage Upgrades Descriptions:
Field Name | Description | Example |
Upgrade Preferences | This field controls when your product will be upgraded next. You can choose to be upgraded every time there are changes, annually, bi-annually, or on a custom date of your choice. | Accept All |
Last Upgraded Date | This field shows the date that your product was last upgraded. | 11/14/2023 |
Next Upgrade Date | This field holds the date that you would like your next product upgrade to be if your upgrade preference is Custom. NOTE: This date must be within one year of your last upgrade. | 12/31/2023 |
Send Release Notes To | List individuals who should receive release notes when the bundle is updated. | Brittley Eldredge |
For additional information on managed bundles, reference the NetLease Managed Bundle FAQ article.
SUBSEQUENT UPDATE NOT EXPECTED