NetLease - Multi-Book Lease Journals

NetSuite Native Multi-Book Functionality

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. NetLease calculates and supports the posting of all lease types for US GAAP and IFRS with the NetLease System Setting: Multi-Book.

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

Reverse NetLease journals with a book-specific journal tagged to the secondary book.
Reverse NetLease 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 NetLease settings by navigating to NetLease > NetLease Setup > System Setup. Select the System Features subtab and check the box for Multi-Book.

Step By Step Process:

When setting up the multi-book lease you will need to add the 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 there are 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.

NetLease Multi-Book Add-on

If a NetLease user has purchased the Multi-book add-on, journal entires will post separately to the primary book and the secondary book. There is no adjusting journal entry.

Step By Step Process:

When setting up the multi-book lease you will need to add the secondary classification, secondary book, and also the accounting book (which is the primary book) on the lease record.

When running journal entries, both the primary and secondary book entries will be ran simultaneously. There is no need to run separate entries. Here is an example of the initial balance entry:

Both journal entries will show up on the multi-classification as a journal entry and a book specific journal entry.

Muli-Classification not showing?

If you are not seeing the multi-classification schedule, you will need to edit the NetLease Lease record. On the NetLease Lease record, within the custom form, under the sublists tab, click "show" on the Multi-classification schedule.

Was this article helpful?