NetLease - Lease Payable Clearing Account Reconciliation
Purpose
The lease payable clearing reconciliation report is used to review lease payment activity by lease. Vendor bill payments recorded by Accounts Payable and lease amortization entries booked by NetLease run through the lease payable clearing account. This activity should net out to zero for each month if the correct payments are made and NetLease schedules are correct.
Step-by-Step Process
Navigation
NetLease > Reports (All or GL & Recon) > Lease Payable Clearing Account Reconciliation > Run
Filtering
The report can be narrowed by subsidiary, currency, department, class, location, lease, accounting period, and date range. Additional filters control the level of detail, currency conversion, and which categories of transaction are included. Once the desired filters are set, click Preview to view the reconciliation.
Filters that affect which transactions are returned, or how balances are calculated, are described in the next section.
Understanding the Filters
Accounting Period vs. From Date / To Date
These are two separate filtering modes rather than filters that combine. Selecting an Accounting Period clears the From and To Date fields; entering a From or To Date clears the Accounting Period. Reports open filtered to the current open accounting period by default.
Accounting Period — reports on a single posting period. Transactions are included based on the period they posted to, regardless of the date on the transaction itself. A transaction dated 6/15 that posted to July is treated as July activity.
From Date / To Date — reports on a custom date range, which can span or split periods. By default, transactions are included based on the transaction date, not the period they posted to. That same 6/15 transaction posted to July is treated as June activity.
Use Accounting Period Date — when checked, transactions are included based on the posting period start date rather than the transaction date. Use this option when reporting on a custom date range that needs to follow posting periods.
If the checkbox is enabled, both a From Date and a To Date are required. The report will not run with either left blank.
When Use Accounting Period Date is enabled, a period is included based on its start date, so date ranges effectively select whole periods. Use From and To dates that align to period boundaries — a range of 6/15–7/15 excludes June entirely and includes all of July, including activity dated after 7/15.
On this report, the date basis determines whether a payment and its corresponding amortization entry fall inside the same reporting window. A vendor bill payment and the NetLease entry it offsets can carry different transaction dates while posting to the same period. When filtering by date range on the transaction date, one side may be included and the other excluded, producing a balance that does not net to zero even though the underlying activity is correct.
Export Level
Controls how far the report breaks down before it stops summarizing — that is, what a single row represents. Summary levels roll many records into one line; detail levels expand to individual transactions. Select the summary level that matches the balance being tied out, and drop to a detail level when locating the source of a variance.
Consolidated Exchange Rate / Consolidation Date
Determines which exchange rate converts balances into the display currency, and changes the amounts reported. Consolidation Date is only editable when Custom is selected; with any other option it is greyed out and the rate date is derived automatically. Per-Account is only offered when the display currency matches the subsidiary currency.
Tagged Impacts Only
Limits the report to transaction lines carrying a NetLease lease tag.
Leave this filter unchecked when reconciling. Payments that are not tagged to a lease are reported under - None -, and an unexpected balance there is the most common reason a reconciliation does not net to zero. Enabling Tagged Impacts Only removes those lines from the report, hiding the variance rather than resolving it.
Results
Upon running the report the user will see the lease payable clearing account by lease. The individual leases can be drilled down to view the associated transactions. If the lease payments recorded match the NetLease amortization schedule each lease will net to zero. Click Export to download the report to Excel.
Troubleshooting
The reconciliation does not net to zero?
- Does the lease payment on the vendor bill match the lease schedule?
- Is the lease payment transaction tagged with the appropriate lease? If a payment has been made and is not tagged with a lease, the balance is reported under - None -.
- Are the lease payments coded to the appropriate accounts? When AP makes a lease payment the following journal entries should be recorded:
- Debit - Lease Payable Clearing Account
- Credit - Cash/AP
- When filtering by From/To Date, confirm the date basis. A payment and the NetLease entry that offsets it can carry different transaction dates while posting to the same period, which can place one side inside the reporting window and the other outside it. Enable Use Accounting Period Date, or filter by Accounting Period instead.
A balance appears in "- None -"?
- - None - represents activity posted to the lease payable clearing account that is not tagged to a lease record — most commonly a vendor bill payment entered without the lease reference, or a manual journal entry posted directly to the account.
- Set Export Level to Full Hierarchy to display the individual transactions, then tag them to the appropriate lease.
- Do not enable Tagged Impacts Only to clear this balance. Doing so removes the untagged lines from the report without correcting the underlying records.
- For other causes of a - None - line on NetLease G/L reports, including untagged impacts on reports other than this one, see Troubleshooting the "- None -" Line on G/L Reports.
