NetLease - Create a New Lease Record
Use Case: These steps can be followed to create a new lease record
Note: Video created prior to NetLease 2022.1 Release
STEP BY STEP PROCESS
- Select NetLease > Lease Management > New Lease
- A blank New NetLease Lease Form appears, from which you can create a new lease.
- In order to review an existing lease, you can select the List link in the top right to search for or select an existing lease record.
- Manually update the Primary Information section and fields as indicated below:
Field Name | Required | Description | Example |
Lease ID | Auto-generated | A unique ID for the lease and the primary identifier within NetLease for the lease record. | LA00370 |
Lease Name | Yes | Free form input for NetLease users. This can be used for the lessor’s contract # or other identifying information for the leased asset. | 17 Cherry Tree Lane, London KY |
Lease Type | Yes | Assign the lease type from the drop-down list, which are defined as part of global settings. | Real Estate |
Lease Classification | Yes | US GAAP Companies select from Operating or Financing; IFRS Companies always select Financing. | Financing |
Subsidiary | Yes | The subsidiary where the ROU asset and Lease Liability will reside. | Company, Inc. |
Vendor | Yes | The Lessor for the leased asset. This is the vendor to whom lease vendor bills will be paid. | McGeever Properties |
Currency | Yes | The contract currency for the lease, typically the currency in which payments will be made. This defaults to the Vendor’s primary currency. | US Dollar |
Lease Notes | No | A text area field to include any relevant notes or lease-related information. | NNN; no renewal |
- Also update the Schedule Information form section and fields as indicated below
Field Name | Required | Description | Example | |
Status | Yes | Pending = tables can be generated, but journals cannot. Commenced = the lease is commenced and ready for journal entries. Pending Close Out = the lease is complete pending close out of ROU Asset Balances. Complete = the lease has reached termination date. Terminated = the lease was terminated early. | Commenced | |
Commencement Date | Yes | The date on which a lessor makes an underlying asset available for use by a lessee. | 01-Jan-2019 | |
Lease Term
| Yes
| The anticipated duration (in months) of the lease (i.e., noncancelable period adjusted for options the lessee is reasonably certain to exercise).
| 36 | |
End Date
| Calculated
| The anticipated ending date of the lease, which is calculated (commencement date + lease term).
| 31-Dec-2021
| |
Initial Lease Payment | Yes | Payments made by a lessee for the leased asset. For fixed payment leases, this represents the monthly payment for the duration of the lease. For variable payments (any NOT paid monthly at a fixed rate), this represents the first payment following commencement. | $8,000.00 | |
Discount Rate % | Yes | The annual discount rate used to determine the present value of the lease liability calculations (i.e., implicit rate of lease or incremental borrowing rate). | 5.0% | |
Prepaid Lease Payment
| No
| Any lease payments made before the commencement date (increases ROU asset; offset to ROU clearing).
| $8,000.00
| |
Initial Direct Costs | No | Incremental costs of obtaining a lease that would not have been incurred if the lease had not been obtained | $500.00 | |
Lease Incentives
| No | Payments made by a lessor to a lessee associated with a lease, or the reimbursement or assumption by a lessor of costs of a lessee
| $1,000.00
| |
Asset Balance | Calculated | The ROU Asset Balance of the current period. | $274,425.61 | |
Liability Balance | Calculated | The Liability Balance of the current period. | $266,925.61 | |
Net Balance | Calculated | Asset Balance – Liability Balance | $7,500.00 | |
- If your lease has regular increases to payments, you can use our Payment Uplifts article to learn how to configure those payment increases.
- Click Save to establish the lease and generate a Lease ID
- The saved lease record header details may appear as follows