NetLease - Create a New Lease Record
The custom NetLease record: NetLease Lease record will be available to you out of the box once the SuiteApp is downloaded. These records are a 1:1 relationship for your lease contracts and every lease record has an amortization schedule. This article walks through the creation process for the leases and the required and optional fields.
Step by Step
- Select NetLease > Lease Management > New Lease
- A blank New NetLease Lease Form appears. This is where you will enter all relevant information to the lease and save it.
- Fields with an asterisk (*) are required. Field without are optional.
- You can create custom fields via native NetSuite Form customization. See the NetLease - Add Custom Fields article for a walkthrough.
Primary Section Fields
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. Uncheck the "Auto" box if you want to manaully put in the Lease ID. | 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 implementation. See NetLease Lease Type Configuration. | Real Estate |
Lease Classification | Yes | US GAAP Companies select from Operating or Financing; IFRS Companies always select Financing. You can control what is visible in this drop down via the Accounting Standard set in the Global Settings. | Financing |
Subsidiary | Yes | The subsidiary that owns the lease contract. All transactions will be posted in this subsidiary. | Company, Inc. |
| Department | No | The department associated to the lease. This field will flow to all transactions posted associated to this lease. This is a native NetSuite segment. | Administration |
| Class | No | The class associated to the lease. This field will flow to all transactions posted associated to this lease. This is a native NetSuite segment. | Internal |
| Location | No | The location associated to the lease. This field will flow to all transactions posted associated to this lease. This is a native NetSuite segment. | Boston |
Vendor | Yes | The Lessor for the leased asset. This is the vendor to whom lease vendor bills will be paid. This field must be populated to use the NetLease Billing functionality. | McGeever Properties |
Currency | Yes | The contract currency for the lease, typically the currency in which payments will be made. This defaults to the Subsidiaries primary currency. Note that if this selection is different from the subsidiary's primary currency, a FX adjustment journal will post every month. | US Dollar |
Lease Notes | No | A text area field to include any relevant notes or lease-related information. | No renewal |
Vendor Not Showing?
If the Vendor you want is not showing in the available options from the dropdown, it is likely a restriction via the backend filtering done on the field. There are two workaround options:
1. From the Vendor field, click on the chevron icon > Hit Search > Set the Name/ID and Submit. It will show only the primary entity which is a Customer type. When you generate the bill though it picks up the related Vendor record.
2. On the NetLease Lease custom record, go to the Vendor field in Edit mode, go to the Sourcing & Filtering subtab on the Vendor field record and remove the filter. (Requires Administrator access)
Schedule Information Fields
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 | |
Multi-Book Information Fields
| Field Name | Required | Description | Example |
| Secondary Classification | No | Used for Multi-Book setup. This is the classification that will be used to determine the secondary book's amortization schedule and posted transactions. (Note both Secondary Classification and Secondary Book must be populated to have transactions post in the secondary book) | Operating |
| Secondary Book | No | Used for Multi-Book setup. This is the secondary book that transactions will be posted in. (Note both Secondary Classification and Secondary Book must be populated to have transactions post in the secondary book) | Local Book |
| Accounting Book | No | This is the book you want the main amortization transactions to post to. Only populate if you want NetLease to post Book-Specific Journals for the main amortization schedule rather than the standard NetLease Amortization transactions that post out of the box. | Primary Book |
See the NetLease - Multi-Book Lease Journals article for more information on Multi-Book in NetLease.
Payments
Payment information is entered at the bottom of the page. Any changes to lease payments over the life of the lease needs to be entered as a Lease Payment record. You can use our Payment Uplifts article to learn how to configure those payment increases.
Save the Lease
- Click Save to establish the lease and generate a Lease ID
- All lease fields remain open for editing and changes up until the lease is commenced and journals are generated. At that point editable fields are limited to non-GL impacting fields.
See additional articles for details on the available subtabs:
