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 |
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)
- 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