NetLease - Assign Accounting Information To The Lease Record

Department

Select the appropriate DEPARTMENT where all lease transactions should be recorded to. This list references the existing accounting structure.

Finance

Class

Select the appropriate CLASS where all lease transactions should be recorded to. This list references the existing accounting structure.

Services

Location

Select the appropriate LOCATION where all lease transactions should be recorded to. This list references the existing accounting structure.

US: Denver

Assigned To

Indicate the owner this lease is assigned to (optional)

Zach Nelson

Parent Lease

Select this field to link this lease to a parent lease. This should only be used to connect multiple leases that have a parent-child relationship (e.g., separate lease components under a single lease or modification resulting in a separate lease)

LA0042

Variable Rate Index

If the Variable Rate Lease box is checked, select the variable rate index the variable payments of the lease are dependent on.

(e.g., Bond, CPI, Libor, Prime, etc.)

Lease payments in the payments schedule should include variable lease payments that depend on an index or a rate (such as the CPI or a market interest rate), initially measured using the index or rate at the commencement date. (ASC 842-10-30-5 & IFRS 16-27).

Note that this field is currently informational to support reporting & disclosures.

Libor

Variable Non-Lease Payments

Select any additional variable amounts payable associated with a lease (e.g., % of sales, index, usage)

Note that the non-lease components identified here are NOT to be included in calculation of the lease payments impacting ROU Asset & Lease Liability, but are to be included in the Vendor Bill and expensed as incurred.

% of Sales

Residual Value Estimate

Input the estimated residual value of the leased asset. This field is informational to capture information for disclosure reporting.

Note that the lease payment schedule below should include in the final month of the lease any estimated payments for the shortfall between the estimated residual value and the residual value guarantee.

$20,000.00

Residual Value Guarantee

This field is informational; any residual value guarantees expected to be incurred should be included in the lease payment schedule. 

A lessee must include the amount it is probable it will owe to a lessor under a residual value guarantee as lease payments.

Lease Payments include: 

ASC 842: For a lessee only, amounts probable of being owed by the lessee under residual value guarantees (see paragraphs 842-10-55-34 through 55-36).

IFRS 16:27 (c) amounts expected to be payable by the lessee under residual value guarantees

$10,000.00

Field Name

Description

Example

Secondary Book

Input the accounting book to reverse the transaction entries into.

NA: Canada

Secondary Classification

The lease classification of the entry to post to the secondary book.

Operating

Field Name

Description

Example

Payment Timing (NPV Calc)

For the Net Present Value calculation - select whether the lease payments will be made at the beginning of period (In Advance) or at the end of period (In Arrears).

In Arrears

No GL Impact

Check this box if the lease should NOT have any GL activity applied to it (e.g., for tracking purposes only as it is on a custom record with no connection to a NetSuite ledger)

This field prevents recording of journal entries against the lease. As a further control, the lease record can be kept with the status as PENDING on the lease header.

✓

840 Lease; To Convert At Adoption

Check this box if this lease is to be tracked under ASC 840 currently, then subsequently transitioned to ASC 842 at the transition date.

Note this feature will be added by the second half of the calendar 2020 year.

✓

Lease Locked (Transactions Recorded)

This field will typically NOT be manually adjusted by NetLease users.

This box is checked when journal entry transactions have been recorded against the lease, preventing the system from allowing changes to the lease schedule.

Future adjustments to the Lease Schedule should be performed via lease modifications.

✓

Flagged for Mass Update

Check this box to facilitate isolating a lease to be picked up in a batch processing job.

✓