NetLessor Global Settings
OVERVIEW
As part of the initial setup, a user must navigate and set the global accounting preferences. Those preference selections serve two important functions:
- Dictate how NetLessor will perform its calculations for lease classifications and record lease transition entries, transactions, and modifications
- See NetSuite Accounting Preferences article for more guidance
- Provides links to the Suitelets that NetLessor uses in order to edit access preferences to each activity
STEP BY STEP PROCESS
- Once the NetLessor bundle is installed, navigate to NetLessor setup page. NetLessor > NetLessor Setup > System Setup
- The navigation will bring you to the General tab for NetLessor Setup which constitutes your global settings
GENERAL SETTINGS DESCRIPTIONS
- Select the appropriate settings under both the General tab described in more detail below
| Field Name | Required | Description | Example |
| Accounting Standard | Yes | The accounting standard to apply to all lease schedules and transactions for your instance, whether IFRS or US GAAP. | US GAAP (ASC 842) |
| Go-Live Date | Yes | The beginning day of the period in which the first journals will be booked. Note that no journal entries will be recorded to the GL prior to the date indicated in this field. | Jan 1, 2021 |
| Lease Classification Accounting | Yes | The standard method for determining the lease type when creating new leases. | Auto Determine Lease Classification |
| Default Lease Transaction Booking Date | Yes | Indicate the default method for the system to pull the transaction booking date. | From Lease Record |
| Default Lease Transaction Booking Day | Yes | Indicate the default day of the month to book all transactions created by NetLessor. For 4-4-5 (or similar) calendars a mid-month day (e.g. 15th) is recommended to ensure that the transaction books to the correct accounting period. Note that reclass journals will still book to the last day of the accounting period. | 31st (or last day of month) |
| Default Lease Transaction Billing Day | Yes | Indicated the default day to book all vendor bills. Note that this day can be overridden at the lease level | 31st (or last day of month) |
| Default Grouped Invoice Saved Search | Yes | Indicate the grouping that will be used when creating Invoices from lease records. | - Ungrouped - |
| Default Invoice Line Summarization Preference | No | Indicate how line items should be summarized on grouped Invoices. | Preserve Line Item Detail |
| Auto Approve Transactions | No | Indicates the lease transactions to automatically approve upon creation. Our recommendation is to approve all as the entries are system-generated. Many journal entries are created on a lease by lease basis, which may require a more extensive approval process. | All Approved |
| Auto Renewal | Yes | Indicate whether modification proposals generated from lease auto-renewal settings will be approved and processed by default, pending approval, or not enabled as an option. | - Not Enabled - |
| Reclass Transaction Form | No | Specify the form to use when generating reclass journal entries. | Preferred Form |
| Invoice Transactions Form | No | Specify the form to use when generating invoices. | Preferred Form |
| Allow Closed Period Selection | No | Check this box to enable the selection of closed period for processing on the monthly journal and refresh pages. | ✓ |
| Automate Lease Close Out | No | Check this box to automate the close out of a lease during the final period amortization. | ✓ |
| Delay Termination Posting | No | Check this box to delay posting of termination journals until the monthly journal processing run. | ✓ |
| Gross Up of Revenue and COGS | No | Check this box to enable gross up of revenue and COGS on initial balance entries for sales type leases. | ✓ |
| Journal Deletion Control | No | Check this box to disable the system from deleting any NetLessor journal entries. This is currently done when reversing out a modification. Note that if this setting is turned on, journals generated from reversed modifications will have to manually deleted or reversed out. | ✓ |
| Weekly Schedules | No | Check this box to enter lease term in units of weeks and generate weekly schedules. | ✓ |
| Default Script Concurrency Limit | No | Specify the number of processors to use when running map/reduce scripts. | - None - |
| Default Script Priority | No | Specify the priority when running map/reduce scripts. High: Use to mark critical scripts that require more immediate processing. These jobs go to the processing pool first. Standard: This is the default setting. It is considered to be a medium priority level. These jobs go to the processing pool after all high priority jobs. | Standard |
- Next, move to the System Features tab to select the NetLessor features to enable or disable. Permissions are also set in this subtab.
SYSTEM FEATURES DESCRIPTIONS
| Field Name | Required | Description | Example |
|---|---|---|---|
Automated Invoicing | No | Check this box to enable the ability to automate the creation on invoices based on lease data. | ✓ |
| Automated Sales Orders | No | Check this box to turn on the ability to automate the creation of sales orders based on lease data. | ✓ |
Non-Lease Payments | No | Check this box to enable the ability to account for non-lease payments. | ✓ |
| Multi-Book | No | Check this box to enable multi-book accounting. | ✓ |
| Payment Uplifts | No | Check this box to turn on the ability to specify a percentage or amount to uplift payments every time a certain interval goes by (e.g. annually) and automate the creation of payment records based on the uplift defined. | ✓ |
Calculate Rates | No | Indicate whether a “Calculate Rates” button should be added to the lease record to allow a user to quickly calculate rates for an individual lease. | ✓ |
Close Out | No | Indicate whether a "Close Out" button should be added to the lease record to allow a user to quickly close out an individual lease. | ✓ |
Commence Lease | No | Indicate whether a "Commence" button should be added to the lease record to allow a user to quickly update the status of a "Pending" lease to "Commenced". | ✓ |
| Determine Lease Classification | No | Indicate whether a "Determine Lease Classification" button should be added to the lease record to allow a user to quickly determine the classification of an individual lease. | ✓ |
| Export Lease | No | Indicate whether an "Export" button should be added to the lease record to allow a user to quickly export the amortization schedule for analysis or re-import. | ✓ |
| Generate Schedule | No | Indicate whether a "Generate Schedule" button should be added to the lease record to allow a user to quickly generate a schedule for a lease. | ✓ |
| Invoice Lease | No | Indicate whether an "Invoice" button should be added to the lease record to allow a user to quickly invoice the client for the next lease payment that is due. | ✓ |
| Modify Lease | No | Indicate whether a "Modify" button should be added to the lease record to allow a user to quickly perform a lease modification. | ✓ |
| Run Journals | No | Indicate whether a "Run Journals" button should be added to the lease record to allow a user to quickly book monthly journals for a single lease. | ✓ |
| Terminate Lease | No | Indicate whether a "Terminate" button should be added to the lease record to allow a user to quickly perform a termination of a lease. | ✓ |
- Next, move to the Import Tools tab to see the import tool information:
IMPORT TOOLS DESCRIPTIONS
This tab houses various tools and links that a user might find helpful with regards to the import process. The tools/links are described in more detail below:
Import Tools Descriptions:
| Field Name | Description |
| Add Leases CSV Import Template | Click the link to download a CSV import template, which can be used to import lease records. |
| Update Leases Saved Search | Click the link to run a saved search on all leases, which can be downloaded as a CSV and re-imported in order to update existing lease records. |
| Add Lease Payments CSV Import Template | Click the link to download a CSV import template, which can be used to import lease payment records. |
| Update Lease Payments Saved Search | Click the link to run a saved search on all lease payments, which can be downloaded as a CSV and re-imported in order to update existing lease payment records. |
| Bulk Custom Role Permissions Import | Click the link to open a tool that will help you get started in NetLease by allowing you to bulk import role permissions to NetLease custom records and transactions. |
| Request Knowledge Base Access | Click the link to request user access to Netgain's knowledge base. |
- Next, move to the Global Threshold tab to see the threshold options:
GLOBAL THRESHOLDS DESCRIPTIONS
| Field Name | Required | Description | Example |
| Threshold % for Major Portion Economic Life | Yes | Input the percentage threshold of the remaining economic life the lease term needs to be in order to classify as sales-type versus operating lease. Note that calculated results will be displayed on the Accounting tab for each Lease Record when complete. | 75.0% |
| Threshold % for Residual Guaranteed by Lessee | Yes | Input the percentage threshold of the leased asset fair value that the present value of lease payments + lessee guaranteed residual value needs to be to classify as sales-type lease. Note that calculated results will be displayed on the Accounting tab for each Lease Record when complete. | 90.0% |
| Threshold % for Residual Guaranteed by 3rd Party | Yes | Input the percentage threshold of the leased asset fair value that the present value of lease payments + 3rd Party guaranteed residual value needs to be to classify as a direct financing lease (if not already sales-type). Note that calculated results will be displayed on the Accounting tab for each Lease Record when complete. | 90.0% |
- Next, move to the Managed Upgrades tab to set your preferences for managed bundle upgrades:
MANAGED UPGRADES DESCRIPTIONS
| Field Name | Description | Example |
| Upgrade Preferences | This field controls when your product will be upgraded next. You can choose to be upgraded every time there are changes, annually, bi-annually, or on a custom date of your choice. | Accept All |
| Last Upgraded Date | This field shows the date that your product was last upgraded. | 10/7/2023 |
| Next Upgrade Date | This field holds the date that you would like your next product upgrade to be if your upgrade preference is Custom. NOTE: This date must be within one year of your last upgrade. | 12/31/2023 |
| Send Release Notes To | List individuals who should receive release notes when the bundle is updated. | Brittley Eldredge |
For additional information on managed bundles, reference the NetLessor Managed Bundle FAQ article.
SUBSEQUENT UPDATE NOT EXPECTED Note that the NetLessor Setup selections and preferences are typically expected to only be addressed during initial setup, and it is not expected that any of the selections should be updated subsequently. |