NetLease Run Go-Live Transition Journals

Overview:

Once all leases are commenced, they are ready for transition entries--a one-time setup task which books the leases to the general ledger.

Step By Step Process:

  • Navigate to the Run Go-Live Journals page by selecting NetLease > NetLease Setup > Run Go-Live Journals                 
  • The period filter will default to the period containing the transition date set on the NetLease System Setup page. All other filters are optionally available to run on a subset of leases. Once you’ve selected the desired leases, click Generate Transactions to initiate the journal creation process.

  • You can monitor the status on the subsequent page, periodically refreshing until the status has changed to Complete. Any journals generated will appear on the Batch Summary sublist.

  • Click the link to the NetLease Go-Live entry in the Journal Entry column of the Batch Summary to reveal the GL impact
    • Operating or Financing Lease
      • Debit Lease Type’s “Right of Use Asset Account” for the NetLease Lease Schedule Line's prior period “Right of Use Asset Balance”
      • Credit Lease Type’s “Lease Liability Long Term Account (Primary)” for the NetLease Lease Schedule Line's prior period “Lease Liability Balance”
      • Credit Lease Type’s “Transition Entry Equity Account” for the NetLease Lease Schedule Line's prior period “Net Balance”
    • Operating Sublease
      • Debit Lease Type’s “Sublease Accrued Rent Receivable” for the NetLease Lease Schedule Line's prior period “Accrued Rent Balance”
      • Credit Lease Type’s “Transition Entry Equity Account” for the NetLease Lease Schedule Line's prior period “Accrued Rent Balance”
    • Short-Term, Low Value, or ASC840 Lease
        • Debit Lease Type’s “Deferred Rent Account” for the NetLease Lease Schedule Line's prior period “Deferred Rent Balance”
        • Credit Lease Type’s “Transition Entry Equity Account” for the NetLease Lease Schedule Line's prior period “Deferred Rent Balance”

  • The lease itself will have the period containing the transition date split out into two NetLease Schedule Lines to record the NetLease Transition Entry and the normally scheduled NetLease Amortization Entry



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