NetLessor - Go-Live Overview

Go-Live Summary 

Our go live process is simple. (1) Load leases through CSV import tool or input lease data via user interface and determine lease classification (2) generate the amortization schedules. (3) Commence leases. (4) Kick off a system generated journal entry to establish the proper balances. (5) Reverse out your existing balance. 

Pre-Requisites

Prior to go-live we need to have the following steps complete.

  1. NetLessor global settings complete
  2. Lease types and account mappings finalized
  3. Leases loaded and reviewed

Go-Live Journal Entries

NetLessor will book the following go-live entry for operating leases:

Note: NetLessor only books a go-live entry for operating leases if the lease has initial direct costs, prepayments or changes in the lease payment schedule. In this example, the lease had initial direct costs and lease payment changes. 

Debit: Lease Capitalized Initial Direct Costs at go-live date

Debit: Deferred Rent Receivable (Deposit Liability)

Credit: Go-live clearing account (This amount is a plug to get the entry to balance)

Customer should book the following manual entry for each lease*:

Debit: Go-live clearing account (This amount is a plug to get the entry to balance)

Credit: Lease Capitalized Initial Direct Costs at go-live date

Credit: Deferred Rent Receivable (Deposit Liability)

NetLessor will book the following go-live entry for Sales Type and Direct Financing leases:

Debit: Net Investment in Lease

Credit: Go-live clearing account (This amount is a plug to get the entry to balance)

Customer should book the following manual entry for each lease*:

Debit: Go-live clearing account (This amount is a plug to get the entry to balance)

Credit: Net Investment in Lease


*IMPORTANT:

  • the entry booked by the customer should be a native NetSuite journal entry, and not a NetLessor-specific transaction
  • do not tag lease records to the manual reversing entry
  • the amounts in the manual reversing entry may not be an exact mirror of the NetLessor Go-Live journal entry. Only the Go-Live Clearing Account will always be the same amount in both the Go-Live journal entry and manual reversing entry
  • while a separate Go-Live journal entry will be created by NetLessor for each lease, the manual reversing entry can be one combined journal entry

Together these entries net to zero (or small transition adjustment amount). 

See our  Mass Create Go-Live Transition Journals article for more guidance.

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