NetLease - ROU Clearing Reconciliation
Purpose
The ROU clearing reconciliation report is used to review initial direct costs, prepayments, and incentives prior to commencement, as well as amounts receivable upon termination of a lease. Vendor bill payments/receivables recorded by Account Payable and lease initial balance entries booked by NetLease run through the ROU clearing account. This activity should net out to zero upon the initial balance entry after lease commencement.
How To
Navigation:
NetLease > Reports (All or GL & Recon) > ROU Clearing Reconciliation > Run
Filtering:
The report search can be narrowed down by adjusting the filters for subsidiary, currency, department, class, location, accounting period, or date. Once desired filters are set, click preview to view the reconciliation.
Results
Upon running the report the user will see the ROU clearing account by lease. If the lease payments/receivables recorded match the NetLease initial balance entry in the lease schedule, each lease will net to zero. Select the export button to download report into Excel.
Troubleshooting
If the reconciliation does not net to zero check the following:
1. Does the lease payment/receivable on the vendor bill/journal entry match the lease schedule?
2. Is the lease payment/receivable transaction tagged with the appropriate lease? If a transaction has been made and is not tagged with lease there will be a balance in "Unassigned".
3. Are the lease payments coded to the appropriate accounts?
When AP makes a lease payment the following journal entries should be recorded:
DR. ROU Clearing Account
CR. Cash/AP
When AR makes lease receivable (lease incentive) the following journal entries should be recorded:
DR. Cash/AR
CR. ROU Clearing Account