NetLease - Accounts Payable Process Guide

Overview

This article will walk you through various accounts payable processes. Below you will find instructions on how the following topics are handled in the NetLease software:

  1. Pre-Commencement Transactions
  2. Monthly Lease Payments - either manual or automated
  3. Accounts Payable Reconciliations Reports

Prerequisite:

1. NetLease Lease Types and Chart of Accounts have been configured.

2. Vendor Bill customization and configuration. 

Pre-Commencement Transactions

When Accounts Payable records initial direct costs, prepayments, and incentives prior to lease commencement, as well as amounts receivable upon termination of a lease, the transaction must debit/credit the ROU Clearing account and tag the related lease.

Step By Step Process

  • Navigate to your preferred vendor bill form
  • Enter in all the desired primary information 
  • Enter the ROU Clearing Account on the expense line of the vendor bill or select the applicable item
  • Tag the lease on the expense/item line of the vendor bill

  • The vendor bill will now be tagged to the related records subtab of the lease
  • Navigate to the lease record and select on the Related Records subtab

Monthly Lease Payments

The Accounts Payable process as it relates to leases, can be completed in two ways: (1) bills can be generated through existing accounts payable process and tagged to the applicable accounts and leases or (2) the creation of vendor bills can be automated in the NetLease software based on lease data. Both methods are described in detail below to assist in the decision process for AP teams.

Step By Step Process - Existing AP Process

When Accounts Payable records monthly lease payments, the transaction must debit the Lease Payable Clearing account and tag the related lease.

  • Navigate to your preferred vendor bill form
  • Enter in all the desired primary information 
  • Enter the Lease Payable Clearing Account on the expense line of the vendor bill or select the applicable item
  • Tag the lease on the expense/item line of the vendor bill

  • The vendor bill will now be tagged to the related records subtab of the lease
  • Navigate to the lease record and select on the Related Records subtab

Accounts Payable Reconciliation Reports

NetLease has two reconciliation reports related to the lease clearing accounts: the ROU Clearing Reconciliation and the Lease Payable Clearing Reconciliation. 

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