Add or copy leases (Preview)

This article explains how to create a lease from scratch in Asset leasing, and also how to create a lease by copying an existing lease. The process for creating a lease from scratch involves entering information for the new lease and then creating a lease schedule. After at least one lease has been set up, you might find it easier to copy the information from an existing lease and then edit that information as you require to create a new lease.

Create a lease

Follow these steps to create a lease in Asset leasing.

1. On the Lease summary page, on the Action Pane, select New.
2. Enter the lease information. Fields that are required have red borders.

The starting date for the lease payment can't be earlier than the lease start date. If you enter a starting date for the lease payment that's earlier than the starting date for the lease, you'll receive an error message.

By default, the Breakdown payment amount option on the General FastTab of the Lease details page is set to No if the Allow payment breakdown option on the Asset leasing parameters page is set to Yes.

If the Breakdown payment amount option is set to Yes, the Payment amount field on the Payment schedule lines FastTab is locked. It will be set to the total of the payment amounts that are entered later in the Payment amount breakdown catalog.

Select Payment amount breakdown to open a page where you can add the itemized payment types. The Add totals to payment amount button will move the totals to the Payment amount field.

Note

If you add an itemized payment amount and then select the Esc key, the entered amounts won't be added to the Payment amount field on the Payment schedule lines FastTab. Instead, they will be stored in the Payment amount breakdown dialog box. If you want the dialog box to show the total amount, select the Amount column, select and hold (or right-click), and then select Total this column.

The Copy line button will copy the itemized payment breakdown.

Create a lease schedule

After you've finished entering information for the lease, follow these steps to create a lease schedule.

Note

The financial dimensions might change based on any custom financial dimensions.

1. Select Create schedules to generate the lease books. The lease books include the payment, amortization, depreciation, and expense schedules.

2. To access the lease books and view the newly created schedules, select the Books tab.

   The Book details page shows how the lease is accounted for by the books that have been allocated to it. From here, you can view the lease schedules.

   The payment schedule contains the inputs from the Payment schedule lines tab on the Add lease page. You can still change each payment amount and variable payment. The lease liability is calculated based on the modified payment schedule.

   Note

   The starting date for the lease payment must be the same or a later date than the starting date for the lease. You'll receive an error message if the starting date for the payment is earlier than the starting date for the lease.

3. After you've finished reviewing the payment schedule, select Confirm schedule. After the schedule is confirmed, the lease is no longer available for editing.

   Note

   The lease term will be automatcially calculated from the payment schedule lines on the Add lease page.

   To calculate the lease term in months, the system finds the difference between the start date and the end date for a specific payment schedule line. It then moves to the next payment schedule line and finds the difference again. Finally, the system sums all the amounts to determine the lease term in months.

4. To view the calculated period interest expenses, open the Liability amortization schedule page. To view calculated straight-line depreciation, open the Asset depreciation schedule page.

5. After you've finished reviewing the calculated amount, you can create the initial recognition journal entry on the Initial recognition page. You receive a message that states that the journal has been created.

   Note

   The journal entry isn't posted to General ledger until you manually post the entry.

6. To review the proposed initial recognition entry before you post it, select Asset leasing journal.

   Note

   The Asset leasing journal can't be created manually. It's automatically created when lease schedules are created.

7. When you've finished reviewing the initial recognition journal entry and are ready to post it, select Post to recognize the right-of-use (ROU) asset and lease liability in General ledger.

Copy a lease

Asset leasing lets you copy the details of a lease to create a new lease that has the same information. You can then change the lease fields before you create the schedules for the copied lease.

1. On the Lease summary page, select the lease to copy, and on the Action Pane, select Copy lease.

   Note

   If the Manual parameter is turned off for the number sequence for lease IDs, the next number in the sequence is automatically generated as the lease ID of the copied lease. If the Manual parameter is turned on, you receive a message that prompts you to enter the lease ID before you proceed to copy the lease.

2. Select Copy. The lease details from the selected lease are copied to a new lease. You can then edit the details of the new lease before you save it and create the lease schedules.

Asset leasing journal

All journal entries that are created in Asset leasing are contained in the Asset leasing journal. On the Asset leasing journal page (Asset leasing > Journal entries > Asset leasing journal), you can filter by posting status, view specific journal entries and the vouchers, and post unposted journal entries.

Note

The Asset leasing journal can't be created manually. It's automatically created when lease schedules are created.