In this article

Lease Accounting Standard Tab

Modules > Property lease management > Leases > All Leases > [select a lease] > [select charge line] > Billing lines button > Lease accounting standard tab

Use this page to specify details regarding the lease components, including the lease classification, amortization schedule, or lease component accounts. You can also review the billing lines for the periods.

The Billing Lines page has two main tabs, Billing Lines Tab and the Lease accounting standard (ASC 842/IFRS 16) tab. The FastTabs and fields that are visible depend on which main tab you select. For example, the Amortization schedule FastTab is only available when the Lease accounting standard is selected.

See Billing Lines Tab for information about the Billing lines tab.

Note icon. Note: The lease accounting standard can be used on expense and revenue leases that have a start date that is earlier than the lease accounting start date as specified on the Start date field on the Property Lease Management Parameters page. However, if the lease accounting standard start date is in the middle of a billing period, the billing period must be split so that a billing period ends before the lease accounting standard start date, and the next billing period is on the day of or after the lease accounting start date. For more information and assistance contact your administrator. View example.

For example, a lease start date is January 1, 2019 with a billing frequency of annually. The lease accounting start date is March 1, 2020. The lease has the following billing lines:

Billing Start Date	Billing End Date
January 1, 2019	December 31, 2019
January 1, 2020	December 31, 2020
January 1, 2021	December 31, 2021
January 1, 2022	December 31, 2022
etc.

The billing period from January 31, 2020 to December 31, 2020, must be split into two billing periods as follows:

Billing Start Date	Billing End Date
January 1, 2019	December 31, 2019
January 1, 2020	February 28, 2020
March 1, 2020	December 31, 2020
January 1, 2021	December 31, 2021
January 1, 2022	December 31, 2022
etc.

Default Date Values

The default dates that are applied to the charge details are based on the dates of the lowest level (e.g., unit) or the lease terms. Remember, you can change these dates as needed, but the default values serve as the basis from which you can work. The following scenarios provide more information.

Scenario 1

If start and end dates for the lowest level are provided, the charge lines use the start and end dates from the lowest level. In this scenario, it doesn't matter if lease terms exist or not.

Scenario 2

If only the start date for the lowest level is provided, and the start and end dates for the lease term are provided, the charge lines use the start and end dates from the lease term.

Scenario 3

If only the start date for the lowest level is provided, and no lease terms are attached to the lease, the charge lines use the start date of the lowest level, and the end date is determined by the billing frequency (e.g., monthly) of the lease.

Charge Header

The header contains the following read-only fields:

Charge header fields
Field	Description
Lease number	Displays the lease number.
Charge number	Displays the charge number.
Billing frequency	Displays the billing frequency for lease charges. The options are: Monthly, Weekly, Quarterly, Annually, and One Time
Initial amount	Displays the initial amount for the charge for the lease. Not available for meter charges.

Buttons

The header contains the following buttons:

Charge header buttons
Field	Description
Initial journal process	Only available for leases and charges with Lease component turned on and the Lease accounting standard tab selected. Opens a dialog where you specify the date on which the initial general journal is created. You can also specify a comment for the general journal. For expense leases, when you select Process, the initial general journal for the ROU asset is created. This button is available only when the initial general journal has not been created.
Modification journal process	Only available for leases and charges with Lease component turned on and the Lease accounting standard tab selected. Opens a dialog where you specify the date on which the modification general journal is created. You can also specify a comment for the general journal.
Reverse initial journal	Only available for leases and charges with Lease component turned on and the Lease accounting standard tab selected. Reverses the initial journal entry and creates a reversal journal number where you can view details about the journal entry that was reversed. Only visible if an initial journal entry is created, but an invoice is not yet created or posted.
Asset return	Only available for revenue leases and charges with Lease component turned on and the Lease accounting standard tab selected. Creates a journal and audit line. Only available once all periods have been fully posted.
Reverse asset return	Only available for revenue leases and charges with Lease component turned on and the Lease accounting standard tab selected. The Reverse asset return option is only available for Direct financing and Sales type leases. Reverses an asset return modification and opens a processing window where you can specify details about the reversal of the asset return. Creates a reverse asset return journal entry, the charge is changed to Active, and the audit table is updated. To reverse an asset return
Remeasure	Only available for expense leases and charges with Lease component turned on and the Lease accounting standard tab selected. Opens a dialog where you specify the date on which the lease liability and ROU asset are remeasured based on various changes made. You can also specify a comment for the remeasure. Only the periods that have not been processed are affected by the remeasure. If an expense lease is modified, the lease liability and ROU asset amount must be remeasured or recalculated. Changes to the lease can include, but are not limited to the following: The discount rate or other changes on the Lease Details is changed Escalation or abatement lines are added Direct costs and incentives are added The economic life, residual amount, or purchasing option amount are changed

Revenue Lease Journal Entries

Review the following information if you are working with revenue leases.

Create Initial Journal Entry

To create the initial journal entry, do the following:

Go to the charge for which you want to create an initial journal entry. Go to Property lease management > Leases > All Leases > [select a lease] > [select charge line] > Billing lines button > Lease accounting standard tab.
Make any adjustments to the fields under these tabs:
1. General, including, for example:
  1. Asset cost
  2. Asset fair value
  3. Unguaranteed residual value.
2. Charge details: Change any of the lease component accounts.
3. Lease incentives: Add an incentive to a lease.
After you have entered your adjustments, select Process.

The fields on the Billing lines form are then updated with the values you entered.
Once you have finished your adjustments, select Create initial journal.

It is necessary for all finance leases to create a journal entry so that any generated invoices display the updated charge details. For operating leases, if there is no direct cost then you do not need an initial journal entry to generate invoices.
Select the Initial journal date and then select OK.

After you have created the initial journal entry for your charge you can then generate an invoice. Billing lines only appear as an option to invoice after the initial journal entry is created.

To invoice revenue lease component charges that have direct cost, asset fair value, asset cost and other amounts specified in the lease accounting standard tab, you must create and post the initial journal entry for that charge. After the journal is posted you can invoice the charge using Invoice Creator.

Create a Modification Journal

After you create your initial journal entry, you can modify the same billing line by creating modification journals.

Limitations of Modification Journal

You cannot modify the fields on the Billing lines form until after the initial journal entry is created and posted. If an initial journal entry is not posted or an invoice is only partially posted or not posted at all, you are not able to modify any values.
After you select Create modification journal > Modification journal process, the journal date displays the date of the next billing period for which an invoice is not posted. The Modification journal date is a read-only field.
If an account number of a balance sheet account is changed, then there will be a journal imbalance and the journals will need to be balanced manually.

To create a modification journal, do the following:

Ensure that you have created the initial journal entry.
Make any adjustments to the fields under these tabs:
1. General, including, for example:
  1. Asset cost
  2. Asset fair value
  3. Unguaranteed residual value.
2. Charge details: Change any of the lease component accounts.
3. Lease incentives: Add an incentive to a lease.
After you have entered your adjustments, select Process.

The fields on the Billing lines form are then updated with the values you entered.
Once you have finished your adjustments, select Create modification journal.

It is necessary for all finance leases to create a journal entry so that any generated invoices display the updated charge details. For operating leases, if there is no direct cost then you do not need an initial journal entry to generate invoices.
Select the Modification journal date and then select OK.

After you have created your modification journal, you can see the initial journal entry and your modified journal entry under the Audit tab.

Reverse Initial Journal Entry

You can reverse an initial journal entry and restore the values of the charge as they were before the initial journal entry was created. To be able to reverse a journal entry, the initial journal entry must be created and posted. However, you cannot reverse an initial journal entry if any invoice is created or posted.

To reverse the initial journal entry, do the following:

Go to the charge for which you want to reverse the initial journal entry. Go to Property lease management > Leases > All Leases > [select a lease] > [select charge line] > Billing lines button > Lease accounting standard tab.
Select Reverse initial journal.
The Reverse initial journal processing page opens.
Select the Reversal journal date and then select OK.

After you have created the reversal journal, the audit and amortization tables are updated.

Expense Lease Journal Entries

Review the following information if you are working with expense leases.

Create Initial Journal Entry

To create the initial general journal entry, follow these steps:

Edit the direct costs and incentives and the amortization settings as needed.
Review the updated amortization schedule.
Select Initial journal process.
In the dialog, specify the date on which the initial general journal is processed. If needed, specify a comment.
Select Process.
After the initial general journal entry is created, the journal number is added to the line in the Audit (Lease Accounting Standard tab). To review the details of general journal, select the journal number to open the journal voucher.

Remeasure Lease Liability and ROU Asset Amount

If an expense lease is modified, the lease liability and ROU asset amount must be remeasured or recalculated. Changes to the lease can include, but are not limited to the following:

The discount rate or other changes on the Lease Details is changed
Escalation or abatement lines are added
Direct costs and incentives are added
The economic life, residual amount, or purchasing option amount are changed

To remeasure the lease liability and ROU asset amount for a lease, follow these steps:

Perform any of the changes as described, and process them on the Billing Lines Tabpage.
Select Remeasure.
In the dialog, specify the date on which the remeasure is processed. If needed, specify a comment.
Select Process to remeasure the lease liability and ROU asset amount.

The amortization schedule is updated and a line is added to the Audit (Lease Accounting Standard tab). To review the details of the remeasure, select the journal number to open the journal voucher.

Remeasuring a lease liability can be performed after the initial journal entry has been created. During the remeasuring process, the original initial journal entry is reversed and a new journal entry is created. Review the transactions in the Audit (Lease Accounting Standard tab).

General (Lease accounting standard tab)

This section describes the available fields under the General FastTab for three types of leases under the ASC 842 and IFRS 16 accounting standards. The General FastTab is only available for revenue type leases.

The Classification drop-down is available under the General tab. The Classification menu is only enabled for modifications after the initial journal entry has been posted. Use it to select the type of lease:

Sales type lease
Direct financing lease
Operating lease
Exempt lease: Select the exempt type for the item where the recognition exemption is applied. For example, if you have a low value asset or short-term lease or non-lease components.

General FastTab fields
Lease classification	Fields
ASC 842 Fields
Available fields for all three of: Sales type lease Direct financing lease Operating lease	Asset cost: Displays the value from the net investment of the last invoice after the journal is created and invoiced. Modified asset cost: Displays the original asset cost that was modified. Asset fair value Residual value Direct cost: Displays the value from the Operating Unamortized direct cost balance of the last invoice after the journal is created and invoiced. Modified direct cost: Displays the original direct cost that was modified. Direct cost at modification: Enter direct costs incurred at modification.
Available fields for Sales type lease	Guaranteed residual value Unguaranteed residual value Implicit rate
Available fields for Direct financing lease	Guaranteed residual value Unguaranteed residual value Implicit rate Implicit carrying rate value
Available fields for Operating lease	Calculate straight line: If switched on, then straight line income is calculated. Straight line income Direct cost
IFRS 16 Fields
Available fields for all three of: Sales type lease Direct financing lease Operating lease	Asset cost Modified asset cost Asset fair value Residual value Direct cost Modified direct cost Direct cost at modification
Available fields for Sales type lease	Guaranteed residual value Unguaranteed residual value Implicit rate Substantial/Not substantial Yes: Recalculates the implicit rate after you select Process. No: Uses the old implicit rate and does not calculate a new implicit rate.
Available fields for Direct financing lease	Guaranteed residual value Unguaranteed residual value Implicit rate Substantial/Not substantial Yes: Recalculates the implicit rate after you select Process. No: Uses the old implicit rate and does not calculate a new implicit rate.
Available fields for Operating lease	Calculate straight line: If switched on, then straight line income is calculated. Straight line income Direct cost expense

Charge details (Lease accounting standard tab)

The Charge details FastTab is only available for revenue leases. It displays the lease component accounts that you have set in the Charges form as well as lease accounts set on Charge Details tab of the lease.

The following accounts are available for revenue type leases:

Charge details FastTab fields
Accounting standard	Accounts
Lease accounts for ASC 842	For a Sales type lease, the following accounts are visible: Lease receivable account Unguaranteed residual value account Asset clearing account Interest income account Direct cost expense account Direct cost clearing account Revenue account Cost of sale account Rounding account Interest income deferred account Impairment loss GL account - visible if you are terminating a charge Loss on termination account - visible if you are terminating a charge For a Direct financing lease, the following accounts are visible: Lease receivable account Unguaranteed residual value account Asset clearing account Interest income account Direct cost expense account Direct cost clearing account Rounding account Deferred profit account Direct cost expense deferred account Impairment loss GL account - visible if you are terminating a charge Loss on termination account - visible if you are terminating a charge For an Operating type lease, the following accounts are visible: Direct cost expense account Direct cost clearing account Unamortized direct cost account Revenue account Rounding account Tenant incentive GL account Deferred lease receivable account Lease income deferred account Direct cost expense deferred account Impairment loss GL account - visible if you are terminating a charge Loss on termination account - visible if you are terminating a charge
Lease accounts for IFRS 16	For a Sales type lease, the following accounts are visible: Lease receivable account Unguaranteed residual value account Asset clearing account Interest income - lease receivable account Interest income - unguaranteed residual value account Direct cost expense account Direct cost clearing account Revenue account Cost of sale account Rounding account Gain on modification account Loss on modification account Unearned income - unguaranteed residual value account Interest income deferred account Impairment loss GL account - visible if you are terminating a charge Loss on termination account - visible if you are terminating a charge For a Direct financing lease, the following accounts are visible: Lease receivable account Unguaranteed residual value account Asset clearing account Interest income - lease receivable account Interest income - unguaranteed residual value account Direct cost clearing account Unearned income - unguaranteed residual value account Unearned income - lease receivable account Rounding account Gain on modification account Loss on modification account Interest income deferred account Unearned income deferred – lease receivable account Unearned income deferred – unguaranteed residual value Impairment loss GL account - visible if you are terminating a charge Loss on termination account - visible if you are terminating a charge For an Operating type lease, the following accounts are visible: Revenue account Direct cost expense account Direct cost clearing account Unamortized direct cost account Revenue account Rounding account Tenant incentive GL account Deferred lease receivable account Lease income deferred account Direct cost expense deferred account Impairment loss GL account - visible if you are terminating a charge Loss on termination account - visible if you are terminating a charge

Termination options (Lease accounting standard tab)

This section describes the available fields under the Termination options FastTab. The Termination options FastTab, which allows you to terminate a charge early, is only available for revenue type leases. When you use early termination of a charge in the Termination options FastTab, you set up a termination fee and the date when the charge is terminated. To actually terminate the charge, you have to follow the steps in Terminate a lease component charge.

Early termination of a charge

To set up early termination of a charge, follow these steps:

Under All leases, select the lease you would like to modify.
Under Charges, select the charge you want to modify and then open Billing lines.
In the In the Billing lines page, make any adjustments to the charge, and then select Process.
Select the Lease accounting standard tab.
Go to Termination options, and turn on Early termination.
Enter a termination fee if necessary.
If you enter a termination fee, enter a date when the termination fee is charged in Termination fee payable date.
Enter an impairment loss or asset revalue amount if you are using a Sales type or Direct financing lease. You must enter a value for at least one of Impairment loss or Asset revalue.

After you set up your early termination options, select anywhere in the page to refresh the amortization schedule. A line is added to the amortization schedule and to the billing lines section which shows when in the billing period the charge line is terminated. All the lines of the charge below the termination line are empty because the charge is terminated after that date.

Terminate a lease component charge

For revenue leases that use ASC 842/IFRS 16, you can terminate a lease component charge. Before you can terminate a charge, make sure that the initial journal entry is created and posted.

Under All leases, select the lease you would like to modify.
Under Charges, select the charge you would like to terminate.
Open the Billing lines page, and then select the Lease accounting standard tab.
Under the Termination options FastTab, and if you are using a Sales type or Direct financing lease, enter asset revalue and impairment loss values. One of Impairment loss or Asset revalue must have a value.
1. If you are using an Operating lease, enter a value in the Loss on termination account.
Select OK to close the Billing lines page.
Under Charges, select the charge you want to terminate.
Select Termination > Terminate charge. The Terminate charge page opens.
Specify the Termination date and select a Reason code. The termination date must be on or before the day of the last billed period.
After you make any other adjustments or selections in the Terminate charge page, select OK. The charge is terminated.

Note icon. Note: For more information about the Terminate charge page, see Charge Termination.

After you have terminated the lease component charge, go back to the billing lines of the terminated charge. Open the Lease accounting standard tab and you can see the amortization schedule is updated to show the charge is terminated. You can also view the terminated journal by opening it under Audit > Journal number.

Issuing credit when terminating lease component charge

When you are terminating a lease component charge and issuing a credit with the termination, you must select a termination date at the end of whichever billing period you choose. You cannot issue a partial credit when you terminate a lease component charge.

To issue credit for the termination of a lease component charge, do the following:

Follow steps one through seven from the Terminate a lease component charge process. The termination date must be at end of a specific billing period.
When you are in the Terminate charge window, select the termination type: Adjust schedule or Bill remaining.
Turn on Issue credit, and select the type of credit option you want to use.
Enter the invoice date.
Select OK to close the Terminate charge page.
After you have processed the termination, go to Charge details FastTab of the lease > Termination.
Under Charge details > Termination, on the audit table, open the invoice. Then, in the invoice journal, on the Action tab, select Voucher.
You can see the credit amounts of the termination.

Reverse termination of a lease component charge

For revenue leases that use ASC 842/IFRS 16, you can also reverse the termination of a lease component charge. Before you reverse a termination, make sure that the termination initial journal entry is created and posted.

Under All leases, select the lease you would like to modify.
Under Charges, select the charge you want to make active again.
Select Termination > Reverse termination. The Reverse termination page opens.
Review the details of the charge termination to make sure you want to reverse the termination. Make sure that Allow reverse termination is selected. If it is not selected, the termination cannot be reversed.
Select Reverse termination.
The Removal date is updated with the current date.
Close the page.

Note icon. Note: For more information about the Reverse termination page, see Reverse Termination.

After you have reversed the termination of the lease component charge, go back to the billing lines of the charge. Open the Lease accounting standard tab and you can see the amortization schedule is updated to show the charge is active again. You can also view the reverse termination journal by opening it under Audit > Reversal journal number.

Fields

The following field boxes are available:

Termination options FastTab fields
Field	Description
Early termination	Turn on to allow for early termination of a charge. Use this option if you know that a lease will be canceled on a certain date and want to charge a termination fee. Yes: Early termination of the charge is available. No: Early termination is not used.
Termination fee	Enter an amount to charge as a termination fee. Optional.
Termination fee payable date	Enter the date when the termination fee is payable. Required if the termination fee is greater than zero.
Impairment loss	Enter an amount to specify the remaining value of the charge after it is terminated. Required for Sales type and Direct financing leases. One of Impairment loss or Asset revalue field must have a value.
Asset revalue	Enter an amount which specifies the value of the asset after the charge is terminated. Required if Impairment loss field is empty.

Direct Cost and Incentives (Lease accounting standard tab)

The Direct cost and incentives FastTab is only available for expense type leases. This section describes the available fields under the Direct cost and incentives FastTab.

Use this section to specify the direct cost or incentive amounts for the lease. Theses values can be changed in one of following situations:

The initial journal entry has not been created.

When the amount is changed, the ROU asset amounts and initial journal entry are recalculated.

The initial journal entry as been created, but the invoice or stub for the period has not been created.

When the amount is changed, a warning message appears. If you choose not to change the amount, all values remain as is. If you choose to change the amount, the initial journal entry is reversed with the same date, the ROU asset amounts and initial journal entry are recalculated, and a new initial journal entry is created.

If the invoice or stub for the period already exists, this amount cannot be edited.

Add direct cost or incentive

To add a direct cost or incentive line, follow these steps:

Select New.
Select the Type and select the Option for applying the direct cost or incentive.
Specify the Start date, and for a recurring direct cost or incentive, specify the End date.
Specify the Amount.

The lines in the Amortization Schedule (Lease accounting standard tab) and Audit (Lease Accounting Standard tab) FastTabs are updated based on the incentives or direct costs added.

Fields

The following field boxes are available:

Direct Cost and Incentives FastTab fields
Field	Description
Type	Select the type: Tenant incentives or Direct cost.
Option	Select how the incentive or direct cost is applied: Lump sum or Recurring.
Start date	Specify the start date for the incentive or direct cost. Required. The default date is the term date.
End date	Displays the end date of the incentive or direct cost. The end date is required for a recurring incentive or direct discount.
Amount	Specify the incentive or direct cost amount.

Lease Incentives (Lease accounting standard tab)

The Lease Accounting Standard tab is available for expense and revenue leases that have regular charges that use the lease accounting standard functionality (e.g., use ASC 842/IFRS 16).

The Lease incentives FastTab is only available for revenue type leases. This section describes the available fields under the Lease incentives FastTab. The Lease incentives FastTab is only available for revenue type leases.

Add a lease incentive

To add an incentive line, follow these steps:

Select New.
Select the Type and select the Option for applying the incentive.
Specify the Start date, and for a recurring incentive, specify the End date.
Specify the Amount.

The lines in the Amortization Schedule (Lease accounting standard tab) and Audit (Lease Accounting Standard tab) FastTabs are updated based on the incentives added.

Fields

The following field boxes are available:

Lease Incentives FastTab fields
Field	Description
Type	Select the type. Incentive is the only option
Option	Select how the incentive is applied: Lump Sum or Recurring.
Start date	Specify the start date for the incentive. Required. The default date is the term date.
End date	Displays the end date of the incentive. The end date is required for a recurring incentive.
Amount	Specify the incentive amount.

Amortization Schedule (Lease accounting standard tab)

This schedule shows the economic life of a right-of-use (ROU) asset during the life of the lease. The discount rate on the Lease Details is applied to the amortization schedule. Changing the values on the other FastTabs updates the amortization schedule.

Expense Lease Fields

The following field boxes are available for expense type leases:

Amortization schedule FastTab fields
Field	Description
Header
Report start date	Displays the reporting start date for the lease accounting standard.
Start date	Displays the start date for the lease accounting standard.
Lease incentives	Displays the total sum of the lease incentives from the Amortization Schedule (Lease accounting standard tab).
Initial direct cost	Displays the total sum of the initial direct costs from the Amortization Schedule (Lease accounting standard tab).
Net present value	Displays the net present value, which is calculated as the sum of the Amount for periods with same discount rate and modification date
Lease liability	Displays the liability for the lease.
ROU asset	Displays the remaining ROU asset balance.
Amortization/Lease expense	Displays the amortization or lease expense amount per period. This value is calculated as follows: Lease liability / economic life. Amortization expense applies to financial expense leases. Lease expense applies to operating expense leases.
ROU asset adjustment	Specify the ROU asset adjustment amount.
Lease term	Displays the average length of a period of a term in months. This value is calculated as follows: Total number of months in the amortization schedule / number of periods. The economic life applies to operating expense leases.
Economic life	Displays the economic life of the asset for the life of the lease. This value is equivalent to the total number of periods in the lease, which is calculated based on the start and end dates of the lease. The economic life applies to financial expense leases.
Residual amount	Specify the residual amount of the asset at the end of the lease. This value can be edited any time during the life of the lease and does not affect periods that have already been processed (e.g., stubbed or had the invoice created).
Purchasing options	Specify the purchasing options (or buyout) amount of the asset at the end of the lease. This value can be edited any time during the life of the lease and does not affect periods that have already been processed (e.g., stubbed or had the invoice created).
Lines
Displays the ROU amortization schedule. The list has the following information: Period (increasing sequence number starting at zero) Start and end dates Amount Present value Interest paid and expense Amortization/Lease expense Lease liability balance (decreasing by Amount - Interest expense) ROU asset accumulative amortization (sum of all existing amortization expense values) ROU asset net book value

Revenue Lease Fields

The following field boxes in the Amortization Schedule header are available for Sales type and Direct financing type revenue leases under both ASC 842 and IFRS 16:

Amortization schedule FastTab fields
Field	Description
Header - only visible for Direct financing and Sales type leases
Implicit rate	Displays the implicit rate of the lease or charge.
Implicit rate carrying value Direct financing type only	Displays the implicit rate carrying value.
Net present value	Displays the net present value, which is calculated as the sum of the Amount for periods with same discount rate and modification date
Present value of guaranteed residual value	Displays the present value of the residual amount of the asset at the end of the lease. This value can be edited any time during the life of the lease and does not affect periods that have already been processed – stubbed or had the invoice created, for example.
Present value of unguaranteed residual value	Displays the present value of the unguaranteed residual amount of the asset at the end of the lease. This value can be edited any time during the life of the lease and does not affect periods that have already been processed – stubbed or had the invoice created, for example.
Lease receivables	Displays the lease receivables.
Net investment	Displays the net investment.
Revenue Sales type lease only	Displays the revenue generated by the sale of the asset.
Cost of sale Sales type lease only	Displays the cost or carrying amount of the underlying asset minus the unguaranteed residual value.
Asset cost Direct financing type only	Displays the cost of the asset.
Deferred profit Direct financing type only ASC 842 only	When using a direct financing lease and also using the ASC 842 accounting standard, displays the amount of deferred profit which has not yet been realized.
Unearned income - unguaranteed RV IFRS 16 only	When using the IFRS 16 accounting standard, displays the amount of potential income generated by the unguaranteed residual value.
Unearned income - lease receivable IFRS 16 only	When using the IFRS 16 accounting standard, displays the amount of potential income generated by the lease receivable value.
Adjusted value	For revenue leases only, the Adjusted value field records and displays any calculation differences of the period and includes that difference in the last invoiced period in the Amortization schedule. Any differences are balanced using the Rounding off account. For example, if you are using ASC 842, there might be a calculation difference in the Deferred profit account, or if you are using IFRS 16, a difference in the Unearned income lease receivable account.
Lines
Sales type and Direct financing leases	Period (increasing sequence number starting at zero) Start and end dates Amount Present value Interest on lease receivable Interest on unguaranteed residual value Earned profit - Direct financing lease only, ASC 842 only Interest on investment Unearned income - lease receivables - IFRS 16 only Unearned income - unguaranteed residual value - IFRS 16 only Net investment balance Lease receivable balance Deferred profit - Direct financing lease only, ASC 842 only Unguaranteed residual value balance
Operating lease	Period (increasing sequence number starting at zero) Start and end dates Amount Straight line income Deferred rent receivable Deferred rent receivable balance Direct cost expense Unamortized initial direct costs

Audit (Lease Accounting Standard tab)

This audit table shows all changes made to the lease that affect the values used by the lease accounting standard.

The following field boxes are available for expense type leases:

Expense lease Audit FastTab fields
Field	Description
Start date	Displays the start date of the lease.
Discount rate	Displays the discount rate (from the Lease Details) applied to the lease.
Lease term	Displays the number of months in a billing period of a lease term.
Net present value	Displays the net present value of the lease.
Lease liability	Displays the value of the lease.
ROU asset	Displays the ROU asset value for the lease.
ROU asset adjustment	Displays the ROU adjustment amount for the lease.
Amortization/Lease expense	Displays the amortization or lease expense for a period.
Lease incentives	Displays the lease incentives for the ROU asset.
Initial direct cost	Displays the indirect costs for the ROU asset.
Purchasing options	Displays the purchasing option amount for the ROU asset.
Residual amount	Displays the residual amount for the ROU asset.
Journal number	Displays the journal number for the amounts for the lease accounting standard.
Reversal journal number	If the journal entry is reversed, displays the journal number for the reversal.
Comment	Displays the comment for the journal batch.
Date	Displays the date on which the change occurred.

The following field boxes are available for revenue type leases:

Revenue lease Audit FastTab fields
Lease classification	Fields
ASC 842 Fields
Available fields for: Sales type lease Direct financing lease	Start date Implicit rate Implicit rate carrying value - Direct financing lease only Net present value Guaranteed RV Unguaranteed RV Lease receivables Fair value Asset cost - Direct financing lease only Deferred profit - Direct financing lease only Net investment Revenue - Sales type lease only Cost of sale - Sales type lease only Gross profit/loss - Sales type lease only Initial direct cost Lease incentives Present value of guaranteed residual value Present value of unguaranteed residual value Reversal journal number Comment Date Amortization reference number: Refers to billing schedule number, line number, and audit line number. Visible after you create a modification journal entry. If you select the Amortization reference number, you can see the amortization history of the modified journal entry. Modification date
Available fields for Operating lease	Start date Fair value Residual value Initial direct cost Lease incentives Straight line income Direct cost expense Journal number Reversal journal number Date Comment Amortization reference number: Refers to billing schedule number, line number, and audit line number. Visible after you create a modification journal entry. If you select the Amortization reference number, you can see the amortization history of the modified journal entry. Modification date
IFRS 16 Fields
Available fields for: Sales type lease Direct financing lease	Start date Implicit rate Market rate - Sales type lease only Net present value Guaranteed residual value Unguaranteed residual value Unearned uneguaranteed residual value Lease receivables Unearned lease receivable Fair value Net investment Revenue Cost of sale Initial direct cost Lease incentives Present value of guaranteed residual value> Present value of unguaranteed residual value Reversal journal number Comment Date Amortization reference number: Refers to billing schedule number, line number, and audit line number. Visible after you create a modification journal entry. If you select the Amortization reference number, you can see the amortization history of the modified journal entry. Modification date
Available fields for Operating lease	Start date Fair value Asset cost Residual value Initial direct cost Lease incentives Straight line income Direct cost expense Journal number Reversal journal number Date Comment Amortization reference number: Refers to billing schedule number, line number, and audit line number. Visible after you create a modification journal entry. If you select the Amortization reference number, you can see the amortization history of the modified journal entry. Modification date

Lease Accounting Standard Tab

Default Date Values

Charge Header

Buttons

Revenue Lease Journal Entries

Create Initial Journal Entry

Create a Modification Journal

Limitations of Modification Journal

Reverse Initial Journal Entry

Expense Lease Journal Entries

Create Initial Journal Entry

Remeasure Lease Liability and ROU Asset Amount

General (Lease accounting standard tab)

Charge details (Lease accounting standard tab)

Termination options (Lease accounting standard tab)

Early termination of a charge

Terminate a lease component charge

Issuing credit when terminating lease component charge

Reverse termination of a lease component charge

Fields

Direct Cost and Incentives (Lease accounting standard tab)

Add direct cost or incentive

Fields

Lease Incentives (Lease accounting standard tab)

Add a lease incentive

Fields

Amortization Schedule (Lease accounting standard tab)

Expense Lease Fields

Revenue Lease Fields

Audit (Lease Accounting Standard tab)

See also