In this article

Lease Details

Modules > Property lease management > Leases > All Leases > [select a lease] or select New

Use this page to create a lease or edit an existing lease.

Tip: To quickly create a lease, use the New Lease Wizard.

Lease Header

In this section, specify the general information for the lease. Some of the default values in the header are from the General tab on the Property Lease Management Parameters page. The Lease number is automatically generated based on the settings of the Number Sequences tab on the Property Lease Management Parameters page.

Create a Lease

To create a lease, follow these steps:

From the All Leases View, select New.
In the Lease header, specify the lease Name and select a Category Name and Lease type.

The labels of certain fields (for example, Customer and Vendor) are updated to match the settings of the selected category.

For an Expense lease type, select the additional lease type (Financial, Operating, or Short term) and select the Vendor account. Optionally, specify a Discount rate.
For a Revenue lease type, select the Customer account.
Select the Currency, and specify the dates for lease and rent commencement and execution.
Accept the default or change the values for Consolidate, Prorate partial periods, and Align to month, or change them as needed.
Select Save.

After the lease is created, you can add: terms, levels, charges, insurance policies, information for user defined fields, and sales reports.

Create a invoice for a lease

To create an invoice for a lease, follow these steps;

From the All Leases View, select the lease you want to terminate and select Lease > Invoice > Invoice Lease.
You can also select this action if you are reviewing the Lease Details for the lease.
On the Invoice Creator, follow the steps to terminate a revenue or expense lease.

Place a hold on a lease

You can place a hold on a lease to show that it is not active and cannot be invoiced. When a lease is on hold, you cannot invoice any periods, terminate the lease, or generate any late fee notes.

You can still make other adjustments to it. For example, you can :

Create initial journals
Create modification journals
Process CAM charges
Process any sales reporting
Perform any mass processing, including mass meter reading and mass stubbing.

Before you can place a hold, make sure that:

You have assigned the correct permissions for your user group. You have to assign permissions to a user group to allow users to place and remove holds. For more information, see Lease Status User Group Override.
You have hold reason codes to use when you place a lease on hold. For more information, see Hold Reason Codes.
The lease you want to place a hold on has an Active lease status.

To place a hold on a lease, do the following:

Go to the lease on which you want to place a hold.
On the header, under Lease Status, select Place hold.
In Hold date, enter the date when you want the hold to start.
In Reason code, select the hold reason code.
Enter any other notes or information about the hold in Hold notes.

In the lease details page, you can see information about the hold under the Lease FastTab > Hold.

Remove a hold on a lease

Before you can remove a hold, make sure that:

You have assigned the correct permissions for your user group. You have to assign permissions to a user group to allow users to place and remove holds. For more information, see Lease Status User Group Override.
The lease you want to remove a hold from has the On hold lease status.

To remove a hold on a lease, and make it active, do the following:

Go to the lease from which you want to remove a hold.
On the header, under Lease Status, select Remove hold.
In Removal date, enter the date when you want the hold removed.
In Resumption date, enter the date when you want the lease to be active again.

After you remove the hold, you can see the removal date and other information about the removal under the Lease FastTab > Hold.

Terminate a lease

To terminate a lease, follow these steps:

From the All Leases View, select the lease you want to terminate and select Lease > Termination > Terminate Lease.
You can also select this action if you are reviewing the Lease Details for the lease.
On the Mass Termination, follow the steps to terminate a lease.

Note icon. Note: To terminate a charge on a lease, go to the Charges header and select Termination > Terminate charge.

Reverse the termination of a lease

To reverse the termination a lease, follow these steps:

From the All Leases View, select the lease for which you want to reverse the termination and select Lease > Termination > Reverse termination.
If you are reviewing the Lease Details for the lease, you can select the action on that window.
On the Reverse Termination, follow the steps to terminate a lease.

Note icon. Note: To reverse a termination of a charge on a lease, go to the Charges header and select Termination > Reverse termination.

Create a late fee in lease header

When you enable late fees on the lease header, all charges in the lease automatically use the late fee setup from header and you are not able to edit the late fees at the charge level.

Late fees from the lease header do not generate separate late fees for each charge. Late fees from the lease header are generated for the outstanding balance of the invoice. For example, if one invoice is created for multiple leases, only one late fee note is generated for the invoice. The number of charges on each lease does not affect the number of late fee notes generated.

For more information about the rules and limitations for late fees, see Fee Note Rules and Limitations.

To create a late fee in the lease header, do the following:

Create a new lease or select an existing lease from the All Lease View.
Under the Lease header > Fees on Invoice Outstanding Balance, turn on Apply fees.
Turn on Include tax on fee calculation, if you want to include the tax amount in your late fee calculation.
Turn on Use default customer posting profile, if you want to use the default customer posting profile.
1. If you turn off Use default customer posting profile, then select the posting profile you want to use under Posting profile. The fee code is connected to the specific posting profile you use.

Change Vendor Account

In some cases, you might need to change the vendor account for an expense lease. Before changing the vendor account, ensure that all outstanding tasks with respect to the previous vender are manually completed. Such tasks can include processing invoices for outstanding billing periods and returning deposit amounts.

The new vendor must use the same operating currency as the previous vendor, After the vendor account is changed, the following values are updated with values from the new vendor:

Lease delivery name and address
Default dimensions and dimensions for the charges
Tax group for the charges
Lease payment terms

By default, changing the vendor account requires an electronic signature. With the electronic signature, you can specify a comment for the change. To get a certificate for the electronic signature, select Get certificate from the User Optionspage. Electronic signatures is a standard feature in Microsoft Dynamics 365 for Finance and Operations. For more information, see the documentation:

To turn off the electronic signature requirement, open the Electronic Signature Requirements page, do the following:

Find the PLM Leases-Vendor account electronic signature requirement, and set Signature required to No.

Audit Trail

By selecting the Audit button on the Lease Header, you can review any changes to the vendor account on the Database Log. Permission to view or use the database log is controlled by the following security privileges:

DatabaseLogParametersMaintain
SysDatabaseLogCleanUp
SysDatabaseLogMOGenerate
SysDatabaseLogReinsert
SysDatabaseLogSetupMaintain
SysDatabaseLogView

The system administrator can assign the SysDatabaseLogView security privilege to any user for read-only access to the database log. Or on the Security Configuration page, you can create a custom privilege to view the database log with the following settings:

Allow to display the SysDatabaseLog menu item
Set the properties as follows:
- Read (Grant)
- Update (Deny)
- Create (Grant)
- Delete (Deny)

For more information on security, see the Microsoft Dynamics 365 for Finance and Operations documentation:

Use Billing Class on Lease

You can apply a billing class by selecting Billing class on the lease header. When you apply a billing class to your lease, the default billing class is based on the lease category and the billing class from that category. To apply a billing class to your lease do the following:

In your Property Lease Management Parameters, in the General tab, turn on Billing cycle.
From the All Leases View, select the lease you want to apply a billing class to and select Lease > Billing class.
You can also select this action if you are reviewing the Lease Details for the lease.
The Billing class pop-out page opens.
Under Billing class name, select the billing class to apply to the lease. The available billing classes which you are able to select are based on the ones that you set up in your Billing Class setup.
Enter a Billing start date and Billing end date. Review the details of the billing class, such as Calculate from and Prior days, for example, when entering the start and end dates to make sure the billing class is set up correctly for you.
You can modify the details of the billing class you select and those modifications apply to the lease but will not change the setup details of the billing class.
After you set up your billing class details, select Calculate periods. The projected billing period start and end dates and invoice dates are generated in the Billing Period table.
Review the billing period details. If they are correct, select Save to close the page.
1. You can choose to roll-down the billing class to your charges as well.

For more information about the Billing class details, see Billing Class.

Add Migrated Leases and Charges Manually

If you are migrating leases from a previous ERP program and adding them to PLM, you can manually add lease and charges from this page. You can also migrate leases and charges by using data entities. For more information see Import Lease.

Note icon. Note: You cannot use the Copy lease action with leases which are marked as Migrated.

To add migrated leases and charges into PLM, do the following:

Follow the steps in Create a Lease.
Make sure to turn on Migrated in the lease header, and on the charge level if the migrated lease has migrated charges.
For a direct finance type charge which you are migrating, follow these steps:
1. Go to the Billing Lines page.
2. Under the Lease accounting standard tab, under the Amortization schedule FastTab, you must enter values in the following fields:
  1. Note: When you are entering values into the amortization schedule, start from the Billing start date of the remaining term.
    1. Implicit rate
    2. Implicit rate carrying value
    3. Balance of unguaranteed RV
      1. If this value is entered, then you must also enter a value for Unguaranteed RV on the lease header level.
    4. Balance of lease receivables
    5. Balance of deferred profit
For an operating type lease which you are migrating, follow these steps:
1. Go to the Billing Lines page.
2. Under the Lease accounting standard tab, under the Amortization schedule FastTab, you must enter values in the following fields:
  1. Straight line income, only if Straight line income is turned on for the migrated charge.
  2. Balance of deferred rent receivable
  3. Balance of unamortized direct cost

Fields

The header contains the following fields:

Field	Description
General
Lease number	Displays a lease number for a record. Lease numbers can be automatically assigned or manually entered and are set up on the Number Sequences tab on the Property Lease Management Parameters page. For more information about number sequences, see Generate Number Sequences.
Name	Specify a name for the lease. Optional.
Category name	Select the category for the lease. Required. Note: After you select the category and move to the next field, the category cannot be changed. If you wanted to select a different category during the lease creation, delete the lease and start again. The category selected determines the level FastTabs that appear on this page.
Lease type	Select the lease type you want to create. The default value is from the General tab on the Property Lease Management Parameters page. For an expense lease, select one of the following lease types. This additional option is for the lease accounting standard (e.g., ASC 842/IFRS 16). Financial Lease: The lease is a financial (or capital) lease. Operating Lease: The lease is an operating lease. Short Term Lease: The lease is for a period of 12 months or shorter. Available for IFRS 16 only.
Discount rate	Specify the discount rate to apply to the lease. The discount is available for financial or operating expense leases and affects the Billing Lines on the Billing Lines page. The default value is set up on the Property Lease Management Parameters page.
Customer/Vendor account	The label that appears on this field box is based on the lease type and category selected. For a revenue lease, select the customer account number. After the lease is set up and saved, the customer number cannot be changed. For an expense lease, select the vendor account number. The vendor account can be changed after the lease is saved. For details, see Change Vendor Account. After the customer or vendor is selected, the lease type cannot be changed. If you want to change the lease type during the lease creation, delete the lease and start again.
Customer/Vendor name	Displays the customer or vendor name. Read-only. The label that appears is based on the lease type and category selected.
Currency	Select the currency for the lease. Required. The default value is from the customer or vendor record.
Lease commencement date	Specify the start date for the lease. Required.
Rent commencement date	Specify a rent start date for the lease. Required. The default date is the lease commencement date, but you can change it. This date is used for adding term and escalation lines.
Execution date	Specify the execution date for the lease. Optional. The default date is the lease commencement date, but you can change it.
Consolidate	Select whether invoices for multiple leases are combined into a single invoice. Yes: Creates a single invoice that combines the billing details for a customer or vendor. Invoices from a single lease can be consolidated when the separate invoices have the same customer or vendor and the same currency. This feature is available for sales order, free text invoice journal, and vendor invoices. No: Separate invoices are always created.
Prorate partial periods	Select whether to prorate the partial billing periods: Yes: Calculates partial amounts for first or last periods that are not full billing periods. The amounts for partial billing periods is a fraction of the full billing period amount. No: Does not calculate partial amounts when the first or last periods are not full billing periods. Partial billing periods are charged the same amount as full billing periods.
Align to month	Select whether to align the billing period for a lease to the end of a month when the lease is created: Yes: Aligns the billing period of a lease to the end of a month. For example, a lease is created on April 15, the end of the first billing cycle is April 30. Each subsequent billing cycle then starts on the 1st of the month and ends on the last day of the month. No: Does not align the billing period for a lease to the end of a month. For example, this option is selected and the billing frequency is monthly. For a billing cycle that starts on April 15, the end of the billing cycle is May 14. Each subsequent billing cycle starts on the 15th of the month and ends on the 14th of the month. Caution: Changing the setting for this option recreates meter reading lines on the Meter Readings page. As a result, data for unprocessed lines will be lost.
Migrated	Displays whether or not the lease has been imported from another source. Yes: The lease was migrated into your PLM environment. No: The lease was created in your PLM environment and therefore not migrated. Note: You cannot use the Copy lease action with leases which are marked as Migrated.
Lease status	Displays the status of the lease: Active: A lease with this status can be billed and invoiced. Draft: The lease is not active and cannot be billed and invoiced. On hold: The lease has been placed on hold and cannot be billed and invoiced. Canceled: The lease has been canceled. Archived: Terminated: When a lease has this status, the tenant is removed from the Expense Allocation Template window. You can select the expansion button to open the Revenue Lease Termination window. You can set the status of new leases in the Property Lease Management Parameters page. The lease status cannot be manually edited and is updated by actions applied to the lease. For example, the status of a lease is Terminated when the lease is terminated by using the Move Out Wizard or the Mass Termination page.
Lease workflow status	Only visible if a lease workflow is used for the lease. To use a lease workflow, turn on Enable lease status workflow in your PLM parameters. Pending: The lease workflow has not started yet. Submitted: The lease workflow has started. Approved: The lease workflow has been approved. Changes the lease status to Active. Delegated: The lease workflow has been assigned to another user. Rejected: The lease workflow has been canceled by a user.
Termination date	Displays the termination date of the lease. Read-only.
Apply fees	Select whether late fees apply to your leases: Yes: Late fees are applied to leases. No: Late fees are not applied to leases.
Use default customer profile	Select to use the posting profile from the customer profile setup in Accounts receivable. Yes: The customer profile from Accounts receivable is used when you create a new sales reporting record. No: Select the posting profile from the drop-down under Posting profile. When you set up a posting profile, you can set up your fee amount by creating an Interest code. For more information on setting up a fee amount and interest code, see Late Fee Amounts. For more information on setting up customer profiles, see Customer posting profiles on the Microsoft Dynamics 365 for Finance and Operations documentation.
Posting profile	Select the posting profile to use when you create new sales reporting records. This option is not available if you use the default customer profile.
Include tax on fee calculation	Select to include the taxes of the lease invoice in the fee calculation. Yes: Taxes are included in the late fee calculation. No: Taxes are not included in the late fee calculation.
Fee code	Displays the fee code connected to the posting profile.
Hold
Hold date	Displays the date when the hold is put on the lease.
Applied by user	Displays the user who placed the hold.
Removal date	Displays the date when the hold was removed.
Resumption date	Displays the date when the lease resumed, or, became active again.
Removed by user	Displays the user who removed the hold on the lease.
Reason code	Displays the hold reason code that is used to place the hold.
Description	Displays any comments about the hold.
Hold notes	Displays any other information about hold.

Buttons

This page contains the following buttons:

Lease Buttons Table
Group	Description
Deposit
Select an action to perform:
Deposits	Opens the Deposits page, where you can process deposits for the selected lease.
Deposit return	Opens the Deposit Returns page, where you can process deposit returns for the selected lease.
Insurance
Insurance	Opens the Insurance page, where you specify insurance information for a lease.
Invoice
Invoice lease	Opens the Invoice Creator, where you create the invoice for the lease. All lines up to the current date that are available for the invoice are readily available on the page.
Sales based reconciliation
Select an action to perform:
Sales reporting	Opens the Sales Reporting page.
Reconciliation option	Opens a dialog where you specify the Reconciliation year and, if needed, Partial year calculation. The default values are from the Property Lease Management Parameters page.
Termination
Select an action to perform:
Reverse termination	Opens the Reverse Termination page, where you reverse a termination for the selected lease.
Terminate lease	Opens the Mass Termination page, where you terminate the lease.
Notification
Lease notification	Opens a the Lease Notifications dialog, where you add the email notifications for a lease.
User Defined Fields	Opens the User Defined Fields dialog, where you specify the values for user defined fields for a lease.
Lease status
Make active	Select to make a lease active. The Make active button is available when: The lease status is On hold or Draft You are part of a user group which has the option Allow make active turned on. See Lease Status User Group Override.
Place hold	Select to place a lease on hold. When a lease is on hold you cannot invoice it. Opens a drop down menu where you can enter the hold date, reason code and any comments about the hold. Hold date: Enter the date when the lease is put on hold. Reason code: Select the hold reason code. Required. Description: Displays the description of the hold reason code. Hold notes: Enter any other relevant information about the hold.
Remove hold	Select to remove a hold on the lease. Only visible when a lease is already on hold. When you remove a hold, the lease status is updated to Active. Removal date: Enter the date when you want the hold removed. Resumption date: Enter the date when you want the lease status to be updated to updated to Active.
Billing class
Billing class	Opens the Billing class window. See Use Billing Class on Lease.

Print
Select an action to perform:
Print lease summary	Prints the Lease Summary Report for the selected lease only. When printing the lease summary report, the filters are automatically applied so that only the current lease appears on the report.
Lease Header
Audit	Opens the Database Log page, where you can view the changes to the vendor account. The database log is a standard feature in Microsoft Dynamics 365 for Finance and Operations.

Lease Term

Enter terms for the lease. The start and end dates in a lease term are used as the default dates when adding the levels and charges.

When multiple charges are applied to a lease, the term start and end dates are used as the start dates and end dates for the escalation lines. The term dates are also used for calculating the charge escalation details. Adding new terms does not update existing charge billing details and charge escalation pages. You must manually open the Billing Lines and select Process.

The terms added cannot have overlapping dates. However, a date gap can occur between terms. For example, one term has a start date of January 1 and an end date January 15. The following term cannot have a start date on or before January 15. However, it can have a start date on January 16 or later. When a gap occurs between terms, the settings of the previous term are used until the next term begins.

Add the First Term to a Lease

To add a first term for a lease, follow these steps:

Select whether you want the lease to use the Period by period lease functionality.
In the terms list, select Add line.
Specify the start and end dates of the term.
Select the Term type.
If the term is to be renewed, specify the Lead time (days) and Notice requirements.
Select Save.

After a term starts, you can edit only the end date. Also, changing the end date of a term changes the start date of the next term.

Add the Subsequent Terms to a Lease

To add a subsequent terms for a lease with the Renew Lease Wizard, follow these steps:

Select Add line.
A dialog box asking if you want to open the Renew Lease Wizard appears. Select Yes, the Renew Lease Wizard opens to the Welcome page.
Advance to the first step of the wizard, which is automatically updated with information from the lease and follow the steps in the wizard to add the subsequent term.
When you finish the wizard, you are returned back to the Lease Detail where you can review the new term and all related information.

To add a subsequent terms for a lease without the wizard, follow these steps:

Select Add line.
A dialog box asking if you want to open the Renew Lease Wizard appears. Select No.
A line is added to the terms list, where you select the Term type and specify the renewal details.
Select Save.

Fields

This FastTab contains the following fields:

Field	Description
Period by period lease	Indicates whether the period-by-period functionality is used (for example, the invoices for a lease are month to month): Yes: The period-by-period functionality is used. Invoices are created on a period-by-period basis, and lines are added based on the billing frequency of the lease. No: The period-by-period functionality is not used. The default setting is from the General tab on the Property Lease Management Parameters page.
Lines
Term start date	Specify the start date for the term. For the first line, specify the start date. For subsequent terms, the default date is the next date after end date of the previous term. If you change the start date, the date must be later than the end date of the previous term.
Term end date	Specify the end date for the term. Editing the end date changes the start date for the following line.
Term type	Select a term type. The available options are created on the Term Types tab of the Property Lease Management Parameters page.
Lead time (days)	Specify the number of lead days required for lease notices.

Buttons

This FastTab contains the following buttons:

Button	Description
Add line	If no term lines exist, adds the first term. If one or more term lines exist, opens a dialog asking if you want to use the Renew Lease Wizard for adding a term line.
Remove line	Removes the selected term line.

Button

Description

Add line

If no term lines exist, adds the first term.

If one or more term lines exist, opens a dialog asking if you want to use the Renew Lease Wizard for adding a term line.

Remove line

Removes the selected term line.

Levels 1, 2, 3

Use this section to add a category level to or remove a category level from a lease. The levels that appear are based on the required level of the selected Category name. For each level, select the level Number, but the lowest level shows the details for the level selected for the lease. The available options and default values are based on the Properties page.

At minimum, level 1 is required and will always appear. Also, the levels must be selected incrementally. For example, you must select level 1, then, level 2, and then level 3. You cannot select level 1, skip level 2, and then select level 3. Also, you cannot select the levels in reverse order.

Add Levels

These steps use three required levels, but for your purposes, you might have only one or two required levels. These steps are guidelines and should be adjusted for your needs.

To add Level 1 lines, follow these steps:

Select Add line.
Select the Property Number.
Repeat these steps to add more level 1 lines.
Select Save.

To add Level 2 lines, follow these steps:

In the Level 1 section, select a line.
In the Level 2 section, do the following:
1. Select Add line.
2. Select the Building Number.
3. Repeat these steps to add more level 2 lines.
To add Level 2 lines to a different Level 1 section, select a different level 1 line, and repeat step 2.
Repeat these steps to add more lines for different level 1 and 2 combinations.
Select Save.

To add Level 3 lines, follow these steps:

In the Level 1 section, select a line.
In the Level 2 section, select a line.
In the Level 3 section, do the following:
1. Select Add line.
2. Select the Unit Number.
3. Specify the start and end dates for the lease.
4. Repeat these steps to add more level 3 lines.
To add Level 3 lines to a different Level 1 and 2 sections, select a different level 1 and 2 lines, and repeat step 3.
Repeat these steps to add more lines for different level 1, 2, and 3 combinations.
Select Save.

If the property levels have attached CAM expense pools and after the lowest level is selected, the Charges FastTab is automatically updated with the CAM and recoverable charges.

Levels that are attached to a lease cannot be deleted.

Fields

This FastTab contains the following fields:

Field	Description
All Levels
Number	Select the level number for the lease. The options available are based on the Properties for the selected Category name. For the lowest level, the options available are numbers that are not used by another lease on or after the specified start date.
Lowest Level only
Total area	Displays the total area of the level. Read-only. This value is updated when the corresponding value on the Properties setup is updated.
Leasable area	Displays the total leasable area. Read-only. This value is updated when the corresponding value on the Properties setup is updated.
Leased area	Specify the area for the lease. This value must be less than or equal to the leasable area. The default value is the same as the leasable area. When this value is changed, the Area tracking dialog appears, where you specify the description and the effective date for the change. The leased area is used in calculations for the rate schedule and for reports and inquiries.
Chargeable area	Specify the area that is part of the charge. This value must be less than or equal to the leased area. When this value is changed, the Area tracking dialog appears, where you specify the description and the effective date for the change. The chargeable area is used for calculating the CAM rate.
Area unit	Displays the unit of measure used for area. Read-only.
Start date	Displays the start date for the lease for the level. The default is same as the start date for the first term, or if the terms are empty is the rent commencement date. You can change the value as needed.
End date	Specify the end date of the lowest level. The default date is the end date of the last term. You can change the date as needed. For a lease that uses the period by period functionality, the default date is empty. When the level is considered to be occupied, the occupancy validation is Yes. The date is automatically updated when the customer moves out or the lease is terminated.
Exclude CAM calculation	Select whether the CAM expense pool is excluded from the amounts calculated for the billing periods. Yes: Excludes all CAM expense pool amounts when calculating the amounts for the billing periods. When this option is selected, the charges for the associated CAM expense pool are excluded from the Charges for the lease. Also, the lowest level is excluded from the calculation of the Tenants area pro-rata method. The pro-rata method is set up on the Expense Pools page. No: Includes all CAM expense pool amounts when calculating the amounts for the billing periods. When this option is selected, the charges for the associated CAM expense pool appear in the Charges for the lease. After invoices have been created for charges that are associated with the CAM expense pool, this option cannot be edited.

Buttons

This section contains the following buttons:

Button	Description
CAM pool	Opens the CAM Pools page.
Area tracking	Opens the Area Tracking History dialog that provides the history of changes for the leased area. This button is available only for the lowest level. If CAM functionality is used, the history of changes to the chargeable area is also available. For information on changing the area, see Modify Lowest Level Area (Lease).

Button

Description

CAM pool

Opens the CAM Pools page.

Area tracking

Opens the Area Tracking History dialog that provides the history of changes for the leased area.

This button is available only for the lowest level.

If CAM functionality is used, the history of changes to the chargeable area is also available.

For information on changing the area, see Modify Lowest Level Area (Lease).

Charges

Select the charges for the lease.

If a category has zero levels, the charge is directly connected to the lease. These charges cannot be used in CAM calculations.
If a category has different levels, the charge is connected to the lowest level of the lease for the level combination selected in the Levels 1, 2, 3 FastTabs.

The default values for the lines are from the Charges setup. If needed, you can change the values for the charge for this lease.

A lease can have a combination of regular and meter (or consumption) charge types.

If the property levels have attached CAM expense pools and after the lowest level is selected in the previous step, the Charges FastTab is automatically updated with the CAM and recoverable charges.

Add Regular Charge

To add a regular charge for a lease, follow these steps:

For each Level FastTab, select the level you want at each level section.

When you add a charge, be sure to select through the levels before adding a charge. For example, the lease category has two required levels. To be able to add a charge, select a line in the first level, then select a line in the second level, and then you can add a charge.

For each charge you add, do the following:
1. Select Add line.
2. Select the Charge number and check that the Charge type is Regular.
  These values cannot be edited after the charge is added.
3. If an item is attached to the charge, the Item number is updated with the item number. Otherwise, if needed, you can select an Item number.
4. Specify the Quantity and Amount.
5. If needed, change any other values for the line.
6. In the Charge Details FastTab, review the following tabs and edit the values as needed.
  Review the Product tab for information on the item.
  Review the Financial dimensions tab for information on the account for the charge.
  For expense leases that use the lease accounting standard (e.g., ASC 842/IFRS 16), review the Lease components tab for account information.
Repeat these steps to add more charges.
Select Save.

Add Sales Based Charge

Adding a sales based charge is much like adding a regular charge, with the following differences:

Check that the Charge type is Sales based.
Select the Sales based button, and complete the steps for setting up charge calculations for the charge line.

Add Meter (or Consumption) Charge

To add a meter (or consumption) charge for a lease, follow these steps:

For each level section, select the level you want at each level section.

For each charge you add, do the following:
1. Select Add line.
2. Select the Charge number, and check that the Charge type is Consumption.
  These values cannot be edited after the charge is added.
3. If an item is attached to the charge, the Item number is updated with the item number. Otherwise, if needed, you can select an Item number.
4. Specify the Meter number.
5. If needed, change any other values for the line.
6. In the Charge Details FastTab, review the tabs as described for a regular charge and edit the values as needed.

The lease accounting standard (e.g., ASC 842/IFRS 16) is not available for meter charges. As a result, setting the Lease component option to Yes automatically changes it to No.

Meters can be attached to only one lowest level (unit) at a time. In other words, if a meter number that you are looking for is not available, it must be already be attached to a unit.

Repeat these steps to add more charges.
Select Save.

You can edit a charge any time before the first invoice that uses the charge is created. Any updates to the frequency, quantity, or amount affects the corresponding billing line. To specify the details for the charge, selected any of the following buttons:

Select Billing lines to specify the details for the billing line of the charge on the Billing Lines page.
Select Meter reading to specify meter details, and if needed, enter meter reading values on the Meter Readings page. On the Billing Lines page, you can specify abatement discounts for a meter charge.

After the invoice for a billing line of a charge has been created, only the account and the financial dimension for the charge line and Charge Details can be edited. All other settings for the charge line cannot be edited. Also, charges that are active and attached to a lease cannot be deleted.

Place a hold on a charge

Before you can place a hold, make sure that:

You have assigned the correct permissions for your user group. You have to assign permissions to a user group to allow users to place and remove holds. For more information, see Lease Status User Group Override.
You have hold reason codes to use when you place a lease or charge on hold. For more information, see Hold Reason Codes.
The charge you want to place a hold on has an Active charge status.

To place a hold on a charge, do the following:

Go to the charge on which you want to place a hold.
Under the Charges FastTab, on the Action tab, select Place hold.
In Hold date, enter the date when you want the hold to start.
In Reason code, select the hold reason code.
Enter any other notes or information about the hold in Hold notes.

In the Charge details FastTab, you can see information about the hold under Hold.

Remove a hold on a charge

Before you can remove a hold, make sure that:

You have assigned the correct permissions for your user group. You have to assign permissions to a user group to allow users to place and remove holds. For more information, see Lease Status User Group Override.
The charge you want to remove a hold from has the On hold charge status.

To remove a hold on a charge, and make it active, do the following:

Go to the charge from which you want to remove a hold.
Under the Charges FastTab, on the Action tab, select Remove hold.
In Removal date, enter the date when you want the hold removed.
In Resumption date, enter the date when you want the charge to be active again.

After you remove the hold, you can see the removal date and other information about the removal under the Charge details FastTab > Hold.

Use Billing Class on Charge

You can apply a billing class by selecting the Billing class under the Charge details FastTab. When you apply a billing class to your charge, the default billing class is based on the lease category and the billing class from that category. To apply a billing class to your charge do the following:

In your Property Lease Management Parameters, in the General tab, turn on Billing cycle.
From the All Leases View, select the lease you want to apply a billing class to and select Charge details> Billing class.
You can also select this action if you are reviewing the Lease Details for the lease.
Under Billing class name, select the billing class to apply to the charge. The available billing classes which you are able to select are based on the ones that you set up in your Billing Class setup.
Enter a Billing start date and Billing end date. Review the details of the billing class, such as Calculate from and Prior days, for example, when entering the start and end dates to make sure the billing class is set up correctly for you.
You can modify the details of the billing class you select and those modifications apply to the charge but will not change the setup details of the billing class.
Review the billing period details. If they are correct, select Save.

For more information about the Billing class details, see Billing Class.

Fields

This FastTab contains the following fields:

Field	Description
Charge number	Select the charge.
Name	Displays the charge name.
Item number	Displays the item number. If needed, you can change the item for the charge.
Charge type	Displays the charge type: CAM: The charge is used for common area maintenance (CAM) charges that are added to a revenue lease. For more information on CAM charges, see CAM Expense Calculations. Consumption: The charge is a measured amount based on usage that is applied to a lease. For example, electricity charge. Regular: The charge is a specified amount that is applied to a lease. For example, charging an amount of 200. 00. Sales based: The charge is used for sales based reconciliation. The charge type is set up on the Charges page.
Charge status	Displays the current status of the charge. Read-only. Active: A CAM charge is active when the expense pool (with the associated charge) is attached to the lowest level. Inactive: The CAM charge is inactive when the expense pool (with the associated charge) is removed from the lowest level. This status is updated for CAM charges that were invoiced in previous billing periods.
Termination date	Displays the termination date of the charge. Read-only.
Frequency	Select a default billing frequency for lease charges. The options are: Monthly, Weekly, Quarterly, Annually, and One Time. Caution: Changing the setting for this option recreates meter reading lines on the Meter Readings page. As a result, data for unprocessed lines will be lost.
Meter number	Select the meter number attached to this level. Available and required when Charge type is Consumption.
Quantity	Specify the item quantity.
Unit	Displays the unit of measure for the item (for example, each).
Amount	Displays the charge amount for the selected item. If needed, you can change the amount.
Extended amount	Displays the calculated charge amount for the line: Quantity * Amount.
Period by period	Indicates whether the period-by-period functionality is used (for example, the invoices for a lease are month to month): Yes: The period-by-period functionality is used. Invoices are created on a period-by-period basis, and lines are added based on the billing frequency of the lease. No: The period-by-period functionality is not used. When Period by period is set to No on the Lease Term FastTab, you cannot edit this check box. If it is set to Yes, you can select or clear this check box for the charge line. When period-by-period functionality is used, lines are added as follows: For a regular charge, a billing line is created based on the billing frequency and after the invoice for the last billing line on the Billing Lines is created. For a meter (or consumption) charge, a meter reading line is created based on the frequency after the last meter reading line is processed on the Meter Readings page.
Migrated	Displays whether or not the charge has been imported from another source. Yes: The charge was migrated into your PLM environment. No: The charge was created in your PLM environment and therefore not migrated.
Separate invoice	Select whether to have the invoice line for the charge to be consolidated with other charges. Yes: The charge is not consolidated and appears as a separate line on a separate invoice. This option is usually selected for charges such as sales based charges. No: The charge is consolidated with other lines on the invoice. This option can be changed even after invoices for the charge have been created.

Buttons

This section contains the following buttons:

Button	Description
Billing Lines	Opens the Billing Lines page.
Meter reading	Opens the Meter Readings page.
Sales based	Opens the Sales Based page.
Place hold	Select to place a charge on hold. When a charge is on hold you cannot invoice it. Opens a drop down menu where you can enter the hold date, reason code and any comments about the hold. Hold date: Enter the date when the charge is put on hold. Reason code: Select the hold reason code. Required. Description: Displays the description of the hold reason code. Hold notes: Enter any other relevant information about the hold.
Remove hold	Select to remove a hold on the charge. Only visible when a charge is already on hold. When you remove a hold, the charge status is updated to Active. Removal date: Enter the date when you want the hold removed. Resumption date: Enter the date when you want the charge status to be updated to updated to Active.
Termination	Opens the Charge Termination or Reverse Termination pages.
Lease components	Opens the Lease component pop-out page where you can make changes to your lease accounts. Select whether the leased item uses the lease accounting standard (e.g., ASC 842/IFRS 16). If you turn on Lease components, you can set up default accounts. Different accounts are visible depending on: The accounting standard set in the Property Lease Management Parameters The classification of the lease
Lease components for Revenue Leases
Lease accounting standard: ASC 842	For a Sales type lease, the following accounts are visible: Lease receivable account Unguaranteed residual value account Asset clearing account Asset reclass clearing account Interest income account Direct cost expense account Direct cost clearing account Revenue account Cost of sale account Impairment loss GL account Loss on termination account 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 Asset reclass clearing account Impairment loss GL account Loss on termination account For an Operating type lease, the following accounts are visible: Direct cost expense account Direct cost clearing account Unamortized direct cost account Deferred lease receivable account Revenue Rounding off account Tenant incentive GL account
Lease accounting standard: IFRS 16	For a Sales type lease, the following accounts are visible: Lease receivable account Unguaranteed residual value account Asset clearing account Asset reclass 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 Unearned income - unguaranteed residual value account Unearned income - lease receivable account Gain on modification account Loss on modification account Rounding off account Impairment loss GL account Loss on termination account 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 - unguaranteed residual value account Unearned income - lease receivable account Gain on modification account Loss on modification account Rounding off account Asset reclass clearing account Impairment loss GL account Loss on termination account For an Operating type lease, the following accounts are visible: Revenue account Direct cost expense account Direct cost clearing account Unamortized direct cost account Deferred lease receivable account Rounding off account Tenant incentive GL account
Lease components for Expense Leases
Displays the option for Lease component that you can set for using the lease component accounts with the lease accounting standard (e.g., ASC 842/IFRS 16). Lease components apply to operating or financial expense leases that use the lease accounting standard. If the charge uses the period-by-period functionality, the lease components are not available. The financial dimensions set up on the Financial dimensions tab are automatically updated for the lease component accounts. The financial dimension for the lease components can be changed as needed.
Lease accounting standard: ASC 842 and IFRS 16	For an Operating type lease and Financial lease, the following accounts are visible: ROU asset account ROU asset adjustment account Lease liability account Variable rent expense account Direct cost GL account Tenant incentive GL account Lease payable clearing account Gain on lease account Loss on lease account Accumulative amortization account Interest expense account - Financial lease only Amortization expense account - Financial lease only

Charge Details

The list in this FastTab shows the details of the charge selected in the Charges FastTab.

Field	Description
Product
This tab displays information related to the item attached to the charge. All values are from the item record, but can be changed as needed.
Storage dimensions	Displays the following information for the item of the charge: Site Warehouse Location
Tax	Displays the item sales tax group and sales tax group for the charge. The default item sales tax group and sales tax group are from the lowest level of the property. If the lowest level does not have an item tax group, the default value is from the charge. If the lowest level does not have a sales tax group, the default value is from the customer or vendor record. The sales tax is a standard Microsoft Dynamics 365 for Finance and Operations features. For more information, see the Microsoft Dynamics 365 for Finance and Operations documentation. Sales tax overview Set up sales tax groups and item sales tax groups
Financial dimensions
This tab displays the main account and the financial dimensions used for the charge.
Charge account	Displays the main account for the charge. The default value is set up on the Charges page.
Financial dimensions	Specify the financial dimensions for the charge account. The default financial dimension values are from the property level, the customer or vendor record, and item record, and can be changed as needed. For more information, see Financial Dimensions. For expense leases, the financial dimensions are applied to the lease component accounts. When you edit a financial dimension all lease accounts that use the same financial dimension are updated. Financial dimensions are a standard feature in Microsoft Dynamics 365 for Finance and Operations.
Lease components for Revenue Leases
Select whether the leased item uses the lease accounting standard (e.g., ASC 842/IFRS 16). If you turn on Lease components, you can set up default accounts. Displays the option for Lease component that you can set for using the lease component accounts with the lease accounting standard (e.g., ASC 842/IFRS 16). Different accounts are visible depending on: The accounting standard set in the Property Lease Management Parameters The classification of the lease
Lease accounting standard: ASC 842	For a Sales type lease, the following accounts are visible: Lease receivable account Unguaranteed residual value account Asset clearing account Asset reclass clearing account Interest income account Direct cost expense account Direct cost clearing account Revenue account Cost of sale account Impairment loss GL account Loss on termination account 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 Asset reclass clearing account Impairment loss GL account Loss on termination account For an Operating type lease, the following accounts are visible: Direct cost expense account Direct cost clearing account Unamortized direct cost account Deferred lease receivable account Revenue Rounding off account Tenant incentive GL account
Lease accounting standard: IFRS 16	For a Sales type lease, the following accounts are visible: Lease receivable account Unguaranteed residual value account Asset clearing account Asset reclass 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 Unearned income - unguaranteed residual value account Unearned income - lease receivable account Gain on modification account Loss on modification account Rounding off account Impairment loss GL account Loss on termination account 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 - unguaranteed residual value account Unearned income - lease receivable account Gain on modification account Loss on modification account Rounding off account Asset reclass clearing account Impairment loss GL account Loss on termination account For an Operating type lease, the following accounts are visible: Revenue account Direct cost expense account Direct cost clearing account Unamortized direct cost account Deferred lease receivable account Rounding off account Tenant incentive GL account
Lease components for Expense Leases
Displays the option for Lease component that you can set for using the lease component accounts with the lease accounting standard (e.g., ASC 842/IFRS 16). Lease components apply to operating or financial expense leases that use the lease accounting standard. If the charge uses the period-by-period functionality, the lease components are not available. The financial dimensions set up on the Financial dimensions tab are automatically updated for the lease component accounts. The financial dimension for the lease components can be changed as needed.
Lease accounting standard: ASC 842 and IFRS 16	For an Operating type lease and Financial lease, the following accounts are visible: ROU asset account ROU asset adjustment account Lease liability account Variable rent expense account Direct cost GL account Tenant incentive GL account Lease payable clearing account Gain on lease account Loss on lease account Accumulative amortization account Interest expense account - Financial lease only Amortization expense account - Financial lease only
Termination
Termination date	Displays the date on which the lease is terminated. The default value is from the Termination date in the header, but you can change it.
Termination type	Displays the termination type. The default value is from the Termination type in the header, but you can change it.
Displays the following columns: Termination date User Action date Reason code Removal user Removal date Sales order Invoice Credit amount Termination notes Allow reverse termination Reason reverse termination is not allowed
Late fees
Apply fees	Select whether late fees apply to your leases: Yes: Late fees are applied to leases. No: Late fees are not applied to leases.
Use default customer profile	Select to use the posting profile from the customer profile setup in Accounts receivable. Yes: The customer profile from Accounts receivable is used when you create a new sales reporting record. No: Select the posting profile from the drop-down under Posting profile. When you set up a posting profile, you can set up your fee amount by creating an Interest code. For more information on setting up a fee amount and interest code, see Late Fee Amounts. For more information on setting up customer profiles, see Customer posting profiles on the Microsoft Dynamics 365 for Finance and Operations documentation.
Posting profile	Select the posting profile to use when you create new sales reporting records. This option is not available if you use the default customer profile.
Include tax on fee calculation	Select to include the taxes of the lease invoice in the fee calculation. Yes: Taxes are included in the late fee calculation. No: Taxes are not included in the late fee calculation.
Fee code	Displays the fee code connected to the posting profile.
Hold
Hold date	Displays the date when the hold is put on the charge.
Applied by user	Displays the user who placed the hold.
Removal date	Displays the date when the hold was removed.
Resumption date	Displays the date when the charge resumed, or, became active again.
Removed by user	Displays the user who removed the hold on the charge.
Reason code	Displays the hold reason code that is used to place the hold.
Description	Displays any comments about the hold.
Hold notes	Displays any other information about hold.
Billing class
Billing class name	Enter a unique name for the billing class.
Description	Enter a description for the billing class.
Invoice first period immediately	Indicates whether the invoice for the first billing period can be created immediately after billing schedule is created and active. Yes: The invoice for the first billing period is immediately available on the Invoice Creator regardless of the billing cycle settings of the selected billing class. All other invoices for subsequent billing periods become available on the Invoice Creator created based on the billing cycle settings of the selected billing class. No: The invoice for the first billing period is available on the Invoice Creator based on the billing cycle settings of the selected billing class.
Calculate from	Select whether to use the start or end date of a billing period from which to calculate the projected invoice date. Billing start date (default) Billing end date
Calculation method	Select the method by which to calculate the projected invoice date. When calculating the invoice creating date, the Calculate from value is considered. The prior and after days/months and the days option become available based on the calculation method selected. For examples, see Lease Details. None: No calculation method is used to determine the projected invoice date. The projected invoice date is not on any specific date. Default option. Beginning of month: Uses the first day of the month of the billing start or end date to determine the projected invoice date. End of month: Uses the last day of the month of the billing start or end date to determine the projected invoice date. Beginning of period: Uses the first date of the billing period to determine the projected invoice date. Available when Calculate from is Billing start date. End of period: Uses the last date of the billing period to determine the projected invoice date. Available when Calculate from is Billing end date. Date: Uses a certain day of the month of the billing start or end date to determine the projected invoice date. When this option is selected, the Days value is required.
Prior days	Specify the number (0 to 999) of days prior to set the projected invoice date. An empty value is considered zero (0). Only one of Prior days or After days can have a value.
Prior months	Specify the number (0 to 999) of months prior to set the projected invoice date. An empty value is considered zero (0). Only one of Prior months or After months can have a value.
After days	Specify the number (0 to 999) of days after to set the projected invoice date. An empty value is considered zero (0). Only one of Prior days or After days can have a value.
After months	Specify the number (0 to 999) of months after to set the projected invoice date. An empty value is considered zero (0). Only one of Prior months or After months can have a value.
Days	Specify the day of the month (1 to 31) for the projected invoice date.

Lease Details

Lease Header

Create a Lease

Create a invoice for a lease

Place a hold on a lease

Remove a hold on a lease

Terminate a lease

Reverse the termination of a lease

Create a late fee in lease header

Change Vendor Account

Audit Trail

Use Billing Class on Lease

Add Migrated Leases and Charges Manually

Fields

Buttons

Lease Term

Add the First Term to a Lease

Add the Subsequent Terms to a Lease

Fields

Buttons

Levels 1, 2, 3

Add Levels

Fields

Buttons

Charges

Add Regular Charge

Add Sales Based Charge

Add Meter (or Consumption) Charge

Place a hold on a charge

Remove a hold on a charge

Use Billing Class on Charge

Fields

Buttons

Charge Details

See also