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: 

1. From the All Leases View, select New.
2. 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.

3. 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.
4. For a Revenue lease type, select the Customer account.
5. Select the Currency, and specify the dates for lease and rent commencement and execution.
6. Accept the default or change the values for Consolidate, Prorate partial periods, and Align to month, or change them as needed.
7. 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; 

1. 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.
2. On the Invoice Creator, follow the steps to terminate a revenue or expense lease.

Terminate a lease

To terminate a lease, follow these steps: 

1. 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.
2. On the Mass Termination, follow the steps to terminate a lease.

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: 

1. 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.
2. On the Reverse Termination, follow the steps to terminate a lease.

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:

1. Create a new lease or select an existing lease from the All Lease View.

2. Under the Lease header > Fees on Invoice Outstanding Balance, turn on Apply fees.

3. Turn on Include tax on fee calculation, if you want to include the tax amount in your late fee calculation.

4. 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: 

• Electronic signatures overview
• Set up electronic signatures

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: 

• Configure database logging
• Security architecture
• Role-based security
• Implement role-based security in Finance and Operations apps

Fields

The header contains the following fields:

Field	Description
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 Amortization Schedule (Lease accounting standard tab) 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.
Lease status	Displays the status of the lease: Active: A lease with this status can be billed and invoiced. A new lease is automatically set to Active. 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.
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.

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.

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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: 

1. Select whether you want the lease to use the Period by period lease functionality.
2. In the terms list, select Add line.
3. Specify the start and end dates of the term.
4. Select the Term type.
5. If the term is to be renewed, specify the Lead time (days) and Notice requirements.
6. 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: 

1. Select Add line.
2. 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.
3. 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.
4. 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:

1. Select Add line.
2. A dialog box asking if you want to open the Renew Lease Wizard appears. Select No.
3. A line is added to the terms list, where you select the Term type and specify the renewal details.
4. 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.

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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: 

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

To add Level 2 lines, follow these steps: 

1. In the Level 1 section, select a line.
2. 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.
3. To add Level 2 lines to a different Level 1 section, select a different level 1 line, and repeat step 2.
4. Repeat these steps to add more lines for different level 1 and 2 combinations.
5. Select Save.

To add Level 3 lines, follow these steps: 

1. In the Level 1 section, select a line.
2. In the Level 2 section, select a line.
3. 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.
4. 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.
5. Repeat these steps to add more lines for different level 1, 2, and 3 combinations.
6. 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).

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: 

1. 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.

2. 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.
3. Repeat these steps to add more charges.
4. Select Save.

Add Sales Based Charge

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

1. Check that the Charge type is Sales based.
2. 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: 

1. For each level section, 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.

2. 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.

3. Repeat these steps to add more charges.
4. 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.

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.
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.
Termination	Opens the Charge Termination or Reverse Termination pages.

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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
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 component	Select whether the leased item uses the lease accounting standard (e.g., ASC 842/IFRS 16). Yes: The leased item uses the lease accounting standard. When the option is selected, you must specify the main accounts you want to use for the lease components: Direct Cost GL Account Gain on Lease Account Lease Liability Account Lease Payable Clearing Account Loss on Lease Account Accumulative amortization account Required for the IFRS 16 accounting standards and for ASC 842 when Use accumulative amortization account is Yes on the Property Lease Management Parameters page. ROU Asset Account ROU Asset Adjustment Account Tenant Incentive GL Account Variable Rent Expense Account Financial lease (does not apply to charges) Interest Expense Account Amortization Expense Account Operating lease Lease Expense Account No: The leased item does not use the lease accounting standard. After the first invoice for the expense lease has been created, this option cannot be changed. However, the lease components accounts can be updated as needed.
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.

See also

New Lease Wizard