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Expense Lease Accounting Standard

Follow this general workflow for setting up and using the options related to lead accounting standards (such as ASC 842/IFRS 16). For specific steps, review the content for the page.

Set Up

When setting up Property Lease Management, ensure you complete the following setup: 

  1. On the General tab of the Property Lease Management Parameters page set up the default values under the Lease accounting standard section.
    Note icon. Note: Throughout the documentation, the general term Lease accounting standard will be used in place of the specific lease accounting standard name (e.g., ASC 842/IFRS 16).
  2. On the Charges page, ensure that Lease component is set to Yes, and then set up the default lease component accounts for one or more charges.

Create an Expense Lease

When creating an expense lease on Lease Details page, ensure to include the following with the other steps for creating a lease: 

  1. In the header, set the Lease type to Expense and then select the additional type (financial, operating, or short term).
  2. After you add a charge in the Charges FastTab:
    1. To use the lease component, select Lease component to specify the lease component accounts for the charge. The default accounts are based on the setup.
    2. To add other details, select Charge detail. On the Lease Accounting Standard tab of the Billing Lines page, you can specify the direct costs and incentives and review the asset schedule. for more information, see Billing Lines.
    3. Billing Lines.
      The initial journal entry can be created for several expense leases on the Invoice Creator.

Mass Modify Leases

You can update several expense leases using the Lease Modification Processing page. The types of changes you can make include the following: 

Reporting

Use the following inquiries to review expense leases that use the lease accounting standard for your organization: