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      How to Activate Lease
      • 26 Jan 2024
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      How to Activate Lease

      • Updated on 26 Jan 2024
      • 1 Minute to read
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      Article summary

      The activation function shifts leases from Signed status to Active status. SOFT4Lessee posts GL entries for liability and RoU with commencement date as posting date. Active leases run general lease lifecycle process – payments are posted according to the payment schedule, liability is posted according to the liability projection schedule and RoU Asset values are recognized according to RoU projection schedule.
      To activate the lease use function “Activate” in the lease card:
      image.png

      To activate a batch of leases, select the leases you want to activate and use the same function “Activate” in the leases list:

      Every lease in visible list has to be Signed status. Otherwise error will be generated. It can be done via filtering Lease Status -> Signed.

      image.png

      The system will post to G/L as at "Commencement Date": Initial measurement of liability and initial measurement of RoU Asset.
      For example, balances of GL accounts for a single lease after activation:
      image.png

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