Lease Setup Fields

Lease setup defines global setting for Company leases.

Numbering

Lease Nos. defines a number series to be used when automatically assigning unique number to a new lease.
Lease Unit Nos. defines a number series to be used when automatically assigning unique number to a new lease unit.
G/L Output Document Nos. defines a number series to be used when automatically assigning unique number to a new G/L output document.
Lease Batch Nos. defines a number series to be used when automatically assigning unique number to a new lease import batch.

Default Values

Default values defines the default data values for a new lease. The default values are copied from the setup to a new lease at the time it is created.

Accounting Settings

Accounting Periods defines frequency of accounts reporting.
Split Direct Cash Flows to principle/int/oper - should be used when accounts reporting requires cash flows to be divided into principle, interest and operational portions. If not selected, then leases cash flows are recorded to a single account.
Split Current/Non-Current Liabilities - should be used when accounts reporting requires to split current liabilities (liabilities of this year) and non-current liabilities (liabilities after one year).
Split by Liability Posting Setup - should be used when accounts reporting requires to split liabilities in more detail then current and non-current. In example, liabilities (liabilities of this year) and liabilities (liabilities between 1 - 3 years) and liabilities (more then 3 years).
Split Curr/NonCurr Lease Receivable (Sub-Leases) - should be used when accouns reporting requires to split lease current receivables (receivables of this year) and non-current receivables (receivables after one year).
RoU Asset Modification method - used to set how to do a modification of RoU Asset in the system. Options:

• Net (Increase or decrease in RoU asset goes to the same Acquisition account (Cost on Lease Mod.))
• Gross (Increase in RoU asset goes to Acquisition account, decrease in asset is Cr Acquisition Cost and Dr Accumulated depreciation).

Use Posting Date Overwrite – should be used to apply corrections in previous accounting period. Feature allows to the lease retrospectively, and G/L postings will catch-up in current period opened in GL Setup.
Depr. and Linear expense based on – Options:

• Lease Term (method '36') – default option, asset depreciation term and linear expense will be based on the lease term.
• No. of Accounting Periods (method '37') - asset depreciation term and linear expense will be based on number of accounting periods (i.e. if lease starts in the middle of the month, deprecition term would be lease term + 1 month).

Deferred Tax (%) – percentage of tax calculated for IAS17 calculations for Operating lease.
Use Deferred Tax – if to apply deferred tax on IAS17 calculations.
Expiring Agreement date formula – from what time into future to alert user (via headline in RC) about expiring leases.

Journal Template Name to be used for lease transactions.
Journal Batch Name to be used for lease transactions.
Transition Option – used to set which transition method companies uses. Options:

• Full retrospective
• Modified retrospective.

Transition RoU Asset Option (in. mod. retro) – used to set how company recognize asset on transition Options:

• Measured retrospectively (used to get Retained earnings effect)
• Based on Lease Liability and Diff. Methods per Lease.

Transition to IFRS16 Date defines a valid day of the leases transition to IFRS16 standard.
Transition Incr. Bor. Rate defines the default incremental borrowing rate for calculating leases liability on transition date.
Equity G/L Account on Transition is used for finance leases. The value sets up GL account to be used for any liability mismatches between SOFT4Lessee initial measurement and lease outstanding balance before transition because of initial adoption of IFRS16.

System Configuration:

Use External Ref. Nos. is used for a field called “External Ref. Nos.” to be visible in Lease Agreement Card.
Use Lease Description is used enable/disable Description field in the Lease Agreement Card, user can add description of the lease contract in the card.
Use Source System Ref. is used enable/disable Source System Ref. field in Lease Agreement Card, user can add information about from which system the contract is originally.
Use Transition Details is used enable/disable Transition group visible in Lease Agreement Card.
Use Lessee Details is used enable/disable Lessee Information in Lease Agreement Card.
Use Sub-Lease Module is used enable/disable Sub-Lease Module, additionally if the module is purchased it would need an additional activation key to be enabled.
Use Dimensions is used enable/disable Dimension usage in Lease Agreement Card.
Use Dimension 1 is used enable/disable 1st Global Dimension to be visible and used in Lease Agreement Card.
Use Dimension 2 is used enable/disable 2nd Global Dimension to be visible and used in Lease Agreement Card.
Use More Dimensions is used enable/disable more dimension to be used in Lease Agreement Card. A field “More Dimension” will be visible and will open an additional page where you can input or view other dimension as well.
Use IAS17 Comparative is used enable/disable IAS17 Comparative functionality in calculations and postings.
Not capitalized lease expenses accounting is used to select how the expense of not capitalized leases will posted to the G/L for the IAS17 Comparative.

• Full Amount
• Straight-line

Use IAS17 Overwrite GL Account is used enable/disable additional fields for IAS17 method in Lease Agreements List page.
Use Onerous Lease is used enable/disable Onerous Lease feature in calculation also makes “Onerous Lease” field visible in Lease Agreement Card if enabled.
Use Lease Incent is used enable/disable visibility of a field “Lease incent” in Lease Agreement Card.
Use Late Paperwork is used enable/disable visibility of fields “Late Paper Work” and “Depreciation Starting Date”. It will let you create Right-of-Use Asset Schedule from a later date.
Lessor No. Relation is used to select relation of Lessor no between Contact List or Vendor List. This should be selected at the beginning of implementation and cannot be change from there.

• Vendor
• Contact

Post A/P to is used to select to where the A/P entries will be posted during the monthly run. You can choose from two options: A/P Clearing account in G/L and Vendor Ledger. Vendor Ledger option can only be used when “Lessor No. Relation” is selected as Vendor List. The other option can be used with both relation types.
Business Unit Code Visible is used enable/disable visibility of a field “Business Unit Code” in Lease Agreement Card.
Amount Split Posting Setup is used enable/disable the feature of Expense Amount Splitting for each lease individually. By activating this and additional selection of pages will be visible in the Lease Agreement Card where the user should put in the ratios, dimensions, and G/L accounts so that the expense would be split according to these entries. Ratios should add up to 1.
Use Contractual Option Text is used enable/disable visibility of fields for Contractual Option for renewal and termination of the lease.
Term Calculation method is used to select the Lease term calculation method. You can choose between two options:

• “StartDate + NoOfMonths = EndDate”. fields StartDate and NoofMonths are editable and End Date will be calculated accordingly.
• “EndDate - StartDate = NoOfMOnths” - Ending Date will be editable and numbers of month will be calculated according to Ending Date.

Payment Schedule Calc. method is used to select Payment schedule’s calculation method. You can choose between the Default and Pro-Rated.
Use Minimal Lease obligation is used enable/disable visibility of a field “Date of Minimum Lease Oblig.” in Lease Agreement Card.
Show Number Of Payments is used enable/disable visibility of a field “Number of Payments” in Lease Agreement Card.
Show Payments Per Year is used enable/disable visibility of a field “Payments per Year” in Lease Agreement Card.
Use Pro-Rata Payments is used enable/disable visibility of a field “Pro-Rata Payments” in Lease Agreement Card. Where you can select a different method of Pro-Rata.
Use Pro-Rate for RoU if to apply same rules of Pro-Rata to first months depreciation.
Use Structured Schedule is used enable/disable visibility of a field “Structured Schedule (irregular payments)” in Lease Agreement Card. This feature lets you select to manage the payment schedule manually or upload it to the system. After updating payments and recalculating the lease, projections will be calculated according to the new payments schedule that was provided.
Use Rent Free Period is used enable/disable visibility of a fields for Rent Free Periods and the functionality to create payment schedule with rent free periods in Lease Agreement Card.
Use Fixed Increase Paym. Sched. is used enable/disable features to input information for fixed increase rate Lease Agreement Card. Information in these fields will create the schedule and projection according to the fixed increase rates.
Fixed Increase Calculation Method –

• Original : Frequency is added to period no. to calculate next repricing.
• New : first repricing happens instantly.

Use Foreign Currency Leases is used enable/disable visibility of a field “Lease Currency” in Lease Agreement Card. This will let you select the currency of the lease and will provide amounts in all schedules and projection with the lease currency and Local currency. This will only work if currency exchange rates will be provided in the environment.
Use Additional Rep. Currency is used enable/disable Additional Reporting currency functionality. This used when there is more than one entity in the same database and consolidated reports would be needed. Each G/L entry will have additional currency amounts posted in each of them.
Use Annual Amount of Paym. is used enable/disable visibility of a field “Annual Payment” in Lease Agreement Card.
Use Volume Based Payment is used enable/disable Volume Based Lease Payment feature. By providing the Lease Volume and the Ren per Unit measures the system can determine the monthly payment.
Use Non-Lease Component is used enable/disable visibility of a field “Non-Lease Component” in Lease Agreement Card.
Use Daily Rate Payments is used enable/disable visibility of a field “Daily Rate” in Lease Agreement Card. By using this field, the system will calculate the appropriate payment amount depending on the lease’s payment frequency. (Uses 365 days instead of 360/30 convention)
Use Variable Leases is used enable/disable Variable Lease payments tab in Lease Agreement Card.
Use Var. Leases based on index is used enable/disable visibility of a fields used for inputting and selecting information on Index Rate in Lease Agreement Card.
Use Var. Lease based on Reference is used enable/disable visibility of fields used for inputting and selecting information on Reference Rate in Lease Agreement Card.
Use Lease Volume is used enable/disable visibility of a field “Lease Volume” in Lease Agreement Card.
Use Reminders on extension / termination is used enable/disable visibility of a tab of “Reminders” in Lease Agreement Card. Where you can input data for reminders for renewal or termination.
Use Lease Unit is used enable/disable visibility of a tab named “Lease Units” in Lease Agreement Card. In that tab you can list all the unit that are under the Lease Agreement.
Use Document Attachment(Obsoleted) is used enable/disable documents attachments in Lease Agreement Card.
Use System Calculated Next Payment Date is used enable/disable feature to let system determine the next payment date according to provided dates in Lease Agreement Card.
Use Lessor Name in GL Entry Description is used enable/disable to add Lessor name to each GL entries description that are related to the Lease Agreement.
Inc. Borrowing Rate Source Enabled is used enable/disable the option to select “Inc. Borrowing Rate Source” in the Lease Agreement Card. You can select between two options:

• From Setup option will automatically select the rate according to the lease parameters and with
• Manual option you would need to provide the incremental borrowing rate.

Show user Guide Links Page is used enable/disable visibility of a page named “User Guide Links” in Main Role Center.

Interfaces

Excel Export Codeunit ID - (Soon to Obsolete)
Excel Import Codeunit ID - (Soon to Obsolete)
Data Validate Codeunit ID - what system codeunit to use to Validate Batch lines. Default ID : 17022165 (Might be prone to change due to customizations).
Data Commit Codeunit ID - what system codeunit to use to Commit Batch lines. Default ID : 17022166 (Might be prone to change due to customizations).

RoU Asset Report ID - only needs to be filled out if there are customizations.
GL Output Report ID - only needs to be filled out if there are customizations.
GL Output Use GL Acc. - set what No. from Chart of Accounts to use. Options :

• No. (original number)
• No. 2 - local accounting mapping. Postings will still be done in No. but export will use No.2 for export only.

GL Output Alter Posting Date - unused (Soon to Obsolete)
Excel Import - Initial Upload - Only used in Transition for Next Payment on Transition field.
Solve for Discount Rate Option - Calculates Discount Rate from Transition/Migration Carrying amounts.
Validate Dimension value on Commit - checks if dimensions used in Upload are already in the system. Otherwise - throws error.
Create Lease No. on Import - Checks if every contract has Lease No. filled out. If not - assign from number series.
Last API Request DateTime shows date and time of the last API request attempt.
Liability Report – fields with default Current and Non-Curr Liability GL Accounts, used in Lease Liability Report

Migration

Migration Enabled - Shows migration tab on Lease Agreements.
Migration Date - Fills out automatically if lease Commencement date is older than Migration Date.
Balance G/L Account on Migr. - on migration if Liability and RoU are not equal to what account post difference.
Post Activation Balances on a day before Migration - posts entries one day before so it shows as Opening balance for day of migration. Example : Migration is 2024-01-01 with this selected migrated leases will be posted on 2023-12-31 for initial values.

Admin

Update Batch Run in All Companies - apply changes in Admin -> Batch Run for all companies.
Company Filter - default company filter used in All Com. operations, default consolidation for reports.
Initial Files Path - where to put files.

Current Month - select current month for all companies postings.
Company Type - safety check for resetting data

• Production - works as usual
• Sandbox - same as Production but allows to Reset all data that delete GL entries and every lease.

RoU Asset G/L Total Account - used for creating Chart of Accounts from Lease Categories.