How to Change Lease Volume

Table of Contents

The Lease Volume field defines the scope of the asset. When it is decreased, simply replacing the amount is not enough.

To generate gain/loss for the lease, use the action Change Scope. This action shrinks the lease's liability and right-of-use asset to match the new, smaller scope, and automatically posts any resulting gain or loss.

Lease Volume

This feature uses the lease’s Lease Volume field, so make sure it is filled in with the lease’s current scope, such as square meters or number of units. If the field is left at 0, the system treats the current scope as 100%.

 

Volume increases

The Change Scope action will only work on decreases of volume. Scope increases should be handled through a payment increase / remeasurement instead, not through Change Scope.

 

To decrease the scope of the lease and generate gain/loss, navigate to Lease Agreement Card → Actions → Change Scope.

 

In the new window, you'll see your Current Scope shown for reference. Enter the New Scope value - the smaller number that reflects what the lease covers going forward. Confirm, and the system takes care of the rest.

In the example below, the first row is the gain/loss generated for the right-of-use. The second/third rows affect the right-of-use cost, and the final row adjusts the liability balance.