Changing Lessee Lease Terms Using the Lease Master

Once a lease is at lease liability status 20 (Amortization Schedules Created) or greater, you can use the Lease Master Information program (P1501) to make the following changes to the lease terms:

• Update the borrowing rate.

• Update the ROUA End Date to a date greater than the existing recurring billing end date.

You can make these changes directly in the lease detail lines, or you can select a lease line you want to update, and use the Change Lease Terms Row menu option.

When you make either of these changes, the system updates the Recalculate Lease Liability field with a 1 (Remeasure), indicating that the lease must be remeasured.

You can then run the remeasurement process to recalculate amortization schedules based on your changes, and if necessary, create remeasurement journal entries to adjust previously reported amounts. This action is available when you make any change to a leased asset that impacts the existing amortization schedules.