Creating Lease Commencement Journal Entries Using the Lease Information Program (P1501)

Before you begin, verify that amortization schedules have been created, and if necessary, approved, for the selected assets. Then use one of the following methods to create lease commencement journal entries for assets on a lease.

To create commencement journals for all assets on a selected lessee accounting lease:

From the Tenant & Lease Information menu (G1511), select Lease Information.
From the Work With Leases form, select a lease, and then select Create Commencement JEs from the row menu.
The system creates a batch of journals for each of the lines on the lease that have a Lease Liability Status of 20 (if review is not required) or 30, and have a Lease Classification value of Operating Lease or Finance Lease.
If any of the lines are not successfully processed, the system updates the status to 35 (Commencement Error), and continues processing the other lines.

To create commencement journals for individual lines on a lease:

From the Tenant & Lease Information menu (G1511), select Lease Information.
From the Work With Leases form, select a lease, and then click Select.
On the Lease Master Revisions form, select the lines for which you want to create journal entries, and then select Create Commencement JEs from the row menu.
Note that this option is only available if the Lease Liability Status of all selected lines is at an appropriate status to create journal entries.
From the Lease Commencement Options dialog box, enter a value in the following fields:
- G/L Date
- Exchange Rate Method
- Exchange Rate Date (if the Exchange Rate Method is set as User Defined Date)
The system creates a batch of journal entries for each of the selected lines.
If any of the lines are not successfully processed, the system displays an error message and does not update the status of the records.

For additional information about the Lease Information program, see Setting Up Lease Information.