Using Lease Versions with Balance Sheet Lessee Accounting (Release 9.2 Update)

If you are using lease versions to track changes for lessee leases that have amortization schedules, be aware that the system does not create separate amortization schedules for each lease version. Only one set of primary amortization schedules exists for each asset.

In some cases, the changes you make to a new lease version do not have any impact on lease liability calculations and amortization schedules. For example, you might create a new lease version to track a change to a name or address.

Other changes can impact the lease liability calculation, and require an update to amortization schedules. For example, you might create a new lease version to end the lease early, or to change the billing amounts. In these instances, the changes you make when creating the new version will update the lease to indicate that a remeasurement is required, and you must run the necessary remeasurement process to ensure that the amortization schedules associated with your lease are updated correctly.

When you create a new lease version, you might find it necessary to create new recurring billing records for the new version. You can use the Version row menu option on the Recurring Billing Revisions form to create the new records. The system performs the steps to suspend existing records, update the effect on lease liability, and create new records based on the updated version information. You can then update the new records with new amounts if necessary. When you save those records, the system determines if the changes require you to remeasure the lease. If you manually update your recurring billing records, you must ensure that you conform to the rules for stepped payments, and that you update the effect on lease liability for each record so that your billing and amortization schedules accurately reflect your changes.