Creating a Lease Record

You can enter all relevant lease information in the Lease record, allowing you to effectively manage your lease asset. From the Lease record page, you can do the following tasks:

• Propose a lease asset

• Create a mid-life lease

• Define the terms of the lease

• Add lease payments

• Create the lease amortization schedule

When a lease journal is generated, a link to the journal entry becomes available in the record page.

You can upload records through CSV import to create a Lease record.

Note:

You currently can't create a mid-life lease through CSV import.

To create a lease record manually:

1. Go to Fixed Assets > Leases > Lease > New.

2. Enter values for the following fields:

   Primary Information

   • Mid-life Lease – Check this box if you're creating a mid-life lease.

   • Lease Company – Enter the company where the asset is being leased from.

     Note:

     If the source transaction for a mid-life lease is a Vendor Bill, the Vendor is set as the Lease Company. If the source transaction is a Journal, you must manually enter the Lease Company.

   • Lease Contract Number – Enter the contract number of the lease agreement.

   • Asset Description – Enter the name of the lease asset.

   • Lease Start Date – Enter the start date for the lease.

   • Lease End Date – Enter the end date for the lease.

   • Finance Lease – Check this box if the asset is under a finance lease. Leave the box unchecked if the asset is under an operating lease.

   • Transaction – If you are creating a mid-life lease, select the source journal entry or bill transaction for the lease asset. If the transaction includes a proposal, make sure the asset type matches the lease type you're creating (operating or finance).

     Note:

     • The source transaction's debit account must be a Fixed Asset account type.

     • The source transaction's credit account must be one of the following account types: Accounts Payable, Other Current Liability, or Long-term Liability.

   • Prior Interest Periods Recognized – For mid-life leases, enter the number of interest periods have already been recognized before importing the lease into NetSuite. The value must be greater than or equal to 0, and less than or equal to the lease term.

   • Rental Frequency – Select the frequency of the rental payments:

     • Annual – Select this option if the lease is paid every year.

     • Monthly – Select this option if the lease is paid every month.

     • Quarterly – Select this option if the lease is paid every quarter.

     • Semiannually – Select this option if the lease is paid every six months.

   • Lease Term – Enter the expected term of lease. The lease term and rental frequency determines the duration of your lease. See the following examples:

     Rental Frequency	Lease Term	Lease Duration
     Annual	2	2 years
     Monthly	2	2 months
     Quarterly	2	6 months
     Semiannually	2	1 year

   • Annual Interest Rate – Enter the implicit interest rate to be charged on the financing of this asset.

   Classification

   • Subsidiary – If you're using a OneWorld account, select the subsidiary of the lease company.

   • Class – Select the class of the lease asset.

   • Department – Select the department of the lease asset.

   • Location – Select the location of the lease asset.

   • Currency — This field shows the base currency of the subsidiary.

     Note:

     Multi-currency is currently not supported.

   Note:

   For mid-life leases, the Subsidiary, Class, Department, and Location fields are sourced from the transaction attached to the lease record

3. Click Save.

   The status of the Lease appears at the top of the record page. The following table lists the possible status for the Lease record:

   Status	Description
   Pending Lease Payments	There are no lease payments or the lease payments are incomplete. To enter lease payments, see Adding Lease Payments.
   Pending Lease Schedules	Lease payments have been entered, but the lease schedules have not been created. To generate a lease schedule, see Generating the Lease Amortization Schedule.
   Pending Lease Journal Creation	Lease schedules have been created, but the lease journals have not been generated. The Create Lease Journal button appears next to the Edit button at the top of the page. To generate a lease journal, see Creating Lease Journal Entries.
   Lease Transaction Attached	A transaction to recognize the right-of-use asset and lease liability has been created. A link to the generated journal becomes available in the Lease record.
   Asset Proposed	An asset proposal record has been created for the lease journal entry. The generated Asset Proposal is linked back to the Lease record. For more information, see Asset Proposal and Generation.
   Asset Created	An asset record has been generated for the lease asset. The created Asset is linked back to the Lease record.

To import lease records:

1. Go to Setup > Import/Export > Import CSV Records.

2. In the Import Assistant Step 1 – Scan & Upload CSV File screen:

   1. From the Import Type list, select Transactions.

   2. From the Record Type list, select Leases.

   3. Select the proposal CSV file.

   4. Click Next.

3. In the Import Assistant Step 2 – Import Options screen:

   1. Set Data Handling to Add.

   2. Click Next.

4. In the Import Assistant Step 4 – Field Mapping screen:

   1. Map the fields in your CSV to the NetSuite fields.

   2. Review the CSV fields and NetSuite fields to ensure that all required fields are mapped.

      Note:

      If you remove the Date field from the import file, the system uses the current date.

   3. Click Next.

      Sample mapping:

      

5. In the Import Assistant Step 5 - Save Mapping and Start Import screen:

   1. Enter an Import Map Name and Description.

   2. Click Save & Run.

The Lease record contains the following subtabs:

• Posting Reference Subtab

• Accounting Books Subtab

• Lease Amortization Schedule Subtab

Posting Reference Subtab

From the Posting Reference subtab, you can set the accounts used to track the right-of-use asset, lease liability, and interest expense. The subtab displays the following fields:

• Right-of-Use Asset – Select the account used to track the right-of-use asset.

  For mid-life leases, this field is automatically populated based on the transaction's debit account.

• Lease Liability – Select the account used to track the lease liability.

  For mid-life leases, this field is automatically populated based on the transaction's credit account.

• Interest Expense – Select the account used to track the interest expense.

Accounting Books Subtab

For Multibook-enabled accounts, this subtab shows information about the base currency of the associated secondary books. These values are carried over to generated lease journal entries.

Lease Amortization Schedule Subtab

The Lease Amortization Schedule subtab shows information about lease payments, interest, and related journals for this lease. The subtab displays the following columns:

• Date – Shows the lease payment date.

• Lease Payments – Shows the lease payment amount.

• Net Present Value – This value is calculated based on the rental frequency:

  • For annual rentals: NPV = lease payment / (1+annual interest rate) ^ period

  • For monthly rentals: NPV = lease payment / (1+(annual interest rate / 12)) ^ period

• Balance – This value is calculated by subtracting the principal from the previous balance. The starting balance is equal to the total net present value.

• Interest – This value is calculated by multiplying the interest rate by the previous balance. The computation varies depending on the rental frequency:

  • For annual rentals: Interest = interest rate * previous balance

  • For monthly rentals: Interest = (interest rate * previous balance)/12

  • If the first lease payment is between the 1st and the 15th of the month, it falls under Period 0. No interest is calculated, and the principal amount equals the lease payment amount.

  • If the first lease payment is between the 16th and the end of the month, it falls under Period 1. The existing calculation for the interest and principal is followed.

• Principal – This value is calculated by subtracting the interest from the lease payments.

• Journal – This column shows the link to the journal for each lnterest lease payment.

At the end of the schedule, the rounding off difference is applied to the principal. The calculation is as follows:

• Principal Amount = Previous Balance

• Interest Amount = Payment Amount – Principal Amount

• Balance = Previous Balance – Principal Amount

General Notices