Creating a Lease Record

The Lease record lets you propose a lease asset, define the terms of the lease, add lease payments, and create the lease amortization schedule. When a lease journal has been generated, a link to the journal entry will be available in the record page.

You can manually create a Lease record through the user interface, or upload the records through CSV import.

To create a lease record manually:

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

2. Provide values for the following fields:

   Primary Information

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

   • 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.

   • 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:

     Lease Term	Rental Frequency	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 are using a OneWorld account, select the subsidiary of the lease company.

   • Class – Select the class of the lease asset to be leased.

   • Department – Select the department of the lease asset to be leased.

   • Location – Select the location of the lease asset to be leased.

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

     Note:

     Multi-currency is currently not supported.

3. Click Save.

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

   Status	Description
   Pending Lease Payments	The record displays this status if it has no or incomplete lease payments. To enter lease payments, see Adding Lease Payments.
   Pending Lease Schedules	The record displays this status when 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	The record displays this status when lease schedules have been created, but the lease journals have not been generated. The Create Lease Journal button will be shown next to the Edit button at the top of the page. To generate a lease journal, see Creating Lease Journal Entries.
   Journal Created	The record displays this status when a lease journal to recognize the right-of-use asset and lease liability has been created. A link to the generated journal will be available in the Lease record.
   Asset Proposed	The record displays this status when an asset proposal record has been created for the lease journal entry. The generated Asset Proposal will be linked back to the Lease record. For more information, see Asset Proposal and Generation.
   Asset Created	The record displays this status when an asset record has been generated for the lease asset. The created Asset will be 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 verify that all desired fields are mapped.

      Note:

      If you remove the Date field from the import file, the system will automatically use 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 that will be used to track the right-of-use asset.

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

• Interest Expense – Select the account that will be 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 will be carried over to generated lease journal entries.

Lease Amortization Schedule Subtab

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

• Date – Shows the date of the lease payments.

• Lease Payments – Shows the lease payments amount.

• Net Present Value – Depending on the rental frequency, this value is computed using the following formula:

  • 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 computed by subtracting the principal from the previous balance. The initial balance is equal to the total net present value.

• Interest – This value is computed by multiplying the interest rate with the previous balance. The computation will vary 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 dated between the 1st to the 15th of the month, it will fall under Period 0. No interest should be computed and the principal amount should equal the lease payment amount.

  • If the first lease payment is dated between the 16th to end of the month, it will fall under Period 1. The existing computation for the interest and principal is followed.

• Principal – This value is computed 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 will be applied to the principal. The computation is as follows:

• Principal Amount = Previous Balance

• Interest Amount = Payment Amount – Principal Amount

• Balance = Previous Balance – Principal Amount

General Notices