Import Opening Balances of the Lease Contract

Explanation

This activity is used to import opening balances of lease contracts by using the right click option Import Lease Opening Balances on the header of the Lease Accounting Contract window.

Prerequisites

In order to import the opening balances below must be fulfilled:

• FA object with object type Right-of-use and status Registered must be connected to the contract.
• The amortization schedule must be created for the lease contract.
• A lease contract with status Active must have been defined in Lease Accounting Contract window.

System Effects

As a result of this activity:

• Opening balances of the lease contract will be imported and lease accounting related postings will be created therein.
• Vouchers of type A and LA will be created for Fixed Asset and Lease Accounting transactions respectively.
• The periods in the Amortization Schedule till the specified cut off date will be excluded from the postings by automatically checking the check box Exclude from Postings in the Amortization Schedule tab as a background process.
• The Object Status of the connected FA object would change to Active.
• The cut off date of the imported balances will be shown in the General tab of the Lease Accounting Contract window.

Window

Lease Accounting Contract

Related Window Descriptions

Lease Accounting Contract
Import Lease Opening Balances

Procedure

Use the following procedure to import opening balances of the lease contract:

1. Open the Lease Accounting Contract window and search for the contract that you want to import balances.
2. Right-click on the header of the window and click Import Lease Opening Balances right mouse button.
3. Enter the cutoff date or the date on which the opening balances will be in effect in the Cut off Date field.
4. Enter the opening balance of the right of use asset in the Amount in Contract Currency, Amount and Amount in Parallel Currency fields. This opening balance of the acquisition value of the right of use asset is valid for all the Fixed Asset Books.
5. In the Acquisition Date field, the contract start date will be defaulted. However, user can edit the acquisition date as required, however it cannot be date earlier than the start date of the contract.
6. Select an appropriate transaction reason for the acquisition value from the List of Values in the Transaction Reason field. The default reason is filled.
7. Enter the opening balance of the lease liability in contract, accounting and parallel currencies in the Amount in Contract Currency, Amount and Amount in Parallel Currency fields.
8. Enter the opening balance of the amortization of the right of use asset in contract, accounting and parallel currencies in the Amount in Contract Currency, Amount and Value in Parallel Currency fields. (Note: This grouping will be required to be filled if the contract is an Operating Lease).

To enter information relating to acquisition value adjustments for Finance Lease Type contracts:

1. Create a new record in the Acquisition Value Adjustments table.
2. Select the relevant book for the Book ID field using the List of Values.
3. Enter the event date of the adjustment in the Event Date field.
4. Enter the adjustment amount (+/-) in accounting currency for the entered book and event date in the Adjustment Amount field.
5. Enter the adjustment amount (+/-) in parallel currency for the entered book and event date in the Adjustment Amount in @EU field.
6. Select an appropriate transaction reason for the acquisition value adjustment using the List of Values in the Transaction Reason field.
7. Repeat steps 1-6 to enter the acquisition value adjustments for all the books and event dates for which the adjustments apply.

To enter information relating to accumulated depreciation for Finance Lease Type contracts:

1. Create a new record in the Depreciation Data table.
2. Select the relevant book for the Book ID field using the List of Values.
3. Enter the depreciation amount in accounting currency for a given period in the Amount field.
4. Enter the depreciation amount in parallel currency for a given period in the Amount in @EU field.
5. In the Depreciation Year field, enter the year to which the depreciation amount you entered in the Amount field applies.
6. In the Depreciation Period field, enter the period to which the depreciation amount you entered in the Amount field applies.
7. Select an appropriate transaction reason for the depreciation using the List of Values.
8. Repeat steps 1-6 to enter the accumulated depreciation for all the books and periods for which different depreciation amounts apply. You can also enter more than one line for the same combination of a particular book and a period with different transaction reasons.
9. Save the information.

(Note: The fields for Parallel Currency values are editable only if the company uses Parallel Currency functionality.)

In the Posting Information for Fixed Asset Accounting:

1. Enter the Voucher Date which is applicable for the transactions of Right of Use Asset, Acquisition Value Adjustments and Depreciation. The cutoff date will be defaulted to the Voucher Date field.
2. Select a User Group from the List of Values to change the existing user group.
3. Select the Voucher Type from the List of Values for the posting of not book-specific transactions (general acquisition values) Note: For the posting of book-specific transactions (acquisition value adjustments, depreciations) the voucher type connected to the book will automatically be used.

In the Posting Information for Lease Accounting:

1. The FA Accounting voucher date will be defaulted to the Voucher Date which is applicable for the transactions of Lease Liability and Right of Use Asset Amortization.
2. Select a User Group from the List of Values to change the existing user group.
3. Select the Voucher Type from the List of Values for the posting of Lease Liability and Right of Use Asset Amortization. The LA voucher type is defaulted.

Note: If the cutoff date is different than the Payment Due Dates of the Amortization Schedule, then lease interest and expense, depending on the lease type, should be manually adjusted in the Amortization Schedule and Lease Periodical Proposal.