Override the Recalc? Flag on Lease Accounting Schedules - Common Procedure

You have the ability to override the Recalc? flag on lease accounting schedules when the flag is set to Yes.

You are expected to perform this action in the user interface, as it is a discretionary decision that should be done on a lease-by-lease basis. It is not supported in any batch import process. In the batch import process, you have the option to remove certain records from the report of schedules needing recalculation. However, removing those records from the import will leave the Recalc? flag as Yes for those omitted schedules.

To override the Recalc? flag:

1. Navigate to one of the following nine pages.

   Use the links in the Navigation Pane on the leftmost side of the page.

   • Contract > Accounting Info > ASC 842 Rent Schedule

   • Contract > Accounting Info > IFRS 16 Rent Schedule

   • Contract > Accounting Info > GASB 87 Rent Schedule

   • Equipment Contract > Accounting Info > ASC 842 Rent Schedule

   • Equipment Contract > Accounting Info > ASC 842 Rent Schedule >ASC 842 Equipment Schedules Page

   • Equipment Contract > Accounting Info > GASB 87 Rent Schedule

   • Equipment Contract > Accounting Info > GASB 87 Rent Schedule >GASB 87 Equipment Schedules Page

   • Equipment Contract > Accounting Info > IFRS 16 Rent Schedule

   • Equipment Contract > Accounting Info > IFRS 16 Rent Schedule >IFRS 16 Equipment Schedules Page

2. Select the schedule whose Recalc? flag you want to override.

   You can view the value of the Recalc? flag in the Rent Schedule List.

3. Clear the Recalc? check box on the right side of the Rent Schedule table.

   This check box will be inactive if the Recalc? flag is already set to No.

   A dialog box opens, with a message reading: The schedule has been flagged as needing recalculation because there have been significant lease changes or accounting assumptions changes. Are you sure you want to reset the Recalc? flag to No? You are required to enter a reason for overwriting the Recalc? flag.

4. Enter the reason you will not be recalculating the schedule in the provided field.

   This reason gives accountants the ability to more easily answer questions about their SOX audit compliance.

5. Click OK.

   The dialog box closes. The Recalc? flag is set to No. Your comments are saved in a log which appears at the bottom of the appropriate Rent Schedule tab.