Lease Accounting Walkthroughs

The following walkthroughs cover topics related to lease accounting in Lucernex.

• Amortization of the Asset in Contracts

  Some clients, particularly those with a purchase option on a lease, want to run their accounting so that there was a remaining positive asset value at the end of the accounting schedule. This positive value would demonstrate that they have an asset worth something when it is purchased. You can do this from the Create Rent Schedule window.

• Copy Expense Setup

  The Copy Expense Setup feature helps Lucernex customers address rental concessions and deferment scenarios in rent emergency situations.

• CPI Indexes

  This walkthrough teaches you how to use the CPI Index functionality in Lucernex.

• Custom Payment Coverage

  The Lucernex Custom Payment Coverage functionality supports coverage dates for payment periods to be in entire blocks starting from the Schedule Begin Date. This is different from the way Lucernex handles this by default, where a mid-month Schedule Begin Date would result in a prorated first month payment, with subsequent coverage dates spanning the first of the month to the last of the month for subsequent months.

  This walkthrough teaches you how to create a new Expense Setup page, add the Custom Payment Coverage check box to your page layout, and enable custom payment coverage for your contract.

• Daily Rent in Lucernex

  This walkthrough teaches you how to configure and use the Daily Rent feature in the Contract module.

• Extend Contracts in Lucernex

  Near the end of your lease, you may decide that you want to accept a renewal option or extend your lease for a certain period of time. This walkthrough will teach you the steps necessary for extending your contract or equipment contract in Lucernex.

• Fiscal Calendars

  This walkthrough teaches you how to configure your fiscal calendars in Lucernex.

• Handling Rent Emergencies

  Lucernex can be used to help you handle your rent temporarily in emergency situations. While using the Hold flag is always an option, our standard practice is to use Lucernex's Alternate Rent functionality.

• Hold Purchase, Cancellation, or Residual Value Guarantee Values in Liability

  For some companies, the business practice is to leave option values in the liability as a close-out liability value. This means that in the final period of the schedule, the residual value of the liability balance will not be zero but will instead be the sum of these likely or activated options. If your company uses this business practice, you can select to hold options in liability on the Covenants page of your contract.

• Late Amendments

  This functionality allows you to recalculate a schedule with a begin date that falls within a prior posted period. This functionality is intended for when the amendment is received late or if it has not been processed in a timely manner. In this scenario, the ROU asset needs to be adjusted beyond what is typically done for a remeasurement to accurately represent the value of the asset.

• Lease Accounting Rules and Logic

  This guide provides information about the rules and logic surrounding lease accounting in Lucernex.

• Percent Rent Accrual Method Settings

  This walkthrough teaches you how to configure your percentage rent accrual method settings.

• Sub-Leasing in Lucernex

  This short walkthrough shows you how to configure a contract to be a sub-lease, and how to create pass-through payments.

• Triggering the Recalc? Flag

  This walkthrough lists what triggers the Recalc? flag on a lease accounting schedule.