ASC 842 / IFRS 16 / GASB 87 Equipment Contracts Functional Overview

To associate an expense type with an ASC 842, IFRS 16, or GASB 87 schedule type:

1. Navigate to Equipment Contract > Payment Info > Recurring Payments.

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

2. Click to the immediate right of the Expense Type in the Expense Setup table.

   A window opens with a list of expense types.

3. Find the expense you want to include in your schedule.

   You can search for a particular expense type by using the Search in the upper-right corner of the window.

4. Click Edit in the Actions column of the record.

   The Edit Expense Type Code page of the window opens.

5. Choose at least one option:

   • Select a schedule type from the ASC 842 Schedule field.

   • (IFRS firms only) Select a schedule type from the IFRS 16 Schedule field.

   • (GASB firms only) Select a schedule type from the GASB 87 Schedule field.

     If you want to create a new schedule type, follow the Add an Accounting Schedule Type procedures.

6. Click Update.

   The Expense Type window closes. The expense type is updated.

You have the ability to pay expense schedules in arrears. This means that your payments will be considered paid at the end of the month. Therefore, interest expense in a schedule will accrue first before the payment is applied. One very distinct outcome of this is that a schedule that is paid at the beginning of the month should not have an interest expense in its last month.

To enable the Pay in Arrears functionality:

1. Navigate to Equipment Contract > Payment Info > Recurring Payments.

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

2. Scroll down to the Expense Schedule / Escalations section of the page.

3. Select the Pay in Arrears? check box.

4. Click Save Changes.

   This displays in the Actions menu on the right side of the page.

   The page refreshes. Your changes are saved. A message appears: Successfully updated Expense Setup.

To mark a renewal option term as likely:

1. Navigate to Equipment Contract > Abstract Info > Terms.

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

2. Do one of the following:

   • To select an existing term and mark it as likely:

     1. Select the term you want to mark as likely from the Contract Terms List section of the page.

     2. Select Likely from the Status field.

     3. Click Save Changes.

        This displays in the Actions menu on the right side of the page.

        The page refreshes. The contract term is updated.

   • To create a new likely term:

     1. Click Add Item.

        This displays in the Actions menu on the right side of the page.

     2. Enter the term number in the Term Number field.

        Enter the term number in 2-digit format—for example, the third term would be entered as 03.

        Original is the only default term type in the system. In order to create a likely renewal term, you will need to select Renewal from the Type if it has been added by your organization, or you will need to create a new type.

     3. If your company has the Renewal term type pre-configured, select Renewal from the Type field.

        Create a new group or category.

     4. Select Likely from the Status field.

     5. Select the Include in Accruals check box if you want to include this renewal option in your accrued expense savings.

     6. Select the key date group from the Group field.

     7. Select the type of key date (for example, Option) from the Type field.

     8. Enter a description of the action necessary on this key date in the Description field.

     9. Enter the Begin Date and End Date.

        You can also click Calendar to open the Date Picker and select the appropriate date.

        Note:

        The Action fields and the Notice check boxes will be used when you decide to take action on an option, and when notice has been sent or received.

     10. Enter the number of days, weeks, months, or years you have to submit notice after the notice period begins in the Last Notice Period fields.

         A notice is a warning that the key date is imminent. The system will automatically calculate the value in the Last Notice Date using this formula:

         Last Notice Date = Coverage Period Begin Date - Last Notice Period - 1

         Important!

         Add notice periods to the renewal term, NOT the original term.

     11. Enter the earliest date you can give notice in the Earliest Notice Date field.

         You can also click Calendar to open the Date Picker and select the appropriate date.

     12. When you send the notice, select the Notice Sent? check box.

     13. When the notice has been received, select the Notice Received? check box.

     14. Enter the length of the tickler period using the Tickler Period fields.

         A Tickler is a friendly reminder that the key date is coming due.

         The system will automatically calculate the value in the Tickler Last Notice Date using this formula:

         Tickler Last Notice Date = Notice End Date - Tickler Period

         However, the Tickler Last Notice Date will not automatically update after being initially calculated unless you click Save.

     15. Enter the tickler date in the Tickler Date field.

         You can also click Calendar to open the Date Picker and select the appropriate date.

     16. Enter any comments in the Comments field.

     17. To associate the renewal option with a covenant, select the covenant from the Covenant field.

         You can view information about a covenant by selecting a covenant from the field and then clicking the View .

     18. Enter the covenant section in the Section field.

     19. Select the covenant amendment from the Amendment field.

         You can view information about an amendment by selecting an amendment from the field and then clicking the View .

     20. Click Save Changes.

         This displays in the Actions menu on the right side of the page.

         The page refreshes. The contract term is updated.

Several fields are automatically populated by the system based upon the data you have entered for your contract. These procedures will only call out fields where you will need to enter data.

To configure your accounting assumptions for ASC 842:

1. Navigate to Equipment Contract > Accounting Info > Accounting Assumptions.

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

2. Select the ASC 842 Accounting Assumptions page from the field to the left of the Actions menu on the right side of the page.

3. Click Add Item.

   This displays in the Actions menu on the right side of the page.

   A new Accounting Assumptions record is created.

4. Enter the discount rate in the Discount Rate field.

   The Discount Rate is also known as the Interest Rate or Internal Borrower Rate (IBR). To learn how to select a different discount rate from the Manage Discount Rates table, see our Search for Another Discount Rate article.

5. Select the ASC 842 schedule type for which you want to enter assumptions from the ASC 842 Schedule field.

   If you want to create a new schedule type, follow the Add an Accounting Schedule Type procedures.

6. (optional - IFRS firms only) If you want to create a linked IFRS 16 accounting assumptions record, select the IFRS 16 schedule type from the IFRS 16 Schedule field.

   Some data will be shared between the two accounting assumptions records, but there are fields that are particular to each lease accounting method. Review the fields on both accounting assumptions pages to ensure that all the relevant data is entered.

7. (optional - GASB firms only) If you want to create a linked GASB 87 accounting assumptions record, select the GASB 87 schedule type from the GASB 87 Schedule field.

   Some data will be shared between the two accounting assumptions records, but there are fields that are particular to each lease accounting method. Review the fields on both accounting assumptions pages to ensure that all the relevant data is entered.

8. Enter the Accounting Begin Date and the Accounting End Date in their respective fields.

   You can also click Calendar to open the Date Picker and select the appropriate date.

   Important!

   The codification requires that you include all reasonably assured options in your accounting schedule. Therefore, we recommend that your Accounting End Date occur after the Likely Term Expiration Date. The Likely Term Expiration Date populates with the expiration date of the latest-occurring reasonably assured option set to “likely”.

   Note:

   The default value for the Accounting Begin Date for ASC 842 Schedules is the later of the ASC 842 Adoption Date or the Possession Begin Date. However, you can override the value of the Accounting Begin Date on the Accounting Assumptions page of your contract or equipment contract.

9. If you want to override the accounting method determined by the ASC 842 Test, select your preferred accounting method from the Accounting Method field.

   If you select an accounting method from this field, the discount rate selected by Lucernex for your schedules may change. To learn more about the logic of how discount rates are selected in Lucernex, see our Lease Accounting Rules and Logic topic.

   If you select a value from this field, run the ASC 842 test, and the ASC 842 Test result is different from the value of the Accounting Method override field, the system will not save the ASC 842 Test. This is because the value of the override field takes precedence over the value of the ASC 842 Test result.

10. To add an accounting adjustment:

    Note:

    The Accounting Assumption Adjustment section allows you to make adjustments to underlying recurring charges. For example, you could add an adjustment in the scenario of an embedded lease when you need to take a service component out of the contract.

    1. Click Add Accounting Assumption Adjustment in the Accounting Assumption Adjustments table.

       The Add Accounting Assumption Adjustment window opens.

    2. Select the accounting schedule type from the ASC 842 Schedule, IFRS 16 Schedule, or GASB 87 Schedule field.

       If you want to create a new schedule type, follow the Add an Accounting Schedule Type procedures.

    3. To associate this adjustment with an expense setup record:

       1. Click Search next to the Expense Setup label.

          The Select Expense Setup Record window opens.

       2. Select the check box next to the expense setup record to which you want to associate this adjustment.

       3. Click Select in the bottom-right corner of the window.

          The window closes. The expense setup record and its associated data populate in the Add Accounting Assumption Adjustment window.

    4. If the expense setup has a secondary schedule allocation, enter the allocation in the Secondary Schedule Allocation field.

    5. Enter the begin date of the accounting assumption adjustment in the Begin Date field.

       You can also click Calendar to open the Date Picker and select the appropriate date.

    6. Enter the end date of the accounting assumption adjustment in the End Date field.

       You can also click Calendar to open the Date Picker and select the appropriate date.

    7. Select a proration method from the Proration Method field.

       The proration method you choose tells the system how much a “day” is worth, when your cost period does not encompass the entirety of the period.

    8. Enter the payment amount into the Payment Amount field.

    9. Select the frequency of the payment from the Frequency field.

       The First Payment Amount, Last Payment Amount, and Annual Amount fields will auto-populate depending upon the value you enter in the Payment Amount and the frequency you select from the Frequency field.

    10. Enter any notes in the Notes field.

    11. Click Add.

        The adjustment appears in the Accounting Assumption Adjustments table.

11. Complete these fields:

    Important!

    If any of these values should be deducted, enter them as a negative value.

    • PV Of Structuring Costs: Enter any fees paid to the owners of a special-purpose entity for structuring the transaction.

    • PV Of Other Adjustments: Enter any other miscellaneous costs that should be accounted for in the schedule.

      Note:

      At this point, the Initial Liability Balance has been determined. We now move forward to determining the Initial Asset Balance.

    • Payments Before Commencement (Less Incentives): Enter the amount paid towards lease payment prior to the commencement date, minus any incentives that have reduced the cost of the lease.

      The Payments Before Commencement (Less Incentives) is our recommended location for entering your cumulative deferred balance under your straight-line rent.

      Your Purchase Option, Cancellation Option, and Residual Value Guarantee will automatically populate with the data you entered into your abstract.

      If there are values that are not automatically populating into your assumptions, ensure that they fall within the Accounting Begin Date and Accounting End Date that you selected.

    • Initial Direct Costs: Enter the incremental costs of a lease that would not have been incurred if the lease had not been obtained.

      For example, costs for originating the lease agreement, and legal fees and commission.

    • Lease Incentives: Enter any incentives that have reduced the cost of the lease.

    • Impairments: Enter any deductions related to the diminished value of the asset.

      Important!

      Impairments should be entered as a negative value.

12. To add an exchange rate to your accounting assumptions:

    1. Click Add Exchange Rate in the bottom-right of the Contract Specific Rates table.

       The Add Exchange Rate window opens.

    2. Select the currency codes from the From Currency and To Currency fields.

    3. Enter the Effective Date of the currency exchange rate.

       You can also click Calendar to open the Date Picker and select the appropriate date.

    4. Enter the exchange rate in the Exchange Rate field.

    5. Click Add.

       The window closes. The exchange rate appears in the Contract Specific Rates table.

       This table is used when a lease utilizes multiple currencies. Any costs entered for a contract in a currency other than your default currency for the contract will be converted using the values entered in this table. This enables reporting and the calculation of the net present value.

13. Click Save Changes.

    This displays in the Actions menu on the right side of the page.

    The page refreshes. A message appears below the Accounting Details tab: Successfully updated Contract.

14. Verify that your data is correct.

    Important!

    If you linked an IFRS 16 schedule type to this accounting assumptions record, follow the Add Accounting Assumptions Record procedures for IFRS 16 before locking your accounting assumptions record. Once the record is locked, it cannot be edited.

    If you linked a GASB 87 schedule type to this accounting assumptions record, follow the Add Accounting Assumptions Record procedures for GASB 87 before locking your accounting assumptions record. Once the record is locked, it cannot be edited.

15. Once you have verified that your accounting assumptions have been entered correctly and completely, select the Locked? check box to the right of the Accounting End Date field.

16. Click Save Changes.

    This displays in the Actions menu on the right side of the page.

    The page refreshes. A message appears below the Accounting Details tab: Successfully updated Contract. Your accounting assumptions record is locked.

Several fields are automatically populated by the system based upon the data you have entered for your contract. These procedures will only call out fields where you will need to enter data.

To configure your accounting assumptions for IFRS 16:

1. Navigate to Equipment Contract > Accounting Info > Accounting Assumptions.

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

2. Select IFRS 16 Accounting Assumptions from the field to the left of the Actions menu.

3. Click Add Item.

   This displays in the Actions menu on the right side of the page.

   A new Accounting Assumptions record is created.

4. Enter the discount rate in the Discount Rate field.

   The Discount Rate is also known as the Interest Rate or Internal Borrower Rate (IBR). To learn how to select a different discount rate from the Manage Discount Rates table, see our Search for Another Discount Rate article.

5. If you want to create a linked ASC 842 accounting assumptions record, select the ASC 842 schedule type from the ASC 842 Schedule field.

   If you want to create a new schedule type, follow the Add an Accounting Schedule Type procedures.

6. Select the IFRS 16 schedule type for which you want to enter assumptions from the IFRS 16 Schedule field.

   If you want to create a new schedule type, follow the Add an Accounting Schedule Type procedures.

   Some data will be shared between the two accounting assumptions records, but there are fields that are particular to each lease accounting method. Review the fields on both accounting assumptions pages to ensure that all the relevant data is entered.

7. Enter the Accounting Begin Date and the Accounting End Date.

   You can also click Calendar to open the Date Picker and select the appropriate date.

   Important!

   The codification requires that you include all reasonably assured options in your accounting schedule. Therefore, we recommend that your Accounting End Date occur after the Likely Term Expiration Date. The Likely Term Expiration Date populates with the expiration date of the latest-occurring reasonably assured option set to “likely”.

   Note:

   The default value for the Accounting Begin Date for IFRS 16 or GASB 87 schedules is the later of the IFRS 16 or GASB 87 Adoption Date or the Possession Begin Date. You can override the value of the Accounting Begin Date on the Accounting Assumptions page of your contract or equipment contract.

8. To add an accounting adjustment:

   Note:

   The Accounting Assumption Adjustment section allows you to make adjustments to underlying recurring charges. For example, you could add an adjustment in the scenario of an embedded lease when you need to take a service component out of the contract.

   1. Click Add Accounting Assumption Adjustment in the Accounting Assumption Adjustments table.

      The Add Accounting Assumption Adjustment window opens.

   2. Select the accounting schedule type from the ASC 842 Schedule or the IFRS 16 Schedule field.

      If you want to create a new schedule type, follow the Add an Accounting Schedule Type procedures.

   3. To associate this adjustment with an expense setup record:

      1. Click Search next to the Expense Setup label.

         The Select Expense Setup Record window opens.

      2. Select the check box next to the expense setup record to which you want to associate this adjustment.

      3. Click Select in the bottom-right corner of the window.

         The window closes. The expense setup record and its associated data populate in the Add Accounting Assumption Adjustment window.

   4. If the expense setup has a secondary schedule allocation, enter the allocation in the Secondary Schedule Allocation field.

   5. Enter the begin date of the accounting assumption adjustment in the Begin Date field.

      You can also click Calendar to open the Date Picker and select the appropriate date.

   6. Enter the end date of the accounting assumption adjustment in the End Date field.

      You can also click Calendar to open the Date Picker and select the appropriate date.

   7. Select a proration method from the Proration Method field.

      The proration method you choose tells the system how much a “day” is worth, when your cost period does not encompass the entirety of the period.

   8. Enter the payment amount into the Payment Amount field.

   9. Select the frequency of the payment from the Frequency field.

      The First Payment Amount, Last Payment Amount, and Annual Amount fields will auto-populate depending upon the value you enter in the Payment Amount and the frequency you select from the Frequency field.

   10. Enter any notes in the Notes field.

   11. Click Add.

       The adjustment appears in the Accounting Assumption Adjustments table.

9. Complete these fields:

   • PV Of Lease Incentives: Enter incentives that have reduced the cost of the lease.

   • PV Of Other Adjustments: Enter other miscellaneous costs that should be accounted for in the schedule.

   • Payments Before Commencement (Less Incentives): Enter the amount paid towards the lease payment prior to the commencement date, minus any incentives that have reduced the cost of the lease.

     The Payments Before Commencement (Less Incentives) is our recommended location for inputting your cumulative deferred balance under your straight-line rent, and using it as an adjustment between the initial liability balance and the initial asset balance upon transition.

   • Initial Direct Costs: Enter the incremental costs of a lease that would not have been incurred if the lease had not been obtained.

     For example, costs for originating the lease agreement, and legal fees and commission.

   • Dismantling / Restoring Costs: Enter the cost of any activity necessary to restore the asset to its original state prior to the expiration of the lease.

   • Impairments: Enter any deductions related to the diminished value of the asset.

     Important!

     Impairments should be entered as a negative value.

10. To add an exchange rate to your accounting assumptions:

    1. Click Add Exchange Rate in the bottom-right of the Contract Specific Rates table.

       The Add Exchange Rate window opens.

    2. Select the currency codes from the From Currency and To Currency fields.

    3. Enter the Effective Date of the currency exchange rate.

       You can also click Calendar to open the Date Picker and select the appropriate date.

    4. Enter the exchange rate in the Exchange Rate field.

    5. Click Add.

       The window closes. The exchange rate appears in the Contract Specific Rates table.

       This table is used when a lease utilizes multiple currencies. Any costs entered for a contract in a currency other than your default currency for the contract will be converted using the values entered in this table. This enables reporting and the calculation of the net present value.

11. Click Save Changes.

    This displays in the Actions menu on the right side of the page.

    The page refreshes. A message appears below the Accounting Details tab: Successfully updated Contract.

12. Verify that your data is correct.

    Important!

    If you linked an ASC 842 schedule type to this accounting assumptions record, follow the Add Accounting Assumptions Record procedures for ASC 842 before locking your accounting assumptions record. Once the record is locked, it cannot be edited.

13. Once you have verified that your accounting assumptions have been entered correctly and completely, select the Locked? check box to the right of the Accounting End Date field.

14. Click Save Changes.

    This displays in the Actions menu on the right side of the page.

    The page refreshes. A message appears below the Accounting Details tab: Successfully updated Contract. Your accounting assumptions record is locked.

Several fields are automatically populated by the system based upon the data you have entered for your contract. These procedures will only call out fields where you will need to enter data.

To configure your accounting assumptions for GASB 87:

1. Navigate to Equipment Contract > Accounting Info > Accounting Assumptions.

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

2. Select GASB 87 Accounting Assumptions from the field to the left of the Actions menu.

3. Click Add Item.

   This displays in the Actions menu on the right side of the page.

   A new Accounting Assumptions record is created.

4. Enter the discount rate in the Discount Rate field.

   The Discount Rate is also known as the Interest Rate or Internal Borrower Rate (IBR). To learn how to select a different discount rate from the Manage Discount Rates table, see our Search for Another Discount Rate article.

5. If you want to create a linked ASC 842 accounting assumptions record, select the ASC 842 schedule type from the ASC 842 Schedule field.

   If you want to create a new schedule type, follow the Add an Accounting Schedule Type procedures.

6. Select the GASB 87 schedule type for which you want to enter assumptions from the GASB 87 Schedule field.

   If you want to create a new schedule type, follow the Add an Accounting Schedule Type procedures.

   Some data will be shared between the two accounting assumptions records, but there are fields that are particular to each lease accounting method. Review the fields on both accounting assumptions pages to ensure that all the relevant data is entered.

7. Enter the Accounting Begin Date and the Accounting End Date.

   You can also click Calendar to open the Date Picker and select the appropriate date.

   Important!

   The codification requires that you include all reasonably assured options in your accounting schedule. Therefore, we recommend that your Accounting End Date occur after the Likely Term Expiration Date. The Likely Term Expiration Date populates with the expiration date of the latest-occurring reasonably assured option set to “likely”.

   Note:

   The default value for the Accounting Begin Date for IFRS 16 or GASB 87 schedules is the later of the IFRS 16 or GASB 87 Adoption Date or the Possession Begin Date. You can override the value of the Accounting Begin Date on the Accounting Assumptions page of your contract or equipment contract.

8. To add an accounting adjustment:

   Note:

   The Accounting Assumption Adjustment section allows you to make adjustments to underlying recurring charges. For example, you could add an adjustment in the scenario of an embedded lease when you need to take a service component out of the contract.

   1. Click Add Accounting Assumption Adjustment in the Accounting Assumption Adjustments table.

      The Add Accounting Assumption Adjustment window opens.

   2. Select the accounting schedule type from the ASC 842 Schedule or the GASB 87 Schedule field.

      If you want to create a new schedule type, follow the Add an Accounting Schedule Type procedures.

   3. To associate this adjustment with an expense setup record:

      1. Click Search next to the Expense Setup label.

         The Select Expense Setup Record window opens.

      2. Select the check box next to the expense setup record to which you want to associate this adjustment.

      3. Click Select in the bottom-right corner of the window.

         The window closes. The expense setup record and its associated data populate in the Add Accounting Assumption Adjustment window.

   4. If the expense setup has a secondary schedule allocation, enter the allocation in the Secondary Schedule Allocation field.

   5. Enter the begin date of the accounting assumption adjustment in the Begin Date field.

      You can also click Calendar to open the Date Picker and select the appropriate date.

   6. Enter the end date of the accounting assumption adjustment in the End Date field.

      You can also click Calendar to open the Date Picker and select the appropriate date.

   7. Select a proration method from the Proration Method field.

      The proration method you choose tells the system how much a “day” is worth, when your cost period does not encompass the entirety of the period.

   8. Enter the payment amount into the Payment Amount field.

   9. Select the frequency of the payment from the Frequency field.

      The First Payment Amount, Last Payment Amount, and Annual Amount fields will auto-populate depending upon the value you enter in the Payment Amount and the frequency you select from the Frequency field.

   10. Enter any notes in the Notes field.

   11. Click Add.

       The adjustment appears in the Accounting Assumption Adjustments table.

9. Complete these fields:

   • PV Of Lease Incentives: Enter any incentives that have reduced the cost of the lease.

   • PV Of Other Adjustments: Enter any other miscellaneous costs that should be accounted for in the schedule.

   • Payments Before Commencement (Less Incentives): Enter the amount paid towards the lease payment prior to the commencement date, minus any incentives that have reduced the cost of the lease.

     The Payments Before Commencement (Less Incentives) is our recommended location for inputting your cumulative deferred balance under your straight-line rent, and using it as an adjustment between the initial liability balance and the initial asset balance upon transition.

   • Initial Direct Costs: Enter the incremental costs of a lease that would not have been incurred if the lease had not been obtained. For example, costs for originating the lease agreement, and legal fees and commission.

   • Dismantling / Restoring Costs: Enter the cost of any activity necessary to restore the asset to its original state prior to the expiration of the lease.

   • Impairments: Enter any deductions related to the diminished value of the asset.

     Important!

     Impairments should be entered as a negative value.

10. To add an exchange rate to your accounting assumptions:

    1. Click Add Exchange Rate in the bottom-right of the Contract Specific Rates table.

       The Add Exchange Rate window opens.

    2. Select the currency codes from the From Currency and To Currency fields.

    3. Enter the Effective Date of the currency exchange rate.

       You can also click Calendar to open the Date Picker and select the appropriate date.

    4. Enter the exchange rate in the Exchange Rate field.

    5. Click Add.

       The window closes. The exchange rate appears in the Contract Specific Rates table.

       This table is used when a lease utilizes multiple currencies. Any costs entered for a contract in a currency other than your default currency for the contract will be converted using the values entered in this table. This enables reporting and the calculation of the net present value.

11. Click Save Changes.

    This displays in the Actions menu on the right side of the page.

    The page refreshes. A message appears below the Accounting Details tab: Successfully updated Contract.

12. Verify that your data is correct.

    Important!

    If you linked an ASC 842 schedule type to this accounting assumptions record, follow the Add Accounting Assumptions Record procedures for ASC 842 before locking your accounting assumptions record. Once the record is locked, it cannot be edited.

13. Once you have verified that your accounting assumptions have been entered correctly and completely, select the Locked? check box to the right of the Accounting End Date field.

14. Click Save Changes.

    This displays in the Actions menu on the right side of the page.

    The page refreshes. A message appears below the Accounting Details tab: Successfully updated Contract. Your accounting assumptions record is locked.

If you have added equipment to your contract, the equipment record should automatically appear in the Equipment Assumptions / ASC 842 Tests List.

To configure an equipment accounting assumptions record:

1. Navigate to Equipment Contract > Accounting Info > ASC 842 Test.

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

2. Select Equipment Assumptions / ACS 842 Tests from the field to the left of the Actions menu.

   The Equipment Assumptions / ASC 842 Tests page opens.

3. Select the equipment whose assumptions you want to edit from the Equipment Assumptions / ACS 842 Tests List section at the top of the page.

   The data for the equipment will automatically populate in the Equipment Info section of the page. If you need to make changes to the equipment data, proceed to step 4. If you are satisfied with the equipment data, proceed to step 5.

4. If you need to make changes to a piece of equipment:

   1. Enter the equipment name into the Name field.

   2. Select the operational status of the asset from the Operational Status field.

      Create a new group or category.

   3. Select the asset group from the Asset Group field.

      Create a new group or category.

      Groups are the first level of organization in Lucernex. Groups are the parents of types, and grandparents of categories. Groups, types, and categories are used to simplify reporting.

   4. Select the asset type from the Asset Type field.

      If you want to create a new type, follow the Add a Type procedures.

      Types are the second level of organization in Lucernex. Types are the children of groups, and parents of Categories. Groups, types, and categories are used to simplify reporting.

   5. Select a category from the Category field.

      The category is a high level of organization for equipment maintenance—for example, a generator could fall under the “electrical” maintenance category.

      If you want to create a new category code, follow the Add an Asset Category Code procedures.

   6. Enter the serial number for the equipment in the Serial # field.

   7. Enter the asset number in the Asset Number field.

   8. Select the associated entity from the Associated Entity field.

      An entity is where an asset lives. If an asset does not have a particular location, the associated entity can be left blank, or tied to a portfolio or a contract.

5. Select the Does Ownership Revert to Tenant? check box if the ownership of the asset reverts to the tenant at the termination of the lease term.

6. (required) Enter the fair value of the asset into the Fair Value of Asset field.

   FASB 842.10.20 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

7. Enter the name of the person who assessed the fair value of the asset in the Fair Value Source field.

8. (required) Enter the portion of the asset you control in the Portion of Asset Controlled field.

9. (required) Enter the value of the remaining economic life of the asset using the Remaining Economic Life fields provided.

10. Select the check box if the asset has a specialized use, such that the lessor will have no alternative use for it.

11. If applicable, enter the accounting override dates in the Accounting Begin Date Override and Accounting End Date Override fields.

    You can also click Calendar to open the Date Picker and select the appropriate date.

    The purpose of these fields is to change the dates that the test and rent schedules will be run for. If you do not enter override dates, the test and schedules will run based on the dates of the expense schedules for the asset.

12. If this equipment uses a different discount rate, enter the discount rate in the Discount Rate Override field.

13. If you need to override the accounting method for the asset, select the appropriate accounting method from the Accounting Method Override field.

14. (Finance only) If you want to specify a percentage or amount of the total asset balance that should remain after the schedule end date, enter the value in the Remaining Asset Balance field.

    The value of this field defaults to $0.00.

    There are two option buttons: Currency and Percentage. If you enter a value between 0-100, the system will default the option setting to Percentage. If you enter a value of 100.01 or above, the system will default the option setting to Currency. You can override the default option setting.

15. (Finance only) If you want to select a date beyond the schedule end date to amortize to, enter the date in the Date to Amortize to field.

    For new equipment assumptions records, this field defaults to the payment end date of the contract. If the equipment assumptions record was created prior to the 20.08 release, this field will default to the payment end date of the contract IF you populate a value in the Remaining Asset Balance field.

    To learn more about finance asset amortization, see the Amortization of the Asset in Finance Contracts article.

16. Enter any initial liability balance adjustments in the Initial Liability Balance Adjustment field.

17. Enter any initial asset balance adjustments in the Initial Asset Balance Adjustment field.

18. Enter any deductions related to the diminished value of the asset in the Impairment Amount field.

    You can simultaneously add an impairment to an Operating equipment asset while also amortizing that asset to an amount or a specific date.

    Important!

    Impairments should be entered as a negative value.

19. Click Save Changes.

    This displays in the Actions menu on the right side of the page.

    The page refreshes. Your equipment assumptions are saved.

If you selected a value from the Accounting Method override field on the ASC 842 Accounting Assumptions page, run the ASC 842 test, and the ASC 842 Test result is different from the value of the Accounting Method override field, the system will not save the ASC 842 Test. This is because the value of the override field takes precedence over the value of the ASC 842 Test result.

To run an ASC 842 lease classification test:

1. Navigate to Equipment Contract > Accounting Info > ASC 842 Test.

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

2. Click Add Item.

   This displays in the Actions menu on the right side of the page.

   The page becomes editable.

3. Select the asset type from the Asset Type field.

4. Select the schedule type from the Schedule field.

   Important!

   Do not select the Locked? check box until you have completed the classification test. Selecting this check box will prevent you from editing the classification test.

5. Enter notes in the Notes field.

6. Test 1: Select the check box if the ownership of the asset reverts to the tenant at the end of the term.

7. Test 2: Select the check box if the lease contains a purchase option that the tenant is likely to exercise.

8. Test 3: Complete the following fields:

   • Remaining Economic Life Threshold: The fraction of the economic life of the underlying asset that amounts to “a major part” of that remaining economic life. This value is usually set to 75%.

   • Year Useful Life Began or Year Built

   • Remaining Economic Life: Enter the value of the remaining economic life using the field and the field provided.

   • Test Begin Date / Test End Date

     Note:

     This test compares the Remaining Economic Life of the lease to the Test Begin and End Dates. If this value is below the Remaining Economic Life Threshold, your lease will pass this test.

   • Is the lease commencement at or near the end of the economic life of the asset?: If selected, Test 3’s outcome changes to Pass regardless of whether the value the Test Term Length to Remaining Life is greater than the Remaining Economic Life Threshold field.

9. Test 4: Complete the following fields:

   • Fair Value Threshold: The fraction of the fair value of the underlying asset that amounts to “substantially all” of its fair value. This value is usually set to 90%.

   • Discount Rate: The discount rate should automatically populate. The Discount Rate is also known as the Interest Rate or Internal Borrower Rate (IBR).

     To learn how to select a different discount rate from the Manage Discount Rates table, see our Search for Another Discount Rate article.

   • PV Of Structuring Costs: Enter any fees paid to the owners of a special-purpose entity for structuring the transaction.

   • PV Of Other Adjustments: Enter any other miscellaneous costs that should be accounted for in the schedule.

   • Portion of Asset Controlled: Enter the portion of the asset that you control.

   • Fair Value of Asset: FASB 842. 10. 20 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

   • Fair Value Source: Enter the name of the person who assessed the fair value of the asset. You can also attach a document by clicking the Attach Document .

     Note:

     This test determines whether you are paying more for the asset than the percentage of the asset you control, or whether the initial liability balance is less than or greater than the threshold fair value controlled.

10. Test 5: Select the check box if the asset has a specialized use, such as that the lessor will have no alternative use for it.

11. Click Run and Save.

    This displays in the Actions menu on the right side of the page.

    The page refreshes, and the results of the test appear in the ASC 842 Test List table at the top of the page. The test results also appear in the ASC 842 Test table above the Locked? check box.

12. Review your rest results. If your results are not what you expected, review the data you entered.

13. If you want to re-run the ASC 842 Test:

    1. Make your changes.

    2. Click Run and Save.

       This displays in the Actions menu on the right side of the page.

14. Once you are certain the results are correct, select the Locked? check box in the upper-right corner of the ASC 842 Test table.

    Important!

    Locking the test ensures that the test cannot be modified. You cannot delete a classification test once it has been locked, but you can create another test as necessary.

15. Click Run and Save to confirm that you want to lock the classification test.

    This displays in the Actions menu on the right side of the page.

16. If at any point you need to run a new classification test, click Add Item.

    This displays in the Actions menu on the right side of the page.

    A new classification test opens. Follow steps 2 – 11 to run a new classification test.

An equipment classification test is separate from your contract classification test. You can run it manually on the Equipment Assumptions / ASC 842 Tests page, or it will be processed automatically when you generate your lease accounting schedule for the asset.

To run an equipment classification test:

1. Navigate to Equipment Contract > Accounting Info > ASC 842 Test.

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

2. Select Equipment Assumptions / ACS 842 Tests from the field to the left of the Actions menu.

   The Equipment Assumptions / ASC 842 Tests page opens.

3. Select the equipment you want to run a classification test on from the Equipment Assumptions / ACS 842 Tests List section at the top of the page.

4. Click Add Contract Financial Test in the ASC 842 Test table.

   The Add Contract Financial Test window opens.

   Important!

   In some scenarios, your contract may have a different lease classification than your equipment.

   Important!

   Do not select the Locked? check box until you have completed the classification test. Selecting this check box will prevent you from editing the classification test.

5. Test 1: Select the check box if the ownership of the asset reverts to the tenant at the end of the term.

6. Test 2: Select the check box if the lease contains a purchase option that the tenant is likely to exercise.

7. Test 3: Complete the following fields:

   • Remaining Economic Life Threshold: The fraction of the economic life of the underlying asset that amounts to “a major part” of that remaining economic life. This value is usually set to 75%.

   • Year Useful Life Began or Year Built

   • Remaining Economic Life: Enter the value of the remaining economic life using the field and the field provided.

   • Test Begin Date / Test End Date

     Note:

     This test compares the Remaining Economic Life of the lease to the Test Begin and End Dates. If this value is below the Remaining Economic Life Threshold, your lease will pass this test.

   • Is the lease commencement at or near the end of the economic life of the asset?: If selected, Test 3’s outcome changes to Pass regardless of whether the value the Test Term Length to Remaining Life is greater than the Remaining Economic Life Threshold field.

8. Test 4: Complete the following fields:

   • Fair Value Threshold: The fraction of the fair value of the underlying asset that amounts to “substantially all” of its fair value. This value is usually set to 90%.

   • Discount Rate: The discount rate should automatically populate. The Discount Rate is also known as the Interest Rate or Internal Borrower Rate (IBR). To learn how to select a different discount rate from the Manage Discount Rates table, see our Search for Another Discount Rate article.

   • PV Of Structuring Costs: Enter fees paid to the owners of a special-purpose entity for structuring the transaction.

   • PV Of Other Adjustments: Enter other miscellaneous costs that should be accounted for in the schedule.

   • Portion of Asset Controlled: Enter the portion of the asset that you control.

   • Fair Value of Asset: FASB 842. 10. 20 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

   • Fair Value Source: Enter the name of the person who assessed the fair value of the asset. You can also attach a document by clicking the Attach Document .

     Note:

     This test determines whether you are paying more for the asset than the percentage of the asset you control, or whether the initial liability balance is less than or greater than the threshold fair value controlled.

9. Test 5: Select the check box if the asset has a specialized use, such as that the lessor will have no alternative use for it.

10. Click Add to add the classification test to your asset.

    You will still be able to make changes to the test if the result is not what you expected.

    The classification test appears in the ASC 842 Test table.

11. Review your rest results.

    If your results are not what you expected:

    1. Click Edit link in the Actions column of the test in the ASC 842 Test table.

       The Edit Contract Financial Test window opens.

    2. Review the data you entered.

    3. If necessary, make changes to the data.

    4. Click Update.

       The window closes. Your updated ASC 842 Test appears in the ASC 842 Test table.

12. Once you are satisfied with the results of your test:

    Important!

    Locking the test ensures that the test cannot be modified. You cannot delete a classification test once it has been locked, but you can create another test as necessary.

    1. Click Edit link in the Actions column of the test in the ASC 842 Test table.

       The Edit Contract Financial Test window opens.

    2. Select the Locked? check box in the upper-right corner of the window.

    3. Click Update.

       The window closes. Your ASC 842 Test appears in the ASC 842 Test table. It is now locked.

To generate a straight-line schedule for your equipment contract:

1. Navigate to Equipment Contract > Accounting Info > Straight-Line Rent.

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

2. Click Calculate Schedule.

   This displays in the Actions menu on the right side of the page.

   The Create New Straight-Line Schedule window opens.

3. Enter the Begin Date and End Date of the accounting schedule.

   You can also click Calendar to open the Date Picker and select the appropriate date.

4. Select the schedule type from the Type field.

5. Enter any balance forward in the Balance Forward field.

6. Select whether you want to amortize your adjustments over the remaining term or as a lump sum from the Amortize Adjustments field.

7. Select the reason for creating the schedule from the Creation Reason field.

   Creation reasons are either user-generated or generated at the company level. However, all creation reasons created at the user level will also be available at the company level.

8. Click Create Schedule.

   The page refreshes, and the schedule appears on the page.

To generate an ASC 842 contract schedule:

1. Navigate to one of the four following pages:

   • Equipment Contract > Accounting Info > ASC 842 Test

   • Equipment Contract > Accounting Info > Accounting Assumptions

   • Equipment Contract > Accounting Info > ASC 842 Rent Schedule

   • Equipment Contract > Accounting Info > ASC 842 Rent Schedule, then select ASC 842 Equipment Schedules from the field to the left of the Actions menu.

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

2. Click Calculate Schedule.

   This displays in the Actions menu on the right side of the page.

   A window opens.

   Note:

   The Begin Date, End Date, and Discount Rate automatically populate. Steps 8 – 13 refer to fields that will automatically populate with data entered on the Contract Accounting Assumptions page. This is the last place where you can edit these fields prior to generating your schedule.

   To learn how to select a different discount rate from the Manage Discount Rates table, see our Search for Another Discount Rate article.

   Note:

   The default value of the Schedule Begin Date is the later of the Accounting Begin Date or the first day of the first unposted period for the schedule. You can override the value of the Schedule Begin Date in the Create Schedule window, provided the date you choose is on or after the first day of the first unposted period.

3. Select the schedule type from the Type field.

4. Select the accounting method from the Accounting Method field.

   If you select Finance, two new fields appear: Remaining Asset Balance and Date to Amortize to. These fields will also appear if you select Operating and then enter a value in the Impairments field.

5. Select the reason for creating the schedule from the Creation Reason field.

   Creation reasons are either user-generated or generated at the company level. However, all creation reasons created at the user level will also be available at the company level.

6. If you want to specify a percentage or amount of the total asset balance that should remain after the schedule end date, enter the value in the Remaining Asset Balance field.

   There are two option buttons: Currency and Percentage. If you enter a value between 0-100, the system will default the option setting to Percentage. If you enter a value of 100.01 or above, the system will default the option setting to Currency. You can override the default option setting.

7. If you want to select a date beyond the schedule end date to amortize to, enter the date in the Date to Amortize to field.

   By default, the value of this field is the schedule end date.

   To learn more about asset amortization, see the Amortization of the Asset in Contracts article.

8. Enter any other miscellaneous costs that should be accounted for in the schedule in the PV Of Other Adjustments field.

9. Enter any fees paid to the owners of a special-purpose entity for structuring the transaction in the PV Of Structuring Costs field.

10. Enter the amount paid towards the lease payment prior to the commencement date, minus any incentives that have reduced the cost of the lease in the Payments Before Commencement (Less Incentives) field.

11. Enter the incremental costs of a lease that would not have been incurred if the lease had not been obtained in the Initial Direct Costs field.

    For example, costs for originating the lease agreement, and legal fees and commission.

12. Enter any incentives that have reduced the cost of the lease in the Lease Incentive Amount field.

13. Enter any deductions related to the diminished value of the asset in the Impairments field.

    Important!

    Impairments should be entered as a negative value.

    The Remaining Asset Balance and Date to Amortize to fields appear if you selected Operating from the Accounting Method field. See steps 6 and 7 to learn how to complete these fields.

    If you enter a value in the Impairments field, two read-only fields appear:

    • Prior Accumulated Amortization Balance: Accumulated Amortization Balance of the accounting period prior to the impairment.

    • Total: Sum of the impairment and the Prior Accumulated Amortization Balance.

14. Enter notes in the Notes field.

15. Click Create Schedule.

    The page refreshes, and the schedule appears on the page.

To generate an IFRS 16 contract schedule:

1. Navigate to one of the three following pages.

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

   • Equipment Contract > Accounting Info > IFRS 16 Rent Schedule

   • Equipment Contract > Accounting Info > IFRS 16 Rent Schedule, then select IFRS 16 Equipment Schedules from the field to the left of the Actions menu.

     The IFRS 16 Equipment Schedules page opens. The schedule data appears on the page.

   • Equipment Contract > Accounting Info > Accounting Assumptions, then select IFRS 16 Accounting Assumptions from the field to the left of the Actions menu.

2. Click Calculate Schedule.

   This displays in the Actions menu on the right side of the page.

   The Create New IFRS 16 Rent Schedule window opens.

3. Select the schedule type from the Type field.

   Note:

   The Begin Date, End Date, and Discount Rate automatically populate. Steps 6 – 10 refer to fields that will automatically populate with data entered on the Contract Accounting Assumptions page. This is the last place where you can edit these fields prior to generating your schedule.

   To learn how to select a different discount rate from the Manage Discount Rates table, see our Search for Another Discount Rate article.

   Note:

   The default value of the Schedule Begin Date is the later of the Accounting Begin Date or the first day of the first unposted period for the schedule. You can override the value of the Schedule Begin Date in the Create Schedule window, provided the date you choose is on or after the first day of the first unposted period.

4. Select the reason for creating the schedule from the Creation Reason field.

   Creation reasons are either user-generated or generated at the company level. However, all creation reasons created at the user level will also be available at the company level.

5. If you want to specify a percentage or amount of the total asset balance that should remain after the schedule end date, enter the value in the Remaining Asset Balance field.

   There are two option buttons: Currency and Percentage. If you enter a value between 0-100, the system will default the option setting to Percentage. If you enter a value of 100.01 or above, the system will default the option setting to Currency. You can override the default option setting.

6. If you want to select a date beyond the schedule end date to amortize to, enter the date in the Date to Amortize to field.

   By default, the value of this field is the schedule end date.

   To learn more about asset amortization, see the Amortization of the Asset in Contracts article.

7. Enter any incentives that have reduced the cost of the lease in the Lease Incentive Amount field.

8. Enter any other miscellaneous costs that should be accounted for in the schedule in the PV Of Other Adjustments field.

   Note:

   The Purchase Option, Cancellation Option, and Residual Value Guarantees should automatically populate if you have those options entered on the Covenants page. The Initial Liability Balance will be automatically calculated by the system.

9. Enter the amount paid towards the lease payment prior to the commencement date, minus any incentives that have reduced the cost of the lease, in the Payments Before Commencement (Less Incentives) field.

10. Enter the incremental costs of a lease that would not have been incurred if the lease had not been obtained in the Initial Direct Costs field.

    For example, costs for originating the lease agreement, and legal fees and commission.

11. Enter the cost of any activity necessary to restore the asset to its original state prior to the expiration of the lease in the Dismantling / Restoring Costs field.

12. Enter any deductions related to the diminished value of the asset in the Impairments field.

    Important!

    Impairments should be entered as a negative value.

    If you enter a value in the Impairments field, two read-only fields appear:

    • Prior Accumulated Amortization Balance: Accumulated Amortization Balance of the accounting period prior to the impairment.

    • Total: Sum of the impairment and the Prior Accumulated Amortization Balance.

13. Enter notes in the Notes field.

14. Click Create Schedule.

    The page refreshes, and the schedule appears on the page.

To generate a GASB 87 contract schedule:

1. Navigate to one of the three following pages.

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

   • Equipment Contract > Accounting Info > GASB 87 Rent Schedule

   • Equipment Contract > Accounting Info > GASB 87 Rent Schedule, then select GASB 87 Equipment Schedules from the field to the left of the Actions menu.

     The GASB 87 Equipment Schedules page opens. The schedule data appears on the page.

   • Equipment Contract > Accounting Info > Accounting Assumptions, then select GASB 87 Accounting Assumptions from the field to the left of the Actions menu.

2. Click Calculate Schedule.

   This displays in the Actions menu on the right side of the page.

   The Create New GASB 87 Rent Schedule window opens.

3. Select the schedule type from the Type field.

   Note:

   The Begin Date, End Date, and Discount Rate automatically populate. Steps 6 – 10 refer to fields that will automatically populate with data entered on the Contract Accounting Assumptions page. This is the last place where you can edit these fields prior to generating your schedule.

   To learn how to select a different discount rate from the Manage Discount Rates table, see our Search for Another Discount Rate article.

   Note:

   The default value of the Schedule Begin Date is the later of the Accounting Begin Date or the first day of the first unposted period for the schedule. You can override the value of the Schedule Begin Date in the Create Schedule window, provided the date you choose is on or after the first day of the first unposted period.

4. Select the reason for creating the schedule from the Creation Reason field.

   Creation reasons are either user-generated or generated at the company level. However, all creation reasons created at the user level will also be available at the company level.

5. If you want to specify a percentage or amount of the total asset balance that should remain after the schedule end date, enter the value in the Remaining Asset Balance field.

   There are two option buttons: Currency and Percentage. If you enter a value between 0-100, the system will default the option setting to Percentage. If you enter a value of 100.01 or above, the system will default the option setting to Currency. You can override the default option setting.

6. If you want to select a date beyond the schedule end date to amortize to, enter the date in the Date to Amortize to field.

   By default, the value of this field is the schedule end date.

   To learn more about asset amortization, see the Amortization of the Asset in Contracts article.

7. Enter any incentives that have reduced the cost of the lease in the Lease Incentive Amount field.

8. Enter any other miscellaneous costs that should be accounted for in the schedule in the PV Of Other Adjustments field.

   Note:

   The Purchase Option, Cancellation Option, and Residual Value Guarantees should automatically populate if you have those options entered on the Covenants page. The Initial Liability Balance will be automatically calculated by the system.

9. Enter the amount paid towards the lease payment prior to the commencement date, minus any incentives that have reduced the cost of the lease, in the Payments Before Commencement (Less Incentives) field.

10. Enter the incremental costs of a lease that would not have been incurred if the lease had not been obtained in the Initial Direct Costs field.

    For example, costs for originating the lease agreement, and legal fees and commission.

11. Enter the cost of any activity necessary to restore the asset to its original state prior to the expiration of the lease in the Dismantling / Restoring Costs field.

12. Enter any deductions related to the diminished value of the asset in the Impairments field.

    Important!

    Impairments should be entered as a negative value.

    If you enter a value in the Impairments field, two read-only fields appear:

    • Prior Accumulated Amortization Balance: Accumulated Amortization Balance of the accounting period prior to the impairment.

    • Total: Sum of the impairment and the Prior Accumulated Amortization Balance.

13. Enter notes in the Notes field.

14. Click Create Schedule.

    The page refreshes, and the schedule appears on the page.

Creating an asset schedule generates a schedule for all assets assigned to that schedule type for the contract. For example, if you have 100 assets with separate expenses that are all tied to the same schedule type, 100 asset schedules would be generated.

In order to calculate an equipment schedule for ASC 842, you must first meet one of three prerequisites:

• You must populate the Accounting Method Override on the Equipment Assumptions / ASC 842 Tests page.

• You must populate the Fair Value of the Asset, the Portion of Asset Controlled and Remaining Economic Life/Units on the Equipment Assumptions / ASC 842 Tests page.

  If the system finds the proper values, it will generate a locked test. The system generates a locked test to prevent you from editing the test and causing the test to be out of sync with the lease accounting schedule.

• You must run and LOCK an Equipment Classification Test.

If none of these three prerequisites are met, a message appears in the log file of the event in the Job Log that says: Unable to find current, locked ASC 842 test result. Cannot generate schedule.

To generate an asset schedule:

1. Navigate to one of the four following pages:

   • Equipment Contract > Accounting Info > ASC 842 Test

   • Equipment Contract > Accounting Info > Accounting Assumptions

   • Equipment Contract > Accounting Info > ASC 842 Rent Schedule

   • Equipment Contract > Accounting Info > ASC 842 Rent Schedule, then select ASC 842 Equipment Schedules from the field to the left of the Actions menu.

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

2. Click Calculate Schedule.

   This displays in the Actions menu on the right side of the page.

   A window opens.

3. Select the Create Equipment Schedules tab.

   The Create Equipment Schedule page of the window opens.

4. Select the schedule type from the Type field.

   If you want to create a new schedule type, follow the Add an Accounting Schedule Type procedures.

   You must select the schedule type associated with your equipment.

5. Select the creation reason from the Creation Reason field.

   Creation reasons are either user-generated or generated at the company level. However, all creation reasons created at the user level will also be available at the company level.

6. Enter the discount rate in the Discount Rate field.

   The discount rate is also known as the Interest Rate or Internal Borrower Rate (IBR). To learn how to select a different discount rate from the Manage Discount Rates table, see our Search for Another Discount Rate article.

7. Click Create Schedule.

   The page refreshes, and the schedule is created. You will receive an email confirmation.

   Note:

   If more than one of your assets have had the value of their Operational Status change to something other than Active, a dialog box will open, with a message that reads: Since last schedule creation, some assets have changed to non-Active status. Do you want to terminate the asset schedules for them? To learn more about bulk termination, see the Asset Schedule Termination > Bulk Termination section below.To learn more about bulk termination, see the Lease Accounting Schedule Termination article.

8. Select ASC 842 Equipment Schedules from the field to the left of the Actions menu.

   The ASC 842 Equipment Schedules page opens. The schedule data appears on the page.

Creating an asset schedule generates a schedule for all assets assigned to that schedule type for the contract. For example, if you have 100 assets with separate expenses that are all tied to the same schedule type, 100 asset schedules would be generated.

To generate an asset schedule:

1. Navigate to one of the three following pages.

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

   • Equipment Contract > Accounting Info > IFRS 16 Rent Schedule

   • Equipment Contract > Accounting Info > IFRS 16 Rent Schedule, then select IFRS 16 Equipment Schedules from the field to the left of the Actions menu.

     The IFRS 16 Equipment Schedules page opens. The schedule data appears on the page.

   • Equipment Contract > Accounting Info > Accounting Assumptions, then select IFRS 16 Accounting Assumptions from the field to the left of the Actions menu.

2. Click Calculate Schedule.

   This displays in the Actions menu on the right side of the page.

   The Create New IFRS 16 Rent Schedule window opens.

3. Select the Create Equipment Schedules tab.

   The Create Equipment Schedule page of the window opens.

4. Select the schedule type from the Type field.

   If you want to create a new schedule type, follow the Add an Accounting Schedule Type procedures.

   You must select the schedule type associated with your equipment.

5. Select the creation reason from the Creation Reason field.

   Creation reasons are either user-generated or generated at the company level. However, all creation reasons created at the user level will also be available at the company level.

6. Enter the discount rate in the Discount Rate field.

   The discount rate is also known as the Interest Rate or Internal Borrower Rate (IBR). To learn how to select a different discount rate from the Manage Discount Rates table, see our Search for Another Discount Rate article.

7. Click Create Schedule.

   The page refreshes, and the schedule is created. You will receive an email confirmation.

   Note:

   If more than one of your assets have had the value of their Operational Status change to something other than Active, a dialog box will open, with a message that reads: Since last schedule creation, some assets have changed to non-Active status. Do you want to terminate the asset schedules for them? To learn more about bulk termination, see the Asset Schedule Termination > Bulk Termination section below.To learn more about bulk termination, see the Lease Accounting Schedule Termination article.

8. Select IFRS 16 Equipment Schedules from the field to the left of the Actions menu.

   The IFRS 16 Equipment Schedules page opens. The schedule data appears on the page.

Creating an asset schedule generates a schedule for all assets assigned to that schedule type for the contract. For example, if you have 100 assets with separate expenses that are all tied to the same schedule type, 100 asset schedules would be generated.

To generate an asset schedule:

1. Navigate to one of the three following pages.

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

   • Equipment Contract > Accounting Info > GASB 87 Rent Schedule

   • Equipment Contract > Accounting Info > GASB 87 Rent Schedule, then select GASB 87 Equipment Schedules from the field to the left of the Actions menu.

     The GASB 87 Equipment Schedules page opens. The schedule data appears on the page.

   • Equipment Contract > Accounting Info > Accounting Assumptions, then select GASB 87 Accounting Assumptions from the field to the left of the Actions menu.

2. Click Calculate Schedule.

   This displays in the Actions menu on the right side of the page.

   The Create New GASB 87 Rent Schedule window opens.

3. Select the Create Equipment Schedules tab.

   The Create Equipment Schedule page of the window opens.

4. Select the schedule type from the Type field.

   If you want to create a new schedule type, follow the Add an Accounting Schedule Type procedures.

   You must select the schedule type associated with your equipment.

5. Select the creation reason from the Creation Reason field.

   Creation reasons are either user-generated or generated at the company level. However, all creation reasons created at the user level will also be available at the company level.

6. Enter the discount rate in the Discount Rate field.

   The discount rate is also known as the Interest Rate or Internal Borrower Rate (IBR). To learn how to select a different discount rate from the Manage Discount Rates table, see our Search for Another Discount Rate article.

7. Click Create Schedule.

   The page refreshes, and the schedule is created. You will receive an email confirmation.

   Note:

   If more than one of your assets have had the value of their Operational Status change to something other than Active, a dialog box will open, with a message that reads: Since last schedule creation, some assets have changed to non-Active status. Do you want to terminate the asset schedules for them? To learn more about bulk termination, see the Asset Schedule Termination > Bulk Termination section below.To learn more about bulk termination, see the Lease Accounting Schedule Termination article.

8. Select GASB 87 Equipment Schedules from the field to the left of the Actions menu.

   The GASB 87 Equipment Schedules page opens. The schedule data appears on the page.

The FASB / IASB Re-Measurement Report template will produce an excel file that can be imported to regenerate schedules that are out of date in bulk. This report template fetches FASB / IASB schedules that have the Recalc? flag set to Yes. This feature will be of high value for clients with a high volume of leases to manage.

To learn how to use the FASB / IASB Re-Measurement Report template, please see the Re-Measure Your Lease Accounting Schedules Using the FASB / IASB Re-Measurement Report procedures.

To re-measure a straight line schedule:

1. Navigate to Contract > Accounting Info > Straight-Line Rent.

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

   Note:

   There are no equipment schedules for Straight-Line, only contract schedules.

2. Click Calculate Schedule.

   This displays in the Actions menu on the right side of the page.

   The Create New Straight-Line Schedule window opens.

3. Enter the Begin Date and End Date of the accounting schedule.

   You can also click Calendar to open the Date Picker and select the appropriate date.

4. Select the schedule type from the Type field.

5. If you have a balance forward that you need to account for:

   1. Enter the balance forward in the Balance Forward field.

   2. Select whether you want to amortize your adjustments over the remaining term or as a lump sum from the Amortize Adjustments field.

6. Select the reason for creating the schedule from the Creation Reason field.

   Creation reasons are either user-generated or generated at the company level. However, all creation reasons created at the user level will also be available at the company level.

7. Enter notes in the Notes field.

8. Click Create Schedule.

   The window closes, and the page refreshes. Your new schedule appears in the Straight-Line Summary List.

When an active schedule is recalculated or terminated, the Inactive Date of the previously active schedule will automatically populate with the date of recalculation or termination.

To re-measure a lease accounting schedule:

1. Navigate to one of the four following pages:

   • Equipment Contract > Accounting Info > ASC 842 Test

   • Equipment Contract > Accounting Info > Accounting Assumptions

   • Equipment Contract > Accounting Info > ASC 842 Rent Schedule

   • Equipment Contract > Accounting Info > ASC 842 Rent Schedule, then select ASC 842 Equipment Schedules from the field to the left of the Actions menu.

     The ASC 842 Equipment Schedules page opens. The schedule data appears on the page.

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

2. Click Calculate Schedule.

   This displays in the Actions menu on the right side of the page.

   The Create New ASC 842 Rent Schedule window opens.

3. Enter the dates that your re-measurement should begin and end in the Begin Date and End Date fields.

   You can also click Calendar to open the Date Picker and select the appropriate date.

   Note:

   The default value of the Schedule Begin Date is the later of the Accounting Begin Date or the first day of the first unposted period for the schedule. You can override the value of the Schedule Begin Date in the Create Schedule window, provided the date you choose is on or after the first day of the first unposted period.

4. Select the schedule type from the Type field.

5. Select the creation reason from the Creation Reason field.

   Creation reasons are either user-generated or generated at the company level. However, all creation reasons created at the user level will also be available at the company level.

6. Select the accounting method from the Accounting Method field.

   The data from the existing schedule populates. If there are any posted periods between the Begin Date and the End Date, the Re-measurement Balance Forward will automatically calculate the re-measurement balance forward for those posted periods.

7. Make any changes necessary to the discount rate, the liability values, and the right of use asset values prior to re-measurement.

   To learn how to select a different discount rate from the Manage Discount Rates table, see our Search for Another Discount Rate article.

8. Enter notes in the Notes field.

9. Click Create Schedule.

   The window closes, and the Create New ASC 842 Rent Schedule page refreshes. The re-measured schedule appears in your ASC 842 Rent Schedule List.

When an active schedule is recalculated or terminated, the Inactive Date of the previously active schedule will automatically populate with the date of recalculation or termination.

In order to calculate an equipment schedule for ASC 842, you must first meet one of three prerequisites:

• You must populate the Accounting Method Override on the Equipment Assumptions / ASC 842 Tests page.

• You must populate the Fair Value of the Asset, the Portion of Asset Controlled and Remaining Economic Life/Units on the Equipment Assumptions / ASC 842 Tests page.

  If the system finds the proper values, it will generate a locked test. The system generates a locked test to prevent you from editing the test and causing the test to be out of sync with the lease accounting schedule.

• You must run and LOCK an Equipment Classification Test.

If none of these three prerequisites are met, a message appears in the log file of the event in the Job Log that says: Unable to find current, locked ASC 842 test result. Cannot generate schedule.

To re-measure your ASC 842 asset schedules:

1. Navigate to one of the four following pages:

   • Equipment Contract > Accounting Info > ASC 842 Test

   • Equipment Contract > Accounting Info > Accounting Assumptions

   • Equipment Contract > Accounting Info > ASC 842 Rent Schedule

   • Equipment Contract > Accounting Info > ASC 842 Rent Schedule, then select ASC 842 Equipment Schedules from the field to the left of the Actions menu.

     The ASC 842 Equipment Schedules page opens. The schedule data appears on the page.

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

2. Click Calculate Schedule.

   This displays in the Actions menu on the right side of the page.

   The Create New ASC 842 Rent Schedule window opens.

3. Select the Create Equipment Schedule tab.

4. Select the schedule type you want to re-measure from the Type field.

5. Select the creation reason from the Creation Reason field.

   Creation reasons are either user-generated or generated at the company level. However, all creation reasons created at the user level will also be available at the company level.

   Note:

   The Discount Rate pre-populates with the default discount rate. Modify the value in the Discount Rate if necessary. To learn how to select a different discount rate from the Manage Discount Rates table, see our Search for Another Discount Rate article.

6. Click Create Schedule.

   The page refreshes, and the schedule is created. You will receive an email confirmation.

   Note:

   If more than one of your assets have had the value of their Operational Status change to something other than Active, a dialog box will open, with a message that reads: Since last schedule creation, some assets have changed to non-Active status. Do you want to terminate the asset schedules for them? To learn more about bulk termination, see the Asset Schedule Termination > Bulk Termination section below.

7. Select ASC 842 Equipment Schedules from the field to the left of the Actions menu.

   The ASC 842 Equipment Schedules page opens. The schedule data appears on the page.

When an active schedule is recalculated or terminated, the Inactive Date of the previously active schedule will automatically populate with the date of recalculation or termination.

To re-measure a lease accounting schedule:

1. Navigate to one of the three following pages.

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

   • Equipment Contract > Accounting Info > IFRS 16 Rent Schedule

   • Equipment Contract > Accounting Info > IFRS 16 Rent Schedule, then select IFRS 16 Equipment Schedules from the field to the left of the Actions menu.

     The IFRS 16 Equipment Schedules page opens. The schedule data appears on the page.

   • Equipment Contract > Accounting Info > Accounting Assumptions, then select IFRS 16 Accounting Assumptions from the field to the left of the Actions menu.

     The IFRS 16 Accounting Assumptions page opens.

2. Click Calculate Schedule.

   This displays in the Actions menu on the right side of the page.

   The Create New IFRS 16 Rent Schedule window opens.

3. Enter the dates that your re-measurement should begin and end in the Begin Date and End Date fields.

   You can also click Calendar to open the Date Picker and select the appropriate date.

   Note:

   The default value of the Schedule Begin Date is the later of the Accounting Begin Date or the first day of the first unposted period for the schedule. You can override the value of the Schedule Begin Date in the Create Schedule window, provided the date you choose is on or after the first day of the first unposted period.

4. Select the schedule type from the Type field.

   Note:

   The data from the existing schedule populates. If there are any posted periods between the Begin Date and the End Date, the Re-measurement Balance Forward will automatically calculate the re-measurement balance forward for those posted periods.

5. Select the creation reason from the Creation Reason field.

   Creation reasons are either user-generated or generated at the company level. However, all creation reasons created at the user level will also be available at the company level.

6. Make any changes necessary to the discount rate, the liability values, and the right of use asset values prior to re-measurement.

   To learn how to select a different discount rate from the Manage Discount Rates table, see our Search for Another Discount Rate article.

7. Enter notes in the Notes field.

8. Click Create Schedule.

   The window closes, and the Create New IFRS 16 Rent Schedule page refreshes. The re-measured schedule appears in your IFRS 16 Rent Schedule List.

When an active schedule is recalculated or terminated, the Inactive Date of the previously active schedule will automatically populate with the date of recalculation or termination.

To re-measure your IFRS 16 asset schedules:

1. Navigate to one of the three following pages.

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

   • Equipment Contract > Accounting Info > IFRS 16 Rent Schedule

   • Equipment Contract > Accounting Info > IFRS 16 Rent Schedule, then select IFRS 16 Equipment Schedules from the field to the left of the Actions menu.

     The IFRS 16 Equipment Schedules page opens. The schedule data appears on the page.

   • Equipment Contract > Accounting Info > Accounting Assumptions, then select IFRS 16 Accounting Assumptions from the field to the left of the Actions menu.

     The IFRS 16 Accounting Assumptions page opens.

2. Click Calculate Schedule in the Actions menu on the right side of the page.

   The Create New IFRS 16 Rent Schedule window opens.

3. Select the Create Equipment Schedule tab.

4. Select the schedule type you want to re-measure from the Type field.

5. Select the creation reason from the Creation Reason field.

   Creation reasons are either user-generated or generated at the company level. However, all creation reasons created at the user level will also be available at the company level.

   Note:

   The Discount Rate pre-populates with the default discount rate. Modify the value in the Discount Rate if necessary. To learn how to select a different discount rate from the Manage Discount Rates table, see our Search for Another Discount Rate article.

6. Click Create Schedule.

   The page refreshes, and the schedule is created. You will receive an email confirmation.

   Note:

   If more than one of your assets have had the value of their Operational Status change to something other than Active, a dialog box will open, with a message that reads: Since last schedule creation, some assets have changed to non-Active status. Do you want to terminate the asset schedules for them? To learn more about bulk termination, see the Asset Schedule Termination > Bulk Termination section below.

7. Select IFRS 16 Equipment Schedules from the field to the left of the Actions menu.

   The IFRS 16 Equipment Schedules page opens. The schedule data appears on the page.

When an active schedule is recalculated or terminated, the Inactive Date of the previously active schedule will automatically populate with the date of recalculation or termination.

To re-measure a lease accounting schedule:

1. Navigate to one of the three following pages.

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

   • Equipment Contract > Accounting Info > GASB 87 Rent Schedule

   • Equipment Contract > Accounting Info > GASB 87 Rent Schedule, then select GASB 87 Equipment Schedules from the field to the left of the Actions menu.

     The GASB 87 Equipment Schedules page opens. The schedule data appears on the page.

   • Equipment Contract > Accounting Info > Accounting Assumptions, then select GASB 87 Accounting Assumptions from the field to the left of the Actions menu.

     The GASB 87 Accounting Assumptions page opens.

2. Click Calculate Schedule.

   This displays in the Actions menu on the right side of the page.

   The Create New GASB 87 Rent Schedule window opens.

3. Enter the dates that your re-measurement should begin and end in the Begin Date and End Date fields.

   You can also click Calendar to open the Date Picker and select the appropriate date.

   Note:

   The default value of the Schedule Begin Date is the later of the Accounting Begin Date or the first day of the first unposted period for the schedule. You can override the value of the Schedule Begin Date in the Create Schedule window, provided the date you choose is on or after the first day of the first unposted period.

4. Select the schedule type from the Type field.

   Note:

   The data from the existing schedule populates. If there are any posted periods between the Begin Date and the End Date, the Re-measurement Balance Forward will automatically calculate the re-measurement balance forward for those posted periods.

5. Select the creation reason from the Creation Reason field.

   Creation reasons are either user-generated or generated at the company level. However, all creation reasons created at the user level will also be available at the company level.

6. Make any changes necessary to the discount rate, the liability values, and the right of use asset values prior to re-measurement.

   To learn how to select a different discount rate from the Manage Discount Rates table, see our Search for Another Discount Rate article.

7. Enter notes in the Notes field.

8. Click Create Schedule.

   The window closes, and the Create New GASB 87 Rent Schedule page refreshes. The re-measured schedule appears in your GASB 87 Rent Schedule List.

When an active schedule is recalculated or terminated, the Inactive Date of the previously active schedule will automatically populate with the date of recalculation or termination.

To re-measure your GASB 87 asset schedules:

1. Navigate to one of the three following pages.

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

   • Equipment Contract > Accounting Info > GASB 87 Rent Schedule

   • Equipment Contract > Accounting Info > GASB 87 Rent Schedule, then select GASB 87 Equipment Schedules from the field to the left of the Actions menu.

     The GASB 87 Equipment Schedules page opens. The schedule data appears on the page.

   • Equipment Contract > Accounting Info > Accounting Assumptions, then select GASB 87 Accounting Assumptions from the field to the left of the Actions menu.

     The GASB 87 Accounting Assumptions page opens.

2. Click Calculate Schedule in the Actions menu on the right side of the page.

   The Create New GASB 87 Rent Schedule window opens.

3. Select the Create Equipment Schedule tab.

4. Select the schedule type you want to re-measure from the Type field.

5. Select the creation reason from the Creation Reason field.

   Creation reasons are either user-generated or generated at the company level. However, all creation reasons created at the user level will also be available at the company level.

   Note:

   The Discount Rate pre-populates with the default discount rate. Modify the value in the Discount Rate if necessary.

   To learn how to select a different discount rate from the Manage Discount Rates table, see our Search for Another Discount Rate article.

6. Click Create Schedule.

   The page refreshes, and the schedule is created. You will receive an email confirmation.

   Note:

   If more than one of your assets have had the value of their Operational Status change to something other than Active, a dialog box will open, with a message that reads: Since last schedule creation, some assets have changed to non-Active status. Do you want to terminate the asset schedules for them? To learn more about bulk termination, see the Asset Schedule Termination > Bulk Termination section below.

7. Select GASB 87 Equipment Schedules from the field to the left of the Actions menu.

   The GASB 87 Equipment Schedules page opens. The schedule data appears on the page.

To perform a partial lease termination:

1. Navigate to one of fifteen pages:

   • Contract > Accounting Info > ASC 842 Test

   • Contract > Accounting Info > ASC 842 Rent Schedule

   • Contract > Accounting Info > IFRS 16 Rent Schedule

   • Contract > Accounting Info > GASB 87 Rent Schedule

   • Contract > Accounting Info > Accounting Assumptions

   • Contract > Accounting Info >Accounting Assumptions > IFRS 16 Accounting Assumptions

   • Contract > Accounting Info >Accounting Assumptions > GASB 87 Accounting Assumptions

   • Equipment Contract > Accounting Info > ASC 842 Test

   • Equipment Contract > Accounting Info > ASC 842 Test > Equipment Assumptions / ASC 842 Tests

   • Equipment Contract > Accounting Info > ASC 842 Rent Schedule

   • Equipment Contract > Accounting Info > IFRS 16 Rent Schedule

   • Equipment Contract > Accounting Info > GASB 87 Rent Schedule

   • Equipment Contract > Accounting Info > Accounting Assumptions

   • Equipment Contract > Accounting Info > Accounting Assumptions > IFRS 16 Accounting Assumptions

   • Equipment Contract > Accounting Info > Accounting Assumptions > GASB 87 Accounting Assumptions

2. Click Calculate Schedule in the Actions menu on the right side of the page.

   A Create New Schedule window opens.

   The Start Date of your new schedule is the day after your last posted period.

3. If there is a change in value in the underlying asset, enter either a percentage value in the P&L Impact percentage field or a negative fixed dollar amount in the P&L Impact fixed dollar amount field.

   If there is no change in the underlying asset, you do not need to allocate any of the Remeasurement Balance Forward to P&L Impact.

   Important!

   The P&L Amount requires a negative value because it is a percentage of the Remeasurement Balance Forward field, which is also negative.

   This amount will be held back from your new schedule and posted to a field (SLSummary.ProfitAndLossImpact) which can be fed to an ERP integration as a GL entry. The system will automatically calculate the appropriate fixed amount or percentage; depending upon which field you enter a value.

   Note:

   You can allocate 100% of your remeasurement balance forward to your profit and loss impact without terminating your lease accounting schedule. This functionality supports the use case where you might want to impair the asset or write off the existing balance forward.

4. Make any other changes to your schedule data as necessary.

5. Click Create Schedule.

   The window closes. The new schedule appears in the Rent Schedule List.

To perform a full lease termination:

1. Navigate to one of fifteen pages:

   • Contract > Accounting Info > ASC 842 Test

   • Contract > Accounting Info > ASC 842 Rent Schedule

   • Contract > Accounting Info > IFRS 16 Rent Schedule

   • Contract > Accounting Info > GASB 87 Rent Schedule

   • Contract > Accounting Info > Accounting Assumptions

   • Contract > Accounting Info >Accounting Assumptions > IFRS 16 Accounting Assumptions

   • Contract > Accounting Info >Accounting Assumptions > GASB 87 Accounting Assumptions

   • Equipment Contract > Accounting Info > ASC 842 Test

   • Equipment Contract > Accounting Info > ASC 842 Test > Equipment Assumptions / ASC 842 Tests

   • Equipment Contract > Accounting Info > ASC 842 Rent Schedule

   • Equipment Contract > Accounting Info > IFRS 16 Rent Schedule

   • Equipment Contract > Accounting Info > GASB 87 Rent Schedule

   • Equipment Contract > Accounting Info > Accounting Assumptions

   • Equipment Contract > Accounting Info > Accounting Assumptions > IFRS 16 Accounting Assumptions

   • Equipment Contract > Accounting Info > Accounting Assumptions > GASB 87 Accounting Assumptions

2. Click Calculate Schedule in the Actions menu on the right side of the page.

   A Create New Schedule window opens.

3. Select the Terminate Schedule tab.

   Your Begin and End Date, Schedule Type, and P&L Impact value should pre-populate on the page. In this case, the entire amount of the Remeasurement Balance Forward will populate the P&L Impact field, and it will be uneditable.

4. Select the appropriate creation reason from the Creation Reason field.

5. Enter any notes in the Notes field.

6. Click Create Schedule.

   A dialog opens, asking you to confirm your choice.

7. Click Yes.

   A new schedule appears in the Rent Schedule List, where all values are listed as $0.00. This is a single-period schedule that is created to close out the prior accounting schedule, so that ERP integrations can close the balance sheet for this schedule.

The above procedures describe only how to close out the accounting schedules for a terminated lease. If the lease is being fully terminated you will still need to update your Payment End Date at the lease level so that no new rent payments will be generated.

To update your payment end dates:

1. Do one of the following:

   • Navigate to Contract > Details > Summary using the tabs at the top of the page.

   • Navigate to Equipment Contract > Details > Summary using the tabs at the top of the page.

2. Click Edit link in the Actions menu on the right side of the page.

   The page becomes editable.

3. Scroll down to the Critical Dates section of the page.

4. Change the Payments End Date to the end date of your schedule.

5. Click Save Changes.

   This displays in the Actions menu on the right side of the page.

   The page refreshes. Your changes are saved.

To terminate a single asset schedule:

1. Choose between three options:

   • Navigate to Equipment Contract > Accounting Info > ASC 842 Rent Schedule

   • Navigate to Equipment Contract > Accounting Info > GASB 87 Rent Schedule

   • Navigate to Equipment Contract > Accounting Info > IFRS 16 Rent Schedule

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

2. Select the equipment whose schedule you want to terminate from the Equipment Schedules List.

3. Click Calculate Schedule in the Actions menu on the right side of the page.

   The Create New Rent Schedule window opens.

4. Select the Terminate Equipment Schedule tab.

   The Terminate Equipment Schedule tab opens.

   If you did not open the Equipment Schedules page in Step 3, a message will appear which reads: No Equipment to Terminate.

   The Equipment Name will appear below the Creation Reason field. The Begin Date, End Date, Type, and P&L Impact fields will pre-populate.

5. Select the reason you are creating the termination schedule from the Creation Reason field.

6. Enter any notes about the termination schedule in the Notes field.

7. Click Create Schedule.

   The window closes. The termination schedule appears in your Equipment Schedules List.

Bulk termination is controlled on the Create Equipment Schedules tab of the Create New Rent Schedule window.

When you generate your asset schedules, any asset schedules with the Recalc? flag set to Yes will be recalculated. One of the recalculation triggers for an asset schedule is if the value of the Operational Status on the asset’s accounting assumptions record is anything other than Active. When you generate or recalculate your asset schedules, the system will ask: Since last schedule creation, some assets have changed to non-Active status. Do you want to terminate the asset schedules for them?

The system behaves as follows:

Bulk Termination Example