Extend Contracts in Lucernex

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

Scenario One: Exercising a Renewal Option

If you elect to exercise a renewal option, there are a few steps you will need to take.

Set the Term Status

First, you will need to set the term status to either Active or Exercised.

To set your term status:

Do one of the following:
- Navigate to Contract > Abstract Info > Terms
- Navigate to Equipment Contract > Abstract Info > Terms
  
  Use the links in the Navigation Pane on the leftmost side of the page.
Select the term whose status you want to change from the Contract Terms List.

The page populates with the term information.
Select either Active or Exercised from the Status field.
Click Save Changes.

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

The page refreshes. Your changes are saved.

Change Your End Dates

Re-measure Your Lease Accounting Schedules (Contract)

Follow a procedure below. If your renewal option had a status of Likely when you originally calculated your lease accounting schedules, you may not need to recalculate your schedules. Consult with your auditor.

Re-measurement is the process by which an entity will adjust the right of use asset and lease liability due to a change. Generally, re-measurement occurs if something has changed in the contract. Maybe the termination option was renegotiated, or maybe additional costs came up that needed to be added to the contract.

Re-Measure Your ASC 842 Schedule

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:

Do one of the following:
- Navigate to Contract > Accounting Info > Accounting Assumptions
- Navigate to Contract > Accounting Info > ASC 842 Rent Schedule
  
  Use the links in the Navigation Pane on the leftmost side of the page.
Click Calculate Schedule.

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

A window relevant to the schedule you are re-measuring opens.
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.
Select the schedule type from the Type field.
Select the creation reason from the Creation Reason field.
Select the lease type from the Lease Type 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.

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

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

Re-Measure Your IFRS 16 Schedule

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:

Do one of the following:
- Navigate to Contract > Accounting Info > Accounting Assumptions , then select IFRS 16 Accounting Assumptions from the field to the left side of the Actions menu on the right side of the page.
- Navigate to Contract > Accounting Info > IFRS 16 Rent Schedule.
  
  Use the links in the Navigation Pane on the leftmost side of the page.
Click Calculate Schedule.

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

A window relevant to the schedule you are re-measuring opens.
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.
Select the schedule type from the Type field.
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.
Select the lease type from the Lease Type 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.
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.
Click Create Schedule.

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

Re-Measure Your GASB 87 Schedule

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:

Do one of the following:
- Navigate to Contract > Accounting Info > Accounting Assumptions , then select GASB 87 Accounting Assumptions from the field to the left side of the Actions menu on the right side of the page.
- Navigate to Contract > Accounting Info > GASB 87 Rent Schedule.
  
  Use the links in the Navigation Pane on the leftmost side of the page.
Click Calculate Schedule.

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

A window relevant to the schedule you are re-measuring opens.
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.
Select the schedule type from the Type field.
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.
Select the lease type from the Lease Type 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.
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.
Click Create Schedule.

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

Re-measure Your Lease Accounting Schedules (Equipment Contract)

Re-measure Your ASC 842 Contract Schedule

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:

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.
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.
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.
Select the schedule type from the Type field.
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.
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.
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.
Enter notes in the Notes field.
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.

Re-measure Your ASC 842 Asset Schedules

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:

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.
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.
Select the Create Equipment Schedule tab.
Select the schedule type you want to re-measure from the Type field.
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.
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.
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.

Re-measure Your IFRS 16 Contract Schedule

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:

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.
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.
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.
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.
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.
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.
Enter notes in the Notes field.
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.

Re-measure Your IFRS 16 Asset Schedules

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:

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

The Create New IFRS 16 Rent Schedule window opens.
Select the Create Equipment Schedule tab.
Select the schedule type you want to re-measure from the Type field.
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.
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.
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.

Re-measure Your GASB 87 Contract Schedule

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:

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.
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.
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.
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.
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.
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.
Enter notes in the Notes field.
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.

Re-measure Your GASB 87 Asset Schedules

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:

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

The Create New GASB 87 Rent Schedule window opens.
Select the Create Equipment Schedule tab.
Select the schedule type you want to re-measure from the Type field.
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.
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.
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.

Scenario Two: Month-to-Month

If your contract is in month-to-month status, you will need to perform two procedures.

Select the Month-to-Month Check Box

There are two places in the application where you will need to select the Month-to-Month check box.

To select the Month-to-Month check box:

Do one of the following:
- Navigate to Contract > Details > Summary
- Navigate to Equipment Contract > Details > Summary
  
  Use the links in the Navigation Pane on the leftmost side of the page.
Click Edit.

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

The page becomes editable.
Select the Month-to-Month check box.
Click Save Changes.

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

The page refreshes. Your changes are saved.
(Equipment Contract only) To set your equipment payment as month-to-month:
1. Navigate to Equipment Contract > Payment Info > Recurring Payments.
  
  Use the links in the Navigation Pane on the leftmost side of the page.
2. Select Equipment Payment Setup from the field to the left of the Actions menu.
3. Select the equipment payment setup you want to edit from the list at the top of the page.
  
  The details about the expense setup populate on the page.
4. Scroll down to the Expense Schedule / Escalations table.
5. Select the Month To Month check box.
6. Click Save Changes.
  
  This displays in the Actions menu on the right side of the page.
  
  The page refreshes. Your changes are saved.

Extend Your Contract

To extend a contract:

Do one of the following:
- Navigate to Contract > Details > Summary
- Navigate to Equipment Contract > Details > Summary
  
  Use the links in the Navigation Pane on the leftmost side of the page.
Click Extend Contracts.

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

The Extend Contracts window opens.
In the first date field, enter the payment end date.

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

This filter allows you to search for contracts with a specific end date.
Enter the date to which you want to extend the payment for the contract in the Date to Extend the Payment field.

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

The date that you enter in this field will be your new Payments End Date.
Select the Only show entities that will be extended check box to filter out contracts from your results that cannot be extended.
Note:
We recommend that you manually change the dates on your contract rather than selecting the Extend Contract Expiration Date, Possession Date, and Obligation Date and Extend Key Dates Fields check boxes.
- To change your expiration date, possession date, and obligation date, follow the steps above.
- To change your key dates, follow the Edit a Key Date procedures for Contracts and Equipment Contracts.
Click Apply link in the Planned Changes column of the table for all contracts you want to extend.
Click Extend Leases at the bottom of the window.

The window closes. A page opens showing the status of the job. Once the job is complete, you may navigate away from the page.

Extend Contracts in Lucernex

Rate this topic: