For some companies, the business practice is to leave option values in the liability as a close-out liability value. This means that in the final period of the schedule, the residual value of the liability balance will not be zero but will instead be the sum of these likely or activated options.
If your company uses this business practice, you can select to hold options in liability on the Covenants page of your contract.
This setting is ignored by Lucernex if the Effective Date of the covenant is not the last day of the schedule.
This functionality does not apply to Straight Line schedules.
To hold an option’s financial amount in liability:
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Navigate to Contract > Abstract Info > Covenants.
Use the links in the Navigation Pane on the leftmost side of the page.
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Select the option whose financial amount you want to hold in liability from the Covenants List.
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Select the Hold Amount in Rent Schedule Liability check box.
This check box appears below the Financial Amt field.
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Click Save Changes.
This displays in the Actions menu on the right side of the page.The page refreshes. Your changes are saved.
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Repeat steps 3 – 5 as necessary.
