Modifying Lease Records
To modify lease records:
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Go to Fixed Assets > Leases > Lease Modifications.
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On the Lease Modifications page, enter values for the following fields:
Primary Information:
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Lease – Select the lease record that you want to modify.
Note:You can modify lease records with associated assets, if the asset life is equal to the Lease Term and its depreciation period is equal to the Rental Frequency. If you want to modify a lease record after a journal has already been created, you must first reverse the lease journal. For more information, see Reversing a Lease Journal.
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Effective Date – Set the date when both the lessee and lessor approve the lease modification.
Lease Modification Details:
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Modified Lease Term – Enter the new lease term.
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Modified Annual Interest Rate – Enter the new implicit rate of the lease.
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Modified Lease End Date – The modified lease end date is automatically calculated based on the modified lease term and start date.
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Click Process to update your lease records.
Note:You can't process lease modifications simultaneously using multiple browser tabs.
Asset adjustments apply only to the accounting method. You can manually adjust the tax methods through asset revaluation. For more information, see Asset Revaluation.
The Lease record status changes to Pending Process and a link to the Process Status page is displayed. The Process Status page shows the Deactivate Payment process. This process sets the payment records for the modified lease where the payment date is greater than or the same as the effective date, or inactive. For more information, see Processes Triggered by Lease Modifications.