---
title: "Categorizing Components"
description: "The categorization process in Lucanet Lease Accounting checks all new and modified contract components and classifies them in accordance with IFRS 16."
source_url: https://support.lucanet.cloud/en/documentation/lease-accounting/categorization
language: en
last_updated: 2023-08-16
---
# Categorizing Components

## Overview

The **categorization** process in Lucanet Lease Accounting checks all **new** and **modified** contract components and classifies them in accordance with IFRS 16.

Contract components that are categorized as **regular leases** are included in all the subsequent calculations carried out by Lease Accounting.

Contract components that are classified as **short-term** or **low-value** are not taken into account for the remainder of the process.

In the **Categorization** workspace, you can:

- view components to be categorized
- categorize components
- view the categorization result

## Categorizing Components

To categorize components, proceed as follows:

{% stepper %}
{% stepper-step %}
Open the **Components to be categorized** workspace to view all the components that have been added or modified since the last categorization:

The ‘Components to be categorized’ Workspace

{% /stepper-step %}
{% stepper-step %}
Click **Categorize** and confirm the query dialog that appears.
{% /stepper-step %}
{% stepper-step %}
Lease Accounting will carry out the categorization process automatically.

{% /stepper-step %}
{% /stepper %}
## Viewing the Categorization Result

Once categorization is completed, you will find an overview of the categorized components in the **Categorization Result** workspace:

The 'Categorization Result' workspace

{% info-box %}
- The **Lease category** column shows the categories selected by Lease Accounting in accordance with IFRS 16.
- Only leases categorized as **Regular** are displayed, because leases in the **Low-value** and **Short-term** categories are not included in the accounting process for leases in accordance with IFRS 16.3-4.
- If you make any changes to a component, you will need to recategorize said component as described in this section so that the details used by **Lease Accounting** in subsequent calculations are up to date.
{% /info-box %}