Creating and Configuring Contracts
Last updated on 2024-12-19
Overview
A lease contract is a formal agreement between the lessor and the lessee that transfers the right to control the use of an identified asset for a defined period of time in exchange for compensation.
The contract defines the conditions under which the lease is performed, including details of the parties involved and the term of the lease.
Contracts are created and configured in the workspace of the same name.
As an alternative to manual creation, lessors can also be added by importing a CSV file (see Automatically importing data).
Lucanet Lease Accounting can only be used for accounting of regular leases in accordance with IFRS 16.3-4. Short-term and low-value leases are not included in the calculation.
As such, we recommend only using this software to record leases that are categorized as regular per IFRS 16.3-4.
This article contains the following sections:
The ‘Contracts’ Workspace
The Contracts workspace displays all the contracts that have already been created.
Use the Active and Archived buttons if you only want to see active or archived contracts:
The 'Contracts' workspace
Creating a Contract
Click Add a new contract to create a new contract.
In the displayed dialog, configure the options for the New Contract as described in the next chapter.
Configuring a Contract
When configuring a contract, the following options are available:
- Fields marked with a * are mandatory fields. The number of mandatory fields in each tab and how many have already been filled in is shown next to the name of the tab:
- Fields that have been grayed out cannot be edited. They are filled in automatically based on the information in Lease Accounting.
The 'General Information' tab
Option
Description
Lessor
Lessor of the contract
All lessors that have been created or imported in Lease Accounting are available for selection.
Contract number
The contract number provided by the lessor.
Reporting entity
Reporting entity acting as the lessee for the contract in question
Country or region
Shows the lessee’s country or region
Contract manager
Contact person or line manager for queries relating to the contract in question
The 'Contract specific information' tab
Option
Description
Start date of the contract
Start date of the lease contract
The start dates of the lease components may differ from the start date of the lease contract itself.
End date of the contract
End date of the lease contract, not including and extension and/or termination options.
If the contract does not have a fixed term, enter the earliest date on which both parties can terminate the contract without incurring significant termination fees (if in doubt, use the statutory termination date, where applicable).
The 'Additional Information' tab
Use the Additional information tab to add comments on the contract in a plain text box.