---
title: "Creating and Configuring Contracts"
description: "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."
source_url: https://support.lucanet.cloud/en/documentation/lease-accounting/data-collection/create-configure-contracts
language: en
last_updated: 2023-08-16
---
# Creating and Configuring Contracts

## 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, contracts can also be added by **importing** a CSV file (see [Automatically importing data](https://support.lucanet.cloud/en/documentation/lease-accounting/data-collection/automatic-data-import.md)).

{% warning-box %}
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.
{% /warning-box %}

## 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:

{% info-box %}
- 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.
{% /info-box %}

### ‘General Information’ Tab

The 'General Information' tab

#### Lessor

Lessor of the contract

{% info-box %}
All [lessors](https://support.lucanet.cloud/en/documentation/lease-accounting/data-collection/create-configure-lessor.md) that have been created or imported in Lease Accounting are available for selection.
{% /info-box %}

#### Contract number

The contract number provided by the lessor.

{% info-box %}
If you are the lessee and do not know the lessor’s contract number, enter a contract number of your own ( _company number_\- _individual contract number_; e.g.: 4144 - 9933754).
{% /info-box %}

#### Reporting entity

Reporting entity acting as the lessee for the contract in question

#### Country or region

Shows the lessee’s country or region

#### Contract owner

Contact person or line manager for queries relating to the contract in question

#### Contract file

Allows uploading, viewing, and removing contract files (primarily PDF format) when creating or editing a contract.

In view mode, files can only be downloaded.

After a contract file has been attached to a contract, an attachment icon () appears next to the **Contract ID** in the **Contract** overview table.

### ‘Contract-specific Information’ Tab

The 'Contract specific information' tab

#### Start date of the contract

Start date of the lease contract

{% info-box %}
The start dates of the lease components may differ from the start date of the lease contract itself.
{% /info-box %}

#### End date of the contract

End date of the lease contract, not including and extension and/or termination options.

{% info-box %}
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).
{% /info-box %}

### ‘Additional Information’ Tab

The 'Additional Information' tab

Use the **Additional information** tab to add **comments** on the contract in a plain text box.