A new Lease Management module has been added to COINS in v11.13

Note: This is a licensed module. Please contact your COINS client representative or open a service request for further details.

Leases can be set up and managed in the Lease Workbench. Once a lease has been added, a lease schedule is created.

Lease details include, lessor, lease type, start and life (remaining life for existing leases), discount rate, lease payment, non lease payments. A paper clip is available to add documents. Existing leases can be added in bulk. Parameters have been added to allow for a default discount rate and NPV calculation method.

The Relevant GL accounts can be added, these can be General Ledger, Asset Cost Heads or Contract Cost Heads. The Supplier Record now has a Lessor tickbox; this will allow the accounts to be defaulted from the supplier.

Two Lease Reports are available:

Lease Reconciliation Report – this will assist in reconciling to the batch posting
Lease Register Report – this gives details of the lease and schedules

Note: IFRS 16 is effective for accounting periods starting on or after 1 January 2019. Under IFRS 16 there is no longer a distinction between finance and operating leases.

Lease Workbench

The Lease workbench will have details for each lease in the workbench.

To add a Lease click Add (

)

Agreement

The lease agreement number, an identifier for the lease. If you have a single lease for multiple assets, that you are splitting in to separate leases you may want to use the agreement number plus a suffix to denote which asset.

Lessor	Enter the supplier number
Asset	A code for the asset- if asset module is used
Lease Type	The lease type.
Start	The start date for lease.
Life	Duration of the lease in financial periods.
Discount Rate	The discount rate for lease (not an interest rate)
Period Rate	The period rate for lease.
Lease Payment	The lease payment value
Non-Lease Payment	The non-lease payment value.
In Advance	Whether payment done in advance or not.
Pre-Commence Payments	Total of any pre-commencement payments, minus any incentives, that will add in to the Right of Use Asset value.
RoUA	The Right of Use Asset value calculated field
Liability	Liability remaining calculated field
Status	The status of this lease. Initially blank for new leases. When you are ready to process the lease you use the choose action option to ready the lease and this will validate and move the status to READY, then processing the leases will move the status to CURRENT. If lease details are amended the status will be changed to VARIED and you will need to Ready the lease again.
Purchase Decision	The purchase decision.
Notes	The notes for lease also a paper clip to attach documents

Termination

Guaranteed Residual Value	This is a memorandum of any residual value that has been guaranteed.
Shortfall	Shortfall to the GRV adds to the liability. You may want to record penalties as shortfall. The affect liability like a further payment the period after final lease payment.
Early Termination	The early termination date.
Penalty	The penalty value.
Extend to	The date termination extended to.
Informal	Whether a lease ends and you do short term extension while say searching for a replacement car or not. This is deemed an informal extension and payments can be expensed.
Payment -	The termination payment value.
Exercise Purchase Option	The exercise purchase option date.
Price	The termination purchase value.

Costing Defaults

Add details for posting accounts can be General Ledger, Contract or Asset cost heads

Right of Use Asset	Right of Use Asset account for lease.
Lease Liability	Lease Liability account.
Payment Clearing	Payment Clearing account for lease.
Interest	Interest account for lease.
Non-Lease Payment	Non-Lease Payment account.
Depreciation	Depreciation Account
Termination	Termination Account

Add details for New Lease

Click Save ( Save Icon ) to Create the Lease Schedule

Note - Accounts Payable Record:

Leases are added to the Lease Workbench

Click to open details

The Lease Schedule is created with the details from the "lease details"

The Schedule will have P&L details of payments, interest and depreciation and BS details for Asset and liability

Bulk Adding Leases

Important Note: For existing leases only remaining periods should be added

Leases can be added in bulk

Use the Excel Sheet to add details

The Fields are as follows:

[header]	[lease]
Agreement	VAN100	Comment
Lessor	LEA001	Supplier account
Lessor-Label	Leasing Cars One	grey boxes are
Asset
Lease Type	O
Lease Type-Label	Operating
Start	01/01/2021	start of remining periods
Life	24	life remaining
Discount Rate	5
Period Rate	1.004166667	Use compound or simple method
Lease Payment	100	period payment
Non-Lease Payment	0
In Advance	Y
Pre-Commence Payments	0
RoUA	2288.89
Liability	2288.89
Status	READY
Status-Label	Ready
Purchase Decision	Yes
Purchase Decision-Label	Yes
ale_notes	New VAN
Guaranteed Residual Value	0
Shortfall	0
Early Termination
Penalty	0
Extend to
Informal	N
Payment	0
Exercise Purchase Option
Price	0
text^GL	GL
text^{Cost head}	Cost head
text^{Jc Contract}	Contract
Right of Use Asset	00.575C	GL Account
ale_fach__1		Asset - Cost head
ale_job__1		Contract Cost Code
Lease Liability	00.7252	GL Account
ale_fach__2		Asset - Cost head
ale_job__2		Contract Cost Code
Payment Clearing	00.7255	GL Account
ale_fach__3		Asset - Cost head
ale_job__3		Contract Cost Code
Interest	00.3822	GL Account
ale_fach__4		Asset - Cost head
ale_job__4		Contract Cost Code
Non-Lease Payment	00.3822	GL Account
ale_fach__5		Asset - Cost head
ale_job__5		Contract Cost Code
Depreciation	00.575D	GL Account
ale_fach__6		Asset - Cost head
ale_job__6		Contract Cost Code
Termination	00.3822	GL Account
ale_fach__7		Asset - Cost head
ale_job__7		Contract Cost Code