Deal Changes

During the life of a lease there may be times when certain attributes of the lease may change. This could include participant changes due to assets moving locations or switching to different cost centers or could be due to changes to GL strings or set of books.

Due to various economic changes that have occurred, resultant changes to lease terms will likely drive the use of Deal Modifications in many of these scenarios. However, it is up to the customer’s professional judgement to determine the best method for their organization.

Download a PDF version of the guide.

Rent Abatements

There are several reasons why a Lessor and Lessee may agree to suspend rental payments. If the lease has been renegotiated and, in the customer’s professional judgment, this constitutes a material change, this would result in a deal modification in LeaseAccelerator. In other cases, you may already have a provision in your existing agreement for rent abatements and a modification may not be required but rather payment adjustments where a contingency has been resolved. As per the recent proposed guidance from FASB, Lessees may make an election to either apply the modification guidance or the variable rents guidance (think Payment Adjustment) under ASC 840 and ASC 842 for lease concessions related to COVID-19 as long as the total cash flows as a result of the concession are substantially the same or less than those in the contract before the concession. A preparer can make this election without the need to determine whether a force majeure clause exists in the lease.

One Payment Period

Scenario: Customer has a rent abatement for one period.

If the rent abatement is only for one payment, and a remeasurement is wanted, the user would execute a deal modification, since remeasurement is required to avoid understating expense in the month of rent forgiveness.

Alternatively, a user may record a one-time variable payment adjustment to adjust the payment to 0.00, if the full month or period payment is not being made, using the reason code ‘Other’, but monthly expense for that month will be reduced by the amount of rent abated. This will not cause a remeasurement.

The reason code used determines if that lease will be remeasured or not when you make that adjustment. If you are expecting a remeasurement for ASC 842, the only time that will happen is when you have a recurring payment adjustment due to a resolution of contingency. All other types will not remeasure. For IFRS 16, remeasurement will occur when you have recurring payment adjustments for either a resolution of contingency or a change in the underlying index rate.

One Payment Period and Remeasurement is Required

Step	Action: Modify Deal
1	Search for deal using the Top Search Bar and Deal #.
2	Hover over Record Event in the Left NavBar. In the first layer of this menu, hover over Record Contract Modification and then select Record Contract Renegotiation from the second layer of the menu.
3	On the Terms tile of the Modify Deal workspace, check the # of Payments field. Regardless of the modifications you are making, the number of payments may need to be adjusted based on your intended date of modification. The remaining term is calculated based on the current date (or system date). It is important to verify this is correct based on your intended date of modification. If the payment anniversary date has passed in the current month, then the remaining term starts with the next payment.
4	Next, click Payment Schedule Calculator button.
5	In the pop-up, change the number of payments to 1 to reflect the one-time rent abatement period and hit Tab on your keyboard. This will add an additional line to enter the next payment amount. Continue to add lines and enter relevant payment amounts and number of payments. The ending month on the last payment line should be the original remaining term.
6	Click Submit when all fields have been populated.
7	Since all original EOT options are removed from the modified deal, all options must be added with an accurate effective month, according to the term of the new modified deal. To do this, click the Mid-Term/EOT button and add the correct options. Remember, enter all options available per the contract, not just the Reasonably Certain option. Note: If you are not changing your reasonably certain EOT option, you may look in the Existing Terms section to see which option was originally reasonably certain.
8	Go to the Summary tile and verify all information is accurate.
9	Verify the Reasonably Certain EOT Option is correct in the After Modification column. This drop-down will now reflect the newly added Reasonably Certain options only. If there are multiple RC options, the system will default to select the option with the latest effective month.
10	Enter your Reasonably Certain Holding Period in the After Modification column. Please note, this should respect the remaining term for the modified deal.
11	Enter the appropriate Date of Modification. This should be the first day of a payment period and will be the new Lease Start Date of the modified deal. This cannot be the lease start date of the original deal, nor can it be a date in the future.
12	Enter any relevant comments.
13	Click Record Modification.
14	Click Ok on the warning box telling the user a new deal will be created and that the original deal will remain active until you classify and book the new, modified deal.
15	You will be taken to the Accounting Classification workspace.
16	In the Reclassify Effective drop-down, select the Modification Date and click Refresh Classification button.
17	Verify all information is correct. You may expand the Analysis by Category and Deal Characteristics sections for more information.
18	Click Save Accounting Classification.
19	Go to Deal History from Left NavBar and on the Next Steps tile, click the Book button to book the modified deal.
20	Verify the correct Ledger Date. The drop-down will include applicable dates based on the Date of Modification and open periods. Please note the Date of Modification cannot be changed once the modification has been saved.
21	Choose the appropriate ledgers to book the modified deal to. Please note, the modified deal must be booked to the same ledgers the original deal was booked. For any circumstances where a lease is booked to a different ledger, this must be entered as a brand-new lease, not a modification.
22	Verify the correct option is selected for Expected Disposition. If you were unable to select the correct RC Option in the Modify Deal workspace, you may do so now.
23	Verify the correct Expected Holding Period is entered, change as necessary.
24	Verify the correct IBR is populating. If you would like the system to use the default IBR according to remaining term, country, and Lessee, click Use Default IBR.
25	Click the Book button.
26	You will be taken to Deal Summary. Once the booking is complete, you should click Deal Summary on the Left NavBar again to refresh/reload the page. Now you should see the ledgers and all relevant information for the modified deal.

One Payment Period and No Remeasurement Desired

Step	Action: Record One-Time Payment Adjustment
1	Search for deal using the Top Search Bar and Deal #.
2	Hover over the Record Event menu in the Left NavBar.
3	Hover over Record a payment, then Change a payment.
4	Now hover Record one-time payment change.
5	Select Contingent rent resolved, and you will be taken to the Payment Adjustment workspace.
6	Within this workspace, some fields will pre-populate based on the selection you made in the Record Event cascading menu.
7	For Change Payment starting on, change the date from the current date to a valid payment date. You may refer to the payment schedule shown in the workspace to verify that you have indicated a valid payment date.
8	If you have indicated a valid payment date, the Scheduled Payment Amount will appear. If this is blank, check your date as it is not a valid payment date.
9	Next enter the new payment amount. Please note that this is not the change in payment but rather the entire new payment amount. For this example, you will enter 0.00.
10	When all appropriate fields have been populated, click the Save Payment Adjustment button.
11	The lease will be rebooked, and you will need to reload Deal Summary once the booking is complete to see the changed payment in the payment schedule.

Multiple Payment Periods

Scenario: Customer has rent abatement that is for more than one payment period.

If there are multiple payment periods where there will not be a change to the IBR, user may record a recurring adjustment using ‘Contingent rent resolved’ for the reason code and then record a second recurring payment adjustment with the same reason code of ‘Contingent rent resolved’ when payment resumes. The deal will be remeasured but will use the IBR effective at the last remeasurement. (Remeasurement for recurring payment adjustments will occur on the earliest of the effective date or the date the payment adjustment is recorded.)

If there are multiple payment periods where there will be a change to the IBR, and this constitutes a renegotiation of the lease contract, user may modify the deal and enter step payments to account for the rent holiday.

Multiple periods where there will not be a change to the IBR

Step	Action: Record Recurring Payment Adjustment
1	Search for deal using the Top Search Bar and Deal #.
2	Hover over the Record Event menu in the Left NavBar.
3	Hover over Record a payment, then Change a payment.
4	Now hover Record recurring payment change.
5	Select Contingent rent resolved, and you will be taken to the Payment Adjustment workspace.
6	Within this workspace, some fields will pre-populate based on the selection you made in the Record Event cascading menu.
7	For Change Payment starting on, change the date from the current date to a valid payment date. You may refer to the payment schedule shown in the workspace to verify that you have indicated a valid payment date.
8	If you have indicated a valid payment date, the Scheduled Payment Amount will appear. If this is blank, check your date as it is not a valid payment date.
9	Next enter the new payment amount. Please note that this is not the change in payment but rather the entire new payment amount. For this rent abatement period, you should enter 0.00.
10	Since you selected a recurring payment adjustment, you will see the Remeasurement Date where you can select the appropriate fiscal period.
11	When all appropriate fields have been populated, click the Save Payment Adjustment button.
12	The lease will be rebooked, and you will need to reload Deal Summary once the booking is complete to see the changed payment in the payment schedule.
13	To record the second recurring payment adjustment, to reinstate the original rent, follow steps 2-11 and instead of the payment amount being 0.00, you would indicate the applicable payment due.

Multiple periods where there will be a change to the IBR

Step	Action: Modify Deal
1	Search for deal using the Top Search Bar and Deal #.
2	Hover over Record Event in the Left NavBar. In the first layer of this menu, hover over Record Contract Modification and then select Record Contract Renegotiation from the second layer of the menu.
3	On the Terms tile of the Modify Deal workspace, check the # of Payments field. Regardless of the modifications you are making, the number of payments may need to be adjusted based on your intended date of modification. The remaining term is calculated based on the current date (or system date). It is important to verify this is correct based on your intended date of modification. If the payment anniversary date has passed in the current month, then the remaining term starts with the next payment.
4	Now, click Payment Schedule Calculator button.
5	In the pop-up, change the number of payments to reflect the number of rent abatement periods and hit Tab on your keyboard. This will add an additional line to enter the next payment amount. Now you may indicate the payment amount that will resume after the abatement period. Continue to add lines and enter relevant payment amounts and number of payments. The ending month on the last payment line should be the original remaining term.
6	Click Submit when all fields have been populated.
7	Since all original EOT options are removed from the modified deal, all options must be added with an accurate effective month, according to the term of the new modified deal. To do this, click the Mid-Term/EOT button and add the correct options. Remember, enter all options available per the contract, not just the Reasonably Certain option. Note: If you are not changing your reasonably certain EOT option, you may look in the Existing Terms section to see which option was originally reasonably certain.
8	Go to the Summary tile and verify all information is accurate.
9	Verify the Reasonably Certain EOT Option is correct in the After Modification column. This drop-down will now reflect the newly added Reasonably Certain options only. If there are multiple RC options, the system will default to select the option with the latest effective month.
10	Enter your Reasonably Certain Holding Period in the After Modification column. Please note, this should respect the remaining term for the modified deal.
11	Enter the appropriate Date of Modification. This should be the first day of a payment period and will be the new Lease Start Date of the modified deal. This cannot be the lease start date of the original deal, nor can it be a date in the future.
12	Enter any relevant comments.
13	Click Record Modification.
14	Click Ok on the warning box telling the user a new deal will be created and that the original deal will remain active until you classify and book the new, modified deal.
15	You will be taken to the Accounting Classification workspace.
16	In the Reclassify Effective drop-down, select the Modification Date and click Refresh Classification button.
17	Verify all information is correct. You may expand the Analysis by Category and Deal Characteristics sections for more information.
18	Click Save Accounting Classification.
19	Go to Deal History from Left NavBar and on the Next Steps tile, click the Book button to book the modified deal.
20	Verify the correct Ledger Date. The drop-down will include applicable dates based on the Date of Modification and open periods. Note: The Date of Modification cannot be changed once the modification has been saved.
21	Choose the appropriate ledgers to book the modified deal to. Please note, the modified deal must be booked to the same ledgers the original deal was booked. For any circumstances where a lease is booked to a different ledger, this must be entered as a brand-new lease, not a modification.
22	Verify the correct option is selected for Expected Disposition. If you were unable to select the correct RC Option in the Modify Deal workspace, you may do so now.
23	Verify the correct Expected Holding Period is entered, change as necessary.
24	Verify the correct IBR is populating. If you would like the system to use the default IBR according to remaining term, country, and Lessee, click Use Default IBR.
25	Click the Book button.
26	You will be taken to Deal Summary. Once the booking is complete, click Deal Summary on the Left NavBar again to refresh/reload the page.

Term Changes

As a result of possible rent abatements or rent holidays, customers may have renegotiated lease agreements where the duration or term of the lease is changing. This would require a deal modification to be performed to capture all changes at once. See below for possible scenarios.

Rent Holiday plus Term Extension

Scenario: Customer has a rent holiday for 3 months where Lessor does not require payment but as a result the original term of the lease will be extended for 3 months.

Step	Action: Modify Deal
1	Search for deal using the Top Search Bar and Deal #.
2	Hover over Record Event in the Left NavBar. In the first layer of this menu, hover over Record Contract Modification and then select Record Contract Renegotiation from the second layer of the menu.
3	On the Terms tile of Modification workspace, change the # of payments to reflect the new remaining term. The number auto-populated in this field will reflect the remaining original term as at the current date. User should calculate remaining term from the Date of Modification, as that will be used as the new lease start date for the modified deal. In this scenario you’ll want to add 3 months to the remaining term to account for the extended period.
4	Now click the Payment Schedule Calculator Button
5	In the pop-up, change the number of payments to reflect the number of periods in the rent holiday and hit Tab on your keyboard. This will add an additional line to enter the next payment amount. Be sure to change the payment amount for the rent holiday to 0.00 if you are not paying any amount during that time. Now you may indicate the payment amount that will resume after the rent holiday period. Continue to add lines and enter relevant payment amounts and number of payments. The ending month on the last payment line should be the original remaining term plus 3 for this scenario.
6	Click Submit when all fields have been populated.
7	Since all original EOT options are removed from the modified deal, all options must be added with an accurate effective month, according to the term of the new modified deal. To do this, click the Mid-Term/EOT button and add the correct options. Remember, enter all options available per the contract, not just the Reasonably Certain option. Note: If you are not changing your reasonably certain EOT option, you may look in the Existing Terms section to see which option was originally reasonably certain.
8	Go to the Summary tile and verify all information is accurate.
9	Verify the Reasonably Certain EOT Option is correct in the After Modification column. This drop-down will now reflect the newly added Reasonably Certain options only. If there are multiple RC options, the system will default to select the option with the latest effective month.
10	Enter your Reasonably Certain Holding Period in the After Modification column. Please note, this should respect the remaining term for the modified deal.
11	Enter the appropriate Date of Modification. This should be the first day of a payment period and will be the new Lease Start Date of the modified deal. This cannot be the lease start date of the original deal, nor can it be a date in the future.
12	Enter any relevant comments.
13	Click Record Modification.
14	Click Ok on the warning box telling the user a new deal will be created and that the original deal will remain active until you classify and book the new, modified deal.
15	You will be taken to the Accounting Classification workspace.
16	In the Reclassify Effective drop-down, select the Modification Date and click Refresh Classification button.
17	Verify all information is correct. You may expand the Analysis by Category and Deal Characteristics sections for more information.
18	Click Save Account Classification.
19	Go to Deal History from Left NavBar and on the Next Steps tile, click the Book button to book the modified deal.
20	Verify the correct Ledger Date. The drop-down will include applicable dates based on the Date of Modification and open periods. Please note the Date of Modification cannot be changed once the modification has been saved.
21	Choose the appropriate ledgers to book the modified deal to. Please note, the modified deal must be booked to the same ledgers the original deal was booked. For any circumstances where a lease is booked to a different ledger, this must be entered as a brand-new lease, not a modification.
22	Verify the correct option is selected for Expected Disposition. If you were unable to select the correct RC Option in the Modify Deal workspace, you may do so now.
23	Verify the correct Expected Holding Period is entered, change as necessary.
24	Verify the correct IBR is populating. If you would like the system to use the default IBR according to remaining term, country, and Lessee, click Use Default IBR.
25	Click the Book button.
26	You will be taken to Deal Summary. Once the booking is complete, you should click Deal Summary on the Left NavBar again to refresh/reload the page.

Rent Holiday plus Payment Increase

Scenario: Customer has a rent holiday for 3 months where Lessor does not require payment but as a result the payments for the remaining term after the rent holiday will increase.

Step	Action: Modify Deal
1	Search for deal using the Top Search Bar and Deal #.
2	Hover over Record Event in the Left NavBar. In the first layer of this menu, hover over Record Contract Modification and then select Record Contract Renegotiation from the second layer of the menu.
3	On the Terms tile of Modification workspace, change the # of payments to reflect the original remaining term. The number auto-populated in this field will reflect the remaining original term as at the current date. User should calculate remaining term from the Date of Modification, as that will be used as the new lease start date for the modified deal.
4	Now click the Payment Schedule Calculator Button
5	In the pop-up, change the number of payments to reflect the number of periods in the rent holiday and hit Tab on your keyboard. This will add an additional line to enter the next payment amount. Be sure to change the payment amount for the rent holiday to 0.00 if you are not paying any amount during that time. Now you may indicate the payment amount that will resume after the rent holiday period. Continue to add lines and enter relevant payment amounts and number of payments. The ending month on the last payment line should be the original remaining term.
6	Click Submit when all fields have been populated.
7	Since all original EOT options are removed from the modified deal, all options must be added with an accurate effective month, according to the term of the new modified deal. To do this, click the Mid-Term/EOT button and add the correct options. Remember, enter all options available per the contract, not just the Reasonably Certain option. Note: Note: If you are not changing your reasonably certain EOT option, you may look in the Existing Terms section to see which option was originally reasonably certain.
8	Go to the Summary tile and verify all information is accurate.
9	Verify the Reasonably Certain EOT Option is correct in the After Modification column. This drop-down will now reflect the newly added Reasonably Certain options only. If there are multiple RC options, the system will default to select the option with the latest effective month.
10	Enter your Reasonably Certain Holding Period in the After Modification column. Please note, this should respect the remaining term for the modified deal.
11	Enter the appropriate Date of Modification. This should be the first day of a payment period and will be the new Lease Start Date of the modified deal. This cannot be the lease start date of the original lease, nor can it be a date in the future.
12	Enter any relevant comments.
13	Click Record Modification.
14	Click Ok on the warning box telling the user a new deal will be created and that the original deal will remain active until you classify and book the new, modified deal.
15	You will be taken to the Accounting Classification workspace.
16	In the Reclassify Effective drop-down, select the Modification Date and click Refresh Classification button.
17	Verify all information is correct. You may expand the Analysis by Category and Deal Characteristics sections for more information.
18	Click Save Account Classification.
19	Go to Deal History from Left NavBar and on the Next Steps tile, click the Book button to book the modified deal.
20	Verify the correct Ledger Date. The drop-down will include applicable dates based on the Date of Modification and open periods. Please note the Date of Modification cannot be changed once the modification has been saved.
21	Choose the appropriate ledgers to book the modified deal to. Please note, the modified deal must be booked to the same ledgers the original deal was booked. For any circumstances where a lease is booked to a different ledger, this must be entered as a brand-new lease, not a modification.
22	Verify the correct option is selected for Expected Disposition. If you were unable to select the correct RC Option in the Modify Deal workspace, you may do so now.
23	Verify the correct Expected Holding Period is entered, change as necessary.
24	Verify the correct IBR is populating. If you would like the system to use the default IBR according to remaining term, country, and Lessee, click Use Default IBR.
25	Click the Book button.
26	You will be taken to Deal Summary. Once the booking is complete, you should click Deal Summary on the Left NavBar again to refresh/reload the page.

Rent Reductions

The majority of time, any rent reduction would typically be handled through deal modification, as it likely constitutes a material renegotiation of a lease agreement. However, it is up to the professional judgment of each customer to determine the exact course of action since payment adjustment is also an option available in the application.

Reduction of Payment for Future Steps

Scenario: Customer needs to change an existing step payment schedule to reduce rent for future steps.

Step	Action: Modify Deal
1	Search for deal using the Top Search Bar and Deal #.
2	Hover over Record Event in the Left NavBar. In the first layer of this menu, hover over Record Contract Modification and then select Record Contract Renegotiation from the second layer of the menu.
3	On the Terms tile of Modification workspace, change the # of payments to reflect the original remaining term. The number auto-populated in this field will reflect the remaining original term as at the current date. User should calculate remaining term from the Date of Modification, as that will be used as the new lease start date for the modified deal.
4	Now click the Payment Schedule Calculator Button
5	In the pop-up, change the payment amount in the correct step to the reduced amount. If more future step payment amounts are changing, you may edit those here as well. The ending month on the last payment line should be the original remaining term.
6	Click Submit when all fields have been populated.
7	Since all original EOT options are removed from the modified deal, all options must be added with an accurate effective month, according to the term of the new modified deal. To do this, click the Mid-Term/EOT button and add the correct options. Remember, enter all options available per the contract, not just the Reasonably Certain option. Note: If you are not changing your reasonably certain EOT option, you may look in the Existing Terms section to see which option was originally reasonably certain.
8	Go to the Summary tile and verify all information is accurate.
9	Verify the Reasonably Certain EOT Option is correct in the After Modification column. This drop-down will now reflect the newly added Reasonably Certain options only. If there are multiple RC options, the system will default to select the option with the latest effective month.
10	Enter your Reasonably Certain Holding Period in the After Modification column. Please note, this should respect the remaining term for the modified deal.
11	Enter the appropriate Date of Modification. This should be the first day of a payment period and will be the new Lease Start Date of the modified deal. This cannot be the lease start date of the original lease, nor can it be a date in the future.
12	Enter any relevant comments.
13	Click Record Modification.
14	Click Ok on the warning box telling the user a new deal will be created and that the original deal will remain active until you classify and book the new, modified deal.
15	You will be taken to the Accounting Classification workspace.
16	In the Reclassify Effective drop-down, select the Modification Date and click Refresh Classification button.
17	Verify all information is correct. You may expand the Analysis by Category and Deal Characteristics sections for more information.
18	Click Save Account Classification.
19	Go to Deal History from Left NavBar and on the Next Steps tile, click the Book button to book the modified deal.
20	Verify the correct Ledger Date. The drop-down will include applicable dates based on the Date of Modification and open periods. Please note the Date of Modification cannot be changed once the modification has been saved.
21	Choose the appropriate ledgers to book the modified deal to. Please note, the modified deal must be booked to the same ledgers the original deal was booked. For any circumstances where a lease is booked to a different ledger, this must be entered as a brand-new lease, not a modification.
22	Verify the correct option is selected for Expected Disposition. If you were unable to select the correct RC Option in the Modify Deal workspace, you may do so now.
23	Verify the correct Expected Holding Period is entered, change as necessary.
24	Verify the correct IBR is populating. If you would like the system to use the default IBR according to remaining term, country, and Lessee, click Use Default IBR.
25	Click the Book button.
26	You will be taken to Deal Summary. Once the booking is complete, you should click Deal Summary on the Left NavBar again to refresh/reload the page.

Existing Rent Holiday but Need Level Payment Reduction

SCENARIO: Customer has existing step payment schedule which includes a rent holiday followed by level payments and needs to reduce all of those level payments after a certain date to the same reduced payment amount.

LeaseAccelerator recommends using the Payment Adjustment Bulk Import feature to quickly and easily import a series of one-time payment adjustments to adjust the payment schedule. However, this may also be accomplished in the user interface. Both processes are outlined below.

Using the Payment Adjustment Bulk Import

Step	Action: Bulk Import Payment Adjustments
1	Download the most recent Portfolio Intake Workbook (PIW) from Ask Alex or the Success Center.
2	Populate the Payment Adjustment tab. See below for an example.
3	Navigate to the Bulk Import workspace from the Left NavBar.
4	Select the Payment Adjustment tile.
5	Click Choose File and select your saved PIW.
6	Click Validate.
7	Review any validation messages and correct as necessary. Remember, yellow warnings will not prevent import, but red errors will and those must be addressed before finalizing import.
8	Once all validation messages have been addressed, click Import to finalize.
9	Import was a success when you receive green dots next to the schedule numbers. You may click on any of the schedule numbers to review the deal in greater detail.

Recording Payment Adjustments in the User Interface

Step	Action: Record a Series of One-Time Payment Adjustments
1	Search for deal using the Top Search Bar and Deal #.
2	Hover over Record Event in the Left NavBar.
3	In the first menu layer, hover over Record a payment and then in second layer, Change a payment.
4	Now hover over Record a one-time payment change and then finally select Contingent rent resolved.
5	You will be taken to the Payment Adjustment workspace. The box indicating if this payment adjustment should be recurring is automatically unchecked and the Reason for Change drop-down has been pre-selected as Contingent rent resolved.
6	Next, for Change payment amount, starting, change the date from the current date to a valid payment date. You may refer to the payment schedule shown in the workspace to verify that you have indicated a valid payment date.

Step	Action: Record a Series of One-Time Payment Adjustments
7	If you have indicated a valid payment date, the Scheduled Payment Amount will appear. If this is blank, check your date as it is not a valid payment date.
8	Next enter the new payment amount. Please note that this is not the change in payment but rather the entire new payment amount.
9	When all appropriate fields have been populated, click the Save Payment Adjustment button.
10	The lease will be rebooked, and you will need to reload Deal Summary once the booking is complete to see the changed payment in the payment schedule.
11	Repeat steps 2-11 for all payments that should be adjusted.

Partial Step Payment Reduction

Scenario: Customer has existing step payment schedule and needs to reduce the rental amount for six months during the first step but then resume initial payment amount to finish out that step.

(Put another way, payment structure is months 1-12 at $1000, months 13-24 at $1500 and months 25-36 at $2000. Customer needs to reduce rent for months 3-9 to $750.)

This can be accomplished by recording a recurring payment adjustment for month 3 at the reduced amount, using Contingent rent resolved as the reason for change and then recording another recurring payment adjustment at month 10 to reinstate the original payment amount. All steps will stay intact and return to the normal structure as recurring payment adjustments are applied proportionately to future step payment amounts.

Step	Action: Record Recurring Payment Adjustment
1	Search for deal using the Top Search Bar and Deal #.
2	Hover over Record Event in the Left NavBar.
3	In the first menu layer, hover over Record a payment and then in second layer, Change a payment.
4	Now hover over Record a recurring payment change and then finally select Contingent rent resolved.
5	You will be taken to the Payment Adjustment workspace. The box to indicate that this will be a recurring payment adjustment is already checked and the Reason for Change is pre-populated with Contingent rent resolved.
6	Next, for Change payment amount, starting, change the date from the current date to a valid payment date. You may refer to the payment schedule shown in the workspace to verify that you have indicated a valid payment date.
7	If you have indicated a valid payment date, the Scheduled Payment Amount will appear. If this is blank, check your date as it is not a valid payment date.
8	Next enter the new payment amount. Please note that this is not the change in payment but rather the entire new payment amount.
9	Indicate the date that the new payment adjustment will be remeasured in the Remeasurement Date field.
10	When all appropriate fields have been populated, click the Save Payment Adjustment button.
11	The lease will be rebooked, and you will need to reload Deal Summary once the booking is complete to see the changed payment in the payment schedule.
12	To record the second recurring payment adjustment, to reinstate the original rent, follow steps 2-11 and indicate the applicable payment due when rent is reinstated.

Reduce Rental/Increase Term

Scenario: Customer renegotiated a lease to reduce the rental amount but extend the term of the lease.

In this scenario there are two changes that need to be captured in the modification. Follow the steps below in order to make all necessary updates and book the modified deal.

Step	Action: Modify Deal
1	Search for deal using the Top Search Bar and Deal #.
2	Hover over Record Event in the Left NavBar. In the first layer of this menu, hover over Record Contract Modification and then select Record extension with renegotiated contract from the second layer of the menu.
3	On Terms tile of Modification workspace, change the # of Payments to reflect the increase in term. Remember, the number that appears is the remaining term as at the current date. Users should calculate the remaining term as at the Date of Modification. Example: If you have 25 months left of payments on the original lease and you are increasing the term by 3 months, you would enter 28 for the number of monthly payments that remain for the extended lease term.
4	Calculate the new LRF based on the reduced payment and populate the LRF field with that number. When you tab out of the field the payment amount should change to the desired amount.
5	Since all original EOT options are removed from the modified deal, all options must be added with an accurate effective month, according to the term of the new modified deal. To do this, click the Mid-Term/EOT button and add the correct options. Remember, enter all options available per the contract, not just the Reasonably Certain option. Note: If you are not changing your reasonably certain EOT option, you may look in the Existing Terms section to see which option was originally reasonably certain.
6	Go to the Summary tile and verify all information is accurate.
7	Verify the Reasonably Certain EOT Option is correct in the After Modification column. This drop-down will now reflect the newly added Reasonably Certain options only. If there are multiple RC options, the system will default to select the option with the latest effective month.
8	Enter your Reasonably Certain Holding Period in the After Modification column. Please note, this should respect the remaining term for the modified deal.
10	Enter the appropriate Date of Modification. This should be the first day of a payment period and will be the new Lease Start Date of the modified deal. This cannot be the lease start date of the original deal, nor can it be a date in the future.
11	Enter any relevant comments.
12	Click Record Modification.
13	Click Ok on the warning box telling the user a new deal will be created and that the original deal will remain active until you classify and book the new, modified deal.
14	You will be taken to the Accounting Classification workspace.
15	In the Reclassify Effective drop-down, select the Modification Date and click Refresh Classification button.
16	Verify all information is correct. You may expand the Analysis by Category and Deal Characteristics sections for more information.
17	Click Save Account Classification.
18	Go to Deal History from Left NavBar and on the Next Steps tile, click the Book button to book the modified deal.
19	Verify the correct Ledger Date. The drop-down will include applicable dates based on the Date of Modification and open periods. Please note the Date of Modification cannot be changed once the modification has been saved.
20	Choose the appropriate ledgers to book the modified deal to. Please note, the modified deal must be booked to the same ledgers the original deal was booked. For any circumstances where a lease is booked to a different ledger, this must be entered as a brand-new lease, not a modification.
21	Verify the correct option is selected for Expected Disposition. If you were unable to select the correct RC Option in the Modify Deal workspace, you may do so now.
22	Verify the correct Expected Holding Period is entered, change as necessary.
23	Verify the correct IBR is populating. If you would like the system to use the default IBR according to remaining term, country, and Lessee, click Use Default IBR.
24	Click the Book button.
25	You will be taken to Deal Summary. Once the booking is complete, you should click Deal Summary on the Left NavBar again to refresh/reload the page.

Reduce Rental/Decrease Term

Scenario: Customer renegotiated a lease to reduce the rental amount and decrease the term of the lease.

In this scenario there are two changes that need to be captured in the modification. Follow the steps below in order to make all necessary updates and book the modified deal.

Step	Action: Modify Deal
1	Search for deal using the Top Search Bar and Deal #.
2	Hover over Record Event in the Left NavBar. In the first layer of this menu, hover over Record Contract Modification and then select Record reduction in term from the second layer of the menu.
3	On Terms tile of Modification workspace, change the # of Payments to reflect the decrease in term. Remember, the number that appears is the remaining term as at the current date. Users should calculate the remaining term as at the Date of Modification. Example: If you have 25 months left of payments on the original lease and you are decreasing the term by 3 months, you would enter 22 for the number of monthly payments that remain for the extended lease term.
4	Calculate the new LRF based on the reduced payment and populate the LRF field with that number. When you tab out of the field the payment amount should change to the desired amount.
5	Since all original EOT options are removed from the modified deal, all options must be added with an accurate effective month, according to the term of the new modified deal. To do this, click the Mid-Term/EOT button and add the correct options. Remember, enter all options available per the contract, not just the Reasonably Certain option. Note: If you are not changing your reasonably certain EOT option, you may look in the Existing Terms section to see which option was originally reasonably certain.
6	Go to the Summary tile and verify all information is accurate.
7	Verify the Reasonably Certain EOT Option is correct in the After Modification column. This drop-down will now reflect the newly added Reasonably Certain options only. If there are multiple RC options, the system will default to select the option with the latest effective month.
8	Enter your Reasonably Certain Holding Period in the After Modification column. Please note, this should respect the remaining term for the modified deal.
9	Enter the appropriate Date of Modification. This should be the first day of a payment period and will be the new Lease Start Date of the modified deal. This cannot be the lease start date of the original deal, nor can it be a date in the future.
10	Enter any relevant comments.
11	Click Record Modification.
12	Click Ok on the warning box telling the user a new deal will be created and that the original deal will remain active until you classify and book the new, modified deal.
13	You will be taken to the Accounting Classification workspace.
14	In the Reclassify Effective drop-down, select the Modification Date and click Refresh Classification button.
15	Verify all information is correct. You may expand the Analysis by Category and Deal Characteristics sections for more information.
16	Click Save Account Classification.
17	Go to Deal History from Left NavBar and on the Next Steps tile, click the Book button to book the modified deal.
18	Verify the correct Ledger Date. The drop-down will include applicable dates based on the Date of Modification and open periods. Please note the Date of Modification cannot be changed once the modification has been saved.
19	Choose the appropriate ledgers to book the modified deal to. Please note, the modified deal must be booked to the same ledgers the original deal was booked. For any circumstances where a lease is booked to a different ledger, this must be entered as a brand-new lease, not a modification.
20	Verify the correct option is selected for Expected Disposition. If you were unable to select the correct RC Option in the Modify Deal workspace, you may do so now.
21	Verify the correct Expected Holding Period is entered, change as necessary.
22	Verify the correct IBR is populating. If you would like the system to use the default IBR according to remaining term, country, and Lessee, click Use Default IBR.
23	Click the Book button.
24	You will be taken to Deal Summary. Once the booking is complete, you should click Deal Summary on the Left NavBar again to refresh/reload the page.

Reduce Rental for Some Assets/Return Others

Scenario: Customer has renegotiated the lease to reduce the rental for some of the assets while returning the remaining assets.

In this scenario there are two changes that need to be captured. Follow the steps below in order to make all necessary updates and book the modified deal.

Step	Action: Modify Deal
1	Search for deal using the Top Search Bar and Deal #.
2	Hover over Record Event in the Left NavBar. In the first layer of this menu, hover over Record Contract Modification and then select Record Contract Renegotiation from the second layer of the menu.
3	It’s important to note that regardless of the modification you are making, the number of payments may need to be adjusted based on your intended Date of Modification. The system will calculate this based on the current or system date, so you should adjust based on what your Date of Modification will be.
4	Calculate the new LRF based on the reduced payment and populate the LRF field with that number. When you tab out of the field the payment amount should change to the desired amount.
5	Since all original EOT options are removed from the modified deal, all options must be added with an accurate effective month, according to the term of the new modified deal. To do this, click the Mid-Term/EOT button and add the correct options. Remember, enter all options available per the contract, not just the Reasonably Certain option. Note: If you are not changing your reasonably certain EOT option, you may look in the Existing Terms section to see which option was originally reasonably certain.
6	Go to the Remove/Reduce Assets tile.
7	Click the Plus sign to expand the asset tree.
8	Select the asset(s) that you are returning by checking the box next to each.
9	From the Asset Event drop-down, select Return.
10	Indicate the appropriate Return Date. Please note, the Effective Date of the return should be before or the same as the Date of Modification user indicates on the Summary tile.
11	Enter any relevant comments.
12	Go to the Summary tile and verify all information is accurate.
13	Verify the Reasonably Certain EOT Option is correct in the After Modification column. This drop-down will now reflect the newly added Reasonably Certain options only. If there are multiple RC options, the system will default to select the option with the latest effective month.
14	Enter your Reasonably Certain Holding Period in the After Modification column. Please note, this should respect the remaining term for the modified deal.
15	Enter the appropriate Date of Modification. This should be the first day of a payment period and will be the new Lease Start Date of the modified deal. This cannot be the lease start date of the original deal, nor can it be a date in the future.
16	Select the appropriate answer from the drop-down indicating the method to remeasure the ROU asset.
17	Enter any relevant comments.
18	Click Record Modification.
19	Click Ok on the warning box telling the user a new deal will be created and that the original deal will remain active until you classify and book the new, modified deal.
20	You will be taken to the Accounting Classification workspace.
Step	Action: Modify Deal
21	In the Reclassify Effective drop-down, select the Modification Date and click Refresh Classification button.
22	Verify all information is correct. You may expand the Analysis by Category and Deal Characteristics sections for more information.
23	Click Save Account Classification.
24	Go to Deal History from Left NavBar and on the Next Steps tile, click the Book button to book the modified deal.
25	Verify the correct Ledger Date. The drop-down will include applicable dates based on the Date of Modification and open periods. Please note the Date of Modification cannot be changed once the modification has been saved.
26	Choose the appropriate ledgers to book the modified deal to. Please note, the modified deal must be booked to the same ledgers the original deal was booked. For any circumstances where a lease is booked to a different ledger, this must be entered as a brand-new lease, not a modification.
27	Verify the correct option is selected for Expected Disposition. If you were unable to select the correct RC Option in the Modify Deal workspace, you may do so now.
28	Verify the correct Expected Holding Period is entered, change as necessary.
29	Verify the correct IBR is populating. If you would like the system to use the default IBR according to remaining term, country, and Lessee, click Use Default IBR.
30	Click the Book button.
31	You will be taken to Deal Summary. Once the booking is complete, you should click Deal Summary on the Left NavBar again to refresh/reload the page.

Reduce Rental/Decrease Term for Some Assets/Return Others

Scenario: Customer has renegotiated the lease to reduce the rental for some of the assets for a shortened term while returning the remaining assets.

In this scenario there are three changes that need to be captured and modifying the deal enables the user to do all three at the same time. Follow the steps below in order to make all necessary updates and book the modified deal.

Step	Action: Modify Deal
1	Search for deal using the Top Search Bar and Deal #.
2	Hover over Record Event in the Left NavBar. In the first layer of this menu, hover over Record Contract Modification and then select Record Contract Renegotiation from the second layer of the menu.
3	On Terms tile of Modification workspace, change the # of Payments to reflect the reduction of the remaining term. Users should calculate the remaining term as at the Date of Modification. Example: If you have 25 months left of payments on the original lease and you are reducing the term by 12 months, you would enter 13 for the number of monthly payments that remain for the shortened lease term.
4	Calculate the new LRF based on the reduced payment and populate the LRF field with that number. When you tab out of the field the payment amount should change to the desired amount.
5	Since all original EOT options are removed from the modified deal, all options must be added with an accurate effective month, according to the term of the new modified deal. To do this, click the Mid-Term/EOT button and add the correct options. Remember, enter all options available per the contract, not just the Reasonably Certain option. Note: If you are not changing your reasonably certain EOT option, you may look in the Existing Terms section to see which option was originally reasonably certain.
6	Go to the Remove/Reduce Assets tile.
7	Click the Plus sign to expand the asset tree.
8	Select the asset(s) that you are returning by checking the box next to each.
9	From the Asset Event drop-down, select Return.
10	Indicate the appropriate Return Date. Please note, the Effective Date of the return should be before or the same as the Date of Modification user indicates on the Summary tile.
11	Enter any relevant comments.
12	Go to the Summary tile and verify all information is accurate.
13	Verify the Reasonably Certain EOT Option is correct in the After Modification column. This drop-down will now reflect the newly added Reasonably Certain options only. If there are multiple RC options, the system will default to select the option with the latest effective month.
14	Enter your Reasonably Certain Holding Period in the After Modification column. Please note, this should respect the remaining term for the modified deal.
15	Enter the appropriate Date of Modification. This should be the first day of a payment period and will be the new Lease Start Date of the modified deal. This cannot be the lease start date of the original lease, nor can it be a date in the future.
16	Select the appropriate answer from the drop-down indicating the method to remeasure the ROU asset.
17	Enter any relevant comments.
18	Click Record Modification.
19	Click Ok on the warning box telling the user a new deal will be created and that the original deal will remain active until you classify and book the new, modified deal.
20	You will be taken to the Accounting Classification workspace.
21	In the Reclassify Effective drop-down, select the Modification Date and click Refresh Classification button.
22	Verify all information is correct. You may expand the Analysis by Category and Deal Characteristics sections for more information.
23	Click Save Account Classification.
24	Go to Deal History from Left NavBar and on the Next Steps tile, click the Book button to book the modified deal.
25	Verify the correct Ledger Date. The drop-down will include applicable dates based on the Date of Modification and open periods. Please note the Date of Modification cannot be changed once the modification has been saved.
26	Choose the appropriate ledgers to book the modified deal to. Please note, the modified deal must be booked to the same ledgers the original deal was booked. For any circumstances where a lease is booked to a different ledger, this must be entered as a brand-new lease, not a modification.
27	Verify the correct option is selected for Expected Disposition. If you were unable to select the correct RC Option in the Modify Deal workspace, you may do so now.
28	Verify the correct Expected Holding Period is entered, change as necessary.
Step	Action: Modify Deal
29	Verify the correct IBR is populating. If you would like the system to use the default IBR according to remaining term, country, and Lessee, click Use Default IBR.
30	Click the Book button.
31	You will be taken to Deal Summary. Once the booking is complete, you should click Deal Summary on the Left NavBar again to refresh/reload the page.

Returns

There may be situations where an impairment is not appropriate, and the Lessor and Lessee may have negotiated to return the asset(s) instead. The majority of the time, these returns may be handled through Record Asset Event. However, depending on the timing of these events, a deal modification may be more appropriate. In these situations, customers should use their professional judgment to determine the right course of action.

Return Some Assets Early

Scenario: Decision was made to return some of the assets on a lease schedule early.

In this scenario you would be exercising the return or early return option. If the return is ready to be exercised in the current or a future fiscal month, record the asset event. If a remeasurement is necessary for the remaining assets, modify the deal to remove the assets you are returning.

Return is ready to be exercised

Step	Action: Exercising a Return Option
1	Search for deal using the Top Search Bar and Deal #.
2	Hover over Record Event in the Left NavBar. In the first menu layer, hover over Exercise lease termination and then hover over Record contractual return. Select the Return event and you’ll be taken to the Record Asset Event workspace.
3	Select the asset that you want to return. Please note: if you have multiple assets being terminated, you may select them at the same time if the Effective date of those returns is the same.
4	The Return Option is pre-populated in the Asset Event drop-down.
5	Change Ledger Date to appropriate date. If the return is backdated, the first open fiscal period should be used; for all other returns, the current fiscal period should be used.
6	Change Return Date to appropriate date. This should be the day that you return the asset(s) and should be the last day of a payment period and not the first day of the next payment period.
7	Enter any relevant comments related to the return.
8	Click Save.

Remeasurement of remaining assets required

Step	Action: Modify Deal
1	Search for deal using the Top Search Bar and Deal #.
2	Hover over Record Event in the Left NavBar. In the first layer of this menu, hover over Record Contract Modification and then select Record Contract Renegotiation from the second layer of the menu.
3	It’s important to note that regardless of the modification you are making, the number of payments may need to be adjusted based on your intended Date of Modification. The system will calculate this based on the current or system date, so you should adjust based on what your Date of Modification will be.
4	Since all original EOT options are removed from the modified deal, all options must be added with an accurate effective month, according to the term of the new modified deal. To do this, click the Mid-Term/EOT button and add the correct options. Remember, enter all options available per the contract, not just the Reasonably Certain option. Note: If you are not changing your reasonably certain EOT option, you may look in the Existing Terms section to see which option was originally reasonably certain.
5	Go to the Remove/Reduce Assets tile.
6	Click the Plus sign to expand the asset tree.
7	Select the asset(s) that you are returning by checking the box next to each.
8	From the Asset Event drop-down, select Return.
9	Indicate the appropriate Return Date. Please note, the Effective Date of the return should be before or the same as the Date of Modification user indicates on the Summary tile.
10	Enter any relevant comments.
11	Go to the Summary tile and verify all information is accurate.
12	Verify the Reasonably Certain EOT Option is correct in the After Modification column. This drop-down will now reflect the newly added Reasonably Certain options only. If there are multiple RC options, the system will default to select the option with the latest effective month.
13	Enter your Reasonably Certain Holding Period in the After Modification column. Please note, this should respect the remaining term for the modified deal.
14	Enter the appropriate Date of Modification. This should be the first day of a payment period and will be the new Lease Start Date of the modified deal. This cannot be the lease start date of the original lease, nor can it be a date in the future.
15	Select the appropriate answer from the drop-down indicating the method to remeasure the ROU asset.
16	Enter any relevant comments.
17	Click Record Modification.
18	Click Ok on the warning box telling the user a new deal will be created and that the original deal will remain active until you classify and book the new, modified deal.
19	You will be taken to the Accounting Classification workspace.
20	In the Reclassify Effective drop-down, select the Modification Date and click Refresh Classification button.
21	Verify all information is correct. You may expand the Analysis by Category and Deal Characteristics sections for more information.
22	Click Save Account Classification.
23	Go to Deal History from Left NavBar and on the Next Steps tile, click the Book button to book the modified deal.
24	Verify the correct Ledger Date. The drop-down will include applicable dates based on the Date of Modification and open periods. Please note the Date of Modification cannot be changed once the modification has been saved.
25	Choose the appropriate ledgers to book the modified deal to. Please note, the modified deal must be booked to the same ledgers the original deal was booked. For any circumstances where a lease is booked to a different ledger, this must be entered as a brand-new lease, not a modification.
26	Verify the correct option is selected for Expected Disposition. If you were unable to select the correct RC Option in the Modify Deal workspace, you may do so now.
27	Verify the correct Expected Holding Period is entered, change as necessary.
28	Verify the correct IBR is populating. If you would like the system to use the default IBR according to remaining term, country, and Lessee, click Use Default IBR.
29	Click the Book button.
30	You will be taken to Deal Summary. Once the booking is complete, you should click Deal Summary on the Left NavBar again to refresh/reload the page.

Return All Assets Early

Scenario: Decision was made to return all assets on a lease schedule before lease expiration.

In this scenario you would be exercising the return or early return option. If the return is ready to be exercised in the current or a future fiscal month, record the asset event as that will drive a remeasurement. If the return is not ready to be exercised but the RCHP is changing, modify the deal. If you return the asset(s) but expect to continue making payments, fully impair the asset(s). If you impair an asset, no deal modification is necessary.

Return is ready to be exercised

Step	Action: Exercising a Return Option
1	Search for deal using the Top Search Bar and Deal #.
2	Hover over Record Event in the Left NavBar. In the first menu layer, hover over Exercise lease termination and then hover over Record contractual return. Select the Return event and you’ll be taken to the Record Asset Event workspace.
3	By default, all assets are checked.
4	The Return Option is pre-populated in the Asset Event drop-down.
5	Change Ledger Date to appropriate date. If the return is backdated, the first open fiscal period should be used; for all other returns, the current fiscal period should be used.
6	Change Return Date to appropriate date. This should be the day that you return the asset(s) and should be the last day of a payment period and not the first day of the next payment period.
7	Enter any relevant comments related to the return and click Save.

Return is not ready to be exercised but RCHP must change due to decrease in term

Step	Action: Modify Deal
1	Search for deal using the Top Search Bar and Deal #.
2	Hover over Record Event in the Left NavBar. In the first layer of this menu, hover over Record Contract Modification and then select Record Contract Renegotiation from the second layer of the menu.
3	On Terms tile of Modification workspace, change the # of Payments to reflect the reduction of the remaining term. Users should calculate the remaining term as at the Date of Modification. Example: If you have 25 months left of payments on the original lease and you are reducing the term by 12 months, you would enter 13 for the number of monthly payments that remain for the shortened lease term.
4	Since all original EOT options are removed from the modified deal, all options must be added with an accurate effective month, according to the term of the new modified deal. To do this, click the Mid-Term/EOT button and add the correct options. Remember, enter all options available per the contract, not just the Reasonably Certain option. Note: If you are not changing your reasonably certain EOT option, you may look in the Existing Terms section to see which option was originally reasonably certain.
5	Go to the Summary tile and verify all information is accurate.
6	Verify the Reasonably Certain EOT Option is correct in the After Modification column. This drop-down will now reflect the newly added Reasonably Certain options only. If there are multiple RC options, the system will default to select the option with the latest effective month.
7	Enter your Reasonably Certain Holding Period in the After Modification column. Please note, this should respect the remaining term for the modified deal and likely will not be the original term.
8	Enter the appropriate Date of Modification. This should be the first day of a payment period and will be the new Lease Start Date of the modified deal. This cannot be the lease start date of the original lease, nor can it be a date in the future.
9	Enter any relevant comments.
10	Click Record Modification.
11	Click Ok on the warning box telling the user a new deal will be created and that the original deal will remain active until you classify and book the new, modified deal.
12	You will be taken to the Accounting Classification workspace.
13	In the Reclassify Effective drop-down, select the Modification Date and click Refresh Classification button.
14	Verify all information is correct. You may expand the Analysis by Category and Deal Characteristics sections for more information.
15	Click Save Account Classification.
16	Go to Deal History from Left NavBar and on the Next Steps tile, click the Book button to book the modified deal.
17	Verify the correct Ledger Date. The drop-down will include applicable dates based on the Date of Modification and open periods. Please note the Date of Modification cannot be changed once the modification has been saved.
18	Choose the appropriate ledgers to book the modified deal to. Please note, the modified deal must be booked to the same ledgers the original deal was booked. For any circumstances where a lease is booked to a different ledger, this must be entered as a brand-new lease, not a modification.
19	Verify the correct option is selected for Expected Disposition. If you were unable to select the correct RC Option in the Modify Deal workspace, you may do so now.
20	Verify the correct Expected Holding Period is entered, change as necessary.
Step	Action: Modify Deal
21	Verify the correct IBR is populating. If you would like the system to use the default IBR according to remaining term, country, and Lessee, click Use Default IBR.
22	Click the Book button.
23	You will be taken to Deal Summary. Once the booking is complete, you should click Deal Summary on the Left NavBar again to refresh/reload the page.

Returning assets but continuing to make payments

Step	Action: Record Asset Event
1	Search for the deal using the Top Search Bar and Deal #.
2	Hover over Record Event in the Left NavBar and select Record asset impairment from the first menu layer.
3	This will take you to the Record Asset Event workspace where all assets are checked by default. You can uncheck any assets as necessary.
4	Impairment is pre-populated in the Asset Event drop-down.
5	Change Ledger Date to appropriate date.
6	Change Impairment Date to appropriate date. This should be the last day of the fiscal month before the impairment takes effect or the first day of the fiscal month in which you want impairment to take effect.
7	Enter any relevant comments related to the impairment.
8	Enter the impairment amount. The impairment amount must be less than or equal to the net book value of the selected asset. If it is greater, you will get a pop-up warning indicating the maximum value that may be used.
9	Click Save.

Changing or Adding Ledgers

LeaseAccelerator offers the ability to reassign and rebook your leases to different ledgers. This ability should prove valuable when dealing with the work related to acquisitions and divestitures. It may also serve helpful if you need to add a consolidated ledger to existing leases or even if the need arises to move multiple leases to different ledgers because of ERP requirements.

Adding a Lease to an Additional Ledger After Booking

Scenario: Leases were entered before a consolidated ledger was created and now those leases need to be booked to the added ledger.

The Ledger Reassignment Bulk Import Template may be used to remove a lease from a ledger or add a lease to additional ledger(s) after the initial booking occurred. For more information on this feature, please see the LeaseAccelerator Product Advisory – Bulk Import: Ledger Reassignment.

Step	Action: Ledger Reassignment Import
1	Download the Ledger Reassignment Template from Ask Alex. Populate with existing ledger names and the additional ledger(s) you wish to add the lease to.
2	Click Bulk Import on the Left NavBar in the user interface.
Step	Action: Ledger Reassignment Import
3	Go to the Ledger Reassignment tile.
4	Click the Choose File button and select your saved import file.
5	Click Validate.
6	If you have populated the template correctly, you should not have any validation messages but rather Ok as the status. Make sure the box is checked for the schedule.
7	Click Import to finish the importing process.
8	You will see a green dot next to the schedule(s) when your import has completed successfully.
9	To verify your deal has been added to the correct ledgers, navigate to Deal Summary for the deal and go to the Summary tile. You should see your added ledgers in the Ledger field.

Removing a Lease from a Ledger

Scenario: A lease is moving to another region, which means it needs to be unbooked from one ledger and added to another ledger.

Step	Action: Ledger Reassignment Import
1	Download the Ledger Reassignment Template from Ask Alex. Populate only with the ledger(s) you want to add this lease to. By not including the ledger you want to remove this deal from on the import file, it will be unbooked from that ledger.
2	Click Bulk Import on the Left NavBar in the user interface.
3	Go to the Ledger Reassignment tile.
4	Click the Choose File button and select your saved import file.
5	Click Validate.
6	If you have populated the template correctly, you should not have any validation messages but rather Ok as the status. Make sure the box is checked for the schedule.
7	Click Import to finish the importing process.
8	You will see a green dot next to the schedule(s) when your import has completed successfully.
9	To verify your deal has been added to the correct ledgers and removed from existing ledgers, navigate to Deal Summary for the deal and go to the Summary tile. You should see your added ledgers in the Ledger field and not see the previous ledgers.

Change Functional Currency

Scenario: Decision was made to change the functional currency assigned to a lease.

In LeaseAccelerator, the functional currency attribute is associated with a deal level participant, such as Entity or Lessee. As such, to change the functional currency of a lease, you would need to change the participant associated with the lease that bears the functional currency attribute. The change should be carried out as follows: In this scenario you would be changing the functional currency of a lease. If the functional change needs to be prospective, or from a point in time forward, then the existing lease needs to be returned and a new lease entered for the period when the new functional currency needs to apply. If the change to functional currency is retrospective, from lease inception, then the lease needs to be rolled back and re-imported applying the participant with the correct functional currency.

Change in Functional Currency is prospective

Step	Action: Exercising a Return Option, and entering a new lease, perform Balance Adjustment
1	Search for the deal using the Top Search Bar and Deal #.
2	Hover over Record Event in the Left NavBar. Then hover over Record a termination. Then hover over Record a contractual return. Finally, select the appropriate return option and you will be taken to the Record Asset Event workspace.
3	Select the asset(s) that you want to return. In this case you should select all assets on the lease.
4	The Return Option from the Asset Event drop-down will be pre-selected.
5	Change Return Date to appropriate payment period end date.
6	Change Ledger Date to appropriate fiscal month/year. If the return is backdated, the first open fiscal period should be used; for all other returns, the current fiscal period should be used.
7	Enter any relevant comments related to the return.
8	Click Save.
9	Enter or import a new lease with a Lease Start Date equal to the date the new functional currency should be effective. Ensure new lease is fully booked and classified.
10	Import a Balance Adjustment to true up the Net Book Value of the new asset for the original lease balance.

Change in Functional Currency from the Lease Start Date

Step	Action: Renumber schedule, rollback deal, then re-enter
1	Search for the deal using the Top Search Bar and Deal #.
2	In the Deal History workspace, go to the Documents tile.
3	Click the kebab (three dots) to the right of the Lease Schedule in the list of documents and select Renumber/Redate.
4	In the Change Document Fundamentals workspace, change the Schedule Number (Recommend adding ROLLBACK to existing Schedule Number for consistency and to identify rolled back deals easily). Note: Remember that special characters including the underscore (_) are not allowed.
5	Input any necessary comments.
6	Click Save and verify that all Schedule Numbers have changed.
7	Next, while still in the Deal History workspace, go to the History tile.
8	Select Rollback booked deal from the Event to Record drop-down.
9	Enter appropriate date if necessary. This will auto-populate to the current date, but best practice is to enter the first day of the first open period, which may not be the current date.
10	Add any comments relevant to the event that will appear in the Deal History audit trail.
11	Click Save.
12	If the functional currency of the Lessee or Entity is changing, enter a new participant with the new functional currency. Open the Contact Management flyout from the Left NavBar. Click the plus sign next to Company. In the new company record pop-up, enter relevant information including the appropriate Lessee role that is tied to functional currency. Select the new Functional Currency from the drop-down. Click Save.
13	Re-enter or re-import the lease using the original Schedule Number with the Lessee or Entity that has the correct functional currency. Ensure the new lease is fully booked and classified.