Recalculate Classification Feature - Product Advisory

November 2025

Overview

We're excited to introduce the Recalculate Classification feature in release 25.4, designed to streamline your lease management workflow. This enhancement allows you to quickly recalculate lease classifications without navigating to the Accounting Classification workspace. This feature includes built-in safeguards to ensure data integrity.

What's New

Single Deal Classification (UI Method)

Use this method to recalculate classification directly from Deal History. This approach is ideal for one-off classification updates.

Multiple Deal Classification (Bulk Import Method)

Use this method to process multiple deals simultaneously using the import template. This approach is ideal for large-scale classification updates.

Key Benefits

Time Savings: Recalculate classifications without navigating to the Accounting Classification workspace.
Efficiency: Process multiple deals simultaneously with bulk import.
Current Data: Classifications are recalculated using the most current deal values.
Audit Trail: All events are automatically recorded in Deal History and Deal Summary.

Important:

This feature recalculates classifications using current deal values only. Any manual classification overrides will be lost, and classifications may change from the current state.
This process mimics manually opening the Accounting Classification workspace, clicking Refresh Classification to apply updated calculations, and saving the results, without making any changes to the classification screen. While manual edits are possible in that screen, this feature performs only the refresh-and-save steps.

Primary Use Cases

This feature is particularly valuable when you have made changes to:

Incremental Borrowing Rate (IBR)
Rental amounts
Lease durations
End-of-Term (EOT) option types or financial specifics
Note: Changes to the End-of-Term (EOT) option can impact lease classification, particularly when they materially affect the lessee's economic incentives. Such changes include:
- Switching from a purchase option to a renewal or termination option (or vice versa)
- Changing the purchase option price (for example, fair market value vs. fixed amount)
- Modifying renewal terms or rates
- Updating reasonably certain exercise assumptions
When EOT changes materially alter the deal economics, lease classification reassessment may be required under accounting standards. The recalculation process will update classifications based on current deal values.

How to use:

Method 1: Single Deal (UI)

Navigate to the Deal History of the target deal.
Click the History tab.
From the Event to Record dropdown, select Recalculated Classification.
Enter comments in the appropriate field. (Recommended approach.)
Click Save.

Method 2: Multiple Deals (Bulk Import)

Download the Event import template.
Populate the template with the following information:
- Schedule Number: Enter the target deal identifier.
- Event Type: Enter "RecalculateClassification".
- Event Date: Enter the Lease Start Date. (The system will override this value if a different date is entered.)
- Comments: Enter relevant comments. (Recommended for audit purposes.)
- Document Type: Enter "Deal Summary".
- Document Number: Enter any number. (Best practice is to include the Schedule Number.)
Use Bulk Import > Event to upload the completed template.

Expected Results after Processing

Deal History Updates

After processing, the Deal History will display:

A new Recalculated Classification event entry
Additional events, which may include:
- "Performed Accounting Classification Analysis"
- "Generated Accounting Classification Analysis"
A bold timestamp indicating when the event was recorded
The impacted artifact numbers in the Affected Document column

Comments and Documentation

The system automatically adds the comment: Classification recalculated using current deal values.
It maintains a full audit trail in both Deal History and Deal Summary.

System Safeguards

Validation Rules

The system enforces the following validation rules:

Deal State Requirement: Classification recalculation is only allowed for deals that are both booked and classified.
Date Validation: For consistency, both the UI method and Bulk Import processes automatically use the Lease Start Date, regardless of any manually entered values.
Adjustment Warnings: The system alerts users when events may create adjusting entries.

Error Prevention

The system prevents recalculation attempts for deals that are not booked or not classified. If you attempt to recalculate classification for an ineligible deal, the system displays the following error message:

Cannot recalculate classification for deals not booked or classified.

Getting Started

Prerequisites

Before recalculating deal classification, ensure the following requirements are met:

Deals must have "booked and classified" status:
- Booked: The deal has been finalized and committed.
- Classified: Initial lease classification has been completed.
You have appropriate user permissions for Deal History access.
For bulk operations, you have access to Event import functionality.

Best Practices

Always include comments to maintain a comprehensive audit trail.
Review current deal values before recalculating to understand potential impacts.
Use bulk import for multiple deals to improve efficiency.
Verify results in Deal History after processing.

Troubleshooting

Why can't I recalculate classification for my deal?

The system only allows recalculation for deals that are both booked and classified. Check your deal status in the Deal Summary.

Why did my classification change unexpectedly?

Classifications are recalculated using current deal values. If rental amounts, lease terms, or IBR rates have changed since the original classification, the result may differ.

Need Help?

If you have questions about this feature or need assistance with implementation, contact your Customer Success team or submit a support ticket through your usual channels.