Step 1: Create a new leasing contract

Add or check standard contract information as usual. See the description of fields below.

Tip!
We always recommend registering all relevant information you have as this will make searches and filtering more effective. For more information about standard fields which are not explicitly relevant for leasing, see Contract card.

Title: Free text field. Add a short, descriptive title for the leasing contract.

Contract partner: Select the contract partner from the drop-down menu. If a contract partner does not exist, select Add to create a new partner.

Type: Here you select the type of contract. In most instances, it is an Obligation as IFRS 16-registrations usually relate to lessee obligations. This goes also for headleases. But for subleases, select Receivable.

Category: This is one of the most important fields when registering an IFRS 16 contract as it has an effect on the journal entries for category/department.

Tip!
System administrators can create an own category groups for IFRS 16. This allows you to collect all IFRS 16 contracts under the same tab. Read more here.

Start date: Start date for the contract. This is usually defined explicitly in the contract.

Duration: The period which usually cannot be canceled according to agreement terms. Enter either Duration or Expiration date. The other field updates automatically accordingly.

Tip!
Check that Start date and End of inital period are correct. One day too much could already increase the Inital period with a whole month (01.02.2020 - 01.02.2025 would result in 61 months initial period whereas 01.02.2020 - 31.01.2025 are 60 months). The consequence would be: One month too much with regards to depreciation and payments.

Extension options: Tick if the contract has extension options. This will open a selection of fields where you can enter the dates and tick off for exercise (as soon as you have agreed on an extension with your contract partner). Once you exercise an extension, the Expected expiration date (rental period) will be prolonged accordingly. Click Add extension to add further extensions.

Tip!
Of course, extension options will first come into effect until you tick Exercise.

Continuous contract: For an IFRS 16 contracts, you must always define how long the rental period shall be. The field is therefore not relevant for IFRS 16 registrations.

Deviating termination date: This field is not relevant at the point of time when you are registering a contract. Instead, it should be used in these cases

• Where the contract has a sudden and unforeseen termination, without any form of renegotiation.

• If the contract was uploaded based on a mistake, and you now want to remove all figures related to the contract from the reports.

Using the Deviating termination date field will lead to the contract being locked, and no changes will be possible while this field is in use. If the contract is classified according to IFRS 16 this field will also lead to a termination settlement in the IFRS 16 reports.

Notice period: Select the number of months for the contract’s termination. In case no notice period is mentioned, you can select the entry None.

Note!
You can enter specific contract information in this field. Does the contract continue automatically after 12 months in case you don't terminate it in the termination period? Are there contractual price adjustments? Anything of relevance can be entered. This field is searchable.

File attachments: Upload attachments to the contract. Supported formats are PDF, Microsoft Word, Excel, saved emails and much more.

Once you have registered all relevant IFRS 16 information on the contract, you continue with adding the payments - mostly as usual, but with some special information for IFRS 16. See Step 2: Register payment schedule with IFRS 16 classification.