Leases
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      What is the difference between an edit and a revision?

      In LeaseCrunch software, you might see the following pop-up when you Edit a lease. This pop up will help guide you whether the change to the lease should be an Edit or a Revision.

      Lease Edit

      When using the edit function, any changes made to a lease will apply to the entire life of the lease - past and future. Once saved, the lease information will appear as though the lease was always entered that way. If Lease Payment Streams in Step 2, GL Account selections, or Cost Centers are updated, it will overwrite previous details and calculations. 

      The most common use of the edit function is to correct any errors made during lease entry or to add more detail about the lease.  Some users edit the lease to update variable lease payments in Step 4 as amounts are confirmed during the life of the lease. Payments edited in Step 4 do not change the original calculations of the ROU Asset or Lease Liability. 

      If the edit is to correct any errors made during lease entry, an adjusting entry outside of LeaseCrunch might be required. We recommend running reports prior to the edit and then again after the edit as the adjusting entry is the delta between the two reports.

      Lease Revision

      Most commonly, a lease revision is conducted when a change to a lease contract is subject to ASC 842 modifications and remeasurement guidance. Conducting a revision in LeaseCrunch allows the user to preserve the historical integrity of the original lease while recognizing the changes to the lease going forward. Once a lease revision is saved, any lease detail before the date of revision is frozen. As of the date of the revision, the lease will be recalculated going forward. Our Knowledge Base article What is the start date of my revision? provides more information about selecting the correct revision start date.

      In LeaseCrunch software, revisions begin on the 1st day of the revision month. A completed revision appears as a second lease line on the My Leases dashboard. 

      Important: When exporting Journal Entries for the initial recognition of the revision, select both versions of the lease on the dashboard (shown above). More information can also be found in our Knowledge Base article What is a Suspense Account and How is it Used?

      To learn how to add a revision, click here.