- Knowledge Base
- FAQ
- Transition Leases
Will LeaseCrunch adjust my existing lease balances to flow through to the ROU Asset?
For Capital and Operating Lease on the balance sheet at transition
When entering a transition lease into LeaseCrunch the system will ask for the existing balances under previous lease accounting guidance. This will show up in step 2 of adding a lease.
First, set up the associated GL Accounts from Administration - GL Accounts.
Next, when entering the lease, select the GL account from Step 2 and enter the existing balance as a positive number.
When the Journal Entry Report is exported, the first month entry will include the initial journal entry to record the ROU Asset and Lease Liability and the entries to clear the existing balances.