Accounting commitments
Accounting commitments contain information regarding start date, end date and lease amount. For a lease that is capitalized, interest, lease liability and depreciation are calculated. After a contract line is activated and accounting commitments are generated, any change of financial data updates accounting commitments. If changes are registered after closing the commitment, the changes will be registered in the first open accounting period.
Contract lines can be linked to a contract currency and a functional currency (see Contract line fields for lease accounting and Using contract currencies and functional currencies). The contract currency and functional currency can be the same if the lease is paid in the same currency as the company reports in. If you do not specify a contract and functional currency, accounting commitments are calculated based on the currency registered in System Settings. For more information, see System Settings.
If both the contract currency and functional currency are specified in the contract line:
• Planon calculates and generates the accounting commitments in two sets: one set in the contract currency of the contract line (based on the normal calculations) and one set in the functional currency of the contract line (based on the calculated amounts and the exchange rates).
• Liability at end is translated based on the spot rate at commitment end date.
• Interest is translated based on the average rate for the accounting period.
• Reclassification to short term is translated based on the spot rate at commitment end date.
• Payment is translated based on the spot rate for the payment date.
• Right-of-use asset is translated based on the historical rate.
• Depreciation is translated based on the historical rate.
In case of differences between translated amounts and calculated amounts, they are registered as FX gain-loss (per accounting period).
 | The accounting commitments data fields for the functional currency have the prefix "FC" or "RC". For more information on the available accounting commitment data, see Accounting commitment data fields. For more information on registering exchanges rates in Planon, see Adding currencies, currency pairs and exchange rates. |