Lease classifications
A lease classification refers to the way in which a lease is processed from an accounting point of view. Leases can be classified as finance lease or operating lease. Classification is calculated and validated by Planon. See Lease accounting standards and their classification for an overview.
When registering a lease in Planon, you can set the field Contract type to Operating lease or to Finance lease. Based on the information you specified in the lease contract line and any 'reasonably certain' options you defined, Planon determines the expected classification. The Contract type - strict field on the lease contract line displays the classification as calculated by Planon. However, you can deviate from the classification determined by Planon and overrule it.
 | After activating the lease line, the contract type can no longer be changed. |
If the classification determined by Planon differs from the classification specified by you, Planon asks you to specify:
1. the reason why the contract is classified differently (in the Reason for classification field);
2. the responsible person who approved the classification when activating the contract line (in the Classification confirmed by field).