For ASC 842, it is a contract wherein the owner, called the Lessor, permits the user, called the Lessee, to use of an asset for a particular period which is significantly shorter than the economic life of the asset without any transfer of ownership rights.

Lease liability and right-of-use asset are registered on the balance sheet and the payments remain considered as operational costs through interest and depreciation calculation.

For other standards than ASC 842, a lease set in Planon Lease Accounting as Operating will not be registered on the balance sheet and the payments directly booked as expense