Operating lease
In case of operating lease, the new contract in Planon needs to be activated and based on an Offset - Transition ROU . The correct set of operating lease commitments will be calculated. Based on the given Planon start date it is possible to calculate the difference between the total registered financial commitments and the total registered accounting commitments. The difference can be expressed as an accrual, which can be compensated by an offset. There are different causes for this accrual, but in all cases it is important to know what payments and what accounting commitments are registered from the Planon start date.
If no lease accrual is registered in the original contract, the lease accrual should be set to: Offset - Transition ROU = 0 (see case1). The financial commitments and accounting commitments are balanced out.
If the lease accrual is registered in the original contract, the open lease accrual should be entered as the Offset - Transition ROU (see case 2, 3 and 4). Due to straight-lining or due to financial commitments registered in the previous system and accounting commitments (partially) being registered in Planon, the offset is needed to compensate the mismatch.
Case 1: No lease accrual / deferred income in combination with Planon start date
In this case, the financial commitments and accounting commitments are in balance. If split at the start of the year, the Offset - initial accounting commitment = 0 (explicitly).
Original Contract line in former system:
• 1-1-2015 – 31-12-2019
• 100 euro each year
• Payments each year
• Accounting period each year
• Payments at start of commitment period
Year | Payments (Financial commitments) | Accounting commitments (Lease amount/Lease accrual) |
|---|
2015 | 100 | 100/0 |
2016 | 100 | 100/0 |
2017 | 100 | 100/0 |
2018 | 100 | 100/0 |
2019 | 100 | 100/0 |
Contract introduced in Planon with Planon start date = 1-1-2017
• Contract line: 1-1-2015 – 31-12-2019
• 100 euro each year
• Payments each year
• Accounting period each year
• Payments at start of commitment period
• Offset - Transition ROU = 0
Year | Payments (Financial commitments) | Accounting commitments (Lease amount/Lease accrual) |
|---|
2017 | 100 | 100/0 |
2018 | 100 | 100/0 |
2019 | 100 | 100/0 |
Case 2: Lease accrual / deferred income in combination with Planon start date
In this case, the financial commitments and accounting commitments are not in balance. If split at the start of the year, the Offset - Transition ROU <> 0.
Original Contract line in former system:
• 1-1-2015 – 31-12-2019
• 100 euro each year, first year rent free
• Payments each year
• Accounting period each year
• Payments at start commitment period
Year | Payments (Financial commitments) | Accounting commitments (Lease amount/Lease accrual) |
|---|
2015 | 100 | 80/-80 |
2016 | 100 | 80/20 |
2017 | 100 | 80/20 |
2018 | 100 | 80/20 |
2019 | 100 | 80/20 |
Contract introduced in Planon with Planon start date = 1-1-2017
• Contract line: 1-1-2015 – 31-12-2019
• 100 euro each year
• Payments each year
• Accounting period each year
• Payments at start commitment period
• Offset - Transition ROU = -60, reason: the remaining years add up to an accrual / deferred income = 20 + 20 + 20 euro.
Year | Payments (Financial commitments) | Accounting commitments (Lease amount/Lease accrual) |
|---|
2017 | 100 | 80/20 |
2018 | 100 | 80/20 |
2019 | 100 | 80/20 |
Case 3: Lease accrual / deferred income combined with a Planon start date that is not the start of the accounting period.
In this case the financial commitments and accounting commitments are not in balance. If split in the middle of the year, the Offset - Transition ROU <> 0.
Original Contract line in former system:
• 1-1-2015 – 31-12-2019
• 100 euro each year
• First year rent free
• Payments each year
• Accounting period each year
• Payments at start commitment period
Year | Payments (Financial commitments) | Accounting commitments (Lease amount/Lease accrual) |
|---|
2015 | 100 | 80/-80 |
2016 | 100 | 80/20 |
2017 | 100 | 80/20 |
2018 | 100 | 80/20 |
2019 | 100 | 80/20 |
Contract introduced in Planon with Planon start date = 1-7-2017
Contract line:
• 1-1-2015 – 31-12-2019
• 100 euro each year
• Payments each year
• Accounting period each year
• Payments at start commitment period
• Offset - Transition ROU = 0 (remainder: 10 – 50 (half year) + 20 + 20)
In this case the 100 Euros have been paid in the former system. Half of the year 2017 has been registered in the former system. Still to register:
• 40 Euros in 2017 and 10 remainder, because of the original entry.
• 0/-50 Euros because the payment was fully registered in the former system but partially registered in Planon.
Year | Payments (Financial commitments) | Accounting commitments (Lease amount/Lease accrual) |
|---|
2017 | - | 40/-40 |
2018 | 100 | 80/20 |
2019 | 100 | 80/20 |
Case 4: Same as previous, but this time with payments afterwards: Lease accrual / deferred income combined with a Planon start date that is not the beginning of the period.
Original Contract line in former system:
• 1-1-2015 – 31-12-2019
• 100 euro each year
• First year rent free
• Payments each year
• Accounting period each year
• Payments at end commitment period
Year | Payments (Financial commitments) | Accounting commitments (Lease amount/Lease accrual) |
|---|
2015 | 100 | 80/-80 |
2016 | 100 | 80/20 |
2017 | 100 | 80/20 |
2018 | 100 | 80/20 |
2019 | 100 | 80/20 |
Contract introduced in Planon with Planon start date = 1-7-2017
Contract line:
• 1-1-2015 – 31-12-2019
• 100 euro each year
• Payments each year
• Accounting period each year
• Payments at end commitment period
• Offset - Transition ROU = -100 (10 + 50 + 20 + 20)
In this case the 100 Euros has to be paid in Planon. Half of the year 2017 has been registered in the former system. So still to register:
• 40 Euros in 2017 and 10 euro remainder because of the original entry.
• 0/50 Euros because of the payment registered fully in the former system, but partially registered in Planon.
Year | Payments (Financial commitments) | Accounting commitments (Lease amount/Lease accrual) |
|---|
2017 | 100 | 40/60 |
2018 | 100 | 80/20 |
2019 | 100 | 80/20 |