Planon calculation start date in lease accounting
The Planon calculation start date field on a contract allows you to specify the date from which Planon can use the contract amounts entered for its own calculations. If a lease is entered in Planon, but not from the moment the lease is started (Date effective), you can use the Planon calculation start date to set the date from which the commitments are calculated. From this date, Planon takes over the contract calculations from another system.
In most cases, the Date effective is equal to the Planon calculation start date. Planon also supports the situation where the Date effective is later than the Planon calculation start date. The lease was started in a different system and later entered Planon. Planon calculates the commitments with a closure date on or after the Planon calculation start date. If a financial commitment starts before and ends after the Planon calculation start date, it depends on the closure date if the financial commitment is registered in the old system (Payment in advance) or in Planon (Payment in arrears).
 | Planon advises to transfer the lease on a start date of an accounting commitment, to make sure that the implementation in Planon is as easy as possible. |
• Operating leases:
The accrual balance for the period before registration in Planon can be registered in the Offset remainder for transition field.
• Finance leases:
Planon calculates the open liability based on all payments that will be registered in Planon. This includes:
◦ regular payments
◦ the residual value
◦ execution amount on option
The present value is calculated from the Planon start date.
The right-of-use has to be taken over from the lease that was registered in another system. In Planon, you have to specify the right-of-use offset and if you are using a functional currency, also the FC right-of use offset. These amounts are used to straightline the depreciation from the Planon start date until the end of the lease.
The accumulated depreciation can be calculated from the Planon start date or can be started from a balance taken over from another system. Before activating the lease, you can enter the balance values in the Offset - accumulated depreciation and Offset - FC accumulated depreciation fields on the contract line (see contract line fields), to make sure the balance is continued in Planon. If this value is zero, the calculation starts at zero in Planon.
The lease starts with an initial commitment and an initial event. Planon registers the difference between the liability and the right-of-use at start as retained earnings, to make sure there is a balance at the initial recognition.
After starting the lease in Planon, the same functionality is supported as with normal leases. The main restriction is that no changes are allowed before the Planon start date.
• Contract options:
'Reasonably certain' options are included in the calculations based on the Planon start date.
Not supported:
• Multi-GAAP
• Sale and leaseback
• Combination with transition from old standard (IAS17 -> IFRS16 or ASC840 -> ASC842)
• Lease incentives and initial direct costs (can be registered for information only on the contract line but they will not impact the calculations)
• Restoration costs (can only be registered after the lease has been activated. The right-of-use that needs to be registered per Planon start date must be without the effect of the restoration costs)