Renewal options on lease contracts
A renewal option can affect the calculations on an (active) lease contract. Similarly, any change in the renewal option data, for example modifying the period or changing the type from 'reasonably certain' to 'not reasonably certain', will trigger a remeasurement on the contract line.
'Reasonably certain' renewal option on lease contracts
For Finance lease contracts and Operating lease contracts: if you define an active renewal option as Additional term, it is marked as 'reasonably certain'. If the option is added after the start of the contract, Planon will automatically perform a remeasurement on the corresponding contract line to include the result of the renewal option in the calculations of accounting commitments. Financial commitments will only be confirmed if the option is executed.
Configuration: to make the renewal option 'reasonably certain' to be exercised, enter a value in the Additional term field.
Additional fine on operating lease contracts
For (short term) Operating lease contracts you can add an additional fine to the calculations. The additional fine is added to the lease amounts and used for straight-lining. The term of the option is not added to the lease term yet, only the fine.
Configuration: define the renewal option as Additional fine and set the system status to Active before activating the contract line based on lease accounting.
 | It is not possible to combine Additional fine and Additional term options. This means that the fine is not included when the option is set to Additional term and the term of the lease is not extended in the initial calculations if the option is defined as an Additional fine. |
 | You can only enter a priority on active renewal options. The priority of options can be changed, but renewal options that are 'reasonably certain' must always have a higher priority than options that are 'not reasonably certain'. You can also manually switch between 'reasonably certain' and 'not reasonably certain', provided that no horizon date is entered. For more information on the horizon date, see the Rolling renewals topic. If there is a 'reasonably certain' termination option, you cannot add 'reasonably certain' renewal options. |