Using a horizon date
A contract can be for an indefinite period of time, but lease calculations must have an end date. Balance positions such as liability and right-of-use need to be calculated based on an end date. You can use the horizon date in Planon to set an end date for the lease calculations.
A contract has an indefinite period if there is:
• a contract line without an end date;
• a contract line with an end date to which a renewal option is linked with an indefinite renewal term.
The horizon date feature in Planon supports the following:
• Leases with an indefinite end date take the horizon date on the contract into account as an end date for the calculations.
• When executing a renewal option with an indefinite end date, the horizon date on the contract is taken into account as the end date of the calculations.
• When setting a renewal option with an indefinite end date to 'reasonably certain', the horizon date on the contract is taken into account as an end date of the calculations.
• For termination options, the horizon date on the contract can be used to switch between 'reasonably certain' and 'not reasonably certain'. A termination option with an end date greater than or equal to the horizon date is reasonably certain. A termination option with an end date before the horizon date is switched to 'not reasonably certain'.
• For headlease and sublease, the horizon date is used to set the time scope for the headlease and sublease.