The Lease Accounting solution includes calculation settings that support the cancellation of straight-lined rent expenses.

Organizations often recognize rent payments as operating expenses under local GAAP. During consolidation, these expenses must be reversed and replaced with IFRS 16 compliant accounting. Under IFRS 16, rent payments are treated as repayments of the lease liability, not as rent expense.

If the source accounting system does not reverse the local GAAP rent expense, Planon can generate the required cancellation postings and journal entries.

These calculation methods appear in the system as Accounting standards. They do not represent official local GAAP frameworks. They only provide technical logic to reverse straight-lined rent.

You can assign these settings to a contract line as a secondary or tertiary accounting standard. Use them only with contract type Operating (O).

The solution supports two straight-lining approaches: