For GASB lessor contracts, renewal options can be reasonably certain or non-reasonably certain. For non-GASB lessor contracts, renewal options are always non-reasonably certain.

If a contract line is in the Active status, selecting a reasonably certain lessor option will create financial and accounting commitments for the extended period. However, these commitments will not have any impact on the actual commitments until the status of the contract option is moved to Applied. After applying contract option, contract and contract line period will be extended automatically and financial and accounting commitments will be created.