Core TSIs : Lease Accounting : Working with lease accounting : Registering COVID-19 lease concessions
Registering COVID-19 lease concessions
During the COVID-19 period, special agreements can be made between lessor and lessee for individual leases. Lessors can grant a temporary rent discount or a temporary rent postponement to their lessees. During the lockdown period, lease amounts can be reduced for a certain agreed period. Based on the same agreement, this lease reduction can be compensated at a later moment in time. Planon supports this way of working by introducing COVID-19 lines.
The COVID-19 lines can be defined for specific period of time and generate Cash_out and ESUSP postings. A financial reporting entity can be used to redirect the amounts of the COVID-19 lines to a separate custom ledger code (see Linking custom ledger codes to postings). In this way the impact of COVID-19 can be managed in the period of the reduction, but also in the period of the settlement at a later moment in time. The lease accounting on the original lease contract line remains unchanged; the impact is only determined by the COVID-19 lines.
Procedure
1. Go to Contracts.
2. Select the lease contract for which you want to register a COVID-19 lease concession.
3. Go to Contract details > Contract lines.
4. Select the original lease contract line for which you want to define a COVID-19 discount line.
5. On the action panel, click Generate COVID-19 discount lines
6. In the Generate COVID-19 discount lines pop-up, enter the Date effective, End date and Financial reporting entity and click OK.
Planon now creates a COVID-19 discount line.
By default, the COVID-19 line is set to Payment = Yes, to ensure that Cash_out postings are created. The amount can be positive or negative (for reduction).
The COVID-19 line generates Cash_out and ESUSP postings, that can be mapped to the custom ledger codes defined on the linked financial reporting entity.
The COVID-19 line supports contract currencies and functional currencies, it inherits the currencies of the original lease.
The line can be copied or generated via data import.
You can link multiple COVID-19 lines to a lease line.