Lease contract

This field displays the company for the financial site.

Enter the financial site in which the contract is recorded.

The choice of the financial site is subject to management and authorization rules given to the user.
The site can also be automatically loaded, by default, with the financial site reference previously displayed. It is possible to activate/deactivate this load by default, via the setup REMAFCY -  Persistence of the site, defined in the AAS chapter - Fixed assets.

If the user is limited to a single site, the financial site is automatically loaded and cannot be modified.

The reference, composed of 20 alphanumerical characters max., is used to identify a financial leasing contract for a given company.
The management of the contract reference is based on the LEAAUTNUM - Lease contract numbering (AAS chapter, LEA group) parameter value:

• None: A reference must be entered if automatic numbering is not managed.
• Mandatory: A reference cannot be entered and is automatically assigned when validating the creation.
• Optional: You can enter a reference or one is automatically assigned.

The reference assigned to the asset is the function of the setup of the sequence number counter assigned to the Contract reference field in Sequence number counter Structure and Sequence number counter assignment functions.

This field contains the main description of the contract.

This field contains the additional description of the financial leasing contract.

When creating the contract, the status is To validate. The assets can be attached to it but it must not be the object of any action. In addition, there is no information on the Open item schedules tab; this information is optional.

• When the contract definition is finalized, you can change the status to In process.
• When you change the status from To validate to In process, either in creation or in modification, this results in:
  - A Contract creation event (LEACRT) is generated
  - The event is automatically posted by generating an automatic journal: LECRT – Contract creation, designed for the IFRS consolidated accounts.
• When you click Save after this status change, you receive a warning message that the contract has no schedule. That is, there is no information on the Open Item Schedule tab.
• A contract with the status In process cannot be deleted. It cannot be directly modified either. It can only change at the end of the different actions applied to the contract. The status changes to:
  - Completed after implementing the action Enter the contractend
  - Buyback after implementing the action Remove the purchase option
  - Terminated after implementing the action Terminate the contract

Select the contract type: Lease, Rent, or Long term rent.
This information can no longer be modified, even though the contract status is To validate, once an asset is assigned to the contract.
Certain information, such as Capital amount, Buyback value, and Purchase option removal date, are only entered if the contract type is Lease.

This is mandatory information. It is the organization which entered into the lease contract. The lessor must be identified as the Supplier in the BP accounting table.

This field is used to enter the balance sheet line involved in the financial lease contract. This information is notably used for editing the summary reports to attach to the annual accounting reports. These tables (referenced as LEALIALeasing commitments and LEARNTDPRLeasingCharges and depreciations) indicate the global situation of the lease contracts, grouped and ordered by balance sheet lines. It is mandatory that the balance sheet line be entered for the contract values to be taken into account in these tables.

This field is used to specify the origin of the contract. It can be either a new contract or a transferred contract.

This field is used to specify the nature (Fixed assets or Movable assets) of the lease contract.

The Start date for the contract is mandatory. It can only be modified whilst the contract has the status To be validated. This modification leads to the deletion of the financial payment schedule. When the contract is for company vehicles and the registration number is entered, it also leads to the update of the lease start date (Financial assets function, option Vehicle).

The end date for the contract is mandatory. It can be modified whilst the contract has the status To be validated.
When the contract status is In process, this date can be updated via the Update the contract action. It can also be updated during the use of the Record the end of contract action.
This update, when the date entered is less than the previous date, leads to the deletion of the financial payment schedule for the due dates later than the new date entered.
When the contract involves company vehicles which registration numbers are provided, it also leads to the update of the lease end date (Vehicle option window of the Financial assets management function).

The accounting code is mandatory. It is used to define the CoA and IAS/IFRS accounts to be posted when generating the accounting entries related to the rental contract. If the contract status is In process, it can be updated via the Update the contract action.

This field is used to enter the contract financing currency. It remains editable as long as the contract status is: To validate.

It is mandatory that the borrowed capital amount should be entered if the contract type is Leasing. This amount must be entered in the contract financing currency. It is automatically converted and displayed:
- in the company currency, after the conversion based on the type of rate defined for the Accounting and fiscal context,
- in the IAS/IFRS context currency, after the conversion based on the type of rate defined for the IAS/IFRS context.
If the contract status is In process, this amount can only be updated using the Revise the contract action. The different revisions of the borrowed capital can be viewed in the Valuation tab.

This field is used to enter the buyback price of the asset(s), at the end of the leasing period during the removal of the purchase option planned for a lease contract.
This date, expressed in the financing currency of the contract, can be updated on a contract In progess, either through the action Update the contract, or through the action Lift purchase option.

This field displays the company management currency, as a reminder.

This non-editable field displays the borrowed capital amount, converted into the company currency.

This non-editable field displays the buyback price, converted into the company currency.

This field displays the exchange rate used to convert the borrowed capital amount into the company currency.
This rate is automatically generated via the rate type defined for the Accounting and fiscal context.

This field displays the IFRS currency in the IAS depreciation plan for a company.

This non-editable field displays the borrowed capital amount, converted into the IAS/IFRS context currency.

This non-editable field displays the buyback price, converted into the IAS/IFRS context currency.

This field displays the exchange rate used to convert the borrowed capital amount into the IAS/IFRS context currency.
This rate is automatically generated via the rate type defined for the IAS/IFRS context.

This field defines the interest rate applied to the borrowed capital for a lease contract. This amount is display-only because the payment schedule is not impacted by Fixed Assets (GESFAS). This amount is display-only because the payment schedule is not automatically impacted by the rate.

This value in this field, along with the Implied interest rate and Incremental borrowing rate fields, also populate the Rate field on the Open item schedule tab in the Yearly present values grid according to the following conditions:

-If the three interest rate fields (Incremental borrowing rate, Interest rate, and Implied rate) all contain values, the Implied rate is used in the Yearly present value grid.

-If the Implied rate is 0, then the Incremental borrowing rate is used in the Yearly present value grid, even if the Interest rate field has a value.

-If the Interest rate field is the only one with a value, that rate is used in the Yearly present value grid.

-If all three of these rate fields are empty, the Rate in the Yearly present values grid is not updated.

This field enables entering the amount of advance charges when signing a financial lease contract.

This field is used to enter the preliminary expenses for a lease contract.

The contract revision date is not modifiable. It is filled in automatically at the end of the launch of the action Revise the contract.

This field is used to enter the date of the Purchase option removal planned for a Lease contract. This date can be updated on a contract In progress, either through the action Update the contract, or through the action Lift purchase option.

The contract termination date is not modifiable. It is filled in automatically at the end of the launch of the Terminate contract action.

This field displays the period start date which the due date deals with. The first period start date must be entered. The following period start dates are calculated by adding a day to the previous period end date.

This field displays the period end date which the due date is about. The end date of the first period must be entered. The end dates of the next periods are automatically defined as follows:
1/ If the period end date corresponds to the last day of a month, the end date of each of the following periods will correspond to the last day of a month.
2/ If the end date of the first period does not correspond to the last day of a month, each created period will terminate with the same day as the first period. Each created period will have the same number of months as the first period.

This field displays the amount of capital to repay at the beginning of the period concerned by a leasing contract payment. It is expressed in the contract currency.
The balance to repay of the first payment is loaded by default with the capital amount of the leasing contract. It remains modifiable.
The balance to repay of the following payments equals the capital amount of the leasing contract minus the financial depreciation of the previous payments.

This field contains the amount of the charge due for the rental of the assets referenced in the financial lease contract. It is expressed in the contract financing currency.
This rental charge corresponds to the increased financial depreciation for the financial costs in the period.
 The sum of the bases of the assets linked to the contract must necessarily be lower or equal to the total of the contract charges.

This field enables the user to enter the amount corresponding to the capital refund. This amount, expressed in the financing currency of the contract, must mandatorily be entered if it is a leasing contract.

For Lease contract types, this field displays the financial expenses in the contract currency for a given period, which is equal to the fee minus the financial amortization. You can modify this amount.

For Rent contract types, this field represents the interest portion of the lease payment amount that is already stored in the Rental amount column for each period and month. The value in the Financial cost column is not included when calculating the current values and rights of use. This amount is not calculated from the contract characteristic; you need to enter or import it manually.

This amount is automatically calculated according to the following formula: Reimbursed capital for the previous period + Financial depreciation for the current period. It can be modified by the user.

This field displays the guaranteed value, or a portion of the value, of an underlying asset at the end of the lease.

It is the amount expected to be paid by the lessee under the residual value guarantees.

This field enables the user to enter the date of the invoice.
When a date is entered, the open item is not taken into account by the Fee event generation process.

This field enables the user to enter the description of the invoice.
When a reference is entered, the open item is not taken into account by the Fee event generation process.

This tick box cannot be entered by the user. It is automatically activated when the annual fee events dealing with the open item and designed for the CoA accounting have been generated.

This check box is automatically checked when the annual fee events for the open item and designed for IFRS accounting have been generated.

-If the three interest rate fields on the Main tab (Incremental borrowing rate, Interest rate, and Implied rate) all contain values, the Implied rate is used.

-If the Implied rate is 0, then the Incremental borrowing rate is used, even if the Interest rate field has a value.

-If the Interest rate field is the only one with a value, that rate is used.

-If all three of these rate fields are empty, this rate is not updated.