Lease Account Data Migration

Do you record lease accounting (ASC 842) through spreadsheets?  NetSuite FAM streamlines lease accounting and is relatively simple to migrate.

For the data migration, here are our steps:

• Create asset types for finance and operating leases.
• Reverse trial balance amounts for lease asset, lease asset A/D and lease liability accounts. Note the posting period used for this reversal.  The posting period of this journal should be the same as the posting period in the TB reversals.
• Reverse historical lease payments made.
• Create lease records.
• Create lease journals.
• Edit lease journals for adjustments to lease asset balance (per ASC 842 guidelines). Approve lease journals.
• Create assets.
• Generate historical depreciation up to the prior period of “Go Live” for lease accounting. The posting period of this journal should be the same as the posting period in the TB reversals.
• Generate historical lease interest up to the prior period of “Go Live” for lease accounting. The posting period of this journal should be the same as the posting period in the TB reversals.

This may seem like a lot, but it’s actually much simpler than it may appear.  As with any data migration, make sure you keep close tabs on all the debits and credits.  If something doesn’t tie out, then an adjustment on the lease record or in the account balance may be required.