As we have seen in the earlier posts, to meet the new compliance requirement of IFRS and US GAAP with respect to lease accounting, property manager has been enhanced. With this enhanced functionality, even the amendment transaction flow has been improvised to better user experience.
Now when a user tries to amend an existing lease, they will be prompted with below options
Depending on what changes user want to perform, they can select the corresponding amendment option and proceed further.
Amend Lease: - Should be used to make any lease level changes like lease extension, lease contraction, change the interest index etc.
Amend Terms :- Should be used when there is requirement to amend the payment terms. This option needs to be used when user want to extend a payment term or contract a payment term or add a new payment term etc.
Amend Lease Classification: - This option should be used, only when the lease classification needs to be changed from Operating lease to Finance lease or visa versa.
Link Terms: - Currently in Property Manager or Equipment lease, we cannot update most of the attributes of a payment term once it is created. So currently whenever there is a change in any of the attributes of payment term like payment amount, frequency, schedule day etc, we need to contract the existing payment term and create a new one. To perform this kind of amendment, link term option needs to be selected.For more information on the enhanced functionality in Property manager, please refer Property manager Info center Document 2482062.2.