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Last Post 08/26/2019 1:10 PM by  Bob Canham
Lease Management - Operating Lease JE Timing
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Bob Canham
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08/26/2019 1:10 PM
    We are working on implementing Lease Management so we can support the new reporting requirements for Long Term Operating Leases. As we're working through testing, we're running up against a block trying to understand when the various journal entries should be hitting our general ledger. I'm hoping someone out here has done this and can point us in the right direction.



    The difficulty we're having is due to the payment timing. Most of our leases are due by the 1st of the month and are for the month to come. As such, we need to cut the payment in the month prior (i.e. pay in September for an October 1 due date). What we think should happen is that liability would be reduced in September and the Expense and Accumulated Depreciation would occur in October. However, Lawson's setup appears to always post the lease reduction and expense journal entries in the same month (determined by distribution date on LM131). Because of this, we think that either the expense and accumulated depreciation would be early (distribution date in payment month) or the liability reduction would be late (distribution date in the payment due month).

    Hopefully someone has worked through this and can let us know what they did. We seem to be running in circles.

    TIA
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