Agreement and Asset

Fields in this tab:

Field Name	Type	Nature	Description
Country	Drop Down	Mandatory	This is a drop down from the Country Master. Selecting the country will also populate the Currency.
Currency	Auto populated	Mandatory	Non-editable field driven by the selection made in Country.
Exchange Rate	Number	Non-mandatory	This field has no impact. Should be ignored.
Lessor Name	Alphanumeric (200)	Mandatory	The name of the lessor should be mentioned here. If multiple lessors have the same lease conditions, create one LeaseID for consolidated amount. If conditions differ, create multiple LeaseIDs but assign the same Asset ID for tracking.
Lessor Address1	Alphanumeric (800)	Mandatory	Field to type the lessor address.
Lessor Address2	Alphanumeric (800)	Non-mandatory	Additional field to type the lessor address.
Contract No	Alphanumeric (40)	Mandatory	Field to type the agreement/contract number.
Rental space	Alphanumeric (200)	Non-mandatory	Field to type rental space.
Parking space	Alphanumeric (200)	Non-mandatory	Field to type parking space.
Asset Type	Drop Down	Mandatory	This is a drop down from the Asset Master.
Asset ID	Alphanumeric (40)	Mandatory	Field to type the Asset ID. Used to group leases together. Although the ROU asset may not be created in ERP, this helps grouping and reporting.
Useful Life of Asset	Date	Mandatory	ROU asset to be depreciated over the lower of useful life or lease term. For leased assets (cars, machinery, furniture) use company’s useful life if applicable. If not, align with “Date Till Reasonably Certain” in Lease Details tab.
Cost Centre	Drop Down	Mandatory	Drop down from the Cost Centre Master. Select the cost centre to which the lease belongs. Journal Entry Report is generated cost centre and asset wise for ERP loading.
Depreciation Period	Auto populated	Mandatory	Auto populated based on Useful Life of Asset date minus Lease Commencement Date.
Impairment	Number	Non-mandatory	If impairment in ROU asset occurred, mention the value here. Asset value reduced accordingly.
Impairment Date	Date	Non-mandatory	Date of impairment, if any. Asset value reduced from this date onwards.
Sub lease	Drop Down	Non-mandatory	Sub lease is not supported by the tool, so this field should be ignored.
Discount Rate Implicit	Number	Non-mandatory	Discount rate implicit in the lease (IRR of lessor). Usually unavailable, so keep blank.
Incremental Borrowing Rate Inception	Number	Mandatory	IBR at lease inception. Used for leases as on transition date (Retrospective Approach) and after transition date for calculation. Enter number without % sign (e.g., 8.5).
Incremental Borrowing Rate Transition	Number	Mandatory	IBR at date of transition to new standard. Used for leases on transition date. For leases after transition date, copy the same value here. Enter number without % sign.
Interest Rate	Drop Down	Mandatory	Always select IBR as Discount Rate Implicit is blank.
Fair Value of Asset	Number	Non-mandatory	Low value lease exemption is driven by this amount. If blank, exemption is not available. Values lower than configured threshold trigger exemption in Recognition Exemption tab.