Example inputs
The example uses full months, a single currency, and no modifications. Different payment timing or additional balances will change the results.
1. Create the lease and accounting snapshot
Follow Lease abstraction to enter the contract dates and 24 monthly payments. Publish the lease, then open its draft accounting lease in Needs Review. In the accounting wizard, select the asset class, enter the dates and 6% discount rate, and confirm that payments fall at month end. Leave transition and additional balances at zero for this example. Review the classification questions, select the supported classification, and create the snapshot. Map the ROU asset, current and non-current lease liabilities, lease expense, and cash to your GL accounts.2. Check initial recognition
The present value of 24 month-end payments at 0.5% monthly is approximately $22,562.87. With no other adjustments, the starting ROU asset is the same amount.
Spacebase splits the liability between current and non-current accounts according to your company’s current-liability calculation setting. Reconcile their combined balance to the amortization schedule.
3. Review and approve
Claim the accounting lease, select Lease Actions > Submit for approval, and have the reviewer check the contract, payment schedule, account mappings, and recognition amounts. Approve it from the Reviewed tab when review is complete. Only approved accounting leases flow into accounting reports and automated journal entries. Resolve any Needs Review leases before relying on the portfolio totals.4. Reconcile January
For this operating lease, January lease expense is $1,000. The interest component is approximately $112.81 ($22,562.87 × 0.5%), and the ROU amortization component is approximately $887.19 ($1,000 − $112.81).
These are rounded check figures. The operating lease’s interest component explains the liability movement; it is not a separate finance-lease interest expense in this example. Exported entries may separate asset amortization, accumulated amortization, payments, and current/non-current transfers.
Use the Journal Entries report for January to review the posting amounts. Use Lease Amortization Schedule to confirm the monthly movement, and Portfolio Amortization Schedule Values to compare January 31 balances across approved leases.
5. Complete the portfolio close
- Run Real Estate Leases Check to identify lease-administration records without an accounting lease. Investigate whether each needs accounting recognition.
- Review newly published leases, modifications, expirations, and additional costs for the period.
- Run Roll-Forward Report and confirm beginning balances plus period activity equal ending balances.
- Compare GL Reconciliation Report and Balance Sheet to the posted GL using the same date, standard, entity scope, and currency.
- Resolve differences, then export or post through your established process. Check whether cash entries are included so payments already posted through AP are not duplicated.
- Save the final reports and review evidence. After approval of the close, update the Accounting lock date under Accounting settings according to your company’s process.