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You need permission to manage company accounting to change these settings. Open Accounting > Settings, then click Edit Accounting Settings. Make your changes and click Update. These settings control company-wide accounting behavior. Review changes with the team responsible for your accounting policy before updating them.

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Accounting dates and fiscal year

  • Transition date: Identify when your company transitioned to its accounting standard; this supplies the transition point for lease accounting.
  • Accounting lock date: Prevent users from creating accounting data with GL start dates on or before this date. For example, a June 30 lock date blocks a June 30 GL start date but allows July 1.
  • Fiscal year: Set the month and day that each quarter begins.
  • Fiscal year starts before calendar year: Control fiscal-year naming. For example, with a July 1 start, selecting this option labels July 1, 2023 as the start of FY24; leaving it clear labels that date as the start of FY23.
  • Accounting standard: Appears only if your company allows users to edit the standard.

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Calculation and reporting options

Current lease liability calculation method has two options:
  • Use principal payments from amortization: Sum payments less interest expense over the next 12 months.
  • Use discounted lease payments: Use the net present value of the next 12 months of lease payments.

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Functional currency conversion

Monetary functional currency conversion logic determines the exchange-rate date used to convert monetary entries from contract currency to functional currency:
  • Use entry dates selects the rate date from each entry.
  • Use report end date uses the report’s ending date.
  • Use the earlier of the effective date or entry date selects whichever of those two dates comes first.
For example, a June entry in a report ending September 30 can use a June rate or a September 30 rate depending on this choice. The source entry amount is the same; the converted amount can differ. Nonmonetary functional currency conversion logic controls how the right-of-use asset is converted when a lease is modified:
  • Layered: Convert the change in the right-of-use asset using the exchange rate on the modification effective date.
  • Single exchange rate: Remeasure the entire right-of-use asset using the exchange rate on the modification effective date.

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Discount rates

The Discount Rates section on Accounting > Settings lists the country, start date, lease term, and rate for each entry. Click Create Discount Rate to add an entry, or select a row to edit it. Enter the term in months and the rate as a percentage, such as 8.25 for 8.25%. Use Import Discount Rates when adding rates in bulk. For the broader accounting workflow, see Accounting Leases.