How to Reclassify Lease

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To change the category of a lease, you can use the Reclassify Lease function.  It transfers the lease's RoU Asset to the different asset category. The G/L Entries are created automatically in the system.

To reclassify the lease, simply open a Lease Agreement Card and navigate to Actions → Actions → Reclassify lease. Enter a Reclassification Date for the lease and select a new category, then click OK.

Reclassification Date

The Reclassification Date must be in the current period.

 

Here are the entries created by the reclassification action:

The remaining RoU balance of the lease was transferred to a different G/L Account. Liability amounts were just adjusted in the same accounts as they are the same regardless of lease category.