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What if the Initial Application Date is entered incorrectly?

If an incorrect Initial Application Date is entered for a Reporting Entity, it can be corrected by either adjusting the date directly if no leases exist or creating a new Reporting Entity and transferring leases if leases are present, with specific detailed steps for handling dates earlier or later than intended, including updating locations, GL accounts, and lease details in a precise order to avoid errors.

If you have entered an incorrect Initial Application Date for a Reporting Entity, you can correct it by following these steps:

  • If no leases have been added to the Reporting Entity:

    • Navigate to Administration → Reporting Entity to adjust the date.

  • If a lease has been added to the Reporting Entity:

    • A new Reporting Entity can be created and the leases can be transferred to that entity.

To determine the initial application date:

  • For FASB ASC 842, use the FASB Initial Application Date calculator.
  • For GASB 87, use the GASB Initial Application Date calculator.

Correcting an Initial Application Date that is earlier than it should be

  1. 1.In Administration → Reporting Entity, edit the incorrect Reporting Entity and deselect the Enabled checkbox. (Administrator role required)
  2. 2.Add a new Reporting Entity with the correct Initial Application Date. (Administrator role required)
  3. 3.Update Locations, if applicable. Locations are Reporting Entity specific.
  4. 4.Update GL Accounts for the new Reporting Entity. GL Accounts are Reporting Entity specific.
  5. 5.Edit each lease associated with the incorrect Reporting Entity to be associated with the correct Reporting Entity, following this order:
    1. 1.Lease Payments: Ensure the start of lease payments is on or after the Initial Application Date of the correct Reporting Entity. This applies to Variable & Non-lease Payments as well.
    2. 2.Lease Start Date: Ensure the lease start date is on or after the Initial Application Date of the correct Reporting Entity.
    3. 3.Reporting Entity: Change the Reporting Entity on each lease.
    4. 4.If this order is not followed, you may encounter error messages.

Correcting an Initial Application Date that is later than it should be

  1. 1.In Administration → Reporting Entity, edit the incorrect Reporting Entity and deselect the Enabled checkbox. (Administrator role required)
  2. 2.Add a new Reporting Entity with the correct Initial Application Date. (Administrator role required)
  3. 3.Update Locations, if applicable. Locations are Reporting Entity specific.
  4. 4.Update GL Accounts for the new Reporting Entity. GL Accounts are Reporting Entity specific.
  5. 5.Edit each lease associated with the incorrect Reporting Entity to be associated with the correct Reporting Entity, following this order:
    1. 1.Reporting Entity: Change the Reporting Entity on each lease.
    2. 2.Lease Start Date: Ensure the lease start date is on or after the Initial Application Date of the correct Reporting Entity.
    3. 3.Lease Payments: Ensure the start of lease payments is on or after the Initial Application Date of the correct Reporting Entity. This applies to Variable & Non-lease Payments as well.
    4. 4.If this order is not followed, you may see an error message.

Note: To adjust the dates and Reporting Entity, some lease payments may need to be deleted and re-added.

Next, review each lease for the following:

  1. 1.Description & Term Tab: Update the Location, if applicable.
  2. 2.Lease Payments & Classification Tab: Re-enter any deleted lease payments.
  3. 3.GL Accounts:
    • Update if there are existing balances under previous lease guidance for transition leases (Lease Payments tab or Lease Receipts).
    • Review and save to update the accounts to relate to the new Reporting Entity.
  4. 4.Variable Expense & Non-Lease Payments: Update GL Accounts, if applicable.