What is the difference between an edit and a revision?
An edit in lease accounting applies changes retroactively to the entire lease term, overwriting previous details and requiring possible external adjustments, while a revision preserves the original lease history by freezing prior data and recalculating only from the revision date forward, typically used for ASC 842 modifications and resulting in a separate lease line in the system.
Lease Edit
When using the edit function, any changes made to a lease will apply to the entire life of the lease—past and future. Once saved, the lease information will appear as though the lease was always entered that way. If Lease Payment Streams in Step 2, GL Account selections, or Cost Centers are updated, it will overwrite previous details and calculations.
The most common use of the edit function is to correct any errors made during lease entry or to add more detail about the lease. Some users edit the lease to update variable lease payments in Step 4 as amounts are confirmed during the life of the lease. Payments edited in Step 4 do not change the original calculations of the ROU Asset or Lease Liability.
If the edit is to correct any errors made during lease entry, an adjusting entry outside of the software might be required. It is recommended to run reports prior to the edit and then again after the edit, as the adjusting entry is the delta between the two reports.
Lease Revision
Most commonly, a lease revision is conducted when a change to a lease contract is subject to ASC 842 modifications and remeasurement guidance. Revising in Crunchafi Lease Accounting allows the user to preserve the historical integrity of the original lease while recognizing the changes to the lease going forward. Once a lease revision is saved, any lease detail before the date of revision is frozen. As of the date of the revision, the lease will be recalculated going forward.
In the software, revisions begin on the 1st day of the revision month. A completed revision appears as a second lease line on the My Leases dashboard.
Important: When exporting Journal Entries for the initial recognition of the revision, select both versions of the lease on the dashboard. More information can also be found in the Knowledge Base article "What is a Suspense Account and How is it Used?"