Why is my lease liability lower than my payments?
For leases starting after the initial application date, payments made on or before the lease start date (or within the first half of the first month in the software) are excluded from the initial Lease Liability calculation but included in the Right-of-Use (ROU) Asset calculation, causing the lease liability to appear lower than the payments.
For leases with a start date after the initial application date, payments that begin on or before the start date of the lease (or 1st - 15th of the first month in the software) will be excluded from the initial Lease Liability calculation, but included in the ROU Asset calculation per lease accounting guidance.