Reclassify the short-term portion of lease liability

This topic explains how to create a monthly journal entry to reclassify a portion of the lease liability as short-term. When the schedule that is selected in the batch process is Short-term lease liability reclass, a journal entry is created. This entry is used to post the current portion of the lease liability on the last day of the month. At the same time, a reversal entry is posted as of the first day of the next month.

The short-term portion of the lease liability is shown on the liability amortization schedule. When the journal entry is posted, the Liability reclass journal created column becomes available, and the journal ID is also filled in on the schedule.

To create and post the short-term liability reclassification journal entry, follow these steps.

  1. Go to Asset leasing > Periodic > Batch journal creation.
  2. In the Batch journal creation dialog box, in the Select schedule field, select Short-term lease liability reclass.
  3. In the Lease group field, select a lease group. Alternatively, in the Book ID field, select the book ID.
  4. Turn on the Post parameter. Alternatively, if the entry should be created but not posted, leave this parameter turned off.
  5. Select OK.