Use Leases when you need recurring lease payments and classification treatment to flow through the model.
Create the lease
Add a lease from Schedules > Leases. The same modal holds the lease form, the initial payment term, and the required account allocations.
The main setup choices are:
- Type
- Classification
- Start Date
- End Date
- Discount Rate
- Initial Payment Terms
Choose the right classification
- Operating when the payment should behave like rent expense
- Finance when the model should split the lease into financing-style components
That classification affects which account allocations are required and how the outputs land in the statements.
Manage payment terms after creation
Add another term when the payment amount or frequency changes, such as:
- rent escalation
- renewal period
- temporary discount period
What flows out of Leases
Leases can drive:
- periodic lease expense
- financing components for finance leases
- balance sheet impact where applicable
- payment timing into cash