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Budgets in Nakisa Lease Administration

Once Capital Investment Budget is enabled in your Nakisa Lease Administration instance, users are blocked from activating activation groups or performing lease events that change the ROU Asset value if there is no valid budget submission assigned. Therefore, in order to continue certain operations in Nakisa Lease Administration, you must assign valid budgets for all active leases.

Budgets are assigned at the master agreement level, and are applied to the applicable leases below. Only a single active submission with the same company, year, and investment type can be assigned to a master agreement at one time. In order to assign this new submission, you must first remove, archive, or reject any conflicting submission.

The following options are available to assign approved budget submissions to master agreements in Nakisa Lease Administration. Note that you can add multiple budgets to a single master agreement.

For existing master agreements:
- Add budgets manually in the Budget section on the MLA Definition page.
- Use the Upload MLA Budget tool to assign budgets to master agreements in bulk.
For new master agreements:
- For master agreements created manually, add a submission in the Budget field on the Create MLA pop-up. If you need to add multiple submissions, they can be added in the Budget section on the MLA Definition page.
- For master agreements created via the Mass Import Tool, add submissions on the MLA Budget tab of the uploaded Excel file.

Note that the application only checks the budget submissions assigned to the master agreement. If a submission is approved in Capital Investment Budget but is not assigned to the master agreement, it is not used.

From the budget(s) assigned to the master agreement, the following criteria is used to determine which budget to apply to a lease expense:

The budget submission and the Nakisa Lease Administration contract must have the same company code.
The budget must have amounts defined for an Investment Type that is mapped to same the Asset Class defined in the lease.
The application uses the Posted Date of the expense to determine which budget to apply. This is typically the Posting Date, but may be the Document Date if the company currency Translation Date is set to Document Date in the Exchange Rate Type table in the Nakisa AdminConsole.
The application chooses the closest valid budget where the Posted Date year of the expense is on or after the submission Year.
For example, Submission A has a Year of 2020 and Submission B has a Year of 2023. If a lease is activated with a posted date year of 2022, the amount is registered under Submission A. However, if a casualty is later performed on the lease in 2023, the amount is registered under Submission B.
If a Year Distribution is defined, only expenses with a posting year that falls within the year distribution range are registered.
Note that the application only checks the budgets assigned to the master agreement. In the example above, if Submission A was assigned to the master agreement and Submission B was not, the expense in 2023 would be registered under Submission A.

Note: The application does not consider any fiscal year shift configuration in Nakisa Lease Administration.

Once an MLA has a budget assigned, a icon appears in the header of the master agreement and the objects below. After a lease is activated, you can hover over this icon in the activation group to view the active budgets with matching company, asset class, and year (based on the last Posted Date year used in the activation group). For more information about using Nakisa Lease Administration, refer to the Nakisa Lease Administration User Guide.