Unit Replacements

Lease Administrators and Accountants can use the unit replacement option when there is a replacement in kind, where there is no accounting impact and with no change to the asset.

When the user adds a replacement event, the application will create a new unit with the same Asset ID, and the old unit is marked as “Replaced”.

The user has to specify the Replacement Date, which is used for both the old unit End Date, and the new unit Reception Date. There cannot be a gap between these dates, because it will have an accounting impact. If a gap is required, the old unit will have to be early terminated, and the new unit will have to be added with a new lease component. 

Note that for a unit replacement, a contract modification or contract change (with full approval workflow) is not required. A replacement can only be performed if there is no current draft version of the contract.

Note: The number of Active Units displayed at the top of the page ignores units that have a "Replaced" Unit Status.

Note that you cannot enter a unit replacement if there is already a draft of the contract open (for an asset casualty, contract change, lease modification, or reassessment).

Warning: Many of the fields in the Unit Lists section and in the Asset Fields section can be edited both before and after activation group activation. Because some of the fields can impact the asset and current balance sheet reporting, use caution when modifying any of these fields to avoid incorrect balance sheets. Specifically, if you are reporting balances at the profit center level, we advise against changing the profit center after activation, because the primary cost object that derives a new profit center may not be reported correctly in your balance sheets.

To replace a unit:

  1. Load the activation group.
  2. Click Context Menu > Replace Unit.
  3. Select the required unit in the field Unit to be Replaced.
  4. Enter the New Unit Name.
  5. Enter the Replacement Date of the unit.
  6. Click Submit. A new unit is created in the list.
  7. Click for the replaced unit to view all of the unit information (which is no longer editable):
    • The Unit Status shows the unit is now "Replaced".
    • The End Date field shows the Reception Date that was entered.
  8. Click for the new unit to view all of the unit information:
    • The Unit Status shows that the unit is "Activated".
    • The Reception Date field shows the Reception Date that was entered.
    • The Asset ID field shows the same ID as the one for the replaced unit.

Nakisa Lease Administration 2022.R2-SP1 © 2023

 

 

Nakisa Inc. All rights reserved worldwide.