To set up lease G/L accounts from the assets grid:
- Select the pencil icon next to the asset group name,
- Select Edit next to General Ledger Accounts towards the end of the page,
- Enter the name of the Lease general ledger accounts,
- Or select the chart of account (if integrated),
- Select save,
- Select save except again for the asset group this time.
When we use the expression "Lease Liability" we mean the Gross liability - i.e. the Principal plus the Interest.
So that means that in order to get to the amount due at any point you have to calculate:
Principal = Gross liability - Unexpired Interest (where the unexpired interest is interest that has not yet accrued).
Some clients disclose both these on the balance sheet and some just disclose the outstanding principal.
If you disclose both then the B/S item looks like this (example numbers):
Lease liability outstanding 1,000
Less: Unexpired interest (80)
Principal outstanding 920
(And this can be split by current and non current using those accounts).
If you just want to disclose the Principal in the accounts then map the Lease Liability and the Unexpired interest to the same account and it will just show the net Principal (split by current and non-current).