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Yes! Note this article is only for organizations that have elected the policy election (842-20-25-2) not to apply ASC 842 to leases of 12 months or less.
All leases added to LeaseCrunch are billable, even if they are short term. See the Billing Details articles for more information.
To utilize LeaseCrunch to track these short-term leases, create a short-term lease GL account expense account within your chart of accounts then add it to Administration - GL Accounts Under Variable Expense & Non-Lease Payment section. Be sure to use Other P&L Accounts as the account type within the software.
Add a new lease as usual. On Step 2 note the following required fields:
- Enter 0% discount rate
- Enter 0.00 payment stream
- Enter Classification (Required in order to enter a lease and does not have an affect on Short Term Lease calculations)
On Step 3 Enter GL accounts - these will not be used as there are no payments used for calculations.
On Step 4 select the account you created and then add the payment streams for your short-term lease.
When running Journal Entries, the payment and expense will be part of the entry. On the Amortization Schedule, the cash outlay will show in column T and the expense will who in column W, Other P&L Accounts.
The Short-term lease expense on the Footnote Disclosure will not populate with this data. When using a separate GL account, this balance is what you will add to the Footnote Disclosure after exporting from LeaseCrunch software.
Please note these leases are billable.
**If you elect to apply ASC 842 to your short-team leases then they will be entered through the usual workflow.**