What is the difference between an edit and a revision?

Lease Edit

When using the edit function, any changes made to a lease will apply to the entire life of the lease - past and future. Once saved, the lease information will appear as though the lease was always entered that way. If Lease Payment Streams in Step 2, GL Account selections, or Cost Centers are updated, it will overwrite previous detail and calculations.

The most common use of the edit function is to correct any errors made during lease entry or to add more detail about the lease.  Some users edit the lease to update variable lease payments in Step 4 as amounts are confirmed during the life of the lease. Payments edited in Step 4 do not change the original calculations of the ROU Asset or corresponding liability. 

Lease Revision

Most commonly, a lease revision is conducted when a change to a lease contract is subject to ASC 842 modifications and remeasurement guidance. Conducting a revision in LeaseCrunch allows the user to preserve the historical integrity of the original lease while recognizing the changes to the lease going forward.  Once a lease revision is saved, any lease detail before the date of revision is frozen.  As of the date of the revision, the lease will be recalculated going forward.

In LeaseCrunch software, revisions begin on the 1st day of the revision month. A completed revision appears as a second lease line on the lease dashboard. 

Important: When exporting Journal Entries for the initial recognition of the revision, select both versions of the lease on the dashboard (shown above).

To learn how to add a revision, click here.