Leases & Obligations
Softbooq PlusIFRS 16 and ASC 842 without the spreadsheet nobody else can open.
Classify a lease from its terms, post commencement and the monthly entries, bill the rent, revalue on an index review, and produce the maturity disclosure - all from the same schedule rather than a model maintained beside the accounts.
01
Measurement, done once and properly
The schedule is the whole thing. Everything downstream is a consequence of getting it right.
Classification from the terms you entered
Recognition criteria for both standards applied to the lease itself, including the short-term and low-value elections, rather than a flag somebody sets by hand.
One deterministic schedule engine
The payment stream, the liability and right-of-use amortisation, and the undiscounted maturity bands all come from one pure calculation - so the disclosure and the postings cannot disagree.
Service charges kept out of lease payments
Non-lease components are excluded from the measured payments, because including a service charge in the liability overstates it and the standards say so.
Index-linked reviews that remeasure
Index series held in the system, and applying a review both changes the rent and remeasures the liability rather than only updating what you pay.
02
Into the ledger
Finance-pattern leases post; operating leases keep rent expense. Mixing the two is where double counting comes from.
Commencement and monthly entries
Right-of-use debited against lease liability at commencement, then interest accretion and depreciation each month, posted idempotently per period so a rerun cannot double count.
Rent bills generated from the schedule
Schedule lines become draft supplier bills with escalation, rent-free periods and VAT applied, plus catch-up for anything missed.
A rent roll across the portfolio
What is due, from which agreement, at which site, so the cash side of the portfolio is legible without opening each lease.
Index rates managed as data
The published series kept in the system so a review is applied from a recorded rate rather than a number typed from a letter.
03
Disclosure, deadlines and the other side
The parts that arrive at year end, plus the case where you are the landlord.
Portfolio totals and maturity analysis
Right-of-use and liability across every agreement, with the undiscounted maturity bands the note requires, produced from the same engine as the postings.
Break and renewal dates that chase you
A scheduled job raises notice, break and guarantee deadlines before they pass, because a missed break clause is measured in years of rent.
The lessor side too
Property you lease out classified, commenced and derecognised with its own income postings, rather than tracked in a separate sheet.
The details that took the longest
Small decisions you only make after getting them wrong.
Every one of these is a specific behaviour, chosen for a specific reason. They are the difference between software that demos well and software that survives a year of month-ends.
A finance lease has no rent expense, and that is the point
The rent bill codes to the lease liability, so cash reduces the liability while the profit and loss carries only interest and depreciation. Posting rent expense as well as recognition entries double counts the cost of every on-balance lease, which is the most common way this is implemented wrongly.
The disclosure and the postings come from one calculation
The maturity analysis in the notes and the entries in the ledger are outputs of the same deterministic schedule. Where they are produced separately they agree until the first modification and never again.
An index review remeasures, it does not just raise the rent
Applying a review changes the liability as well as the payment. Updating only what you pay leaves the balance sheet carrying a figure derived from rent that no longer exists.
Nothing is an island
What reaches Leases without anyone typing it again.
Every one of these is a real data path, not a promise of "full integration".
Finance
Right-of-use, liability, interest and depreciation post to the ledger
Procurement
Rent becomes a draft vendor bill against the counterparty
Assets
Commencement creates the right-of-use asset, excluded from normal depreciation
Contracts
The lease links back to the contract that created it
Sales
Turnover rent is calculated from reported store sales
Reports
Liabilities produce the undiscounted maturity schedule
Before you ask
Questions people ask about Leases.
- Does it handle IFRS 16 and ASC 842?
- Yes, with classification from the lease terms including the short-term and low-value elections.
- Does the rent actually get paid?
- Yes. Schedule lines generate draft supplier bills coded to the right cost centre, with escalation and rent-free periods applied.
- Is there a risk of double counting rent?
- No. For finance-pattern leases the rent bill codes to the lease liability, so the profit and loss carries interest and depreciation only.
- What about index-linked rent?
- Index series are held in the system, and applying a review updates the rent and remeasures the liability.
- Can I account for property I lease out?
- Yes. The lessor side classifies, commences and derecognises with its own income postings.
Where to look next.
All 18 modulesFinance
Every invoice you send, every bill you pay, every version of both.
ExploreProcurement
Money leaves the business here. Everything is built around that.
ExploreAssets
A register that agrees with the balance sheet, without anyone reconciling it.
ExploreContracts
The contract raises its own invoice when the milestone lands.
ExploreSales
One price, one stock figure, one ledger - counter, phone and web.
ExploreReports
Statements in your reporting standard, that you can click into.
ExploreSee Leases with your own numbers in it.
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