Lease Accounting Software – Data Input Process
Creation of Company
Super Admin is the administrative contact from RVSBELL Analytics, who will create the company and the user login ids for all the users of the application.
Creation of users
Three users are created by the Super Admin viz., Accountant, Manager and Auditor. All the three login ids should be created before the user starts to work with the system. If the user wants more ‘Accountant’ logins, it can be requested at additional cost and the Super Admin will create the same.
Before the user starts to upload the data etc., all the login ids created by the Super admin must be activated by the user. The user will automatically get an email from RVSBELL Analytics which should be activated by clicking the link provided in the email and then creating the users own password.
Accountant
Accountant can only input the files. Cannot see data input by other accountants. There can be more than one accountant and such account logins are created by the Super admin upon specific request by the user as mentioned above. Accountants cannot download any data including the data that they have uploaded/entered into the system.
Manager
The manager account will also be set up by the Super Admin. Manager can also input the files. Can also see data input by any accountant. Manager can download data in any available formats for download.
Auditor
Auditor cannot input the files. Can see the data input by anyone. Also the Auditor has some views which are not available to other logins – accountants and manager. Auditor can download data in any available formats for download.
Input data upload process
Valuation Date
The valuation data must be first created before any data can be uploaded. Initial date can only be quarter ending dates viz., 31-Mar, 30-Jun, 30-Sep or 31-Dec. The valuation date cannot be any date other than one of these four dates.
Before data for a particular valuation date is uploaded, it should be ensured that the valuation date is set to active. If the valuation date in the input file is different from the one that is set to active, then the input process will throw an error.
Pressing the next date will automatically create another line item with the next valuation date. The next valuation date is determined based on the frequency of valuation period specified by the Super Admin while creating the user account. For example, if the frequency is quarterly, then the next valuation date would be 30-Jun-2020. If the frequency is Yearly, then the next valuation date would be 31-Mar-2021.
For example if the user wants to upload data for the valuation date 30-Jun-2020, then that should be made active as shown below.
Asset Class
The user should first specify Asset Classes for the lease items. For example, the asset classes could be Office Property, Godown, Guest House, Lap Tops, Motor Car, Two Wheelers etc.
Lease upload data
Data Validation
If there are data validation errors, then the system would throw out such error messages.
- If Avail Exemption is Yes then the corresponding line item is excluded from all computation
- If Avail Exemption is No then Exemption type should be NA
- If Avail Exemption is Yes and Exemption type is ‘Short Term’, then the End Date less Start Date should not exceed 365 days
- If Avail Exemption is Yes and Exemption type is ‘Short Term’, then all rows of the same ‘Asset Class’ should have Avail Exemption = ‘Yes’
- If the Asset Class does not match/exist in the asset class master, then an error is displayed
- The Start date cannot be later than the valuation date
- The effective date cannot be later than the valuation date
- The end date should be later than the start date and effective date
Display upload status
1. New (clean record with no validation errors, yet to be processed)
2. Error (record has validation errors. This record should be uploaded again or can be edited and corrected after which this record will become ‘New’.
3. Exempted – Low Value (record is exempted from all calculations – but used for disclosure purposes)
4. Exempted – Short term record is exempted from all calculations – but used for disclosure purposes)
5. Processed New (Processed for the first time)
6. No change (considered in the next valuation date, but there are no changes in the record)
7. Processed Modified (record is processed after modification from the previous valuation date resulting in additional journal entries)
8. Terminated – Lease that is terminated
Sample data
The following input data is uploaded into the system for the various valuation dates viz., June-19, Sep-19, Dec-19, Mar-20 and Jun-20.
Note: Lease ID LZ-02 is terminated on 31-May-2020.
Statement on Auditing Standards-SA 265
What is the difference between operating lease and finance lease?
Ind AS Accounting Standards
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