Can Crunchafi be used for short-term leases?

Organizations that have elected 842-20-25-2 have elected not to apply ASC 842 to leases of 12 months or less. 

All leases added to Crunchafi Lease Accounting are billable, even if they are short-term (i.e., 12 months or less). See the Billing Details articles for more information. 

To utilize Crunchafi Lease Accounting to track these short-term leases, create a short-term lease GL account expense account within your chart of accounts.

In Crunchafi Lease Accounting, go to Administration > GL Accounts and add it under the Variable Expense & Non-Lease Payments section. Make sure to select Other P&L Accounts as the GL Account Type. 

When adding the lease, enter the following under Step 2 of the lease flow:

• Enter 0% discount rate
• Enter 0.00 payment stream
• Enter Classification (required in order to enter a lease, and does not have an effect on short-term lease calculations)

For Step 3, enter GL accounts. These will not be used as there are no payments used for calculations. 

For Step 4, select the GL account you created and then add the payment streams for your short-term lease.

Reporting for Short-Term Leases

• Journal Entries: The payment and expense will be part of the entry.
• Amortization Schedule: The cash outlay will show in Column T and the expense will show in Column W, Other P&L Accounts.
• Footnote Disclosure: Short-term lease expense 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 it from Crunchafi Lease Accounting.