Hi all, does anyone have experience with lease modification? we want to increase some lease payment amounts but when we try modifying, it keep debiting the lease liability and crediting ROU, when it should be the opposite

actually thats what it does first - it stops the existing lease (DR Liability CR ROU) and then new lease created (CR Liability DR ROU)

@Karina is there a step I am missing after it posts this entry ? We are trying to understand how it increases the existing lease to reflect the new lease value

yes, lease mod are hard in FAM mentally :) you essentially have to cancel the existing lease and start the new one, that’s how they set the modification.

its been a pain to say the least haha. what happens to the associated assets ? and previously generated lease interest JE ?

there is a field on the Mod screen where you say when the current lease ends. It triggers all kinds of scripts 🙂 including the DR Liability CR ROU which removes the lease as an asset from the asset schedule/register. Then you add a new lease from the end point on. I think first you need to modify the lease and then depreciation for that period

Thank you. We will try this