Lease allocation codes

A lease allocation code is used to create the percentage of an expense that is charged to a specific company or distribution account. The code is attached to the debt, expense, or interest accounts on a lease. A lease allocation code can also be attached to the executory cost expense on a lease. This method is used to allocate lease expenses to multiple distribution accounts.

An allocation code cannot be released until the total of the percent fields is 100%. There are additional considerations with allocation codes:

• You cannot delete an allocation code that is attached to a released lease.
• When you apply an allocation code to a lease, it is applied to all payments on that lease.
• When an allocation code is modified, an audit record is created.
• When you assign an allocation code to a lease, you can assign an allocation to a debt or expense account, or an income account. You cannot assign an allocation code to both.
• You can assign a debt or expense allocation code only to an operating lease.
• You can assign an interest allocation code can be assigned only to a capital lease.