Sublease accounting
Sublease Accounting is a solution for your lease accounting requirements as a
lessor.
The sublease accounting allows you to perform these tasks:
- Specify and maintain your subleases.
- Create and approve sublease invoices and interface them to Receivables for processing.
- Automatically create journal entries in Global Ledger
A sublease is created when the underlying asset of a lease is leased to a third party. Thus, a released lease is required for a sublease to be created. The original lease is referred to as the head lease.
A sublease cannot be modified, impaired, or terminated early.
Before adding subleases, you must set up Receivables, Lease Accounting, Asset Accounting, Payables, and Global Ledger. You should also have a lease available.