Lease allocation codes

A lease allocation code is used to allocate the lease transaction to multiple accounts based on the company. The code is attached to the liability or interest accounts on a lease. A lease allocation code can also be attached to the non lease component 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 liability account, or an income account. You cannot assign an allocation code to both.
• You can assign a liability allocation code only to an operating lease.
• You can assign an interest allocation code can be assigned only to a capital lease.
• When creating lease liability allocation code, if the short-term liability accounting is enabled on the finance enterprise group, you must enter allocation accounts for either short-term liability or long-term liability or both.
• When fund accounting is enabled, allocation codes are not allowed on the lease.