Long term operating leases

You must add a liability account to all leases. You can either specify the Liability Account field or you can add the liability account on the Allocation Code field and select Liability as an Allocation Code Type.

Note: You cannot specify the Liability Account field and an Allocation Code Type of Liability.

See the Payables tab on Creating a lease.

Note: All Leases entered into the new Lease Accounting module will follow lease accounting regulation (ASC842).