Nakisa has just released its latest update for Lease Administration (NLA) software, 2023.R2, offering a host of new features aimed at simplifying the complexities of lease accounting. This update addresses the needs of enterprise-level lease accountants, providing powerful tools for managing non-standard calendars, multi-vendor payments, escalating rent scenarios, and more. Let’s explore how these new features improve lease accounting workflows.

Non-Standard Calendar Support

Businesses often operate on varying fiscal calendars based on industry requirements or regional preferences. Nakisa Lease Administration 2023.R2 addresses this by offering support for several non-standard fiscal calendars such as 445, 454, 360, and 365-day calendars. This flexibility allows users to create fiscal variants tailored to each legal entity’s specific needs, ensuring seamless compliance with reporting requirements across diverse regions.

Handling Multiple Payments in a Single Period

Real estate leases can involve multiple payments within the same period for different components, such as rent and maintenance fees. Nakisa’s new release makes it easier than ever to set up and automate multiple payments within the same period. This feature eliminates the need for manual tracking and enables users to streamline accounting workflows by automating payments, saving both time and effort.

Managing Escalating Rent

Escalating rent clauses are common in commercial real estate leases, where rent increases over time. Nakisa’s Lease Administration software allows users to incorporate escalating rent into payment terms. Whether the adjustments are positive or negative, NLA handles various scenarios including amount-based, percentage-based, and carry-forward logic. This functionality ensures that rent changes are calculated accurately, regardless of the complexity of the lease terms.

Multi-Vendor Capabilities

Many lease agreements involve multiple lessors or vendors, especially for large-scale commercial properties. NLA 2023.R2 simplifies the management of these complex arrangements by enabling users to allocate payments to multiple vendors within a single lease contract. This feature makes it easy to track and manage payments for lease-related services, ensuring that all parties are compensated according to the terms of the agreement.

Journal Entry Simulation

One of the key features of the new release is the ability to simulate journal entries before posting them. This feature allows lease accountants to validate debit and credit entries without actually posting them, providing full visibility into the entries for initial recognition, lease modifications, and periodic adjustments. This simulation capability ensures that all journal entries are accurate and in compliance with accounting standards before they are finalized.

Land Lease Support

Managing land leases requires special accounting treatment, particularly when dealing with assets that have indefinite useful lives. NLA now supports land lease accounting by allowing users to mark asset classes as having indefinite useful lives, especially when a purchase option is exercised. This feature ensures compliance with IFRS 16 and ASC 842 standards and helps avoid unnecessary depreciation for land assets.

Revert Functionality

A much-requested feature, the revert functionality, is now available in Nakisa Lease Administration 2023.R2. This “undo” feature allows users to reverse previous lease accounting actions, including modification journal entries. The ability to restate previous versions after reassessments provides complete traceability and ensures that corrections can be made with full documentation, making it easier to comply with audit requirements.

Additional Enhancements

Nakisa’s commitment to improving the user experience continues with several other enhancements:

• Flexible Terms and Conditions: NLA now allows users to input terms without depending on the first term input, including the ability to add overlapping payment terms.

• Multiple Events Per Period: Lease modifications can now be performed on different dates within the same accounting period, providing greater flexibility in managing lease changes.

• Improved Impairment Functionality: NLA now supports full impairment accounting and enables users to carry forward operating leases with past impairments for continued straight-line depreciation.

• Upgraded Reporting Features: The latest release includes improvements to NLA’s reporting, dashboards, and visualization tools, making it easier to manage and analyze lease data.

Multi-Currency and Non-Lease Expense Support

For organizations with international operations, NLA 2023.R2 offers multi-currency support for non-lease expenses. Users can now manage non-lease expenses in different currencies within the same lease, ensuring accurate handling of payments to multiple vendors across various geographic locations. Additionally, non-lease indexation has been added, allowing adjustments to expenses like CAM and utilities based on index values.

Conclusion

Nakisa Lease Administration 2023.R2 brings a wealth of new features that improve the efficiency, flexibility, and accuracy of lease accounting for large enterprises. With enhanced support for non-standard calendars, escalating rent scenarios, multi-vendor capabilities, and more, NLA makes it easier to manage even the most complex lease agreements. These improvements demonstrate Nakisa’s ongoing commitment to providing lease accountants with powerful tools that streamline workflows, ensure compliance, and improve financial management.