Bulk Financial Changes

Overview

Users can efficiently handle lessor lease financial changes in bulk via an Excel spreadsheet upload, as opposed to updating leases one by one directly in EZLease. This feature supports both revision (adding a new modification) and replacement (overwriting an existing lease or lease modification) styles of financial changes.

Note:

Users make bulk financial changes using the standard EZLease bulk import template for new leases. This template is downloaded from the Bulk Actions menu in EZLease.

When uploading a new lease, the "Change" column (B) should be empty. To upload any sort of change to an existing lease, the Change column should be set to align with the type of change. There are 5 different types of changes available, grouped into financial updates and non-financial updates.

Financial Updates

1. Revise — Choose "Revise" for financial changes that modify existing lease terms, such as updating rent amounts or extending the lease term. Revisions allow the user to specify a booking date for the change. This keeps closed periods unaffected.
2. Replace — Choose "Replace" for financial changes where the user wants to completely replace the original lease or the last lease revision. This option is most common when correcting a new lease before booking or correcting a lease revision (modification) before booking.

Note: Learn more about revising and replacing a lease here.

Non-Financial Updates

1. Descriptive — Choose "Descriptive" to update basic descriptive data on a lease, such as updating lessee contact information, user-defined fields, or the lease description.
2. Terminations (Early) — Choose "Early" to terminate a lease ahead of the end date in the system. While this is arguably a financial change, EZLease classifies it as non-financial because it does not create a lease revision. Learn more about early terminating leases.
3. Blank — EZLease does not yet support this update type. This option is reserved for future use. Users should not select this option.

Revisions

Revisions most often align with lease modifications or back-dated lease corrections. Learn more about revisions in general here.

To make a revision using the import template, select "Revise" from the "Change" column (B) and then fill in the new data. Any financial change that can be done directly in EZLease can also be done using the import template.

For all revisions, the user must enter the lease number (A) and the booking date (AF). The booking date is the date on which the entries will be posted in the journal entries. If the user has enabled locking periods, then the booking date must be either within the current open period or a future period.

Optionally, if all leases listed in the upload template have the same booking date, the user may leave the booking date column blank and instead can select the booking date for the entire upload when uploading the file.

Beyond these two fields, the user only needs to enter the data that is changing. EZLease automatically copies data from the existing lease record for any blank fields. For example, if the user wants to change the rent amounts on a lease but leave the start and end dates unchanged, the user only needs to enter the lease number, a booking date, and the new rent. All existing information, such as start/end date, account numbers, fair value, etc., will be carried over.

That said, given revisions typically equate to contract modifications, the user will most often want to update additional key data (e.g., discount rate, fair value, etc.) so the lease can be remeasured properly in accordance with the relevant standard.

Revision Examples

Revised Underlying Asset Scope

If a lease is revised, the change may reflect a change in the underlying asset. For instance, the square feet leased in a building may change (becoming larger or smaller). A dropdown list is provided in the template, from which the user should select the revised asset scope (AG). The following options are available under the dropdown list:

• Unchanged
• Increase
• Decrease
• No scope reduction — This option is applicable only for IFRS and GASB accounting standards, as both frameworks classify the shortening of a lease term as a partial termination.

To perform this operation, enter the lease number, booking date, change type (Revise), and the Revised Underlying Asset Scope option.

Learn more about underlying asset scope.

If the user selects that the underlying asset scope has decreased, the user can enter the remaining percentage of the original asset in the next column (AI).

Enter the percentage increase or decrease in the scope of the underlying asset. Please note that the rate should be entered as a whole number (e.g., enter 10 for 10%, not 0.10). This column must be populated only if option "Decrease" is selected in the "Revised Underlying Asset Scope" column.

• Under US GAAP, if the user leaves this column blank after selecting "Decrease" in column "Revised Underlying Asset Scope," the system will calculate the revised percentage based on the reduction in liability percentage.
• Under IFRS, if the user leaves this column blank while "Decrease" is selected in column "Revised Underlying Asset Scope," a validation error will occur during the upload process.

Learn more about reduced asset percentage.

Reset Receivable to Fair Value at Revision

This field is designated exclusively for Lessor leases. Users should enter either "True" or "False" in this field. It is intended to adjust the fair value (FV) of the asset when the FV is unavailable at the time of booking the original lease. If "True" is entered, the system will perform calculations from the lease inception date.

• If this field is left blank, the system will default to "False."
• If the lease in question is part of a closed period, the user should select the change type as "Revise" and enter the booking date within the current open period. The system will then calculate from the lease inception and record catch-up adjustments as of the booking date.

New Lease Number

To change the lease number of an existing lease, simply enter a new lease number in this column. The new lease number must be unique and is limited to up to 50 characters.

Linked Lease Number

Users can link two leases together to see the rent combined. This is most commonly used for a lease that has land and building components, where the land is treated as operating and the building as finance.

Enter the lease number of the lease to be linked. Learn more about linked leases.

Increase in Lease Payments

Consider a scenario where in September, a lease amendment is signed that increases the lease payments. Effective September 1, 2024, the monthly lease payment will increase from $1,000/month to $1,100/month until the end of the lease term. Additionally, the discount rate will be adjusted from 5% to 5.5%. Please note that rents paid from the lease commencement date until August 2024 will remain unaffected by this change. Current open period is 9/1/2024.

Refer to the table below for a comparison of the base version of the lease and the updated terms:

Steps to populate the template:

1. Select "Revise" from column B "Change".
2. Update the Booking Date as 9/1/2024.
3. Update the rent step start date as 9/1/2024.
4. Update the rent step end date as 12/31/2028.
5. Update the rent amount as 1,100.
6. Update the discount rate as 5.5 (New discount rate will take effect on the "first change date" for the revision. In this case, it will be 9/1/2024).

Replacements

To completely replace the original lease or the last lease revision, use the Replace option. If there are no revisions to a lease, this option will overwrite the original lease entry. If there are revisions, this will overwrite the last revision.

For example, suppose the user is entering a new lease and hits save. A week later, the user realizes a mistake was made on the rent amount. Thankfully, the error was caught before any journals were booked, so the user can simply correct the lease. In this case, the user would use the "Replace" option to overwrite the original lease entry.

Alternatively, if the user noticed the mistake after booking entries, the user would use the "Revise" option to keep the closed periods as-is and book the correcting entries in the current open period.

Learn more about the Replace option here.

Descriptive

Users can update descriptive fields, such as lessee or lessor phone number, using the "Descriptive" change type. The only required data is the lease number and the new information for each descriptive field.

Enter values only in fields requiring updates. Blank fields will not overwrite existing descriptive information. More information about bulk descriptive updates can be found here.

Entity and Lease Currency Restrictions

Entity (AY) and Lease Currency (AZ) are considered descriptive changes. Users can update these fields unless there is activity booked in a closed period.

Entity and Lease Currency cannot be updated on a lease if there is any activity in a closed period. To change this information, the user would need to perform a transfer termination to terminate the current lease and create a new lease with the correct Entity and Lease Currency.

Alternatively, the user could perform a reversal on the incorrect lease and then enter a new lease with the correct information.

Terminations (Early)

Users can terminate a lease for multiple business reasons. As such, EZLease offers five different early termination options: Early, Transfer, Month-to-Month (MTM), Reversal, and Post-Reversal.

• Early - It is the most commonly used option. It occurs when a lease contract ends ahead of its original end date. In case of early termination, the booking date should always be either on or after the "Early Term End Date."
• Transfer - It is used for intercompany transfers where the user needs to end the original lease and create a new lease for the remaining term. Booking date is not required.
• MTM (Month-to-Month) - These are leases users can terminate at any time. This option will terminate the lease, stop generating journals for any remaining rent steps, but still allow the user to load monthly payments. Learn more. For MTM, booking date is not required.
• Reversal - It will terminate an active lease and generate journals to completely reverse all activity from a lease, effectively making it as if the lease was never entered in the first place. The options are covered in more detail here. For Reversal, booking date is not required.
• Post-Reversal - It is the same as Reversal, but for leases that are already expired. For example, a lease expired on January 30th but the user did not realize it should have been reversed out until after January 30th. For Post-Reversal, booking date is not required.

Terminating leases involves only four data points: the lease number, termination type, end date, and optionally the booking date. All other data on the spreadsheet should be empty.

The booking date is only used for retrospective scenarios where the user has incorrect activity in a closed period and needs the adjusting entries from the termination to be applied in an open period.

Termination Examples

Month-to-Month

Scenario: Consider a lease that ended on August 31, 2025. Instead of closing out completely, it was transitioned into a month-to-month agreement set to run through August 31, 2026.

In December 2025, the user needs to terminate this lease early ending it on December 31, 2025, rather than letting it continue to its scheduled end date.

Steps to populate the template:

1. Populate Lease ID in "Lease Number".
2. Select "Early" from column B "Change".
3. Select "MTM" from column E "Early Term Type".
4. Set the "End Date" from column D to the date when the lease should no longer be MTM. EZLease requires an end date for MTM leases. If the end date is unknown, the user can set this far out into the future to effectively make the lease MTM indefinitely.

To continue paying rent when the lease is month-to-month, upload variable payments.

Post-Reversal

Scenario: Suppose on September 1st, 2025, the user realizes a lease was entered twice by accident and now needs to reverse out the duplicate lease. If the duplicate lease was active, the user would perform a "Reversal." In this case, the lease is already expired, so the user needs to select the "Post-Reversal" option.

Steps to populate the template:

1. Populate Lease ID in "Lease Number".
2. Select "Early" from column B "Change".
3. Select "Post-Reversal" from column E "Early Term Type".
4. Update the End Date as 9/1/2025. This will book the reversal entries in September and leave closed periods untouched.

FAQs

Which fields are considered descriptive?

The following fields are descriptive and can be updated using a descriptive update type: UDF text, UDF dates, lessee/lessor information (i.e., name, address, phone, etc.), financial group, asset class, description, memo, account numbers/account number group.

What will happen if the user selects the wrong change type for the change being made? For example, the user wants to make a descriptive change but chooses "Revise."

EZLease will return an error message.

Are uploads limited to a single change type? For example, what if the user wants to make a descriptive update on Lease A and a revision on Lease B?

This is allowed. Users can update as many leases as needed and there is no restriction about doing different change types in a single upload. There is a restriction that only one type of change per lease per upload is allowed. For example, if there is a lease where the user wants to make a descriptive update and an early termination, that will need to be done in two uploads.

What happens if there are successful changes and errors in the same upload?

If an upload has errors, the entire upload will be rejected. EZLease does not allow for "partial successes" for bulk financial changes. An option will be added in future releases to let the user choose to save valid changes even if there are invalid changes on the same upload.

When does the user need to define a booking date?

The booking date can be left blank on all uploads unless the user is dealing with changes in a closed period. The purpose behind the booking date is that the user can make changes to a lease that happened in the past but leave activity in the closed period untouched and book catch-up entries in an open period. The booking date will default to the current open period, or the user can define a specific booking date for a lease.

Does the user need to re-enter all rent steps for a lease when changing rent?

No, EZLease will copy over rent steps from the previous lease when it can. The system will check the start date of the first rent step entered on the bulk upload template and carry over all rent before that date. For example, suppose a lease starts on January 1st, 2020 and ends on December 31st, 2025. The rent changes at the start of each year. The user notices that the rent for 2023 is incorrect. To correct this, the user only needs to enter the rent steps from January 2023 onward.