Netsuite lease management

Yes. NetSuite Lease Management is designed to support compliance with AASB 16, the Australian equivalent of IFRS 16. The module handles the recognition, measurement, remeasurement, and disclosure requirements of the standard, including the calculation of right-of-use assets and lease liabilities, interest and amortisation schedules, and the accounting treatment for lease modifications and reassessments.

NetSuite Lease Management can handle property leases, equipment leases, vehicle leases, and technology asset leases. Both finance leases and operating leases under AASB 16 are supported, along with short-term lease and low-value asset exemptions where applicable.

When a new lease is set up in NetSuite, the system calculates the present value of future lease payments using the discount rate you specify, which will typically be the lessee’s incremental borrowing rate. The resulting lease liability and corresponding right-of-use asset are recorded automatically, with the full amortisation and interest schedule generated from the same calculation.

NetSuite is used by businesses of all sizes, from startups to rapidly growing companies. If you’re considering making the switch but unsure about the cost, here’s a quick breakdown.

NetSuite operates on an annual subscription model, which includes three key components: the core platform, optional modules, and the number of users. There’s also a one-time implementation fee for the initial setup. As your business expands, you can easily add new modules and users, thanks to the flexibility of cloud software.

NetSuite Lease Management is available as an add-on module to the core NetSuite platform, with pricing dependent on your existing licence structure and the scale of your lease portfolio.

Want to get a NetSuite pricing estimate? Contact us now to discuss your specific needs.

When a lease is modified, whether through a change in scope, a lease term extension, or a change in payments, the modification is processed within NetSuite by updating the relevant lease terms. The system recalculates the lease liability using the revised payment schedule and, where required, a revised discount rate, and posts the remeasurement adjustment automatically. This ensures the balance sheet reflects the updated position immediately without manual recalculation.

Yes. Key dates including lease expiry, renewal option exercise dates, and break clause windows are tracked within each lease record in NetSuite. Alerts can be configured to notify relevant team members in advance of these dates, ensuring renewal decisions are made proactively and the accounting implications of exercising or declining options are reflected in the financial statements at the appropriate time.

NetSuite Lease Management operates natively within the NetSuite ERP platform, meaning all lease journals post directly to the general ledger, right-of-use asset balances feed into the fixed asset register, and lease liability balances appear in balance sheet reports and financial consolidations in real time. There is no separate system to maintain or reconcile, and lease figures are immediately visible across all NetSuite financial reports.

For businesses implementing lease management as part of a broader NetSuite go-live, it is configured within the overall implementation timeline. For businesses adding lease management to an existing NetSuite environment, a focused implementation typically takes 6 to 10 weeks depending on the number of leases to be migrated, the complexity of the portfolio, and the time required to gather and validate lease data. The data preparation phase is generally the most time-intensive component.

As NetSuite’s 2024 ANZ Growth Partner of the Year, Annexa provides comprehensive support including implementation, configuration, ongoing support, and strategic guidance, all delivered by an Australian and New Zealand-based team with direct expertise in AASB 16 compliance and NetSuite lease accounting configuration.