If you need to record a One-off Payment on an Agreement after it has commenced, you can do this through a Variation Event. In this guide, we'll walk you through the steps of how to record this.
Add a One-off Payment to your Agreement
To add a One-off Payment to your Agreement:
- On the relevant Agreement, click “Action”, then “Create / Edit Events”.
- This will take you to the Events page of the Agreement creation process. Scroll to the Variation section and click “Edit”.
- Using the calendar tool or text field, enter the date you agreed to the terms of the One-off Payment. Click “Add”.
Please note: We recommend that you do not edit other Event information while adding this Variation event. If you alter Events that were known at the commencement of the Agreement, this may impact your IFRS 16 Opening Balances for this Agreement. This warning also applies to Events that are scheduled during a period already factored into IFRS 16 reporting.
- Click “Done” at the top or bottom of the page to return to the Agreement Timeline.
- You'll now see a new icon on the Agreement Timeline representing the Variation Event. At Step 1, click “Start Event”.
While you can add Events on a date that is within a locked period, you cannot complete these Events on the Agreement Event Timeline. If your Variation Event is within a locked period, you'll need to ask a user with the Administrator permission in your Organisation to edit the Lock Date before you can complete the Event. Check out this article for more information.
- At Step 2, select “Yes, there are variations to the agreement”, then click “+ Add variation”.
- Navigate to the “Rent & Payment” page of the Agreement creation process.
- Scroll down to the One-off Payments section and click “Add a new one-off payment”.
- Add the details of the One-off Payment, including:
- A Description of the One-off Payment
- The Effective Date of the Payment (this is the date on which the remeasurement will appear in the IFRS 16 reports)
- The Date of the One-off Payment
- The Amount paid
- The Taxation treatment for the Payment
If your Payment Effective Date within a locked period? You'll need to ask a user with the Administrator permission in your Organisation to edit the Lock Date before you can add the payment. Check out this article for more information.
- Make sure you click “Add” to save the One-off Payment. Note that Effective Date of the One-off Payment must be before the Payment Date, otherwise, you'll be unable to click “Add”.
Please note: The Effective Date of the One-off Payment must be before the Payment Date, otherwise, you'll be unable to save the payment line.
- Click “Done” at the top or bottom of the page to return to the Agreement Timeline.
- On the Agreement Timeline, click “Next” at step 2 of the Variation Event.
Please note that adding an IFRS 16 Component Payment such as an One-off Payment won't produce a text note summarising the change made in the Variation Event. You may like to add your own Custom Event Note to record details of the One-off Payment that was added through the Variation Event.
- Upload any supporting Documentation, or select “No Documentation”, then click “Next”.
- Click “Complete”.
You'll then get a certification to say the Event has been completed, and the Variation Event icon on the Timeline will turn green.
Validate that One-off Payment was added correctly
If you use Nomos One for IFRS 16 Reporting, you can validate that the One-off Payment was added correctly using the Journal Report. If you run the Journal Report over the Effective Date of the One-off Payment, you should see “Remeasurement of Lease Liability” journal lines. If you run the report across the Payment Date of the One-off Payment, you should see the journal lines for the payment itself.
You can also validate that the One-off Payment was added correctly by running the Payments by Period Report. If you run the Payments by Period Report over the payment date of the One-off Payment, you'll see a line showing the payment.
Nomos One does not provide or purport to provide any accounting, financial, tax, legal or any professional advice, nor does Nomos One purport to offer a financial product or service. Nomos One is not responsible or liable for any claim, loss, damage, costs or expenses resulting from your use of or reliance on these resource materials. It is your responsibility to obtain accounting, financial, legal and taxation advice to ensure your use of the Nomos One system meets your individual requirements.