US ASC 842 Lease
ASC 842 lessee accounting: lease liability present value, right-of-use asset, amortization schedules, operating vs finance classification, monthly journal proposals and maturity-analysis disclosure
ASC 842 lessee accounting: lease liability present value, right-of-use asset, amortization schedules, operating vs finance classification, monthly journal proposals and maturity-analysis disclosure
Key Features
Capture a lease once
term, payment frequency and timing (advance or arrears), base payment with fixed annual escalations, discount rate (implicit rate or incremental borrowing rate), prepaid rent, initial direct costs and lease incentives.
Operating vs finance classification runs the five ASC
Operating vs finance classification runs the five ASC 842-10-25-2 criteria (ownership transfer, reasonably-certain purchase option, 75% lease-term test, 90% present-value test, specialized asset) and suggests a classification while leaving
Present-value engine discounts the contractual payment strea
Present-value engine discounts the contractual payment stream (honouring advance vs arrears timing) to measure the initial lease liability, then measures the right-of-use (ROU) asset as liability + prepaid + initial direct costs - incentive
Amortization schedule period by period
liability interest accretion and principal, plus ROU amortization. Finance leases amortize the ROU asset straight-line; operating leases recognise a single straight-line lease cost with the ROU amortization as the balancing plug. The schedu
Short-term lease exemption
leases of 12 months or less with no reasonably-certain purchase option are expensed straight-line.
Monthly journal-entry proposals generate balanced draft jour
Monthly journal-entry proposals generate balanced draft journal entries for each period (interest, payment, amortization) for both lease types.
Remeasurement recomputes the liability on the present value
Remeasurement recomputes the liability on the present value of the remaining payments at a revised rate or payment and adjusts the ROU asset.
Maturity analysis / roll-forward disclosure aggregates the s
Maturity analysis / roll-forward disclosure aggregates the schedule by year (opening, payments, interest, principal, closing).
Screenshots
Leases
Remeasure Lease
Journal Proposals
Remeasure Lease
Amortization Schedules
Why Choose This Module
ASC 842 forced operating leases onto the balance sheet. Most companies still track them in spreadsheets. This module brings the full lessee lifecycle into Odoo, depending only on account (Community-friendly).
Specifications
- Compatible: Odoo 18.0 / 19.0
- License: OPL-1
- Languages: English
- Author: Pokutsoft
- Dependencies: account
- Support: support@pokutsoft.com
Update date: 2026-07-02