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Lease Payment Information

DaFIS Non-Purchasing Agreement (NPA) documents are no longer created for real estate lease agreements/contracts. The payments of these leases are made on a DaFIS Direct Charge (DC) document.

Elimination of the NPA results in the removal of all liens associated with these agreements/contracts. However, for those departments who wish to maintain encumbrances for these agreements, we have included information below.

Payment Procedures
Follow these steps to initiate a lease rental payment:

1. Initiate a DC document
2. Enter the lease agreement number, including the alpha letter following the lease, in both the Payment Purpose Text and the Tracking Num fields (e.g., 04-00187L)
3. Use the correct object code. Common codes are:
   • 5121 for base rent
   • 4100 for telephone
   • 5200 for utilities
   • 7215 for services
   • 7302 for custodial services
   • 8000 for operating expenses
   • 7151 for tenant improvements (TIs)
4. Use Tax Code 6 for object code 5121; use Tax Code 0 for the other objects listed above
5. Once the DC is complete, record the document number on either a hard copy invoice or the Request for Document Action form
6. Send the original invoice or document action form to Accounts Payable attn: Tax Accounting

Tax Accounting will approve lease rental payment DC documents that meet the above criteria.

Encumbrance Procedures
Departments may now create liens for real estate lease agreements/contracts by using the Pre-Encumbrance (PE) document.

• A PE can be created for any period of the lease (current fiscal year, partial year, multiple years).
• When a DC is initiated for the lease rental payment, a PE should also be initiated at the departmental level to reduce the existing lien for the lease agreement by the amount of the DC payment.
• The PE lien reductions can be completed monthly, quarterly, or according to any schedule determined useful by the individual department.
• If the account or accounts to be used for the lease payments change, the department will initiate a PE document to completely remove the remaining lien on existing account(s) and will initiate a new PE document to establish the lien on the new account(s).

For more on using the PE see the online help.

For further information about lease payments, contact Tax Accounting. For questions related to encumbrance issues, contact General Accounting.