Automatic journal entry generation
Journal entries are created at two points in a lease’s lifecycle:
- Activation: When you activate a lease, Arvexi generates the commencement-date entry and pre-builds entries for every period in the amortization schedule.
- Modification: When you record a remeasurement event, Arvexi generates the modification entry and rebuilds future-period entries from the effective date forward.
All entries are stored in draft status until you review and post them. You can post entries individually, by period, or in bulk for a date range.
Debit/credit lines
Each journal entry contains the specific debit and credit lines required by ASC 842. The line structure depends on the lease classification and the type of entry.
Commencement entry
- Debit: ROU Asset (initial measurement amount)
- Credit: Lease Liability (present value of payments)
- Debit/Credit: Prepaid Rent, Initial Direct Costs, or Lease Incentives (if applicable)
Operating lease, monthly entry
- Debit: Lease Expense (straight-line amount)
- Credit: ROU Asset (amortization component)
- Credit: Lease Liability (interest component, net of payment)
- Debit: Lease Liability (cash payment amount)
- Credit: Cash / Accounts Payable (cash payment amount)
Finance lease, monthly entry
- Debit: Interest Expense
- Debit: Amortization Expense
- Credit: Lease Liability (interest accrual)
- Credit: ROU Asset (amortization)
- Debit: Lease Liability (cash payment amount)
- Credit: Cash / Accounts Payable (cash payment amount)
GL mapping templates
Before exporting entries to your ERP, map Arvexi’s standard accounts to your general ledger codes. Go to Settings → GL Mapping to configure templates.
Arvexi ships with six pre-built ERP templates covering the most common chart-of-accounts structures:
- SAP S/4HANA: Maps to standard SAP GL accounts with cost center and profit center segments.
- Oracle Fusion: Supports Oracle segment strings and balancing segment validation.
- NetSuite: Maps accounts, subsidiaries, departments, and classes.
- Microsoft Dynamics 365: Supports financial dimensions and posting profiles.
- Sage Intacct: Maps to Sage dimensions including locations and departments.
- QuickBooks: Simplified mapping for small portfolios without segment complexity.
You can also create a custom template from scratch. Each template maps Arvexi’s internal account types (ROU Asset, Lease Liability, Lease Expense, Interest Expense, Amortization Expense, Cash) to your GL account codes, with optional segment overrides per entity or asset type.
Exporting to your ERP
Once your GL mapping is configured, export journal entries using any of the three integration methods: SFTP file drop, webhook push, or manual CSV/XLSX download.
The export file includes all mapped fields: posting date, GL account, debit amount, credit amount, entity code, description, and any custom segments. Each file also contains a header row with the export timestamp, period, and entry count.
Export tracking
Every export is logged with a timestamp, destination, entry count, and user who initiated it. The Export History tab on the Journal Entries page shows the full audit trail.
Entries that have been exported are marked with an “Exported” badge and the export date. If you need to re-export (for example, after correcting a GL mapping), Arvexi flags the re-export and includes a reference to the original export ID for reconciliation.
Period-specific entries
Filter journal entries by accounting period using the period selector at the top of the Journal Entries page. This shows only entries with posting dates within the selected period, making it easy to review and post entries as part of your monthly close process.
If a period has been locked in period management, entries in that period cannot be posted or modified. You will need to unlock the period first or create an adjusting entry in the current open period.
Modification journal entries
When a lease is modified, Arvexi generates a one-time modification entry in addition to rebuilding future periodic entries. The modification entry captures:
- The adjustment to the lease liability (increase or decrease based on revised future payments and discount rate).
- The corresponding adjustment to the ROU asset (for most modifications, this mirrors the liability change).
- Any gain or loss on partial termination, recognized immediately in the income statement.
The modification entry is linked to the remeasurement event in the lease’s amortization schedule, so auditors can trace from the schedule change to the corresponding accounting entry.