Manage equipment leases
Leases covers longer-term equipment leases out of the same fleet used for rentals — the difference is accounting treatment, not the equipment itself. Use Leases when a placement needs lease-accounting fields (ASC 842 classification, straight- line revenue recognition); use Rentals for a plain day-rate or short-term placement.
Create a lease
Choose New lease and fill in:
- Lessee — the customer.
- Equipment — an available company-owned unit from the fleet.
- Deployment site — optional, where the unit is going.
- Commencement date and term (months).
- Billing cadence — monthly, or a 28-day/13-period cycle, the same cadence options as a plain rental.
- Monthly lease / service split — how much of the monthly charge is the equipment lease itself versus a bundled maintenance/PM component.
- ASC 842 classification — Operating lease, Finance lease, Short-term, or Not assessed. Thermal never sets this for you; your accountant determines it, and you enter it here.
- Initial direct costs and End-of-term option (return, renew, or purchase) — optional.
You can save as a draft or activate immediately. Activating moves the unit to On lease and starts revenue recognition.
Billing
An active lease bills automatically on its cadence — Thermal generates the recurring invoice for you, with two lines: the equipment lease amount and the maintenance/PM amount, split the way you set up at creation. PM visits bundled into the lease are scheduled the same way a service agreement's are.
The lease-revenue portion is recognized straight-line and posted to a deferred-revenue ledger each period, matching the ASC 842 classification you set. The maintenance/service portion of the charge is not yet posted to that ledger — it bills and collects normally, it just isn't broken out as its own deferred-revenue entry today.
Reference
- Who can manage leases — Owners and Office users only. See Roles & permissions.
- Rate tables leases quote from — see Build rental rate tables.