---
title: How do I update a lease record in Accounting so it’s classified as Out of Scope?
description: Excluding leases from measurements and reporting
---

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2. [Lease Accounting](https://help.occupier.com/knowledge/lease-accounting?hsLang=en)
3. [Recognizing a Lease](https://help.occupier.com/knowledge/lease-accounting?hsLang=en#recognizing-a-lease)

# How do I update a lease record in Accounting so it’s classified as Out of Scope?

## Understanding the Process for Reclassifying a Lease as Out of Scope in Accounting

 

### Why would I classify a lease as Out of Scope?

Reclassifying a lease as Out of Scope is important when a lease does not meet the criteria for accounting under standards like ASC 842 or IFRS 16 or meet an organizations accounting policy or elections. This ensures your portfolio remains accurate and compliant by excluding leases that are not subject to these specific reporting requirements.

### Getting started - how to change a lease to Out of Scope

From the Lease index page in Accounting, select a lease that is incomplete state. 

*Note:  If you need to modify a lease that currently has an amortization schedule, begin by removing any existing measurements associated with that lease. This action will revert the lease to an incomplete state, allowing you to reclassify it as Out of Scope.*

![](https://help.occupier.com/hs-fs/hubfs/image-png-Nov-13-2025-07-44-09-8605-PM.png?width=613&height=358&name=image-png-Nov-13-2025-07-44-09-8605-PM.png)

Select the ellipsis in the top right hand corner to change the lease to Out of Scope.

![](https://help.occupier.com/hs-fs/hubfs/image-png-Nov-13-2025-08-32-29-3404-PM.png?width=639&height=178&name=image-png-Nov-13-2025-08-32-29-3404-PM.png)

To move a lease from Out of Scope back to Incomplete, click **+Recognize**.

![](https://help.occupier.com/hs-fs/hubfs/image-png-Nov-13-2025-08-38-25-9861-PM.png?width=670&height=137&name=image-png-Nov-13-2025-08-38-25-9861-PM.png)

### Reporting and Filtering

When a lease is reclassified as Out of Scope, its count will appear in the main Lease Index page for tracking purposes. However, these Out of Scope leases will no longer be visible in the primary lease list view nor included in any other reporting, allowing you to focus on leases that are currently subject to reporting and compliance requirements.

![](https://help.occupier.com/hs-fs/hubfs/image-png-Nov-13-2025-09-11-47-2844-PM.png?width=625&height=256&name=image-png-Nov-13-2025-09-11-47-2844-PM.png)

 

To locate and review leases that have been classified as Out of Scope, use the filter function within the Lease Index page.

- Click the filter button, then select the “Status” field and choose “Out of Scope” from the dropdown menu. ![](https://help.occupier.com/hs-fs/hubfs/image-png-Nov-13-2025-10-33-59-0107-PM.png?width=655&height=327&name=image-png-Nov-13-2025-10-33-59-0107-PM.png)
- This filter will display only leases that have been identified as Out of Scope.
  
  ![](https://help.occupier.com/hs-fs/hubfs/image-png-Nov-13-2025-10-35-08-5592-PM.png?width=670&height=279&name=image-png-Nov-13-2025-10-35-08-5592-PM.png)

 

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