How to record Lease
A lease under IFRS 16 is a contract that grants the right to use an asset for a specified period in exchange for consideration. It must provide:
...
- Capitalization: Leases are recorded on the balance sheet as a Right of Use (ROU) asset and a corresponding lease liability.
- Expense Recognition: Both The income statement recognizes both the depreciation of the ROU asset and the interest on the lease liability are recognized on the income statement.
Step 1- Create General Ledger (GL) accounts
Right of Use (ROU) asset under Non-current assets 
Step 2: Create an Inventory Item
Set up an inventory item and select the "Right to Use" GL account from the option to edit GL accountsEdit GL Accounts option.
Step 3- Create invoice received document
Step 4 Create the manual depreciation for the asset using the Other expense document from Accounting (Every Month manually):
Step 5:
To document interest, utilize the Other Expense document. First, set up the necessary GL account for Interest Cost under Other Operating Expenses. For Interest Liability, you can select the existing Current Interest Payable or create a new GL account as needed.
After the GL account is established, create a new Other Expense document with the appropriate entry.
Step 6
For rent payments (COS) on the lease, create new GL accounts for Rent Payment under the appropriate category. Next, generate an Other Expense document—record the debit as Rent Payment COS and the credit as Lease Liability.