Unlimited Modifications, Better Corrections, Higher Precision

We’ve just released a major upgrade to the Spacebase accounting module, adding some long overdue improvements that make lease accounting more flexible, accurate, and transparent.

Highlights:

• Unlimited modifications per month – handle complex updates with ease
• Clearer error corrections – see exactly what’s reversed and what’s added
• Greater decimal precision – eliminate rounding drift in long schedules

This update also includes a range of performance improvements and minor bug fixes. Let’s dive in!

Multiple modifications per month

The challenge: Until now, Spacebase assumed only one accounting change (modification, impairment, correction, etc.) would occur in a given month. That worked for most leases, but caused problems when multiple updates needed to happen in the same period—for example, correcting an error and then applying a modification, or impairing a lease and then adding a modification.

The fix: Spacebase now supports unlimited modifications/updates on the same date. Each update is applied in sequence, and the monthly entries reflect the final modification in the chain.

Why it matters: You can now handle complex, real-world lease updates without workarounds.

Here’s an example of what that looks like:

Modification One

On 8/1/2025, an operating lease is modified to reflect an increase in rent, resulting in a ~$101k debit to the Right-of-Use asset.

Modification Two

Also on 8/1/2025, a second modification is applied to shorten the lease term, resulting in a ~$149k credit to the Right-of-Use asset.

Notice how there are now two sets of modification entries on 8/1/2025—one for each update—and the monthly entries on 8/31/2025 reflect the final state after the second modification.

Improved error corrections

The challenge: Spacebase used to create error corrections as a single block—combining the reversal of old entries with the new corrected entries. While concise, this format was harder to reconcile and sometimes introduced reporting inaccuracies (e.g., functional currency conversions when the lease effective date changed).

The fix: Corrections now separate reversals from new entries. Old entries are reversed line-by-line, then the correct entries are added.

Why it matters: You can now see exactly what’s happening in a correction, and reporting is more accurate in scenarios where FX rates or metadata differ between the original and corrected entries.

Here’s an example of an operating lease effective 1/1/2025 that’s corrected on 2/1/2025 to reflect a base rent change from $1,000 to $2,000 per month.

Old correction format (condensed block)

Previously, the journal entries for the first two months looked like this:

New correction format (clear reversals + new entries)

The full table makes it clear: January’s entries are reversed, then the correct initial and monthly entries are applied for February.

Bonus: This format allows initial entries and corrected entries to use different historical FX rates if needed, and supports more precise tagging in custom export formats.

One drawback: Corrections covering many months can take up a lot of screen space. To address this, we’re working on a new journal entry display that lets you collapse correction blocks into a one-line-per-account summary. Stay tuned!

Increased decimal precision

The challenge: Journal entries were stored rounded to two decimal places. In edge cases (e.g., amortization schedules producing values like 333.33333 per month), rounding created small discrepancies. Over time, this could cause totals to drift by a few cents, or perfectly balanced entries to become unbalanced after rounding.

The fix: Journal entries are now stored with up to twelve decimal places of precision. Rounding (and one-cent adjustments, if needed) only happens at export time.

Why it matters: Internal calculations remain exact, eliminating drift, while exports continue to match what your general ledger expects.

For all clients, custom journal entry exports will still show two decimals. But if your accounting system supports higher precision, let us know—we can enable full twelve-decimal exports for your custom format.

Christian Vanderwall

VP Engineering