Run either type of Income Statement/Balance Sheet report (Detail or Compact) and choose Special Options. On the Special Options screen, at the bottom, you can cause all operating leases to be capitalized, using either the incremental borrowing rate entered for each lease, or a fixed rate for all leases. If some of your operating leases don’t have an incremental borrowing rate entered, enter a fixed rate, which will be used for those leases. If you have both capital and operating leases in a database, you can select Operating for “Type of leases to use,” and the capital leases will be excluded from the report.
The present value of the remaining rents on operating leases is the sum of current obligation, long term obligation, and accrued interest. In spreadsheet output, this is shown in a separate column titled “Net Present Value.”