Creating incentive payment schedules
Procedure
- Under Payment Schedules section, click Generate Payment Schedules.
- In the General Payment Schedule form, under General Information,
select the Payment Type as Tenant Improvement Incentive. When payment type is
tenant improvement incentive, it defaults to accounts receivable. Note: For GASB 87 Lessor accounting lease, if user select the 'Payment Type = Tenant Improvement Incentive', then the Accounting Type is set to Accounts Payable (AP) and for the remaining Payment Type the Accounting Type will be set to Accounts Receivable (AR), example Rent payment type.Note: By default, the Summary Type is set to Rent and the Included In Amortization Schedule option is checked. In a straight line schedule, Accounting Schedules consider only those payment schedules that meet these default values. For operating and finance schedule, accounting schedules consider those payment types where the Summary Type is set to Incentive and Included In Amortization Schedule is checked.
- On the Payment Parameters section, select Frequency as Other.
- Specify the From Date and Amount.
If the From Date is prior to the Accounting Start Date, the Incentive Schedule Before Lease Commencement section will show on the Accounting tab for ASC840/IAS17. For ASC840/IFRS16, the amount is included as part of the ROU Asset alone.
If the From Date is on or after the Accounting Start Date, the Incentive Schedule After Lease Commencement section will show on the Accounting tab for ASC840/IAS17. For ASC840/IFRS16, the amount is deducted from the payment for the period that the incentive payment is received, therefore, it would affect the liability and also the ROU asset.
- Set Processing Rules and Cost codes.
- In the Payment Instruction tab, the default payment instruction is the same as the organization set in Contact Details tab (Default Remit To section of the form). You can change this payment instruction if needed.
- Click Create Schedule(s).