Lease Incentives - Invoice issued but cash not receipt

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Lasa1
Posts: 66
Joined: 07 Oct 2020, 11:29

Lease Incentives - Invoice issued but cash not receipt

Post by Lasa1 »

Hello,

In order to collect the cash for a lease incentive to be reimbursed from the landlord we (lessee) had issue an invoice and book it as follows:
DT Accounts Receivable
CT Lease Liability
Since it is month end, cash will be only received next month. Should we change the coding for the invoice?

Thanks!
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Marek Muc
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Posts: 3226
Joined: 15 Oct 2018, 17:21
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Re: Lease Incentives - Invoice issued but cash not receipt

Post by Marek Muc »

1. Why did you credit (i.e. increase) the lease liability?
2. What do you mean by changing the coding for the invoice? What is the significance of this?
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