My client has the following requirement: Sometimes, landlords give the lessee (my client) a cash “incentive” to use for store readiness/revamps. The payment from the landlord can be received at the beginning of a lease or during the lease. The amount from the landlord must reduce the asset value and depreciation.
The payment is made to the Landlord Contribution Account (LL Contrib).
They want to account for this amount on the REFX contract as follows:
1. Reduce the ROU value
2.Leave the lease liability unchanged
3.Reduce the asset value depreciation with the “incentive” amount and depreciate the lower value over the remaining life of the asset.
They therefore require a condition that will post as follows (directly or through reference flow types):
DR Landlord Contrib
CR ROU
Can someone please provide the config steps with reference flow types that I have to configure to achieve this? A scenario like this is not covered in the SAP consulting note 2580277.
Many thanks
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