How to Record Improvement Amortization
Monthly expense recognition for tenant-specific improvements (TIs) over the life of the lease.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Amortization Expense | Debit | 400.00 | - |
| Accumulated Amortization - TIs | Credit | - | 400.00 |
💡 Accountant's Note
Allocates the cost of tenant improvements over the shorter of the lease term or the useful life of the asset.
Practitioner & Systems Framework
💻 ERP Architecture
Configure the fixed asset sub-ledger to use the lease end date as the asset life end date.
⚠️ Audit Flags
Amortization periods extending beyond the legal lease term including non-guaranteed renewal options.
📄 Required Documentation
Signed lease agreement and project completion certificate.
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