How to Record Lease Commission Amortization
Monthly recognition of amortization expense for capitalized leasing commissions over the life of the lease.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Amortization Expense - Leasing Commissions | Expense | 1,200.00 | - |
| Accumulated Amortization - Leasing Commissions | Asset | - | 1,200.00 |
💡 Accountant's Note
Leasing commissions paid to brokers are capitalized as intangible assets and must be amortized on a straight-line basis over the non-cancellable term of the lease agreement.
Practitioner & Systems Framework
💻 ERP Architecture
Set up as an intangible asset in the Fixed Asset module with a life tied to the lease expiration date.
⚠️ Audit Flags
Amortization period extending beyond the actual lease term or failure to write off remaining balance upon early lease termination.
📄 Required Documentation
Executed lease agreement and broker commission invoice.
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Discussion & Community Questions
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