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Handling of Lease Incentives / Rent Free periods

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Summary:

How to handle Lease Incentives and Rent Free periods in Lease Accounting?

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I have a client which has Lease Incentives in the way of Rent Free periods. This is common for Property Leases.

I can see in the following Doc ID Lease Accounting - Recording Of Tenant / Lease Incentive Payment (Doc ID 2760178.1) that we are encouraged to create a payment template with negative amounts and untick ROU/Lease Liability accordingly.

This would mean that payment schedules overlap so that the rent free periods result in a net value of nil.

If AP integration is in place, would invoices for positive and negative amounts be generated, netting to zero? Or would no invoices be generated? The former results in a payment process needing to be run to net off the invoices.

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