> ## Documentation Index > Fetch the complete documentation index at: https://docs.spacebaseapp.com/llms.txt > Use this file to discover all available pages before exploring further. # Additional balances and costs > Choose the right place for opening balances and additional costs, and review their calculations and journal entries. Use **Additional balances** in the accounting lease wizard for amounts that adjust the starting right-of-use (ROU) asset. Use the **Additional Costs** tab for costs that need their own depreciation schedule and version history. Before entering an amount, identify whether it is already included in a payment schedule, a transition balance, or another additional cost. Record it once so you do not count the same amount twice. ## Additional balances in the wizard On **Expenses, Abatements and Allowances**, select **Edit** beside **Additional balances**. Enter amounts in the accounting lease's currency, then select **Save and Continue**. The table below describes positive inputs for a lessee lease. **Dr** means debit and **Cr** means credit. Account names are Spacebase categories; your [chart of accounts](/accounting/chart-of-accounts) supplies the exported account numbers. The entries describe the balance's contribution to recognition, rather than the full combined journal entry. | Field | When to use it | Effect and journal-entry direction | | ---------------------------- | -------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **Prepaid rent** | Rent paid before the snapshot's effective date that belongs in the starting ROU asset. | Increases ROU: Dr ROU asset, Cr Prepaid rent. Exclude the same payment from future unpaid rent. | | **Accrued rent** | An opening accrued rent amount that reduces the starting asset. | Reduces ROU. In Additional balances, Spacebase nets this against prepaid rent: Dr Prepaid rent, Cr ROU asset. For an adoption-date deferred rent balance, use **Transition Balances**, which clears the Deferred rent account instead. | | **Construction costs** | Construction amounts your accounting policy includes in the ROU asset. | Increases ROU through the prepaid-rent total: Dr ROU asset, Cr Prepaid rent. This field does not create a separate construction asset schedule. | | **Initial direct costs** | Qualifying lease-origination costs included in the ROU asset. | Increases ROU: Dr ROU asset, Cr Initial direct costs. | | **Make good costs** | An assessed restoration amount your policy includes in the ROU asset. | Increases ROU through the initial-direct-cost total: Dr ROU asset, Cr Initial direct costs. It does not create a separate provision or interest schedule. | | **TI allowances** | Lease incentives received before the effective date. | Reduces ROU: Dr Lease incentives, Cr ROU asset. Enter incentives received during the term as dated allowance payments instead. | | **Impairment of ROU asset** | A supported write-down of the asset. Enter a positive amount. | Dr Lease expense, Cr ROU asset, or Cr Accumulated amortization when that company setting is enabled. For a new impairment after commencement, use the [impairment modification](/accounting/modifications/impairment). | | **ROU adjustment** | A documented adjustment to the asset that is not a new unpaid lease payment. | A positive input increases ROU and credits Lease gain/loss; a negative input reverses those directions. Use the relevant [modification guide](/accounting/modifications) to establish the amount. | | **Accumulated Amortization** | An opening accumulated-amortization balance that must be presented separately. | A positive input credits Accumulated amortization and increases gross ROU by the same amount. It does not, by itself, increase net ROU. | Spacebase combines these fields as follows: * **Prepaid lease payments** = Prepaid rent + Construction costs − Accrued rent. * **Initial direct costs total** = Initial direct costs + Make good costs. * Before other transition, impairment, and modification adjustments, **net ROU asset** = Lease liability + Prepaid lease payments + Initial direct costs total − TI allowances received before the effective date. These balances generally adjust the asset rather than the unpaid lease payments used to calculate the lease liability. A short-term lease uses a different recognition treatment. Company settings can generate both the cash-side entry and the clearing entry for prepaid rent, initial direct costs, and incentives. Review the exported entries against amounts already posted in your GL so you do not post the original cash transaction twice. ### Example: prepaid rent and an incentive Suppose the lease liability is \$100,000, prepaid rent is \$5,000, qualifying initial direct costs are \$2,000, and a pre-commencement incentive is \$3,000. With no other adjustments, net ROU is **\$104,000**. The recognition entry debits ROU \$104,000 and Lease incentives \$3,000, and credits Lease liability \$100,000, Prepaid rent \$5,000, and Initial direct costs \$2,000. This example assumes the prepayments and incentive were already recorded in their respective accounts. ## Additional Costs with separate schedules Open the accounting lease's **Additional Costs** tab and select **Create Additional Cost**. Choose a description, **Cost type**, and **Payment timing**. Then enter the version's effective date, GL start date, depreciation start, end date, and amount. An **In Arrears** cost also requires a discount rate. | Cost type | What the label identifies | | --------------------------- | ---------------------------------------------------------------------------- | | **Professional Fees** | Professional services associated with the lease. | | **Dilapidation Provision** | A restoration or make-good obligation. | | **Stamp Duty and Land Tax** | Lease-related duties or taxes. | | **Trade Rights** | Payments for rights associated with occupying or trading from the premises. | | **Key Money** | An upfront payment associated with securing premises. | | **Deposit** | A deposit-related amount being tracked through the additional-cost workflow. | The cost type labels the record. Payment timing, dates, amount, and discount rate determine the schedule. Selecting a label does not establish that a cost qualifies for capitalization. In particular, do not put an ordinary refundable deposit on a depreciating schedule solely because **Deposit** is available. ### In advance For a new positive cost paid in advance, Spacebase debits **Initial direct costs** and credits **Cash** for the entered amount. It depreciates the asset from the depreciation start date to the end date: Dr **Depreciation expense**, Cr **Accumulated depreciation**. For \$12,000 depreciated over 24 full months, monthly depreciation is **\$500**. Partial months are prorated. Separate depreciation dates let you distinguish when the cost is recognized from when depreciation begins. ### In arrears For a new cost payable at the end of its schedule, Spacebase discounts the amount using the annual discount rate divided by 12. For full monthly periods: **Present value = Future payment ÷ (1 + annual discount rate ÷ 12) raised to the number of months** Initial recognition debits **Initial direct costs** and credits **Accounts payable** for the present value. Each month, Spacebase: * Debits **Interest expense** and credits **Accounts payable** for the discount unwind. * Debits **Depreciation expense** and credits **Accumulated depreciation** for depreciation of the asset. The depreciation calculation divides the remaining net asset by the remaining depreciation periods, with partial-period proration. The interest calculation also accounts for partial periods. Use the generated schedule for the exact amounts. For a \$12,000 payment after 24 full months at 6% annually, the initial present value is approximately **\$10,646.23**. First-month interest is approximately **\$53.23**, and monthly depreciation is approximately **\$443.59**, before rounding adjustments. Use **Add Expiration** to generate closing entries when the cost is ready to close. For an arrears cost, the closing payment debits Accounts payable and credits Cash. The asset and accumulated depreciation are also cleared. Reconcile the generated payment with your AP process. ### Restoration obligations and later changes A restoration obligation can involve both a capitalized amount and a provision. The wizard's **Make good costs** field only contributes to ROU. A separate **Dilapidation Provision** cost with **In Arrears** timing provides a discounted payable and its unwind. Choose the treatment required by your accounting policy, and avoid entering the same capitalized amount in both places. Additional costs have their own versions. Use a modification for a new event, an impairment for a write-down, or **Correct an error** for incorrect historical inputs. Review the resulting entries and depreciation after the change. Closing the main accounting lease does not replace checking that its additional costs have also been closed.