Period Entry — Rental

Rent-Free Period Example

A tenant signs a rental contract with an initial rent-free period. The P&L expense is spread evenly over the full contract. Cash only flows during the paid months. The difference is an accrual.

Step 1️⃣ Contract Details

Total Value = (Total Months − Free Months) × Monthly Payment
Monthly P&L = Total Value ÷ Total Months