Cradle has been engineered to handle any payment variation. As a result, this gives you the flexibility required to capture these payments. But this also means you must pay close attention to what you input into Cradle.

Catch-up

What is a catch-up? There are times when it's appropriate to prorate a lease payment. An example of this is you pay "In Advance," and there is a payment increase that is effective from mid-month. This will result in a payment catch-up the next month, that's because when the last payment was made in advance, you were unaware of the price increase. As a result, the following month will include the prorated amount. We also call this a catch-up payment.

This can also occur in the following scenario when onboarding a lease:

So let's breakdown why there's a catch-up in the above scenario:

Based on these inputs, the lease starts in January, and the payments are monthly. As a result, there should be a payment in January. The easier way to remove the catch-up is to input "Start Payments in Month" to January.

Lease incentive

If you have a rent abatement/rent-free period where the lessee is not required to make any lease payments, say in January, the lease payments still start in January. Refer here for more details on incentives.

In the above scenario, there will be a catch-up payment of 31 days in addition to the lease payment that occurs on February 1. The best place to check your lease payments once you've onboard the lease is in the "Events" tab:

As per the above screenshot, the transition occurred in January, and as expected, there was no payment in January. There's a $1,000 catch-up payment for February, as the data entered into Cradle in the Initial Recognition tab states there is a payment every month. The catch-up payment plus the $1,000 monthly payment results in the total payment of $2,000 for February.