These types of payments are referred to as Nonlease Components in ASC 842. For further details on that, refer here.

When invoiced, it's very common to have associated sales taxes with a lease payment, so how do I treat those within Cradle?

Cradle has been engineered to automate your company's compliance with ASC 842 and IFRS 16 and that specifically. Therefore, as per both lease accounting standards, excluding payments with sales taxes and other charges, these outflows are out of scope from Cradle's perspective.

If you are curious as to what payments are included in the scope of ASC 842, refer here and for IFRS 16 here.

How to deal with taxes with your lease payments?

Given that the payment of taxes and other charges are not in the scope of the lease accounting standard, these outflows will not be captured in Cradle's journal report. To account for this, most of our customers reconcile the lease payments from Cradle with the charges associated with the taxes in a clearing account in their general ledger.

Custom fields and templates

If you want to capture the details concerning tax payments, create a Template or Custom Field in Cradle so the tax details can easily be found when performing the reconciliation in the GL. On how to set up custom fields refer here.