To understand how Cradle handles these types of expenses, let's refer to ASC 842's prescribed treatment:

ASC 842-10-15-30 The consideration in the contract shall be allocated to each separate lease component and a nonlease component (NLC) of the contract

The below graphic summarizes this treatment:

Before you start accounting for nonlease components separately the standard does provide a practical expedient:

ASC 842-10-15-37 As a practical expedient, a lessee may, as an accounting policy election by class of underlying asset, choose not to separate nonlease components from lease components and instead to account for each separate lease component and the nonlease components associated with that lease component as a single lease component.

In other words, you can just include the whole payment in the scope of ASC 842.

Fixed nonlease components

To capture a fixed nonlease component in Cradle it's done in the Agreement > Initial Recognition > Nonlease Component field

You will input a percentage amount of the payment that is not in the scope of ASC 842, the amount will be expensed to the income statement.

For example, a lessee rents office space for $1,000 a month, part of that charge includes $200 of cleaning services. If you want to separate that $200 cleaning service out you would enter 20% in Cradle.

Variable nonlease components

If the expense is variable, e.g. you do not know how much it will cost until the service is performed you will enter that as a variable expense in the Modification tab.

If the variable expense has a portion of the NLC select the checkbox, otherwise if the payment is specifically related to NLC expense enter the whole amount. This will result in the amount being taken to the income statement.

For details on how to handle noncomponents in Cradle such as sales or property tax payments refer here.