Lease Hold Improvement (LHI). When the lease is ended, is there any process out-of-the-box to handle LHI restoration?

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Posted on by lmai

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Hi All,

When I rented a space from the landlord, I got 4 walls and a concrete floor. Then I put in a wood floor, painted the walls, installed the lighting. I add this up to the total cost of LHI. I run the depreciation. Now that the lease is expired, I need to remove my LHI and give the space back to the landlord in the original condition. Do I dispose of my LHI or do I write it off? Does D365 handle this? The term is LHI Restoration. If you have handled this situation, please share your thoughts.

Thanks so much!

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Ludwig Reinhard Microsoft Employee on at

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Hello Kim,

There is no specific feature for handling LHI.

That is, they are handled as all of your other assets.

You can make an (extraordinary) depreciation for that asset.

The mentioned disposal should also be fine as the outcome from a balance sheet / income statement perspective is the same.

Best regards,

Ludwig

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lmai 2,438 on at

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Thanks, Ludwig, for providing feedback.

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