This chapter contains these topics:
Property managers often require rent projections to review rent increases based on tenants' lease terms, estimate future cash flows with different inflation and occupancy factors, or report five-year future rent when it is required on financial statements. This chapter is an overview of the process for projecting rent, which involves the following tasks:
Generate the projected rent.
Adjust the projections.
Report on the projections.
It is assumed that the facility, lease, and system setups already exist. Additionally, you must set-up a company's fiscal patterns for all the years into which you want to project rent.
You use the Projected Rent Generation program to automatically project rent into the future. During the generation, the system performs the following tasks:
Gathers the information necessary for the generation. This information is related to units, leases, recurring billings, and market rents.
Calculates the projected rent, which depend on whether the unit is occupied or vacant.
Updates the G/L Account Balances file (F0902) to a ledger type defined by a processing option.
Prints a report that lists the information involved in the rent projection. A processing option controls whether the system only prints the report so you can preview the projection. In this case, an update of the file does not occur.
After you run the Projected Rent Generation program, you can make adjustments to the projected rent. To do this, you must use the Journal Entries screen in the General Accounting system. An adjustment involves the following tasks:
Add the adjustment as a journal entry to the G/L Account Ledger file (F0911).
Use the General Journal Review screen in the General Accounting system to review and approve the batch with the journal entry.
Post the journal entry to the G/L Account Balances file.
For more information about journal entries, see the JD Edwards World General Accounting I Guide.
When you run the Projected Rent Generation program and update the G/L Account Balances file, the system clears the file of all the information related to rent projection and replaces it with the newly generated information. Therefore, you must reapply the adjustments to the projected rent amounts that were made prior to the generation. To do this automatically, you use the Reapply Projection Adjustment program, which updates the G/L Account Balances file from the G/L Account Ledger file.
This program only applies to the adjustments that you have already entered, reviewed, and posted in the General Accounting system prior to a generation. Therefore, the program does not need to be run regularly.
You use Rent Projection FASTR Reports to access the Financial Analysis Spreadsheet Tool and Report Writer (FASTR) facility. This facility lets you design your own reports for rent projections. It is a flexible, easy-to-use report writer designed to retrieve information from the G/L Account Balances file.