Processing Expense Participation

This chapter provides an overview of expense participation and discusses how to:

• Set up expense participation classes.

• Set up expense participation information.

• Adjust expense participation calculations.

• Adjust the expense class.

• Set up tenant exclusion rules.

• Set up share factor denominators.

• Set up group and subgroup limits.

• Set up expense participation adjustment information.

• Generate expense participation calculations.

• Revise expense participation calculations.

• Delete expense participation batches.

• Generate expense participation billings.

• Generate estimated expense participation billings.

• Update estimated expense participation billings.

Understanding Expense Participation

In the Real Estate Management industry, the process of billing tenants a pro rata share of operating expenses that are related to a property or building is known by many terms, such as common area maintenance, expense pass-through, rebills, escalations, triple net, and building operating costs. These expenses can include utilities, taxes, insurance, maintenance, cleaning, advertising, and promotions. Within the JD Edwards EnterpriseOne Real Estate Management system, we use the term expense participation because the system can generate billings that result in invoices and vouchers for almost any type of expense sharing.

The expense participation process assumes that each tenant pays for expenses based on the percentage of the area in the building or property that they occupy. However, because leases can be negotiated to exclude a unit from expense sharing or reduce the level of a unit's share, the system provides for entering adjustments to the expense category, tenant's area, and the area of the building - all of which are used in the calculation to derive the tenant's expense share amount.

You can set up expense participation to generate estimated billings for the tenants' expected share of expenses on a recurring frequency, such as monthly, and then generate billings again at the end of the year based on actual amounts from which you can deduct the estimated paid amounts. You can also use the actual amounts as the basis for the estimated billings for the following year, as well as generate estimated expenses based on a budget ledger type, if desired.

The process to generate estimated and actual billings for expense participation consists of the tasks listed in this table:

Setting Up Expense Participation Classes

This section provides an overview of expense participation classes and discusses how to set up expense participation classes.

Understanding Expense Participation Classes

To process and maintain operating expenses shared by tenants more easily, you identify the expenses by property or building, account number, and time period, and then group these expenses into expense classes. For example, you can set up expense classes for expenses related to common area maintenance, utilities, taxes, advertising, parking, administration, and so on.

You set up the accounts that comprise the expense class using the E.P. Class Information program (P1530). The total amount of all transactions posted to the accounts that are set up for the expense class is the class exposure. The class exposure includes only those transactions that occur within all of these date ranges:

• The date ranges entered for the expense participation class.

• The tenant participation period for the expense participation class, which is set up in the expense participation information.

• The billing period, which is specified in a processing option when you run the E.P. Calculation Generation program (R15110).

The system stores expense class information in the Expense Participation Class Master table (F1530).

Prerequisite

Set up expense class codes in UDC 15/EC.

Forms Used to Set Up Expense Participation Classes

Setting Up Expense Participation Classes

Access the E.P. Class Information Revisions form.

E.P. Class (expense participation class)	Enter the user-defined code (UDC) (15/EC) that identifies the expense participation class that the system uses to calculate the class exposure for the shared expenses.
Adjustment Factor	Enter the percentage by which the total expenses for the expense class (class exposure) is multiplied to adjust the amount in which tenants participate. For example, if the landlord agrees to pay 10 percent of the operating expenses, you can adjust the class exposure accordingly by multiplying it by 90 percent. Enter the percentage as a decimal. For example, enter .05 to specify 5 percent.
From Object	Enter the portion of a general ledger account that refers to the division of the Cost Code (for example, labor, materials, and equipment) into subcategories. For example, you can divide the Cost Code for labor into regular time, premium time, and burden. Note. If you use a flexible chart of accounts and the object account is set to six digits, generally you use all six digits. For example, entering 000456 is not the same as entering 456 because, if you enter 456, the system enters three blank spaces to fill a six-digit object. You cannot use * in this field.
From Subsid (from subsidiary)	Enter the subsidiary account number. This is a subset of an object account. Subsidiary accounts include detailed records of the accounting activity for an object account. Note. If you are using a flexible chart of accounts and the object account is set to six digits, you must use all six digits. For example, entering 000456 is not the same as entering 456 because, if you enter 456, the system enters three blank spaces to fill a six-digit object. You cannot use * in this field.
To Object	Enter the object account portion of a general ledger account. You cannot use * in this field.
To Subsid (to subsidiary)	Enter the subsidiary account number. This is a subset of an object account. Subsidiary accounts keep more detailed records of the accounting activity for an object account. Enter 99999999 to include all subsidiaries for the account. You cannot use * in this field.
Adjustment Amount	Enter the amount that is added to the class exposure either immediately before or immediately after the administrative fee is added, depending on the value in the Calculation Placement Control field (CPC).
C P (calculation placement)	Enter the code that specifies whether to add the adjustment amount before calculating the administration fee, if any, on the class exposure. Values are: 1 or A: The system adds the adjustment amount to the class exposure after it calculates the administration fee. Any other value: The system adds the adjustment amount to the class exposure before it calculates the administration fee. Note. If the Fee Basis field (FEBS) for the expense participation information is set to blank, the placement control does not matter because the fee is calculated on the tenant's net share.

Setting Up Expense Participation Information

This section provides overviews of expense participation information and calculations without adjustments, and discusses how to:

• Set processing options for E.P. Information (P15012).

• Set up basic expense participation information.

Understanding Expense Participation Information

You define the parameters that the system uses to calculate the tenants' share of expenses for each expense class in which they participate using the E.P. Information program (P15012). You set up expense participation information by lease and by expense class. If a lease pertains to multiple units, expense participation information must be set up for each unit and expense class separately.

At its most basic level, the expense participation information that you set up must specify the expense class, the tenant's area (numerator), and the area of the building or property (denominator). These are the key components to calculate the tenant's expense share using the formula: amount of expenses × (tenant's area ÷ building or property area) = tenant's expense share.

This table describes each of the components that you must set up as the expense participation information for the lease:

In addition to the basic information that you must set up, you can specify adjustments to the expense class, limits, and other rules for calculating the denominator (area of the building or property) by excluding units.

Assigning Expense Participation Information to a New Version of the Lease

If you need to assign expense participation information to a new version of the lease, on the E.P. Information Revisions form, select the lease, and then select Versions from the Row menu.

The system suspends the original version of the lease and copies all of the information to a new version of the lease.

See Also

Adjusting Expense Participation Calculations

Setting Up Tenant Exclusion Rules

Setting Up Share Factor Denominators

Setting Up Group and Subgroup Limits

Understanding Calculations Without Adjustments

Without specifying adjustments, the only factor that affects the expense participation calculation is the computation method. These examples explain how changing the computation method affects the tenant's expense share amount.

Examples of Computation Methods B and X

This setup information pertains to both examples:

• Building 15020 = 100,000 square feet.

• Building 15020 has 5 units; this is the square footage of each unit:

  • Unit 1A = 20,000

  • Unit 1B = 15,000

  • Unit 1C = 25,000

  • Unit 1D = 30,000

  • Unit 1E = 10,000

• Units 1C and 1D are occupied for the entire billing period for which expense participation is calculated (365 days).

• Unit 1A is occupied from June 1, 2007, through December 31, 2007 (214 days).

• Expense Class = UTIL.

• Class Exposure = 90,000.

• Tenant's S.F. = 20,000 (Unit 1A).

Computation Method B

Using computation method B, you must specify an E.P. code to use to retrieve the area for the building from the building log. In this example, the E.P code is 01 and the corresponding area in the building log is 90,000 square feet.

If you generate expense participation calculations, the system calculates the tenant's utility expense share for unit 1A as follows:

Class exposure × (tenant area ÷ building area) = tenant's utility expense amount

90,000 × (20,000 ÷ 90,000) = 20,000

The system uses 90,000 square feet, instead of 100,000, because it found 90,000 set up in the building log record for E.P. code 01.

Note. The formula for computation method P is the same as computation method B, except that the system uses the combined area of all buildings that make up the property.

Computation Method X

Using computation method X, the system calculates the average occupied space in the building, which it uses as the denominator, using these steps:

1. For each occupied unit, the system multiplies the area of the unit by the number of days that the unit is occupied.

2. The system adds the result from the previous step for all occupied units and then divides that sum by the number of days in the billing period.

This table illustrates the information that is set up for the units in the building and the calculation that the system performs:

The system uses these calculations:

• Total occupied space × occupied days = 24,355,000.

• Denominator = 24,355,000 ÷ 365 (number of billing days) = 66,726.03.

Using the newly calculated denominator, the system calculates the tenant's utility expense share as follows:

Class exposure × tenant area ÷ building area = tenant's utility expense amount

90,000 × (20,000 ÷ 66,726.03) = 26,975.98

Note. The formula for computation method Y is the same as computation method X, except that the system uses the combined area of all buildings that make up the property.

See Also

Understanding Calculations Without Adjustments

Prerequisite

To use calculation methods B or P, verify that building log records have been set up that define the building area by E.P. code.

See Setting Up Building and Property Information.

Forms Used to Set Up Basic Expense Participation Information

Setting Processing Options for Expense Participation Information (P15012)

Set these processing options to specify the default processing for the program.

Display

This processing option is used to specify whether the system displays tax fields.

Edits

This processing option is used to specify whether the system validates the dates entered on the expense participation record against the lease dates.

Defaults

This processing option is used to specify the lease version that the system retrieves.

Currency

These processing options are used to specify whether to allow overrides to the currency code and exchange rate.

Setting Up Basic Expense Participation Information

Access the E.P. Information Revisions form.

Bill Manually	Specify whether the system automatically calculates and posts the billing. If this option is selected, you must manually enter and post the billing; the system does not create billing records automatically. Use this code if the complexity of the calculation warrants a manual calculation or if you want to use the Manual Billing Entry program (P1511). If left unchecked, the system automatically calculates and posts the billing.
Sub Grp (expense participation subgroup)	Enter the code that identifies a second level group of expense participation classes that are subject to a common limit.
Act B/R (actual billing receipt code)	Enter the code that the system uses in conjunction with the AAI item to retrieve the accounts to update when the billing record is posted. The system retrieves the appropriate account to bill based on the AAI item PMxxxx (for invoices) and RMxxxx (for vouchers), where xxxx is equal to the code that you enter. The system retrieves the offset account (Accounts Receivable trade or Accounts Payable trade), based on the AAI item RCxxxx (for invoices) and PCxxxx (for vouchers), where xxxx is equal to the code that you enter. Enter the bill code to which you want expense participation amounts billed.
Est B/R (estimated billing receipt code)	Enter the bill code that identifies the estimated billing amounts to subtract from the actual billing amounts. For example, if you run expense participation based on the expenses from the previous year, and then you rerun it for the actual expenses, the system subtracts the estimated amounts previously billed and bills the tenant for only the difference. The system retrieves the appropriate account to use based on the AAI item PMxxxx (for invoices) and RMxxxx (for vouchers) where xxxx is equal to the code that you enter. The system retrieves the offset account (Accounts Receivable trade or Accounts Payable trade) to use based on the AAI item RCxxxx (for invoices) and PCxxxx (for vouchers) where xxxx is equal to the code that you enter.
Adm B/R (billing receipt code - administration fee)	Enter the code that the system uses in conjunction with the AAI item to retrieve the account to update for the management fee amount that the system calculates when you run the E.P. Calculation Generation program. The system retrieves the appropriate account to bill based on the AAI item PMxxxx (for invoices) and RMxxxx (for vouchers), where xxxx is equal to the code that you enter. The system retrieves the offset account (Accounts Receivable trade or Accounts Payable trade), based on the AAI item RCxxxx (for invoices) and PCxxxx (for vouchers), where xxxx is equal to the code that you enter. If you leave this field blank, the system uses the same account that it uses for the billing amount. Note. If the administration fee is calculated on the adjusted class exposure, the fee becomes an inherent part of the expense amount, and the system ignores the bill code that appears in this field.
% Fee (percent fee rate)	Enter the percentage that you want to allocate for an administration fee. Enter the percentage in a decimal format. For example, enter .01 to specify a 1 percent fee. The system assigns the bill code that appears in the Admin B/R field (BRAD) to the billing record that the system generates for the fee. The system calculates the fee based on the value that appears in the FB field (FEBS) on the E.P. Information Revisions form.
F B (fee basis)	Enter the code that specifies whether the system calculates the fee from the amounts billed or the amounts collected. Values are: A: Accrual basis. The system calculates the fee based on the amount billed. C: Cash basis. The system calculates the fee based on the amount collected. A code that specifies how the system calculates the administration fee. Values are: Blank: The system calculates the fee based on the tenant's net share (billable) amount. 1: The system calculates the fee based on the total class exposure after exclusions. 2: The system calculates the fee based on the class exposure prior to exclusions.
Tenant Sq Ft (tenant square footage)	Enter the rentable area of the tenant's unit, which is the numerator that the system uses to calculate the tenant's share of expenses. If you leave this field blank, the system retrieves the area from the lease. You can override the value, if necessary.
E.P. Code (expense participation code)	Enter the system uses this code only when you specify calculation methods B or P, and only when you do not specify a share factor denominator.
C M (calculation method)	Enter the code that specifies the square footage to use for the denominator portion of the expense participation calculation, or identifies the expense information record for a special use. Values are: B: Use with either the E.P. code or the share factor denominator that is specified in the expense participation information to determine the square footage of the building. Note. For values B and P, if you use the computation method with an E.P. code, the system retrieves the area of the building or property respectively from the building log lines referenced by the E.P code that you specified. If you use the computation method with a share factor denominator, the system retrieves the area of the building or property respectively from Gross Lease Occupied Areas table (F15141), based on the information specified by the rule. P: Use with either the E.P. code or the share factor denominator that is specified in the expense participation information to determine the square footage of the property. X: Use the average occupied space for the building. Note. For values X and Y, the system divides the number of days in the billing period by the sum of the space days for each occupied unit of the building or property respectively to determine the average occupied space. The system derives the space days for each occupied unit by multiplying the rentable area (square feet) of the unit by the number of days that the unit is occupied. For example, if one unit is occupied for 214 days (six months) and has an area of 20,000 and a second unit is occupied for 365 days and has an area of 35,000, the space days for the each unit is 4,280,000 and 12,775,000, respectively. If you divide the sum of the two units (17,055,000) by the number of days in the billing period (365), the average occupied space (the denominator) is 46,726.03. Y: Use the average occupied space for the property. N: Compare the gross-up percentage on the expense participation record to the percentage of occupied space that the system calculates by dividing the area of the unit by the total area of the building, and then adjust the calculation accordingly. If the gross-up percentage on the expense participation record is less than the gross-up factor that the system calculates, the system adjusts the calculated amount using the formula 1 ÷ calculated gross up factor = new gross-up factor. For example, if the gross-up percentage is .50 and the system calculates the gross-up factor as .645465, the system uses the new gross-up factor of 1.549271 (1 ÷ .645465). Note. For values N and U, if the gross-up percentage on the expense participation record is greater than the gross-up factor that the system calculates, the system adjusts the calculated amount using the formula Percentage entered ÷ calculated gross-up factor = new gross-up factor. For example, if the gross-up percentage is .80 and the system calculates the gross-up factor as .645465, the system uses the new gross-up factor of 1.239417 (.80 ÷ .645465). U: Compare the gross-up percentage on the expense participation record to the percentage of occupied space that the system calculates by dividing the area of the unit by the total area of the building, and then adjust the calculation accordingly. If the gross-up percentage that you enter is less than the gross-up factor that the system calculates, the system does not use a gross-up factor. O: Compare the gross-up percentage on the expense participation record to the percentage of occupied space that the system calculates by dividing the area of the unit by the total area of the property, and then adjust the calculation accordingly. If the gross-up percentage on the expense participation record is less than the gross-up factor that the system calculates, the system adjusts the calculated amount using the formula 1 ÷ calculated gross up factor = new gross-up factor. For example, if the gross-up percentage is .50 and the system calculates the gross-up factor as .645465, the system uses the new gross-up factor of 1.549271 (1 ÷ .645465). Note. For values O and V, if the gross-up percentage on the expense participation record is greater than the gross-up factor that the system calculates, the system adjusts the calculated amount using this formula: Percentage entered ÷ calculated gross-up factor = new gross-up factor For example, if the gross-up percentage is .80 and the system calculates the gross-up factor as .645465, the system uses the new gross-up factor of 1.239417 (.80 ÷ .645465). V: Compare the gross-up percentage on the expense participation record to the percentage of occupied space that the system calculates by dividing the area of the unit by the total area of the property, and then adjust the calculation accordingly. If the gross-up percentage that you enter is less than the gross-up factor that the system calculates, the system does not use a gross-up factor. L: Use the expense participation record for the group or subgroup limit only. You must enter a separate record for each group and subgroup for which a limit applies. A: Do not generate an expense participation billing record because the record has already been generated. M: Do not generate an expense participation billing record because the expense participation information specified to enter a manual billing record. S: Do not use the expense participation record to calculate expense participation or generate a billing because the record has been suspended.
Group Limit	Enter the maximum amount that the system uses for the combined adjusted share amounts of the expense classes in the group.
Percent Override	Enter the percentage to use to calculate the tenant's share of expenses instead of the area percentage that the system derives by dividing the tenant's area by the building area. Enter the percentage in a decimal format. For example, enter .35 to specify 35 percent.
Base Exclusion	Enter the number that specifies the amount to subtract from the adjusted class exposure before the system computes the tenant's share factor. If you complete this field, you must also specify a value in the Base St Yr field (BPSY).
Base St Yr (base period start - year)	Enter the first year for which the base exclusion amount applies. If you enter a base exclusion amount, you must complete this field. The system deducts the base exclusion amount one year after the base start year that you specified. For example, if you enter a base start year of 2007, the system does not deduct the base exclusion amount until you process expense participation for the year 2008.
Gross Up	Enter the percentage by which the class exposure is multiplied to adjust for occupancy. The system uses the percentage that you enter, in conjunction with the computation method, to determine the gross-up factor. If the computation method is B, P, X, or Y, the system multiplies the class exposure by the gross-up percentage and includes it in the total exposure. If the computation method is N, O, U, or V, the system uses the corresponding computation method (X for building or Y for property) to determine the gross-up factor, and then compares it to the gross-up percentage that you entered. If the gross-up percentage that you enter is greater than the calculated gross-up factor, the system divides the percentage by the calculated gross-up factor and uses that result as the new gross-up factor. The system multiplies the new gross-up factor by the class exposure. For example, if the gross-up percentage is .80, and the system calculates the gross-up factor as .645465, the system uses the new gross-up factor of 1.239417 (.80 ÷ .645465). For computation methods N and O, if the gross-up percentage that you enter is less than the gross-up factor that the system calculates, the system adjusts the calculated amount using this formula: 1 ÷ calculated gross-up factor = new gross-up factor. For example, if the gross-up percentage is .50 and the system calculates the gross-up factor as .645465, the system uses the new gross-up factor of 1.549271 (1 ÷ .645465). For computation methods U and V, if the gross-up percentage that you enter is less than the gross up factor that the system calculates, the system does not use a gross-up factor. Note. If the computation method is N, O, U, or V, the system uses the value from the E.P. Code field (EPCD) to locate the rentable area for the building (methods N and O) or the property (methods U and V) from the building log to use as the denominator.
Tenant Exclusion Rule	Enter the code that identifies the tenant exclusion rule. The system does not include amounts specified by the tenant exclusion rule when it calculates the tenant's share factor. For example, a tenant exclusion rule might specify to deduct amounts associated with bill code EXPA from all tenants who lease any unit that is defined as an anchor and that has an area of more than 5,000 square feet. The system uses the tenant exclusion rule only when you assign it to the expense participation information that you set up for the lease.
Exclusion Override	Enter the amount that the system uses instead of the amount calculated by the tenant exclusion rule.
Share Factor Denominator	Enter the code that identifies the units to exclude from the denominator portion of the calculation that the system uses to determine the tenant's share factor. For example, you can specify a share factor denominator that excludes anchor tenants (specified by the E.P unit type) that have more than 16,000 square feet (specified by the share factor area value). The system uses the share factor denominator only when you assign it to the expense participation information that you set up for the lease.
Begin Date	Enter the begin date. If you leave this field blank, the system uses the starting date of the lease.
End Date	Enter the end date. If you leave this field blank, the system uses the ending date of the lease.
Occup From (occupancy date from)	Enter the date upon which occupancy begins. If you leave this field blank, the system uses the starting date of the lease.
Occup To (occupancy date to)	Enter the date upon which occupancy terminates. If you leave this field blank, the system uses the ending date of the lease.
O R (expense participation occupancy rule)	Enter the UDC (15/EO) that specifies how the system prorates amounts and areas that are used in the expense participation calculation for units that are occupied for less than a complete billing period. Values are: Blank: No proration. The system uses only units that are occupied for the entire billing period. H: Half month. If the unit is occupied for 15 days, the system considers it occupied for the entire billing period. P: Partial month. If the unit is occupied for one day, the system considers it occupied for the entire billing period. D: Daily proration. The system divides the number of days of occupancy by the total number of days in the billing period and then multiplies that result by the area and amounts used in the expense participation calculation.

Adjusting Expense Participation Calculations

This section provides overviews of the expense participation adjustments, calculations with adjustments, and the gross-up factor, and discusses how to:

• Adjust the class exposure.

• Set up adjustments to expense participation information.

Understanding Expense Participation Adjustments

You can set up expense participation information to adjust any and all components of the calculation that the system uses to determine the tenant's expense share amount, which includes:

• The class exposure (expense class amount).

• The numerator (tenant's area).

• The denominator (area of building or property).

For example, some tenants, such as an anchor tenant in a shopping mall, might be exempt from expense sharing because their unit attracts the shoppers who increase the sales for all mall tenants. You can set up an adjustment to exclude the area for their unit from the total area for the building or property.

Additional adjustments might include:

• Excluding an account from the class exposure.

• Adding a fee to the class exposure or to the tenant's expense share amount.

• Multiplying the class exposure by a percentage.

• Adding or subtracting an amount from the class exposure.

• Adding or subtracting an amount from the tenant's expense share amount.

• Subtracting estimated expenses for which the tenant has been billed.

Regardless of the type of adjustment, you specify adjustment information in one of two programs:

• E.P. Class Information (P1530)

• E.P. Information (P15012)

Adjustments to the Class Exposure

You can adjust the class exposure by multiplying it by a percentage, adding or subtracting an amount to it, excluding account information, and so forth. This table outlines each adjustment to the class exposure that you can set up, and the program that you use to define it:

Adjustments to the Numerator

You can adjust the numerator (tenant's area) that is used in the calculation for the tenant's share factor in one of these ways:

• You can adjust the square footage that represents the tenant's area that the system uses as the numerator in the calculation for the tenant's share factor by changing the value in the Tenant Sq. Ft. field (EPOF) that the system supplies with the rentable area that is set up on the lease.

  The system uses the value that you enter as the tenant's area.

• You can specify a percentage of the class exposure to use, instead of calculating a share factor by dividing the tenant's area by the building (or property) area.

  For example, if you enter .20 in the Percent Override field (PCTP), the system multiplies the class exposure by 20 percent to derive the gross share amount.

Adjustments to the Denominator

Adjustments to the area of the building or property can be made only by setting up a share factor denominator in the Share Factor Denominator Revisions program (P150122) and assigning it to the expense participation information for the expense class. When you set up a share factor denominator, you specify the areas of units to exclude from the total area of the building (or property) by E.P. unit type, unit area, or both.

See Setting Up Share Factor Denominators.

Understanding Calculations with Adjustments

To understand how to specify adjustment information for the expense participation record, you must understand how the system uses the adjustment in the calculation. Each adjustment that you specify affects the tenant's expense share amount, but you can affect it differently depending on the adjustment that you set up.

Example

These forms illustrate the order in which the system uses each adjustment in the calculation. By reviewing this calculation, you can determine how to set up adjustment information in the corresponding expense participation program.

This table lists most of the fields from the Page 1 tab and provides an explanation of how the system calculates each field:

This form illustrates the calculations from the Page 2 tab:

This table lists most of the fields from the Page 2 tab and provides an explanation of how the system calculates each field:

Understanding the Gross-Up Factor

You can enter a gross-up percentage to adjust the class exposure based on a minimum occupancy level (the number of days that each tenant occupies their unit in the building). The system uses the percentage that you specify in conjunction with the computation method to determine a gross-up factor that reflects the percent of occupancy for the building and the occupancy for each unit.

If the computation method is B, P, X, or Y, the system multiplies the class exposure by the gross-up percentage and includes it as part of the total exposure. These computation methods do not adjust the gross-up factor based on occupancy.

Computation methods N and U derive a gross-up factor by dividing the area of the building (based on the E.P. code from the building log) by the average occupied area, that the system calculates using computation method X. The system adjusts the gross-up factor based on the percentage specified on the expense participation record, if necessary.

Computation methods O and V perform the same calculations as N and U, but derive the gross-up factor by using the result of computation method Y (average occupied area of the property) as the numerator.

These examples explain how the system calculates the gross-up factor using computation methods N and U.

Computation Method N

The system compares the gross-up percentage on the expense participation record to the gross-up factor, which it calculates by dividing the area of the building (based on the E.P. code from the building log) by the average occupied area for each unit, which it calculates by running computation method X.

For example, if you set up the expense participation record to use computation method X, and the system calculates a denominator of 67,000 s.f., and the area of the building (based on the E.P. code and building log) is 175,000 s.f., the calculated gross-up factor is .38 (38 percent).

If the gross-up percentage on the expense participation record is greater than the gross-up factor that the system calculates, the system adjusts the calculated amount using this formula:

Gross-up percentage entered on expense participation record ÷ calculated gross-up factor = new gross-up factor

For example, if the gross-up percentage on the expense participation record is .5, and the calculated gross-up factor is .38, the system derives the new gross-up factor .76 (.38 ÷ .50). The system uses this gross-up factor to multiply by the class exposure as part of the total exposure amount.

If the gross-up percentage on the expense participation record is less than the gross-up factor that the system calculates, the system adjusts the calculated amount using this formula:

1 ÷ calculated gross up factor = new gross-up factor

For example, if the gross-up percentage on the expense participation record is .25 and the calculated gross-up factor is .38, the system calculates the new gross-up factor as 2.63.

Computation Method U

If the gross-up percentage on the expense participation record is greater than the gross-up factor that the system calculates using computation method Y (which performs the same calculation as computation method X, but uses the area of the property instead of the building), the system performs the same calculation as it does using computation method N.

If the gross-up percentage on the expense participation record is less than the gross-up factor that the system calculates, the system does not use a gross-up factor.

See Also

Understanding Calculations Without Adjustments

Adjusting the Expense Class

You can adjust expense class information in one of two ways:

• Enter an adjustment factor to the expense class.

• Adjust the amount of the class exposure.

This section discusses how to set up adjustments to the expense class.

Forms Used to Set Up Adjustments to the Expense Class

Setting Up Adjustments to the Expense Class

Access the E.P. Class Information Revisions form.

Adjustment Amount	Enter the adjustment amount for the currency specified by the currency code.
CP (calculation placement control)	Enter the calculation placement control. If you enter 1 or A, the system adds the adjustment amount to the class exposure after it calculates an administration fee, if specified. Otherwise, the system adds the adjustment amount to the class exposure before it calculates the administration fee.

Setting Up Tenant Exclusion Rules

This section provides an overview of tenant exclusion rules and discusses how to set up tenant exclusion rules.

Understanding Tenant Exclusion Rules

Tenant exclusion rules enable you to subtract certain tenant contributions from the total class exposure. The system identifies the amounts to exclude by unit type, unit area, and bill code. For example, you can exclude all amounts associated with bill code EXPE (estimated expense participation billing) for units assigned an E.P unit type of ANC (anchor).

You can also specify an area value to use as additional criteria to locate the amounts associated with the unit. For example, you might want to exclude only amounts associated with bill code EXPE for anchor units that have a square footage of 15,000 or more.

The system uses the Gross Lease Occupied Areas table (F15141) to locate the unit areas based on the area method and area type that you specify. The area method includes gross leaseable, gross lease occupied, average leaseable, and average lease occupied. The area type specifies whether the area is rentable, usable, or some other value.

Note. The information that you specify for the area type must correspond to the area type that was used to generate the information in table F15141 or the system does not exclude any area.

The system retrieves the amounts to subtract (based on the bill codes that you enter) from either the Customer Ledger (F03B11) or the Accounts Payable Ledger (F0411) table, depending on the lease. You set up the rule using the Tenant Exclusion Revisions program (P150120), and then assign it to the expense participation information that you set up for the lease. The system calculates the tenant exclusion amount when you run the E.P. Calculation Generation program (R15110).

The system stores tenant exclusion rules in the Tenant Exclusion Header (F150120) and Tenant Exclusion Detail (F150121) tables.

Forms Used to Set Up Tenant Exclusion Rules

Setting Up Tenant Exclusion Rules

Access the Tenant Exclusion Revisions form.

Tenant Exclusion Rule	Enter the code that identifies the tenant exclusion rule. The system does not include amounts specified by the tenant exclusion rule when it calculates the tenant's share factor. For example, a tenant exclusion rule might specify to deduct amounts associated with bill code EXPA from all tenants who lease any unit that is defined as an anchor and that has an area of more than 5,000 square feet. The system uses the tenant exclusion rule only when you assign it to the expense participation information that you set up for the lease.
Area Method	Enter the UDC (15/DM) that specifies the value to retrieve from the Gross Lease Occupied Areas table (F15141) when the system calculates the tenant exclusion or share factor denominator. Codes are: 1: Gross leaseable area (GLA). 2: Gross lease occupied area (GLOA). 3: Average leaseable area. 4: Average lease occupied area.
Area Type	Enter the UDC (15/AR) that identifies the area by its use, such as rentable, usable, GLA, GLOA, and so on. The area type that you specify must be the same as the area type that was used for the Gross Lease Occupancy Refresh program (R15141), or the system cannot locate the values to exclude.
EP Unit Type (expense participation unit type)	Enter the UDC (15/EU) that identifies the unit for expense participation exclusions. The system uses the E.P. unit type when you set up a tenant exclusion or a share factor denominator. If you specify a Tenant Exclusion Area Value, you must specify a non-blank, valid E.P. unit type. The system does not consider areas for units with a blank E.P. unit type, regardless of whether it exists in UDC 15/EU.
Tenant Exclusion Area Value	Enter the control area to which the system compares the area of the unit from the Gross Lease Occupied Areas table (F15141) to determine whether to subtract the amounts billed to these units from the class exposure. The system excludes amounts that are associated with units that have an area greater than the value specified for the class exposure. The system uses the tenant exclusion rule only when you assign it to the expense participation information that you set up for the lease. If you specified an E.P. unit type, the system uses the tenant exclusion area value in conjunction with the E.P. unit type. For example, if the E.P. unit type is ANC and the value in this field is 10,000, the system excludes units that are assigned an E.P. unit type of ANC and have more than 10,000 square feet from the tenant's area used for the numerator in the expense participation calculation.
Bill Code 1	Enter the bill code that identifies the amounts to exclude from the tenant's contribution as part of the tenant exclusion rule. You must specify a value in at least one of the bill code fields, or the system does not exclude amounts.

Setting Up Share Factor Denominators

This section provides an overview of share factor denominators and discusses how to set up share factor denominators.

Understanding Share Factor Denominators

The Expense Participation Calculation Generation program (R15110) calculates the tenant's share factor by dividing the area of the unit that the tenant leases by the total area of all of the units in the building or for the property. You can manipulate the tenant's share factor by specifying unit areas to exclude from the total (denominator) amount. You can identify the unit areas to exclude from the calculation by E.P. unit type, area value, or both. The system retrieves the area information for the unit from the Gross Lease Occupied Areas table (F15141) based on the area method that you specify. For example, if you want the system to exclude all unit areas with more than 10,000 square feet, you must specify whether the 10,000 square feet is a GLA, GLOA, or the average GLA or GLOA.

In addition to specifying the unit areas to exclude from the total area that the system uses to calculate the tenant's share factor, you can also set up a cap value, which is a percentage of the GLA for the building or property, that establishes a minimum area value to use in the calculation. The system compares the calculated denominator to the cap value and uses the greater of the two values as the denominator for the expense participation calculation.

Note. Because the cap value is a percentage of GLA, if the area method that you specify for the share factor denominator is GLA, the system never uses the cap.

After you create a share factor denominator, you can add it to the expense participation information for all applicable leases. The share factor denominator works only with computation methods B and P, and only when an E.P. code is not specified. This value can be different for each line of expense participation information that you set up.

The system stores share factor information that you set up in the Share Factor Denominator Header (F150122) and Share Factor Denominator Detail (F150123) tables.

Forms Used to Set Up Share Factor Denominators

Setting Up a Share Factor Denominator

Access the Share Factor Denominator Revisions form.

Share Factor Denominator	Enter the code that identifies the units to exclude from the denominator portion of the calculation that the system uses to determine the tenant's share factor. For example, you can specify a share factor denominator that excludes anchor tenants (specified by the E.P unit type) that have more than 16,000 square feet (specified by the share factor area value). The system uses the share factor denominator only when you assign it to the expense participation information that you set up for the lease.
Share Factor Description	Enter the share factor description.
Area Method	Enter the UDC (15/DM) that specifies the value to retrieve from the Gross Lease Occupied Areas table (F15141) when the system calculates the tenant exclusion or share factor denominator. Valid codes are: 1: Gross leaseable area (GLA). 2: Gross lease occupied area (GLOA). 3: Average leaseable area. 4: Average lease occupied area.
Area Type	Enter the UDC (15/AR) that identifies the area by its use, such as rentable, usable, gross leaseable (GLA), gross lease occupied (GLOA), and so on. The area type that you specify must be the same as the area type that was used for the Gross Lease Occupancy Refresh program (R15141), or the system cannot locate the values to exclude.
Cap Value	Enter the percentage of the GLA that represents a minimum amount to use as the denominator to calculate the tenant's share factor, if the building area that is retrieved is a lesser amount. For example, if the area method and type specify to use the average leased occupied area (for the rentable area), and that amount is less than the percentage of GLA specified by the cap, the system uses the cap value. Enter the percentage in a decimal format. For example, enter .80 to specify 80 percent. The system does not calculate a cap that is greater than 100 percent. Completing this field is optional.
EP Unit Type (expense participation unit type)	Enter the UDC (15/EU) that identifies the unit for expense participation exclusions. The system uses the E.P. unit type when you set up a tenant exclusion or a share factor denominator. If you specify a Share Factor Area Value, you must specify a non-blank, valid E.P. unit type. The system does not consider areas for units with a blank E.P. unit type, regardless of whether it is exists in UDC 15/EU.
Share Factor Area Value	Enter the control area against which the system compares the area of the unit from the Gross Lease Occupied Areas table (F15141) to determine whether to subtract it from the total area of the building that the system uses to calculate the tenant' s share factor. The system excludes all units for the unit type specified, including blank, that have an area that is greater than the value specified. For example, if you specify ANC as the E.P. unit type, and 16,000 as the share factor area value, the system excludes all units for area type ANC that are greater than 16,000 square feet. If you specified an E.P. unit type, the system uses the share factor area value in conjunction with the E.P. unit type. For example, if the E.P. unit type is ANC and the value in this field is 10,000, the system excludes units that are assigned an E.P. unit type of ANC and have more than 10,000, from the total building area used for the denominator in the expense participation calculation.
Share Factor Denominator	Enter the code that identifies the units to exclude from the denominator portion of the calculation that the system uses to determine the tenant's share factor. For example, you can specify a share factor denominator that excludes anchor tenants (specified by the E.P unit type) that have more than 16,000 square feet (specified by the share factor area value). The system uses the share factor denominator only when you assign it to the expense participation information that you set up for the lease.

Setting Up Group and Subgroup Limits

When you set up expense participation information, you can group two or more expense classes to define a common limit that applies to the sum of the classes within the group. The system compares the limit amount for the group to the gross share amount for each expense class in the group. If the sum of the gross share amounts for the group exceeds the group limit, the system performs a calculation that adjusts the net amount by the group adjustment amount.

To define more than one common limit for a group, you can create subgroups within the group that has a different common limit than the one established for the group. For example, you could group two or more expense classes into a subgroup that has a common limit of 10,000, and then group that subgroup with other expense classes into a group that has common limit of 16,000.

For each group and subgroup that you want to use, you must set up a separate expense participation limit record using computation method L.

This form displays expense participation information that is set up to use both a subgroup and a group limit:

In this example, the expense classes CAMS and TXIN make up the subgroup CU. A separate expense participation record has been set up to identify the subgroup as CU with a limit of 6,000 and a computation method of L. The expense classes that make up the group CUT include the two expense classes for the subgroup (CAMS and TXIN) and the expense class UTIL. A separate expense participation record has been set up to identify the group as CUT with a limit of 9,000 and a computation method of L.

Note. When you set up the subgroup and group limit expense participation records, you must additionally specify a billing frequency.

Example: Group and Subgroup Limits

When you set up group limits, you ensure that the tenant's total gross share does not exceed a defined amount. If the amount exceeds the group limit, the system performs the calculation that is described in the example to adjust the tenant's net share (billable) amount.

These examples explain how the system uses the group limit and subgroup limit to reduce the tenant's billable amount for the expense class.

Example: Group Limit Adjustments

In this example, the group consists of two expense classes, so that you can easily follow the calculation that the system performs. If more expense classes existed in the group, the system would perform the same calculation for each expense class.

This table illustrates the relevant information that is set up on the expense participation record:

Calculation for CAMS

9,000.00 (group limit) ÷ 17,621.57 (sum of gross shares) = .510738

11,243.00 (gross share for CAMS) × .510738 = 5,742.23 (net share for CAMS - billable amount)

11,243.00 − 5,742.23 = 5,500.77 (group adjustment)

Calculation for UTIL

9,000.00 (group limit) ÷ 17,621.57 (sum of gross shares) = .510738

6,378.57 (gross share for UTIL) × .510738 = 3,257.78 (net share for UTIL − billable amount)

6,378.57 − 3,257.78 = 3,120.79 (group adjustment)

Example: Subgroup Limit and Group Limit Adjustments

In this example, two of the three expense classes in the group are organized into a smaller subgroup with its own limit. The system performs the same calculations that were described in the previous example for each expense class in the subgroup using the subgroup limit to determine the net share. Then, the system uses this net share as the basis for calculating the net share (billable amount) for each expense class using the group limit.

By reviewing the resulting calculations, you can see that using group and subgroup limits ensures that the tenant's total expense share does not exceed specific limits.

This table illustrates the relevant information that is set up on the expense participation record:

Subgroup Calculation for CAMS

6,000 (subgroup limit) ÷ 13,117.72 = .45740

9,854.89 (gross share for CAMS) × .45740 = 4,507.63 (net share for subgroup)

9,854.89 − 4,507.63 = 5,347.26 (subgroup adjustment)

Subgroup Calculation for TXIN

6,000 (subgroup limit) ÷ 13,117.72 = .45740

3,262.83 (gross share for TXIN) × .45740 = 1,492.42 (net share for subgroup)

3,262.83 − 1,492.42 = 1,770.41 (subgroup adjustment)

Group Calculation for CAMS

To determine the group share amount, the system uses the net share amounts for the subgroup + the gross share for UTIL, which was not part of a subgroup.

4,507.63 + 1,492.42 + 6,378.57 = 12,378.62 (sum of net share and gross share amounts)

9,000 (group limit) ÷ 12,378.62 = .72706

4,507.63 (net share for subgroup) × .72706 = 3,277.32 (net share for CAMS - billable amount)

4,507.63 − 3,277.32 = 1,230.31 (group adjustment)

Group Calculation for TXIN

9,000 (group limit) ÷ 12,378.62 = .72706

1,492.42 (net share for subgroup) × .72706 = 1,085.08 (net share for TXIN - billable amount)

1,492.42 − 1,085.08 = 407.34 (group adjustment)

Group Calculation for UTIL

9,000 (group limit) ÷ 12,378.62 = .72706

6,378.57 (gross share) × .72706 = 4,637.60 (net share for UTIL - billable amount)

6,378.57 − 4,637.60 = 1,740.97 (group adjustment)

Setting Up Expense Participation Adjustment Information

This section discusses how to set up expense participation adjustment information.

Forms Used to Set Up Expense Participation Adjustment Information

Setting Up Expense Participation Adjustment Information

Access the Expense Participation Adjustments form.

To set up expense participation adjustments:

1. Complete these fields to adjust the class exposure on E.P. Information Revisions:

   • Base Exclusion

   • Compound Factor

   • Base St Yr

   • Gross Up

   • Tenant Exclusion Rule

   • Exclusion Override

     If you specify an amount in this field, the system does not use the tenant exclusion rule specified.

2. Complete these fields to adjust the numerator (tenant's area):

   • Tenant Sq Ft

   • Percent Override

3. Complete the Share Factor Denominator field to adjust the denominator (area of building or property).

   The system uses the share factor denominator only with computation methods B and P, and only when an E.P. code is not specified.

4. Complete these fields to specify a fee:

   • % Fee

     Enter the percentage as a decimal. For example, enter .01 to specify a 1 percent fee.

   • F B

5. Select EP Adjustments from the Row menu to set up account exclusions and minimum and maximum adjustment levels for the expense class.

6. Complete these fields on Expense Participation Adjustments:

   • Adj Lvl

   • Adjustment Amount

   • Min/ Max

   • Adj Calc

   • Adjustment Base

   • Adj StYr

7. Complete these fields to specify the account balances to exclude, if you entered an adjustment level of A.

   • Property/ Building

   • Obj Acct

   • Sub

8. Click OK.

   The system returns you to the E.P. Information Revisions form and displays an informational button next to the detail line for the expense class to indicate that an adjustment level exists.

   See Setting Up Group and Subgroup Limits.

   Base St Yr (base start year)	Enter the year. The system does not subtract the amount specified in the Base Exclusion field until the year following the year specified in this field. For example, if you specify 25,000 as the base exclusion amount to start in 2007, the system does not exclude it from the class exposure until you generate expense participation for 2008.
   Gross Up	Enter the percentage in a decimal format. For example, enter .80 to specify 80 percent. The system uses the gross-up percentage differently depending on the calculation method. See Understanding Expense Participation Adjustments.
   Adj Lvl (adjustment level)	Enter the UDC (15/EL) that specifies the placement in the expense participation calculation at which the system uses the adjustment. Values are: A: Account level. The system uses the adjustment to calculate the total exposure by excluding all or a portion of the account balance for the account specified for the billing period used in the expense participation calculation. Account level adjustments are limited to adjustment calculation codes 5 and 6. C: Class level. The system uses the adjustment to calculate the net exposure amount. Depending on whether the adjustment amount is used as a minimum or maximum amount for comparison to the total exposure, the system uses either the adjustment amount or the total exposure amount as the adjusted exposure amount. For example, if the adjustment amount is 100,000, and it is defined as a minimum amount, the system uses it as the adjusted exposure amount if the total exposure amount is less than 100,000. Class level adjustments are limited to adjustment calculation codes 1, 2, 3, 4, and F. L: Lease level. The system uses the adjustment to calculate the adjusted share amount. Depending on whether the adjustment amount is used as a minimum or maximum amount for comparison to the gross share, the system uses either the adjustment amount or the gross share amount as the adjusted share amount. For example, if the adjustment amount is 10,000, and it is defined as a maximum amount, the system uses it as the adjusted share amount if the gross share amount is greater than 10,000. Lease level adjustments are limited to adjustment calculation codes 1, 2, 3, 4, and F.
   Adjustment Amount	Enter the number that represents an amount or percentage, depending on the value of the Adjustment Calculation field (CLCY), that the system calculates and either adds to or subtracts from the class exposure. If you specify a positive adjustment amount, the system adds it to the class exposure. If you specify a negative amount, the system subtracts it from the class exposure. If the adjustment level is A, and you specify an adjustment amount, the system adds or subtracts the amount from the account balance that corresponds to the property (business unit), object, and subsidiary that you specify. If you want to exclude an entire account balance, leave this field blank. Note. If the number represents a percentage, enter it as a whole number. For example, enter 50 to specify 50 percent.
   Min/ Max (minimum/ maximum amount)	Enter the UDC (15/ET) that specifies whether the system uses the adjustment amount as a minimum or maximum amount for comparison purposes. Depending on the adjustment level, the system compares the adjustment amount to a different value in the expense participation calculation. If the adjustment level is C or L, you must specify whether the amount represents a minimum or maximum amount. Values are: Blank: None. The adjustment amount is not used for comparison purposes. This value is valid for account-level adjustments only. M: Maximum. The adjustment amount represents a maximum amount that the system uses when either the total exposure (for class adjustments) or the gross share (for lease adjustments) is greater than the adjustment amount. N: Minimum. The adjustment amount represents a minimum amount that the system uses when either the total exposure (for class adjustments) or the gross share (for lease adjustments) is less than the adjustment amount.
   Adj Calc (adjustment calculation)	Select the calculation method that corresponds to the adjustment level. A UDC (15/CE) that specifies whether the number entered in the Adjustment Amount field (ADJE) represents an amount or a percentage, and whether the system uses it in relation to the adjustment base amount. Values are: 1: The number represents an adjustment amount to the base adjustment amount, if specified. If an adjustment base amount is specified, the system either adds the adjustment amount to or subtracts the adjustment amount from the adjustment base amount. For example, if you enter -500 as the adjustment amount and 15,000 as the adjustment base, the system uses an adjustment amount of 14,500 in the expense participation calculation. If an adjustment base amount is not specified, the system uses only the adjustment amount entered. 2: The number represents a percentage of the base adjustment amount, which is required. The system multiplies the percentage specified by the adjustment base amount and uses the result in the expense participation calculation. 3: The number represents a compounded adjustment amount for the base adjustment amount. The system uses the adjustment start year to determine whether to compound the adjustment amount for the base adjustment amount. For example, if the adjustment amount is 2000, and the base adjustment amount is 10,000, the system calculates an adjustment amount of 12,000 for the first year, 14,000 for the second year, 16,000 for the third year, and so on. 4: The number represents a compounded percentage of the base adjustment amount. The system uses the adjustment start year to determine whether to compound the adjustment percentage for the base adjustment amount. For example, if the adjustment percentage is 20, and the base adjustment amount is 10,000, the system calculates an adjustment amount of 2000 the first year, 4000 for the second year, 8000 for the third year, and so on. 5: The number represents an adjustment amount to the account balance for the specified account for the billing period that the system uses to calculate expense participation. The system adds or subtracts the adjustment amount from the class exposure, depending on whether you enter a positive or negative amount. 6: The number represents a percentage that the system uses to adjust the account balance for the account specified for the billing period that it used in the expense participation calculation. The system multiplies the percentage by the account balance, subtracts that result from the account balance, and uses the result as the account exclusion. 7: The number represents a fixed amount. The system does not use a base adjustment amount with this calculation method. The system uses the amount entered as the adjustment amount in the expense participation calculation.
   Adjustment Base	Enter the amount that the system uses as the basis for other adjustments, depending on the adjustment calculation method. An amount is valid for calculation methods 1, 2, 3, and 4 only. If you specify an adjustment base amount, the system applies the adjustment amount to the adjustment base amount. You cannot specify an adjustment base amount without specifying an adjustment amount. The system does not use the adjustment base amount with adjustment level A.
   Adj StYr (adjustment start - year)	Enter the four-digit number that represents either the lease year or the fiscal year, depending on the value of the Adj Calc field (CLCY). If the value of the adjustment calculation is 1 or 2, enter the lease year for which the adjustment applies. For example, enter 0001 to specify the first year of the lease. If the value of the adjustment calculation is 3 or 4, enter the fiscal year for which the adjustment applies. For example, enter 2007 to specify the fiscal year for which the adjustment applies. This field is not used when the value of the adjustment calculation is 5, 6, or F.
   Obj Acct (object account)	Enter the portion of a general ledger account that refers to the division of the Cost Code (for example, labor, materials, and equipment) into subcategories. For example, you can divide the Cost Code for labor into regular time, premium time, and burden. Note. If you use a flexible chart of accounts and the object account is set to 6 digits, generally you use all six digits. For example, entering 000456 is not the same as entering 456 because, if you enter 456, the system enters three blank spaces to fill a six-digit object.
   Sub (subsidiary)	Enter the subset of an object account. Subsidiary accounts include detailed records of the accounting activity for an object account. Note. If you are using a flexible chart of accounts and the object account is set to six digits, you must use all six digits. For example, entering 000456 is not the same as entering 456 because, if you enter 456, the system enters three blank spaces to fill a six-digit object.

Generating Expense Participation Calculations

This section provides an overview of the E.P. Calculation Generation program, lists a prerequisite, and discusses how to:

• Run the E.P. Calculation Generation program.

• Set processing options for E.P. Calculation Generation (R15102).

Understanding the E.P. Calculation Generation Program

You generate the expense participation calculations before you generate the estimated or actual billing amounts, so that you can verify that you have expense participation information set up correctly for each tenant.

Processing options enable you to specify whether to generate calculations for estimated or actual billings based on the generation type. If you specify to generate the calculations for estimated billings (generation type 6, then you must run the Estimated E.P. Generation program (R15102) and the Estimated E.P. Edit/Update program (R15113) to generate the recurring billing records. If you generate calculations for actual billings (generation type 2) you run the E.P. Billing Generation program (R15101) to generate the billing records.

Regardless of the generation type that you specify, when you run the E.P. Calculation Generation program (R15110) the system:

• Retrieves expense participation information from the Tenant E.P Class Master table (F15012B).

• Generates a batch number for the calculations.

• Updates the E.P. Billing Register table (F1538B).

  The system generates a record in this table for every lease, and all classes attached to the lease for which it generates an expense participation calculation.

  Note. The system does not generate a record if the total for the expense class is a negative amount.

• Updates the E.P. Billings Generation Control Master.

  The system generates a record in this table for each lease for which it generates an expense participation calculation. The system updates the Billing Period field with G that corresponds to the billing period number specified in the processing option. For example, if you specify a billing period of 12, the system updates the 12^th billing period field.

• Automatically generates the EP Billing Register (R1538 or R1538S) and the EP Extraction Listing (R1532).

  You use the EP Billing Register to review the calculations that the system generates, and the EP Extraction Listing to review the account balances for each expense class.

You can run expense participation at any time during the year for any tenant or lease. However, if you set up a tenant exclusion rule to exclude the billing expenses related to a specific unit type, such as anchor, you must generate and post the expense participation records for the anchor units first, so that the amounts can be deducted from leases set up with the anchor tenant exclusion. If the tenant exclusion rule does not specify a unit type, you can generate expense participation billings for any tenant or lease at any time in any order.

Data Selection and Data Sequence

You can specify data selection to limit the calculation generation program to specific leases or buildings. If you use data selection, do not specify criteria that conflicts with the processing options. For example, do not use data selection to specify the billing period to use to process records. The system uses the information that is set up in the processing options.

This program has been hard-coded to perform activities in a specific order; therefore, data sequencing is not set up. Do not specify additional data sequencing.

Prerequisite

Run the Gross Lease Occupancy Refresh program (R15141) if you set up expense participation information using a tenant exclusion rule or share factor denominator.

See Running the Gross Lease Occupancy Refresh Program.

Running the E.P. Calculation Generation Program

Select Expense Participation (G1523), E.P. Calculation Generation.

Setting Processing Options for Expense Participation Calculation Generation (R15110)

Set these processing options to specify the default processing the report.

Process

These processing options are used to specify the period for which the system retrieves account information to generate the calculation, as well as to specify the generation type for the billing records.

Select

These processing options are used to specify additional information to retrieve the appropriate records, as well as the instructions to process them.

Expenses

These processing options are used to specify the ledger type, table, and account range to use to retrieve the appropriate records.

Billings

These processing options are used to specify the information to retrieve and process estimated expense participation billings.

Print

This processing option is used to specify whether the system generates a detailed or summary report.

Versions

These processing options are used to specify the version of the corresponding print program to run.

Revising Expense Participation Calculations

This section provides an overview about revising expense participation calculations and discusses how to revise expense participation calculations.

Understanding Expense Participation Calculation Revisions

After you generate expense participation calculations you can review them online using the E.P. Calculation Revisions program (P15382). The system provides the calculation in the same format that appears on the EP Calculation Register for the detail report that the system automatically generates when you run the E.P. Calculation Generation program (R15110).

You can use the E.P. Calculation Revisions program to revise an amount or calculation, to add an transaction exclusion amount to the class exposure, or to delete one or more calculations from the batch. For example, if one the calculations was not set up correctly, you can delete it without affecting the remaining records in the batch. When you revise an amount, you must recalculate the remaining amounts to update them correctly. When you select an option from the Form menu to recalculate the amounts, the system displays a message to notify the user that the calculated amounts were overridden.

You can revise and recalculate amounts as often as necessary until you generate expense participation billing records. To revise amounts after you generate billing records, you should delete the calculation batch using the E.P. Batch Delete program (R158061), and then regenerate it after making the desired revisions.

Note. Although the system enables deletion, if you delete an expense participation calculation record after the billing records are generated, you lose the audit trail to how the system derived the expense participation amounts.

By reviewing, revising, and recalculating the expense participation amounts, you can ensure that the system generates the billing amounts exactly as required.

Note. The Expense Participation Calculation Revisions program cannot be used to make changes to records that involve group and sub-group limits. The program only looks at individual records, not records that may be connected due to group limitations.

The E.P. Calculation Revisions program updates information in the EP Billing Register table (F1538B) only.

Forms Used to Revise Expense Participation Calculations

Setting Processing Options for EP Calculation Revisions (P15382)

Set these processing options to specify the default processing for the program.

Process

This processing option is used to specify whether the system displays tax fields.

Versions

This processing option is used to specify the version of the program to run when it is accessed from the Form menu.

Revising Expense Participation Calculations

Access the EP Calculation Revisions form.

1. Click Find to display all expense participation calculation records, or complete any of these fields to limit the search on Work With EP Calculation Batches:

   • Batch Number

   • Lease

   • Tenant

   • Building

2. Select the Display History Records option and click Find to display calculation records for batches that have been posted to the JD Edwards EnterpriseOne Accounts Receivable or Accounts Payable system.

   A lock symbol appears in the far left column on records that have been posted or if recurring billing records have been generated for estimated expense participation amounts. You can not revise locked records.

3. Select the record and click Select to review or revise a calculation.

   Note. The system displays a warning message, if a billing record has been generated for the calculation record that you select. Changes made to calculation records for which billing records have been generated do not affect those billing records. To affect the billing records that have been generated, you must delete the expense participation batch, which deletes the billing records, and then revise the calculation record and regenerate the billing records.

4. Complete any of the input-capable fields on the Page 1 or Page 2 tab on the EP Calculation Revision form.

5. Select Recalculate from the Form menu if you revise a field that affects the calculation, such as an amount or percentage field.

   The system recalculates the billable amount accordingly.

   Note. The system does not recalculate the billable amount for changes that you make to these fields:
   
   Exclusion Rule
   
   Share Factor Denominator
   
   Cap %
   
   Occup Rule
   
   Comp (Dates Computation Method)
   
   E.P. Code
   
   To recalculate the billable amount based on the changes that you make to these fields, you must delete the calculation batch, revise the expense participation information, and regenerate the calculation.

6. Click OK.

   Sep Invoice (separate invoice)	Enter the one-character alphanumeric code that indicates which billing records to print on the invoice. The system prints a separate invoice for each group of billing records that have the same lease number, alternate payee, and separate invoice code.
   Generation Type	Enter the code that records the Generation Type for an Expense Participation billing line.
   Class Exp (class exposure)	Enter the sum of the gross amounts for the accounts that are specified by the expense class for the expense participation billing period that do not include exclusions (account, transaction, tenant, and so on).
   To Ending Date	Enter the last date of the term for which expenses are extracted.
   Class Adj Fct (class adjustment factor)	Enter the percentage by which the total expenses for the expense class (class exposure) is multiplied to adjust the amount in which tenants participate. For example, if the landlord agrees to pay 10 percent of the operating expenses, you can adjust the class exposure accordingly by multiplying it by 90 percent. Enter the percentage as a decimal. For example, enter .05 to specify 5 percent.
   Trans Excl (tenant exclusions)	Enter the amount to adjust the class exposure. The system subtracts the amount entered from the class exposure. The system does not update this field; it is reserved for manual input.
   Acct Excl/Adj (account exclusions / adjustments)	Enter the amount that the system subtracts from the class exposure based on the expense participation adjustment information that you enter. The amount represents either an account balance or an override adjustment amount, depending on which of these adjustment calculation methods you use. Method 5 is an amount adjustment to the account. The system adds or subtracts (depending on whether the amount specified is positive or negative) the adjustment amount from the class exposure amount. Method 6 calculates the account exclusion adjustment amount by multiplying the adjustment percentage by the account balance and then subtracting that result from the account balance. Note. If you specify a positive adjustment amount, the system adds it to the expense class (it appears as a negative amount that is subtracted). If you specify a negative adjustment amount, the system subtracts it from the expense class (it appears as a positive amount that the system subtracts).
   Adj Amount (1) (adjustment amount 1)	Enter the amount that is added to the class exposure either immediately before or immediately after the administrative fee is added, depending on the value in the Calculation Placement Control field (CPC).
   Excl. Value (exclusion value)	Enter the amount to exclude based on either the tenant exclusion rule or the exclusion override that you enter for the expense participation information.
   Exclusion Rule	Enter the code that identifies the tenant exclusion rule. The system does not include amounts specified by the tenant exclusion rule when it calculates the tenant's share factor. For example, a tenant exclusion rule might specify to deduct amounts associated with bill code EXPA from all tenants who lease any unit that is defined as an anchor and that has an area of more than 5,000 square feet. The system uses the tenant exclusion rule only when you assign it to the expense participation information that you set up for the lease.
   Admin Fee (administration fee)	Enter the amount of the administration fee for the lease and expense class, which the system calculates using the values from the Fee Rate (FERT) and Fee Basis (FEBS) fields on the E.P. Information Revisions form.
   Fee Rate	Enter the percentage to allocate for an administration fee. Enter the percentage in a decimal format. For example, enter .01 to specify a 1 percent fee.
   Adj Amount (2) (adjustment amount 2)	Enter the amount to be added to the class exposure immediately after the Administrative Fee is added.
   Max Limit (C) (maximum limit C)	Enter the maximum allowable amount for the total class exposure. The system uses the value in this field for the adjusted class exposure when the calculated amount for the total class exposure is greater than this value. For example, if the total class exposure is 200,000 and the expense class limit is 175,000, the system uses 175,000 for the adjusted class exposure.
   Adj Amt (adjustment amount)	Enter the adjustment amount. Depending on the adjustment calculation method, this is the amount or percentage that the system uses to determine the minimum amount for the total class exposure.
   Calc (adjustment calculation)	Displays the adjustment calculation method that was entered in the corresponding field, Adj Calc (CLCY), on the Expense Participation Adjustments form.
   Base	Displays the amount entered in the Adjustment Base field (ADJB) on the Expense Participation Adjustments form for the detail line that specifies an adjustment calculation method of C and a maximum adjustment amount.
   Yr (base year)	Enter the value that defines the base year for the maximum amount to be charged for the class.
   Min Limit (C) (minimum limit C)	Enter the minimum allowable amount for the total class exposure. The system uses the value in this field for the adjusted class exposure when the calculated amount for the total class exposure is less than this value. For example, if the total class exposure is 150,000 and the class limit minimum is 175,000, the system uses 175,000 for the adjusted class exposure.
   Adj Exp (adjustment exposure)	Enter the amount from which the system subtracts any base exclusions to determine the net exposure amount. The system compares the total exposure amount to the maximum or minimum adjustment amounts to determine the value to enter in this field.
   Cmpd Excl (compound exclusion)	Enter the amount that the system calculates based on the values entered in the Base Exclusion (BSEX), Compound Factor (CPFC), and Base Start Year (BPSY) fields on the E.P. Information Revisions form.
   Base	Enter the number that specifies the amount to subtract from the adjusted class exposure before the system computes the tenant's share factor. If you complete this field, you must also specify a value in the Base St Yr field (BPSY).
   Cmpnd (compound)	The percentage by which the base exclusion amount is multiplied to adjust it for the next year. To increase the base amount, enter a percentage that is greater than 1. For example, to increase the base exclusion amount by 5 percent, enter 1.05. To decrease the base exclusion amount, enter the percentage in a decimal format. For example, enter .95 to specify 95 percent.
   Yr (applicable year)	Enter the applicable year, including the century.
   Net Exposure	Displays the result of subtracting the compound base exclusion amount from the adjusted exposure amount. To determine the gross share amount, the system multiplies the amount in this field by the percentage that it calculated for the share factor.
   Share Factor	Displays the percentage that the system calculates by dividing the amount in the Numerator field (EPOF) by the amount in the Denominator field (DENM). The system multiplies this percentage by the net exposure to determine the gross share amount.
   Numr (numerator)	Enter the rentable area of the tenant's unit, which is the numerator that the system uses to calculate the tenant's share of expenses. If you leave this field blank, the system retrieves the area from the lease. You can override the value, if necessary. The value entered in the corresponding field on the E.P. Information Revisions form.
   Share Factor Denominator	Enter the code that identifies the units to exclude from the denominator portion of the calculation that the system uses to determine the tenant's share factor. For example, you can specify a share factor denominator that excludes anchor tenants (specified by the E.P unit type) that have more than 16,000 square feet (specified by the share factor area value). The system uses the share factor denominator only when you assign it to the expense participation information that you set up for the lease.
   Cap % (cap percentage)	Enter the percentage of the GLA that represents a minimum amount to use as the denominator to calculate the tenant's share factor, if the building area that is retrieved is a lesser amount. For example, if the area method and type specify to use the average leased occupied area (for the rentable area), and that amount is less than the percentage of GLA specified by the cap, the system uses the cap value. Enter the percentage in a decimal format. For example, enter .80 to specify 80 percent. The system does not calculate a cap that is greater than 100 percent.
   Cap Amount	Displays the calculated value of the occupancy floor, which is based on the Average GLA and the Cap percentage.
   Denom (denominator)	Enter the total area in square feet which applies to the expenses in which the tenant is participating. This value can be the total square footage of a building or property or the occupied square footage or the gross leaseable area.
   Gross Share	Displays the amount that the system derives by multiplying the share factor by the net exposure amount. The amount represents the tenant's share of expenses for the expense class before the system calculates the adjustments for occupancy, lease, and group limits.
   Max Limit (L) (maximum limit L)	Enter the maximum allowable amount for the tenant's share of expenses for the expense class. The system uses the value in this field for the adjusted share when the calculated amount for gross share is greater than this value. For example, if the gross share amount is 1500 and the maximum amount specified is 1200, the system uses 1200 for the adjusted share amount.
   Adj Amt (adjustment amount)	Enter the adjustment amount. Depending on the adjustment calculation method, the amount or percentage that the system uses to determine the maximum amount for the tenant's share of expenses.
   Min Limit (L) (minimum limit L)	Enter the minimum allowable amount for the tenant's share of expenses for the expense class. The system uses the value in this field for the adjusted share when the calculated amount for gross share is less than this value. For example, if the gross share amount is 1500 and the minimum amount specified is 2000, the system uses 2000 for the adjusted share amount.
   Yr (start base year)	Enter the value that defines the start (base) year for the minimum amount to be charged for the lease.
   Subgroup Limit	Enter the maximum amount that the system uses for the combined gross share amounts of the expense classes in the subgroup.
   Subgroup	Enter the code that identifies a second level group of expense participation classes that are subject to a common limit.
   Subgroup Adjustment	Enter the amount that, when added to the sum of the group adjustment and net share amounts, equals the adjusted share amount for the expense class. The system calculates the amount by adding together the gross share amount for each expense class in the subgroup. When the combined result is greater than the subgroup limit, the system divides the subgroup limit by the combined result and then multiplies the resulting percentage by each gross share amount to calculate the net share amount for each expense class in the subgroup. The difference between the gross share amount and the net share amount for the subgroup is the subgroup adjustment amount. When the combined gross share amounts for all of the expense classes in the subgroup is less than the subgroup limit, the system ignores it.
   Group Limit	Enter the maximum amount that the system uses for the combined adjusted share amounts of the expense classes in the group.
   Group	Enter the code that identifies the expense participation classes that are subject to a common group limit. For example, if two expense classes are set up, one for the expenses related to the parking structure and another for the maintenance expenses for the external grounds, you can either define a separate limit for each class or group the two classes and define a limit for the tenant's share of the combined expenses.
   Group Adjustment	Enter the amount, that when added to the net share amount, equals the gross share amount for the expense class, unless a subgroup limit is specified. The system calculates the amount by adding together the gross share amount for each expense class in the group. When the combined result is greater than the group limit, the system divides the group limit by the combined result and then multiplies the resulting percentage by the gross share amount of each expense class to calculate the net share amount for each expense class in the group. The difference between the gross share amount and the net share amount for the expense class is the group adjustment amount. When you specify a subgroup limit, the system adds the net share that it calculated for each subgroup, and adds that amount to the gross share of the expense classes (that do not have subgroups) within the group. Then, the system divides the group limit by the sum of the subgroup net share and group gross share amounts, and then multiplies the result by each subgroup net share and group gross share amount to calculate the group net share for each expense class. The difference between the subgroup net share amount and the group net share amount is the group adjustment amount. When the combined adjusted share amount for the expense classes in the group is less than the group limit, the system ignores it.
   Occup Adj (occupancy adjustment)	Enter the percentage that represents the number of days in the range specified by the values in the Occupancy From (OCPB) and Occupancy To (OCPE) fields on the expense participation record divided by the number of days in the range specified by the values in the Begin Date (EFTB) and End Date (EFTE) fields. The system uses the occupancy rule to determine the number of occupied days.
   Net Share	Enter the amount that represents the tenant's share of expenses for the expense class before the adjustment for the administration fee and estimated billings, if applicable.
   Admin B/R Code	Enter the code that the system uses in conjunction with the AAI item to retrieve the account to update for the management fee amount that the system calculates when you run the E.P. Calculation Generation program. The system retrieves the appropriate account to bill based on the AAI item PMxxxx (for invoices) and RMxxxx (for vouchers), where xxxx is equal to the code that you enter. The system retrieves the offset account (Accounts Receivable trade or Accounts Payable trade), based on the AAI item RCxxxx (for invoices) and PCxxxx (for vouchers), where xxxx is equal to the code that you enter. If you leave this field blank, the system uses the same account that it uses for the billing amount. Note. If the administration fee is calculated on the adjusted class exposure, the fee becomes an inherent part of the expense amount, and the system ignores the bill code that appears in this field.
   Total Billable	Enter the billable amount for the tenant's share of the expenses for the expense class specified.

Deleting Expense Participation Batches

This section provides an overview of the E.P. Batch Delete program and discusses how to:

• Run the E.P. Batch Delete program.

• Set processing options for E.P. Batch Delete (R158061).

Understanding the E.P. Batch Delete Program

If, after generating the expense participation calculations, you find that the expense participation information was not set up correctly, you can run the E.P. Batch Delete program (R158061) to remove the records from the E.P. Billing Register table (F1538B).

You can delete expense participation batches even after the billing records have been generated for actual amounts, if they have not been posted to the Accounts Receivable or Accounts Payable systems. After records are posted, the system does not delete them when you run this program; you must enter manual billing records for adjustments.

You delete expense participation batches only when the change that you want to make affects multiple lease records or an expense class.

When you delete expense participation batches, the system updates the Billings Generation Control Master table (F15011B) by removing the G or B from the appropriate periods, and removes records from these tables:

• EP Billing Register (F1538B).

• Batch Control Records (F0011).

• Estimated EP Recurring Billings (F1502WB).

• Lease Master Billings (F1511B).

Processing options enable you to run this program in proof (edit) mode first so that you can review a report of the records to be deleted before you run the program in final (update) mode.

Note. When you generate the recurring billing records for estimated expense participation amounts, the system locks the calculation batch, even if the actual amounts have not been generated. After the calculation batch is locked, the system does not delete or unlock the record.

Running the E.P. Batch Delete Program

Select Expense Participation (G1523), E.P. Batch Delete.

Setting Processing Options for E.P. Batch Delete (R158061)

Set these processing options to specify the default processing for this report.

Process

These processing options are used to specify the batch number to use to locate the records to delete, and to specify whether to delete the records or print a report only.

Generating Expense Participation Billings

This section provides an overview of generating expense participation billings and discusses how to:

• Run the E.P. Billing Generation program.

• Set processing options for E.P. Billing Generation (R15101).

Understanding Expense Participation Billing Generation

After you generate the calculation batch for the expense participation records, you must generate the expense participation billing records by running the E.P. Billing Generation program (R15101).

Note. A processing option enables you to specify a version of the Estimated EP Edit Report (R15113) to run after this program completes. If you specify a version, the system runs the Estimated E.P. Generation program (R15102) and generates expense participation records for estimated amounts in the Estimated EP Recurring Billings worktable (F1502WB). Then, the system runs program R15113 in proof mode to generate a report of the records generated in the worktable.

When you run the E.P. Billing Generation program, the system:

• Creates a batch header record in the Batch Control Records table (F0011).

• Assigns 1 as the batch type.

• Assigns Error as the batch status.

• Creates records in the Lease Billings Master table (F1511B) for each expense class.

• Changes the G to B in the Period field in the Billings Generation Control table (F15011B) to indicate that billing records exist.

  The system updates the code to X when the batch is posted to the Accounts Receivable or Accounts Payable system.

After you generate expense participation billings, you must run the Billing Edit/Register program (R15300), and then run the appropriate post program. A processing option enables you to run program R15300 automatically after the expense participation billing records are generated.

Related Tasks for Processing Expense Participation Billings

This table lists the related tasks to perform after you generate the expense participation recurring billing records. You must run the programs that are designated as Required to complete the expense participation billing generation process:

See Also

Generating Expense Participation Billings

Running the E.P. Billing Generation Program

Select Expense Participation (G1523), E.P. Billing Generation.

Setting Processing Options for E.P. Billing Generation (R15101)

Set these processing options to specify the default processing for this report.

Process

These processing options are used to specify the records to process and the general ledger date to assign to the billing records that the system generates. Additionally, if you specify to run the report for estimated billings, you can specify an inflation rate to apply to the estimated billing amounts.

Versions

These processing options are used to specify the version of the program to run after the expense participation billing records are generated.

Generating Estimated Expense Participation Billings

This section provides overviews of the process to generate estimated expense participation billings, the generation of estimated billings using the E.P. Billing Generation program, the Estimated E.P. Generation program, the Estimated E.P. PSF Generation program, revising estimated recurring billing records, and discusses how to:

• Run the Estimated E.P. Generation program.

• Set processing options for Estimated E.P. Generation (R15102).

• Run the Estimated E.P. PSF Generation program.

• Set processing options for Estimated E.P. PSF Generation program.

Understanding the Process to Generate Estimated Expense Participation Billings

In addition to generating expense participation billings for actual expenses, you can generate expense participation billings for estimated expenses for the upcoming year. You can generate estimated expenses using one of three methods. Regardless of the method that you use to generate estimated expense participation billing records, you must run the Estimated E.P. Edit/Update program (R15113) afterwards to generate records in the Recurring Billings Master table (F1502B) that you process as a recurring billing for the upcoming year.

This table outlines each method and its corresponding steps:

After you generate records in table F1502B, you must run the Recurring Billing Generation program (R15100) to generate records in the Lease Billings Master table (F1511B), and then post the records to the Accounts Receivable or Accounts Payable system.

Understanding the Generation of Estimated Billings Using the E.P. Billing Generation Program

When you generate actual expense participation billings, you can specify a version of the Estimated EP Edit Report (R15113) in a processing option. When you do this, the system runs the Estimated E.P. Generation program (R15102), and then runs the Estimated E.P. Edit/Update program (R15113) in proof mode to generate a report.

The system updates these tables for estimated expenses:

• Estimated EP Recurring Billings worktable (F1502WB).

  The system generates a record for each expense class.

• Billings Generation Control table (F15011B).

  The system generates a record for each expense class for generation type 6 and updates the appropriate Bill Period field to G.

The system generates estimated billing amounts based on the billing frequency from the calculation record.

Understanding the Estimated E.P. Generation Program

If you prefer not to generate estimated expense participation billings at the time that you generate actual billings, or if you want to use a different calculation batch than was generated for the actual billings, you run the Estimated E.P. Generation program. You can run this program for any calculation batch, regardless of its generation type. For example, if the calculation batch was generated for actual billings (generation type 2), you can still use that batch to generate estimated billings.

When you run Estimated E.P. Generation, the system:

• Retrieves the calculation record from the E.P. Billing Register table (F1538B).

• Generates a record for each expense class in the Estimated EP Recurring Billings worktable (F1502WB).

• Generates a record for each expense class in the Billings Generation Control table (F15011B), if necessary, and updates the appropriate Bill Period field to B.

  Note. If you generated the calculations for estimated expenses (generation type 6), the records already exist in table F15011B and the system merely updates the Bill Period field from G to B.
  
  If you generated the calculations for actual expenses (generation type 2), the system creates the F15011B records for the estimated expenses when you run this program.

Processing options enable you to specify the batch number for the associated calculation batch, as well as to enter the rate of inflation, if desired. Additionally, you can specify a version number so that the system automatically runs the Estimated E.P. Edit/Update program (R15113) in proof mode to generate a report. If you do not specify a version number for R15113, the system does not print a report of the records it generates in table F1502WB.

The system generates estimated billing amounts based on the billing frequency from the calculation record.

Understanding the Estimated E.P. PSF Generation Program

As an alternative to generating estimated expense participation billings based on a calculation batch, you can set up the system to calculate the estimated billing amounts based on an amount per square foot. To do this, you must set up a log record for each expense class. You assign the same log class code to each of these records and enter the expense class in the Amenity ID field (AMID) and the amount per square foot in the Units field (PMU1). You can enter information for either the lease log or the building log. If information exists in both logs for the same expense class, the system uses the amount per square foot from the lease log.

This form shows how the setup information appears in a building log record:

The log class is SF, the expense classes are CAMS and UTIL, and the amount per square foot for each expense class is 200 and 125, respectively.

When you run the Estimated E.P. PSF Generation program, the system multiples the amount per square foot for the expense class by the number of square feet specified in the Tenant's SF field (EPOF) from the corresponding expense participation information record, and then generates a record in table F1502WB for the estimated annual billing amount. The system always uses an annual frequency when you run this program. When you run the Estimated E.P. Edit/Update program (R15113), a processing option enables you to assign the billing frequency to the recurring billing records that the system generates.

Note. The system does not generate records in the Billings Generation Control table until you run the Recurring Billing Generation program (R15100).

See Also

Generating Expense Participation Billings

Generating Estimated Expense Participation Billings

Understanding Revising Estimated Recurring Billing Records

When you erroneously generate records in the Estimated EP Recurring Billings worktable (F1502WB) or need to revise the calculation information:

• Run the E.P. Batch Delete program (R158061) to delete the appropriate records.

• Revise the necessary expense participation information.

• Regenerate the calculations.

• Rerun the Estimated E.P. Generation program.

You cannot delete the records in worktable F1502WB without also deleting the calculation records in table F1538B. However, you can continue to generate the recurring billing information records by running the Estimated E.P. Edit/Update program (R15113), and then revise the recurring billing information as necessary. If you do this, though, the calculation will not support the revisions that you make.

See Also

Deleting Expense Participation Batches

Revising Expense Participation Calculations

Running the Estimated E.P. Generation Program

Select Expense Participation (G1523), Estimated E.P. Generation.

Setting Processing Options for Estimated E.P. Generation (R15102)

Set these processing options to specify the default processing for this report.

Process

These processing options are used to specify the records to process, as well as the inflation rate to apply to estimated expense participation amounts.

Versions

This processing option is used to specify the version of the program to run.

Running the Estimated E.P. PSF Generation Program

Select Expense Participation (G1523), Estimated EP PSF Generation.

Setting Processing Options for Estimated E.P. PSF Generation (R15114)

Set these processing options to specify the default processing for this report.

Process

These processing options are used to specify how the system processes selected records.

Update

This processing option enables you to specify whether the system runs the program in proof or final mode.

Updating Estimated Expense Participation Billings

This section provides an overview of updating estimated expense participation billings and discusses how to:

• Run the Estimated E.P. Edit/Update program.

• Set processing options for Estimated E.P. Edit/Update (R15113).

Understanding Estimated Expense Participation Billings Update

The final step in generating estimated billings for expense participation is to run the Estimated E.P. Edit/Update program (R15113). When you run the Estimated Edit/Update program, the system generates a record in the Recurring Billings Master table (F1502B) for each record in the Estimated EP Recurring Billing worktable (F1502WB), based on the batch number that you specify. The system also removes the record from table F1502WB and locks the corresponding calculation record, if one exists, in the EP Billing Register table (F1538B).

Note. Estimated expense participation records generated by running the Estimated E.P. PSF Generation program (R15114) do not generate records in table F1538B.

The system locks the calculation records in table F1538B, regardless of whether the actual expense participation billing records have been generated or posted. Therefore, if you are generating actual and estimated expense participation billings, you must generate the billing records for the actual amounts before you generate the recurring billing records for estimated amounts. You cannot run the E.P. Billing Generation program on locked calculation batches.

When the system generates the new recurring billing record for estimated expenses, it suspends the existing record. Therefore, you can run R15114 as often as necessary without having to manually suspend or delete recurring billing records generated erroneously.

Catch-Up Billings

The system can also generate a record for catch-up billings, if specified in the processing option, when the estimated amount billed for the year and the actual amount differ. For example, if the amount of estimated expenses billed each month is 1,400.00, and the actual annual amount (divided by 12) is 1,600.00, the system generates a catch-up billing for 2,400.00, which represents the difference between the estimated and actual amounts (200) multiplied by the number of months in the billing cycle (12).

You can specify whether the catch-up billing is based on estimated amounts only, estimated amounts less adjustments (write-offs), or estimated amounts less payments (receipts). The method you use directly affects the catch-up billing amount.

Generating Recurring Billing Records based on Estimated Per Square Foot Calculations

If you generated estimated expense participation billings using the Estimated E.P. PSF Generation program, when the system generates the recurring billing record, it uses the area billings value from the lease, not the area that is assigned to the expense participation information record. The system uses this area, in conjunction with the annual billing amount (which is calculated using the area from the expense participation record) to derive the rate per square foot that appears on the Recurring Billing Revisions form.

For example, if the expense participation information record specifies an area of 6,000 square feet and the log record specifies an amount per square foot of 310.00, the system calculates the annual estimated billing amount as 1,860,000.00. However, if the area on the lease is 5,000 square feet, the system divides 1,860,000 by 5,000 to derive a rate per square foot of 372 (not 310), which appears on the recurring billing information record.

Running the Estimated E.P. Edit/Update Program

Select Expense Participation (G1523), Estimated E.P. Edit/Update.

Setting Processing Options for Estimated E.P. Edit/Update (R15113)

Set these processing options to specify the default processing this report.

Process

These processing options enable you to specify the records to process, as well as information to assign to the recurring billing records that the system generates.

Print

This processing option enables you to specify whether the system generates recurring billing records or prints only an edit report.

Select

These processing options enable you to specify the effective dates that the system assigns to the records that it generates, as well as whether to generate a catch-up billing record for a reconciliation amount and how to calculate the amount.

Thresholds

These processing options enable you to specify the minimum amount or percentage of change that must occur between the actual and estimated billing amounts to generate a recurring billing record.