Calculation Method 7 for Years Leased (Forecasted Amount for Years 1 through 6)
The system uses this setup information for this calculation:
Retrieval Bill Codes: RRTL and RPKG.
Monthly Recurring Billing Amounts: 20,000 (RRTL) and 5,000 (RPKG).
Area of Unit: 10,000.
Growth Patterns (from assumption detail): PCT02, FIXED01, SF.
Unlike the other calculation methods, the system does not use the new rate from the detail assumption to calculate the forecasted amounts. The system uses only the growth pattern that you assign. Also, the system does not compound the growth pattern. Another difference between this calculation method and the other calculation methods is that it uses a rolling 12-period span to calculate recurring billing amounts and to apply the appropriate growth pattern. For example, if the real estate lease were from June 2007 through May 2010, the system would apply the growth pattern that is set up for the first year to only those periods between June 2007 and May 2008. Beginning with period 01 for 2008, the system would apply the growth pattern from the second year. Typically, you use calculation method 7 to forecast commissions based on a specific schedule that might not be used for other calculation methods.
Depending on the growth pattern type, the system calculates the forecasted amount differently.
Review the formulas that the system uses for each growth pattern type:
Percentage: (Recurring Billing Amount for 12-period Span) ×(Growth Pattern Percentage)
Fixed: Amount from Growth Pattern
Square Foot: (Area of Unit) × (Growth Pattern Square Foot Rate)
This table lists the forecasted amounts that the system calculates based on the setup information:
Year |
PCT02 (percentage) |
FIXED01 (fixed) |
SF (square foot) |
|---|---|---|---|
1 |
300,000 × .05 = 15,000 |
50.00 |
10,000 × 10.00 = 100,000 |
2 |
300,000 × .07 = 21,000 |
100.00 |
10,000 × 12.00 = 120,000 |
3 |
300,000 × .10 = 30,000 |
125.00 |
10,000 × 15.00 = 150,000 |
4 |
300,000 × .12 = 36,000 |
150.00 |
10,000 × 18.00 = 180,000 |
5 |
300,000 × .15 = 45,000 |
200.00 |
10,000 × 20.00 = 200,000 |
6 |
300,000 × .17 = 51,000 |
250.00 |
10,000 × 25.00 = 250,000 |
Total |
198,000 |
875.00 |
1,000,000 |
The system updates the total forecasted amount to the first period of the first year that the real estate lease is effective in the F15L109 table. In this example, the system updates the total forecasted amount to period 01 of 2007.