1. Advanced Real Estate Forecasting Implementation Guide
  2. Example: Calculating the Gross Up Processing Percentage Using Area Values from the F15L141 Table

Example: Calculating the Gross Up Processing Percentage Using Area Values from the F15L141 Table

Review the following example of how the system calculates the gross up processing percentage if you use computation method N (building square footage/occupied square footage).

See "Understanding the Gross Up Factor" in the JD Edwards EnterpriseOne Applications Real Estate Management Implementation Guide.

In this example, the processing options for the AREF Budget Calculation program are set as follows:

  • 4. Years to Forecast: 2

  • 11. Use Occupancy Data From: 1

  • 13. AREF E.P. Rules Default Area Calculation Method: A valid Area Definition ID for which F15L141 records have been generated.

  • 18. AREF Occupancy Option: 1

  • 19. AREF Occupancy Area Definition ID: A valid Area Definition ID for which F15L141 records have been generated.

First, the system calculates the square footage occupancy for period 1 (January) using the following values from the AREF Gross Lease Occupied Area table (F15L141):

  • Unit 9101

    No AREF assumption exists. The lease starts in period 7 so this unit is unoccupied. The value is 0.

  • Unit 9102

    A lease exists for period 1. The value is 5,000 sq ft.

  • Unit 9103

    No lease exists for period 1 but there is an AREF assumption so this unit is considered occupied for that period. The value is 2,000 sq ft.

  • Unit A101

    A lease exists for period 1. The value is 8,666 sq ft.

  • Unit A102

    A lease exists for period 1. The value is 5,800 sq ft.

The gross lease occupied area (GLOA) for all the units is (unit 9101 + unit 9102 + unit 9103 + A101 + A102): 0 + 5,000 + 2,000 + 8,666 + 5,800 = 21,466

(AREF occupied days for a period * GLOA for all units = square footage occupancy for a period): 31 * 21,466 = 665,466

Review the square footage occupancy for all periods in the year:

  • January: 665,446

  • February: 601,048

  • March: 665,446

  • April: 643,980

  • May: 665,446

  • June: 643,980

  • July: 703,700

  • August: 703,700

  • September: 681,000

  • October: 703,700

  • November: 681,000

  • December: 703,700

  • Total: 8,062,146

(total occupied area / days in a year = average occupied space): 8,062,146 / 365 = 22,088.071

Next, the system calculates the gross up occupancy percentage and uses the Share Factor Denominator ID as the denominator in this equation (51,932):

(average occupied space / share factor denominator = gross up occupancy percentage)

22,088.071 / 51,932 = 0.425327

On the AREF Gross Up Adjustments Audit Detail form, the system calculates the value in the Gross Up Factor field by using the following calculation:

(percent gross up / gross up occupancy % = gross up factor): 0.7 * 1/0.425327 = 1.64579332