Understanding Assumption Detail Information

Set up assumption detail information in the AREF Unit Assumptions program (P15L102) to define the rules when forecasting amounts for rent-based or revenue-based expenses, such as commissions and tenant improvements. The system uses the assumption detail information for leased and vacant units. Assumption detail information includes assumption type, calculation method, retrieval bill codes, posting accounts, new and renewal rates, and growth patterns.

Detail assumptions enable you to specify a different growth pattern and market rate values than you set up for the assumption header. For example, you might want to forecast revenue amounts based on a market rate value of 0.50 USD per square foot, except for tenant improvements, for which you want to use a rate of 0.30 USD per square foot. Similarly, you might want to apply a growth pattern to increase amounts incrementally by a specific percent for each year for all revenue accounts except those on which you pay commissions.

When the real estate lease is effective, and depending on the calculation method, the system uses the recurring billing amounts in JD Edwards EnterpriseOne Real Estate Management, based on the retrieval bill codes, to calculate the commission or tenant improvement amounts. When the assumption is effective, the system multiplies the rate from the assumption header by the unit area to derive the base amount to apply to the calculation.

The system stores assumption detail information in the AREF Unit Assumptions Master Detail table (F15L112).