Understanding Expense Participation Rules

Expense participation is a method of allocating expenses among tenants. In JD Edwards EnterpriseOne Advanced Real Estate Forecasting, expense participation is based on an amount per square foot. As a property owner or landlord, you can use expense participation to calculate the expenses for which the tenant would be responsible if the unit were leased, or the amount of potential revenue that is lost and the associated management fees. You forecast expense participation revenue based on the area of the tenant's unit in relation to the total area of the building or property for the expense class. The system retrieves the area from the building logs based on the E.P. code that it locates from the expense participation rule. If the system cannot locate the area from the building logs, it uses the sum of the areas of the units that are set up for the building or property in the F15L101 table.

The system uses expense participation rules from the AREF E.P. Rules program (P15L104) when a unit is vacant or when expense participation rules are not set up in JD Edwards EnterpriseOne Real Estate Management. The system always uses the expense participation rules from JD Edwards EnterpriseOne Real Estate Management before it uses the rules from JD Edwards EnterpriseOne Advanced Real Estate Forecasting. For example, if you set up expense participation information in JD Edwards EnterpriseOne Real Estate Management for a lease that ends January 31, 2007, the system uses that information to forecast expense participation amounts through the end of the lease. When the lease expires, the system uses the expense participation rules in JD Edwards EnterpriseOne Advanced Real Estate Forecasting for the subsequent years.

The system stores expense participation rules in the AREF E.P. Rules Header (F15L104) and AREF E.P. Rules Detail (F15L114) tables.