Understanding the AREF Budget Calculation Program (R15L1091)

Use the AREF Budget Calculation program (R15L1091) to generate the budget and forecast amounts and update the AREF Budget Results table (F15L109). You can use processing options to:

Calculate budgets for a specific fiscal year and period.
Forecast amounts up to fifteen years in the future.
Calculate management fees in the exposure amount.
Specify whether to use actual amounts from locked periods.
Note: The system uses the fiscal date pattern that is assigned to the company and the building to determine the period number. For example, if the fiscal year is defined as May 1, 2010 through April 30, 2011, and you specify period 1, the system generates the budget beginning with May 1, 2010.
Prorate revenue when a lease begins or ends mid-month.
Project straight-line rent.
See "Straight-line Rent Standards and Processes" in the JD Edwards EnterpriseOne Applications Real Estate Management Implementation Guide.
Specify the date pattern to use when calculating revenue for AREF assumptions.
Specify a version of Expense Participation Generation program (R15110) from which to retrieve processing option settings for the AREF E.P. budget calculation process.
Caution: There is a potential risk involved because the processing options in the versions you select might have been changed. To avoid unpredictable results in the budget calculations, you should create a unique version of the R15110 program specifically for AREF budgeting.
See "Generating Expense Participation Calculations" in the JD Edwards EnterpriseOne Applications Real Estate Management Implementation Guide
Specify whether the system calculates detail assumption types, such as external commissions, based on the assumption term or the budget term.
For example, you may set the processing options to run the AREF Budget Calculation program from January 2012 for 5 years. The unit has no lease and the detail assumption for commissions is effective from January 2012 for a term of 7 years.
If you set the processing options to calculate commissions based on the assumption date, the system calculates commissions for 7 years. If you set the processing options to calculate commissions based on the budget date, the system calculates commissions for 5 years.
(Release 9.2 Update) If you are processing straight-line rent information, you can specify whether the R15L1091 selects the bill codes to include from the processing options, or using the designation on the AREF Recurring Bill Code Rule setup. See Setting Up AREF Recurring Bill Code Rules for additional information.

The system retrieves information and calculates budget amounts based on the account type. This table lists the accounts types for which you can generate a budget and the process to calculate the budget:

Account Type	Budget Calculation Process
Revenue	If the unit is leased, the system uses the recurring bill code rule assigned to the unit or the building constants record, in conjunction with the information in the Recurring Billings Master table (F1502B) in JD Edwards EnterpriseOne Real Estate Management. If the unit is vacant or no recurring billing information is set up for the lease, the system uses the assumption rules assigned to the unit or the building constants record to locate the market rate, growth pattern, and any other information necessary to derive the budget, including detail assumptions. The system multiplies the market rate by the area of the unit, applies the growth pattern, divides the amount by 12, and updates the results to the F15L109 table. You can set the Revenue Calculation processing option to specify whether to calculate recurring billing information if it is not set up for the lease in JD Edwards EnterpriseOne Real Estate Management.
Expense, capital expenditure, balance sheet	The system uses the account balances that were retrieved and updated to the AREF Account Status table (F15L110) and applies the corresponding growth pattern to the amounts. If the account has a zero balance and the growth pattern is for a fixed amount, the system divides the growth pattern by 12 to derive a balance for each period. If the growth pattern is a percentage, the system does not generate any period budget amounts because the system cannot multiply by zero. Note: The system does not use the budget pattern code assigned to the account status record when it calculates the budget. You must manually calculate the amounts based on the budget pattern code prior to running the R15L1091 program.
Management fee	You can set the Management Fee Calculations processing option to generate a budget for management fees, if desired. The system uses the setting of the Use Existing RE Rules option from the building constants to determine whether to retrieve the management fee setup information from the Management Fee Master table (F1505B) in JD Edwards EnterpriseOne Real Estate Management or from the AREF Building Constants table (F15L100) in JD Edwards EnterpriseOne Advanced Real Estate Forecasting.
Sales overage	You can set the Sales Overage Calculations processing option to generate a budget for revenue that is based on sales overage amounts (percent rent). When you set the processing option, the system runs the AREF Sales Overage Budget Calculation program (R15L1097) and updates the results to the AREF Budget Results (F15L109) and AREF Prior Gross Billings (F15L302) tables. If the unit is leased, the system uses the sales overage information that is set up in JD Edwards EnterpriseOne Real Estate Management. If the unit is not leased, or if sales overage information is not set up in JD Edwards EnterpriseOne Real Estate Management, the system uses the sales overage rule that is set up in JD Edwards EnterpriseOne Advanced Real Estate Forecasting. Note: The processing options for the R15L1097 program are used only as the recipient for values from the R15L1091 program processing options; therefore, you do not have to update them.
Expense participation	You can set the Expense Participation Calculations processing option to generate a budget for revenue that is based on expense participation. When you set the processing option, the system runs the AREF E.P. Budget Calculations program (R15L1096) and updates the results to the F15L109 table and the AREF EP Billing Register table (F15L38). The system deletes the records in the F15L38 table each time you run the R15L1091 program for the same building/revision combination. If the unit is leased, the system uses the expense participation information that is set up in JD Edwards EnterpriseOne Real Estate Management. If the unit is not leased, or if expense participation information is not set up in JD Edwards EnterpriseOne Real Estate Management, the system uses the expense participation rule that is set up in JD Edwards EnterpriseOne Advanced Real Estate Forecasting. You can set the Expense Participation Calculation processing option to specify whether to calculate expense participation information if it is not set up for the lease in JD Edwards EnterpriseOne Real Estate Management. Note: The processing options for the R15L1096 program are used only as the recipient for values from the AREF Budget Calculation program (R15L1091) processing options; therefore, you do not have to update them.
Straight-line Rent	You can set the Straight-line Rent Calculations processing option to generate a budget for straight-line rent for AREF leases to support the straight-line rent regulatory requirement. (Release 9.2 Update) If you are generating straight-line rent information, you can use the processing options to specify whether the system selects the bill codes to include in straight-line rent processing from the processing options, or from the AREF Recurring Bill Code Rule setup.

After you run the R15L1091 program, you can review the forecasted budget results in the AREF Edit Budget program (P15L109) or by generating the AREF Budget Calculation Audit Report (R15L1098).