Computation Method X

Using computation method X, the system calculates the average occupied space in the building, which it uses as the denominator, using these steps:

  1. For each occupied unit, the system multiplies the area of the unit by the number of days that the unit is occupied.

  2. The system adds the result from the previous step for all occupied units and then divides that sum by the number of days in the billing period.

This table provides the information for the units and the calculation that the system performs when using computation method X:

Unit

Area

Occupied Days

Calculation (Area × Days)

1A

20,000.

214

20,000 × 214 = 4,280,000

1C

25,000

365

25,000 × 365 = 9,125,000

1D

30,000

365

30,000 × 365 = 10,950,000

The system uses these calculations:

  • Total occupied space × occupied days = 24,355,000.

  • Denominator = 24,355,000 ÷ 365 (number of billing days) = 66,726.03.

Using the newly calculated denominator, the system calculates the tenant's utility expense share:

Class exposure × (tenant area ÷ building area) = tenant's utility expense amount

90,000 × (20,000 ÷ 66,726.03) = 26,975.98

You can adjust the number of days occupied for computation methods X and Y by using the Occupied Area Option and the Area Definition processing options on the Occupancy tab of Expense Participation Calculation Generation (R15110). If you set the Occupied Area Option processing option to 1, the system uses the value in the Area Definition processing option to retrieve area adjustments to calculate the adjustment to number of days occupied. If you set the Occupied Area Option processing option to 2, the system uses the results from the Occupancy Refresh program (R15141) for the specified area definition and includes the amount of adjustment to the denominator.