Computation Methods N and U

The system compares the gross-up percentage on the expense participation record to the gross-up factor, which it calculates by dividing the area of the building (based on the E.P. code from the building log) by the average occupied area for each unit, which it calculates by running computation method X.

For example, if you set up the expense participation record to use computation method X, and the system calculates a denominator of 67,000 square feet, and the area of the building (based on the E.P. code and building log) is 175,000 square feet, the calculated gross-up factor is 0.38 (38%).

If the gross-up percentage on the expense participation record is greater than the gross-up factor that the system calculates, the system adjusts the calculated amount using this formula:

gross-up percentage entered on expense participation record ÷ calculated gross-up factor = new gross-up factor

For example, if the gross-up percentage on the expense participation record is 0.50, and the calculated gross-up factor is 0.38, the system derives the new gross-up factor 1.31 (0.50 ÷ 0.38). The system uses this gross-up factor to multiply by the class exposure as part of the total exposure amount.

If the gross-up percentage on the expense participation record is less than the gross-up factor that the system calculates, the system adjusts the calculated amount using this formula:

Computation Method N:1 ÷ calculated gross up factor = new gross-up factor

For example, if the gross-up percentage on the expense participation record is 0.25 and the calculated gross-up factor is 0.38, the system calculates the new gross-up factor as 2.63.

Computation Method U: If the gross-up percentage on the expense participation record is less than the gross-up factor, the system does not use a gross-up factor.