Entering Minimum and Maximum Rent and Recovery Information

Access the Min/Max Rent & Recoveries Revisions form.

S.O. Type (sales overage type code)

Enter a code from UDC table 15/SP that relates the pay item to sales overage rent. Values are:

RC: Recovery that is generally exempt from the calculation of sales overage. A lease can have multiple recoveries active for a given billing period.

MN: Minimum rent that is fixed and generally credited against sales overage in a given billing period.

MX: Maximum rent that specifies the ceiling for a tenant's sales overage in a given billing period.

Amount

Enter the value that specifies the total amount of the invoice or voucher pay item. The gross amount might include the tax amount, depending on the tax explanation code. The system does not decrease the gross amount when payments are applied. When you void a transaction, the system clears the gross amount.

Limit Period

Enter a code from UDC table 15/LP that specifies the period associated with the maximum rent amount for sales overage rent. Values are:

A: The maximum rent amount is an annual maximum.

P: The maximum rent amount is a maximum for the current billing period.

L: The maximum rent amount is a maximum for the entire lease term.

Rfrc B/C (reference bill code)

Enter the reference bill code.

For minimum rent, you can enter the bill code associated with amounts already invoiced to a tenant in this field. The system compares these amounts to the sales overage calculation amounts to determine whether the minimum rent amount has been reached. For a example, a tenant is billed estimated minimum rent of 500 per month through the Recurring Billing program (P1502), and a minimum rent of 500 has been set up on the Min/Max Rents & Recoveries Revisions form.

Enter the bill code for the estimated minimum rent in the Reference Bill Code field. The system then calculates sales overage rent, compares the amount with what has already been billed, and calculates the net charge or credit.

For recoveries, enter the bill code associated with the general ledger account that contains the amount to be recovered. The system automatically calculates the gross amount of recovery based on this code and the percentage entered in the Recovery Rate field.

Recovery Rate% (recovery rate percentage)

Enter the rate at which recoveries are deducted from gross overage rent. After the system calculates the recovery amount, identified through the use of a reference bill code applicable to the given period, the system modifies the recovery amount by this rate. The modified recovery amount is then deducted, subject to other limits and rates, from gross overage rent.

Recovery Limit % (recovery limit percentage)

Enter the maximum increase in percentage of dollars that is allowed for an annual escalation. For example, the value 6.000 represents a 6 percent maximum in the increase between a recurring charge being escalated and the new recurring charge.

C F (period carry forward)

Specify whether to allow a carry forward. You can use this field to carry forward maximum rent adjustments made to gross overage rent or recovery adjustments based on recovery limits to the following billing period.

If carry forward is in effect for a recovery, the system adds the recovery amount calculated in excess of the gross overage billing to the following period's recoveries. If carry forward is in effect for a maximum rent, the system adds the maximum rent amount (Gross Billing - Maximum Rent) to the following period's Gross Overage Billing.

Using a carry forward can be financially advantageous to the property manager or owner when processing a maximum rent adjustment and disadvantageous when processing a recovery. Values are:

Y: Allow.

N: Do not allow.

Priority Sequence

Enter the value that re-sequences the order in which the system calculates minimum rent, maximum rent, and recovery adjustments. The system processes the adjustments in the order in which the Minimum/Maximum Rents and Recoveries program (P15015) displays them. To change this order, enter an alphanumeric sequence value or a series of values in the Priority Sequence field.

Limit Amount

Define the limit amount (or maximum amount) of a recovery. The recovery limit amount is the maximum amount that is allowed over the term of the lease.

After the system calculates the recovery amount deductible from gross overage rent for the given billing period, it adjusts the recovery amount so as to not exceed the recovery limit for the life of the lease.