Generating Straight-line Rent Information
To generate straight-line rent information, you run the Straight-line Rent Generation program (R15130). When you run this program, the system writes records in the F1513B table. Before running this program, review and set the processing options to ensure that the information is generated correctly.
After you run this program, it is possible that you will change lease data that could impact generated straight-line rent information. You can rerun this program to regenerate information for records that require recalculation.
See Reviewing and Revising Straight-line Rent Information for more information.
To access the R15130, select Straight-line Rent Generation from the Straight-line Rent menu (G1528).
When you run the Straight-line Rent Generation program (R15130), the system calculates the effect of straight-line rent by performing these steps in sequential order:
The system determines the start and end dates to use to generate straight-line rent information.
(Release 9.2 Update) Using processing option 11 (Straight-line Rent Setup) on the Process tab, the system determines if it retrieves the start and end date from the Straight-line Rent setup on the lease, or whether it uses the values that are defined in the processing options of the R15130. If it uses the processing option values, it determines the dates as follows:
Start date - The system uses the Lease Term Date Selection processing option to determine whether to use the start date of the lease or the move-in date on the unit. Then, based on the date in the Straight-line Rent As of Date processing option, the system uses whichever date is later, the as of date or the lease start date (or move-in date on the unit).
For example, if the Straight-line Rent As of Date processing option is set to June 1, 2007, and the Lease Term Date Selection processing option is set to use the start date on the lease, which is June 20, 2007, the system uses June 20, 2007 as the start date for the straight-line rent generation.
End date - The system generates straight-line rent information through the date specified in the Lease Term Date Selection processing option (either the end date of the lease or the plan-out date on the unit).
Note:Regardless of the end date on the lease (or move-out date on the unit), the maximum number of months that the Straight-line Rent Generation program can process is 1188, or 99 calendar years beginning with January.
Additionally, the value of the century change year data item (CENTCHG) can affect the end date that the system uses because it affects the cutoff date for the century. For example, if the value of CENTCHG is 20, the cutoff year for processing FASB is 2020, regardless of the length of the lease. If the leases that you process have long terms, verify that the value of this data item is set to a number that represents the longest lease term that you process.
If the system retrieves the start and end date information from the lease, users have the ability to use the same options as described above, but can also set up user-defined start and end dates that the R15130 can use to process straight-line rent information.
The system generates a batch for processing and retrieves information from these tables based on the start and end dates:
The system calculates the number of months that each unit is occupied from the Lease Master Header table (F1501B),
The system determines the base rent amounts for the occupied units from the Recurring Billings Master table (F1502B),
Using FASB 13 Rounding Option processing option on the Process tab, the system determines whether the system rounds the straight-line rent amounts to the nearest whole number. This processing option is used only for report display purpose, and amounts are not rounded in the FASB 13 Lease Control table (F1513B).
(Release 9.2 Update) The system determines which bill codes to include in straight-line rent processing. A processing option setting determines whether the R15130 retrieves the bill codes from the Bill Codes tab on the processing options, or from the Straight-line Rent Generation flag on the recurring billing records.
The system calculates the straight-line rent for the lease term.
The system compares the straight-line rent to the actual rent and calculates the difference (accrual or deferral) for each month for the lease term.
The system uses the setting of the Process Mode processing option to determine whether to print a report only, generate straight-line rent records, or delete straight-line rent records.
The system uses the setting of the Date Pattern processing option on the Process tab to determine whether to use the calendar date pattern or the company's date pattern while generating straight-line rent amounts. This processing option is used only for report display purpose, and does not impact the straight-line rent amount.