Reviewing and Revising Straight-line Rent Information
To review and revise straight-line rent information, you can use the Straight-line Rent Revisions program (P1513). This program enables users to:
Review all records that are marked for Straight-line Rent regeneration either by calendar date pattern or company's date pattern.
Update the Straight-line Rent Generation Control flag.
Processing option settings determine whether users have permission to perform this update.
Change the actual or straight-line rent amounts or adjustments.
Select records and perform a rollback to the previous generation of straight-line rent.
The system automatically revises the accrual or deferral amount, but these requirements must be met to prevent the system from generating an error:
The total of the amounts in the Actual Rent column must equal the total of the amounts in the Straight Rent column.
The total in the Accr/Defer column (the FASB effect) must be zero (blank).
If the system detects no errors after you revise information, it summarizes the annual amounts and recalculates the accruals, deferrals, and balance forward.
Revising Straight-line Rent Information By Updating a Lease or Recurring Billing Record (Release 9.2 Update)
Another method to revise straight-line rent information is to change information on the recurring billing record or lease information record, and rerun the Straight-line Rent Generation program (R15130).
When the system generates the initial straight-line rent records, the Generation Control field (GENC) for the record is blank, which prevents the system from generating straight-line records again. When changes that you make to the lease information or recurring billings might impact straight-line calculations, you want to update the Generation Control field to Y, enabling you to recalculate new straight-line rent records.
If you revise a lease or recurring billing record after straight-line information has been generated, the system determines whether the change might impact those calculations, based on the fields that are updated. Depending on the processing option settings for the P1501 and P1502, the system does one of the following when such a change occurs:
The system saves the lease or recurring billing revisions and does not update the Straight-line Rent Generation Control field.
The user must manually update the Straight-line Rent Generation Control field before rerunning the R15130 in order to recalculate straight-line rent information for the revised lease.
A warning window appears to notify users that straight-line records might need to be recalculated.
The user can click OK to save the lease or billing revisions and mark the Straight-line Rent Generation Control field for all updated records. Alternatively, the user can click Cancel to save the revisions without updating the Straight-line Rent Generation Control field.
The system saves the billing revisions and automatically updates the Straight-line Rent Generation Control field.
Changing any field on the Lease Straight-line Rent Setup program (P15131) will update the Straight-line Rent Generation Control field. This table lists the additional fields that, when changed, could impact previously generated straight-line rent calculations:
Lease Revision Fields |
Recurring Billing Revision Fields |
|---|---|
Lease Start Date Lease End Date Term of Lease Move-In Date Plan-Out Date Commitment Beginning Date. |
Bill Code Bill Type Straight-line Rent Generation option Gross Amount Billing Frequency Starting Date Ending Date Building Unit Suspense Code Suspend Date Transaction Currency |
In the event that a lease is terminated early by changing any of the above listed fields on the lease, you can regenerate straight-line rent calculations for that lease. When you run the R15130 again over the lease, the system performs a validation on the As of Date in relation to the lease end date, which is determined based on the processing option settings.
If the As of Date is after the lease end date, the system determines whether there are any Straight-line Rent records (F1513B) that have been processed into recurring billing by reviewing F1513B records for the lease/building/unit that have a Y in the PSFT field. The PSFT field is set to Y when the Straight-line Rent Recurring Billing Update (R15132) is ran. If processed records were found, the system considers this an early termination, and sets the As of Date to the first day of the final period for the lease. If no processed records were found in the F1513B, you will get an error indicating that the As of Date is after the lease end date.
Updating Straight-line Rent Information Using the Delete and Roll Back Method
Another method to revise straight-line rent information is to delete the active straight-line rent records and roll back to the previously generated records.
If you discover that straight-line records were generated using the wrong data selection or processing option settings, or that you have to revise a recurring billing record, you can delete all or part of the active batch of straight-line records and reactivate the previous records. Then you can make the changes and regenerate the correct records.
To delete and roll back the calculations, you must set the Process Mode processing option to 2 (roll back to previous generation) in the Straight-line Rent Generation program (R15130), and specify the batch number assigned to the straight-line records in the corresponding processing option. You can use data selection to limit the records that are deleted, if desired. When you run the program with the processing options set to roll back, the system deletes the active FASB records and reassigns the batch number to the previous records.
For example, after you run the R15130 program twice, the records appear as follows in the Straight-line Rent Lease Control table (F1513B):
Lease |
Building |
Unit |
Century |
Year |
Batch Number |
Generation Code |
Actual Rent Period 1 |
|---|---|---|---|---|---|---|---|
1234 |
150 |
101 |
20 |
3 |
0 |
10,000 |
|
1234 |
150 |
101 |
20 |
4 |
0 |
12,000 |
|
1234 |
150 |
101 |
20 |
5 |
0 |
13,000 |
|
1234 |
150 |
101 |
20 |
3 |
552 |
11,000 |
|
1234 |
150 |
101 |
20 |
4 |
552 |
12,000 |
|
1234 |
150 |
101 |
20 |
5 |
552 |
13,000 |
After you run Straight-line Rent Generation (R15130) to roll back the records to the previous batch, the system deletes the active records and updates the records for the previous calculations as follows:
Lease |
Building |
Unit |
Century |
Year |
Batch Number |
Generation Code |
Actual Rent Period 1 |
|---|---|---|---|---|---|---|---|
1234 |
150 |
101 |
20 |
3 |
552 |
Y |
10,000 |
1234 |
150 |
101 |
20 |
4 |
552 |
Y |
12,000 |
1234 |
150 |
101 |
20 |
5 |
552 |
Y |
13,000 |
The system updates the Generation Code field to Y so that you can rerun straight-line rent calculations.
Updating Straight-line Rent Information Using the Rollback Option from the Straight-line Rent Inquiry (Release 9.2 Update)
From the Straight-line Rent Inquiry form, you can review the current and previous generation of straight-line rent information. If you want to roll back to the previous generation of straight-line rent, you can select a record and then select Rollback from the Row menu. When you select this option for a record that does have a previous generation, the system performs the following tasks:
The system deletes all records from the F1513B that have the same lease number, building, unit, and batch number as the selected record.
The system then updates the previous generation records in the F1513B with the batch number that was on the selected record.
The system updates the GC (Generation Control) field for the updated records (previous generation) with Y so that they will be picked up for recalculation when the R15130 is processed.
If you select a record that does not have a previous generation, or you select a record that does not have a batch number, the system deletes all records from the F1513B that have the same lease number, building, unit, and batch number as the selected record.
Updating Straight-line Rent Information for an Early Termination Scenario (Release 9.2 Update)
In some situations, you might find it necessary to terminate a lease on a date earlier than originally planned. In these situations, it is likely that you have already generated straight-line rent information using the original lease end date. When the lease is terminated early, you must regenerate straight-line rent information.
When you change the lease term, the system marks the records for straight-line rent regeneration. When you rerun the R15130 to regenerate the information, if the As Of Date is later than the lease ending date, which is likely in an early termination scenario, the system changes the As Of Date to the first day of the previous period, and regenerates straight-line rent records using that date.
For example, if you ran the R15130 using the As Of Date of June 1, 2017, and the lease term ended on May 31, 2017, the system would change the As Of Date to be May 1, 2017, and regenerate straight-line rent records through the month of May.