Setting Up Escalation Information

Access the Escalation Revisions form.

Index Code

Enter a user-defined code from UDC table 15/IX that specifies the escalation index.

Estimated BRCD (estimated billing receipt code)

Enter the bill code that identifies the estimated billing amounts to subtract from the actual billing amounts. For example, if you ran expense participation based on the expenses from the previous year, and then you rerun it for the actual expenses, the system subtracts the estimated amounts previously billed and bills the tenant for only the difference.

The system retrieves the appropriate account to use based on the automatic accounting instruction (AAI) item PMxxxx (for invoices) and RMxxxx (for vouchers), where xxxx equals the code that you enter.

The system retrieves the offset account (Accounts Receivable trade or Accounts Payable trade) to use based on the AAI item RCxxxx (for invoices) and PCxxxx (for vouchers), where xxxx equals the code that you enter.

B F (billing frequency)

Enter a code that specifies when and how often to generate billing records. You must enter a code that exists in the Billing Frequency Master table (F15019).

Rent BRCD (billing receipt code rent)

Enter the code that specifies the rent bill code to use to retrieve the annual amount that the system uses to update the Original Basis field when you complete the Next Month and Next Year fields. If you leave this field blank, you must complete the Original Basis field.

Period Length

Enter the duration, in months, to use to calculate the escalation amount.

Next Month

Enter the number that the system uses in conjunction with the Next Year field (NPSY) to specify the date to use to begin the escalation calculation and the period to use to retrieve the current index. The system always retrieves the index that is one month prior to the value entered in this field. For example, if you enter 01 in this field and 08 in the Next Year field, the system uses the index that is set up for month 12 in year 07.

Next Year

Enter a number that the system uses in conjunction with the Next Month field (NPSM) to specify the date to use to begin the escalation calculation.

Begin Date

Enter the begin date. If you leave this field blank, the system uses the lease start date.

End Date

Enter the end date. If you leave this field blank, the system uses the lease end date.

O L (original or last)

Enter the code that specifies whether to use the value in the Original Basis Amount (BESA) field or the Last Basis Amount (LESA) field as the amount in the escalation calculation. Based on the value that you enter, the system also uses the corresponding index (base or last). Values are:

L: Last basis amount.

O: Original basis amount.

Note: Regardless of the value that you enter, the system always uses the original basis amount and base index amount the first time that you process an escalation.

If you enter L and the Last Basis field (LESA) is blank, the system uses the original basis and base index amounts when it generates the billing records.

C M (escalation computation method)

Enter the code that specifies the method that the system uses to retrieve the index values that it uses to calculate the escalation amount. Values are:

D: Direct method. The system retrieves the index amount directly from the index table.

C: Average method. The system uses an average of the index values for the term of the escalation billing period. For example, if the escalation term is 9/01 through 12/31 (four months), the system retrieves and sums the index amounts for the corresponding months, and then divides that result by the number of periods (four) to derive the average amount to use as the index amount.

A: Already billed. If the Escalation Update Without Post program (R15152) has been run for the batch specified, the system prints this value on the report that it generates.

M: Manually billed. The system does not retrieve any index value because the escalation billing record was manually entered into recurring billing.

S: Suspended. The system does not retrieve any index value because the escalation record is suspended.

Note: The system does not include missing or zero index values when it derives the average amount to use.

Min. % Per Year (minimum percent per year)

Enter the minimum percentage that the system can use to increase the rent during one year. If the escalation factor is less than the minimum percentage, the system uses the minimum percentage as the escalation factor.

Enter the percentage in a decimal format. For example, enter 0.05 to specify 5 percent.

Max. % Per Year (maximum percent per year)

Enter the maximum percentage that the system can use to increase the rent during one year. If the escalation factor is greater than the maximum percentage that you enter, the system uses the maximum percentage as the escalation factor.

Enter the percentage in a decimal format. For example, enter 0.05 to specify 5 percent.

Max. % Per Lease (maximum percent per lease)

Enter the maximum percentage that the system uses to increase the rent for the term of the lease. If the escalation factor is greater than the maximum percentage that you enter, the system uses the maximum percentage as the escalation factor.

Enter the percentage in a decimal format. For example, enter 0.05 to specify 5 percent.

Maximum Amount

Enter the maximum escalation amount that is allowed for the escalation billing record. If you enter a value in this field, the system ignores the value entered in the Max. % Per Lease field (EMXL).

M R (manual review required)

Enter a value that specifies whether a billing record must be reviewed before it can be approved for posting. Values are:

Blank: A review is not required.

Y: A review is required. The batch retains a status of Error until the Manual Rev Reqd field for the billing record is changed from Y to blank.

B O (escalation basis override code)

Enter a code that specifies the amount that the system uses as the basis for calculating the escalation amount. When you enter a value in this field, the system ignores the values in the Original Basis (BESA) and the Last Basis (LESA) fields. Values are:

Blank: The system uses either the Original Basis or the Last Basis amount, as specified.

1 or R: The system uses the bill code entered in the Rent BRCD field (BRRT) to retrieve and sum the annual amounts that are set up in recurring billing for the same bill code. The recurring billing record must be in effect prior to the date represented by the Next Month and Next Year fields (NPSM and NPSY, respectively) on the escalation record, or the system ignores it.

2 or E: The system uses the bill codes entered in the Rent BRCD field and the Estimated BRCD field (BRCD) to retrieve and sum the annual amounts that are set up in recurring billing for the same bill codes. The recurring billing record must be in effect prior to the date represented by the Next Month and Next Year fields on the escalation record or the system ignores it.

Lease Factor

Enter the percentage by which the system reduces the gross escalation rate before it multiplies it by the basis amount to determine the escalation amount. For example, if the gross escalation rate is 0.144578 and the lease factor is 90 percent, the system multiplies 0.144578 by 0.9, and then multiplies that result (.130120) by the basis amount.

Enter the amount in decimal format. For example, enter 0.90 to specify 90 percent.

Base Start Month

Enter the base start month. The system uses this field and the Base Start Year (BPSY), Base End Month (BPEM), and Base End Year (BPEY) fields to specify the effective date range for the base index amount.

Base Start Year

Enter the first year for which the base exclusion amount applies. If you enter a base exclusion amount, you must complete this field. The system deducts the base exclusion amount one year after the base start year that you specified. For example, if you enter a base start year of 2007, the system does not deduct the base exclusion amount until you process expense participation for the year 2008.

The system uses this field and the Base Start Month (BPSY), Base End Month (BPEM), and Base End Year (BPEY) fields to specify the effective date range for the base index amount.

Base End Month

Enter the base end month. The system uses this field and the Base Start Month (BPSY), Base Start Year, and Base End Year (BPEY) fields to specify the effective date range for the base index amount.

Base End Year

Enter the base end year. The system uses this field and the Base Start Month (BPSY), Base Start Year, and Base End Month (BPEY) to specify the effective date range for the base index amount.

Base Index

Enter the amount that the system compares to the amount of the current index to calculate the escalation amount. The system retrieves the current index based on the index code that is specified.

Original Basis

Enter the amount to which the system applies the escalation amount. If you leave this field blank, the system uses the annual recurring billing amount for the bill code in the Rent BRCD field (BRRT).

Last Start Month

Enter the last start month. The system uses this field and the Last Start Year (LPSY), Last End Month (LPEM), and Last End Year (LPEY) fields to specify the effective date range for the last index amount.

The system updates these fields based on the term for which you generated escalation billings when you ran the Escalation Update Without Post program (R15152).

Last Start Year

Enter the last start year. The system uses this field and the Last Start Month (LPSM), Last End Month (LPEM), and Last End Year (LPEY) fields to specify the effective date range for the last index amount.

The system updates these fields based on the term for which you generated escalation billings when you ran the Escalation Update Without Post program (R15152).

Last End Month

Enter the last end month. The system uses this field and the Last Start Month (LPSM), Last Start Year (LPSY), and Last End Year (LPEY) fields to specify the effective date range for the last index amount.

The system updates these fields based on the term for which you generated escalation billings when you ran the Escalation Update Without Post program (R15152).

Last End Year

Enter the last end year. The system uses this field and the Last Start Month (LPSM), Last Start Year (LPSY), and Last End Month (LPEM) fields to specify the effective date range for the last index amount.

The system updates these fields based on the term for which you generated escalation billings when you ran the Escalation Update Without Post program (R15152).

Last Index

Enter the amount of the last index that the system used to calculate the escalation billing amount.

The system updates this field when you run the Escalation Update Without Post program (R15152).

Last Basis

Enter the annual amount that represents the sum of the original basis amount and the amount of the escalation.

The system updates this field when you run the Escalation Update Without Post program (R15152).

Building/Business Unit (Release 9.2 Update)

Enter the building associated with the unit, or the responsible business unit associated with the non-property asset.

Unit Asset Number (Release 9.2 Update)

Review this field to identify the asset associated with the leased property asset. This field is retrieved from the Unit Master when you enter a leased property in the Unit field.

Asset Number (Release 9.2 Update)

Enter the leased non-property asset number in this field. When you enter a value in this field, the system automatically selects the Non-Property Asset option.

Billing Group

Enter the code that the system uses to group different tenants and leases into one combined billing. The system automatically supplies this field with the number of the first building displayed on the Lease Information form. You can override the value of this field if necessary.

Unit Group

Enter a one-character alphanumeric code that the system uses to select units on the lease for billing purposes. The system sums the area for all units that have the corresponding code specified in the Unit Grouping field (UNGP) on the lease. Only one value from the Unit Grouping field on the lease must match the value of the Unit Group Code field on the recurring, escalation, or expense participation (E.P.) billing line for the system to retrieve the unit information. For example, if you have two units to which you assign unit grouping codes of 61 and 1, respectively, you can set up a recurring billing line for unit group 1 to specify both units.

Note: If you enter a value in the Unit Group Code field on a bill code line, you cannot specify a value in the Unit field for that bill code line.

If you entered a value in the field for the Escalation Basis Override Code (EBOC), the unit group assigned to the recurring billing record must be the same as the value that you enter in this field. Otherwise, the system does not generate an escalation billing record.

Porter Wage Factor

Enter the percentage that the system multiples by either the amount of the increase in the Porter Wage rate or the percentage of the increase in the Porter Wage rate, based on the value of the Porter Wage Computation field (PWC), to derive the escalation amount per square foot. The system determines the increase amount or percentage by comparing the current index to the index that was in effect as of the base year. When you enter a value in this field, the system ignores the values in the following fields:

Lease Factor

Min.% Per Year

Max. % Per Year

Max. % Per Lease

Enter the percentage in decimal format. For example, enter 0.01 to specify 1 percent.

Note:

If you leave this field blank, the system does not calculate the escalation amount for the Porter Wage.

(Release 9.2 Update) Additionally, all Porter Wage fields are disabled if you are entering escalation information for leased non-property assets.

Porter Wage Computation

Enter the value that specifies whether the system uses the amount difference or the percentage difference in the Porter Wage rates since the base year to calculate the amount of escalation per square foot. Values are:

1: Amount difference.

2: Percentage difference.

Note: If you leave this field blank, the system does not calculate the escalation amount for the Porter Wage.

Porter Wage Square Feet

Enter the number of square feet to use to calculate the escalation amount. The system compares the number of square feet that you enter to the Porter Wage index to determine an escalation amount per square foot.

If you leave this field blank, the system uses the rentable square footage on the lease.

Billing ID (billing identification)

The system assigns a unique number to each billing record to identify it in a table. The system assigns the number from the Next Numbers - Automatic table (F0002) for system 15, line 2 (Billing Control).

Base Billing ID

Enter the value assigned to the Billing Control ID field (BCI) on the billing record for the previous version of the lease. The system assigns the same number to provide an audit trail for billing records that are generated for multiple versions of the lease.