Setting Up Gross Up Percentages at the Lease Level
Access the Expense Participation Adjustments form.
You can set up gross up percentages at the lease level by completing these fields:
- Subject to Gross Up
If you select this check box, the amounts for this account or class are subject to gross up. The Percent Gross-Up and Variable % Gross Up fields are not disabled.
If you do not select this check box, the amounts for this account or class are not subject to gross up. The Percent Gross-Up and Variable % Gross Up fields are disabled.
- Percent Gross-Up
If you enter a value in this field in conjunction with computation method N, O, U, or V, the R15110 program calculates the percentage of the building or property which is occupied. If the occupancy percentage is less than the gross up percentage, the system divides the gross up percentage by the occupancy percentage to derive the gross up factor.
If you enter computation method N or O and the occupancy percentage is greater than the gross up percentage, the gross up factor is calculated by dividing 100 percent by the occupancy percentage. The tenant's class exposure is multiplied by the gross up factor after subtracting account or transaction exclusions. If you enter a value in this field with any other computation method, the R15110 program multiplies the class exposure by the gross up percentage after transaction and account exclusions.
- Variable % Gross Up (variable percent for gross up)
Enter the percentage of an expense that is variable and is subject to the gross up factor.
For example, if the total of all costs booked to an account is 10,000.00 USD and 80 percent of that cost is variable, then the total exposure is 10,000.00 USD and the net exposure is 2,000.00 USD plus 8,000.00 USD times the gross up factor. Enter 80 percent as 0.80.