Lease Business Processes
Lease business processes (BPs) are a Cost type BP. You can use the Lease BP at the project/shell level to set up and manage real estate leases and view the expected Payment Schedule (regular as well as straight line) using the lease data from the BP. You can set up a Lease BP if you are the landlord (lessor), or if you are the tenant (lessee). You can use it for new leases you have just contracted, or existing leases. The Lease BP lets you track incoming or outgoing payments, and you can use the Generic Cost Manager to roll up the amounts.
Lease BPs are typically used to auto-create invoices (if you are the landlord) or payment requests (if you are the lessee). These auto-created business processes are designed and set up by your administrator. See Auto-create an Invoice or Payment Request from a Lease Business Process.
Lease BPs can be workflow or non-workflow cost business processes. If they are workflow business processes, you can route them like other workflow business processes.
Note:
- Lease BPs cannot be defined at the Company level and do not support CBS functions.
- By design, the Line Item Details in the Lease BP cannot be auto-created.
Leases can be designed with fields that you can use in line items to perform lease data calculations. These calculations generate lease payment schedules. For example, you could add lines items for rent, cost of maintenance, or taxes to a lease. The data in these line items is data that you enter, or data that is populated based on calculations.
On Leases, you can:
- View expected payments for the lifetime of the lease using the Regular Payment Schedule and Straight Line Schedule reports
- Disable the auto-creation of related BPs, or re-enable these auto-created BPs as needed
- Create Payment Schedules (regular and straight line)
- Create snapshots of the lease for historical purposes
In addition to typical behavior, the Lease BP supports:
- Consolidation from other Cost BPs
- Snapshot creation
- Auto-creation
- Auto generation of Regular and Straight Line Payment schedules
- Integration methods for creating upper form as well as line items of all tabs
- Multiple tabs for line items (up to 8 tabs)
- An allocation template to divide lease payments into different amounts for multiple tenants in a building.
Lease BP Payment Schedule
Changes to Lease Payment Terms will be always applied on future payment schedules, starting from the first payment of the next term, depending on the term type and length. The change in escalation rate or value can happen in two ways:
- Line Item: Change the escalation value or switch the Index Rate picker record on the line item.
- Index Rate BP: Change the rate value on the source Index Rate BP record in the Company workspace.
Lease (Payment Setup) Details
| Field | Example |
|---|---|
| Start date | 03/01/2021 |
| End date | 02/01/2027 |
| Payment Frequency | Monthly |
| Initial Amount | $1,000.00 |
| Payment Due Day | 1 |
| Latest Payment Due Day | 1 |
| Payment Notice Lead Time | 10 |
| Escalation Method | Index Rate |
| Escalation Frequency Term Type | Yearly |
| Escalation Frequency Term Length | 1 |
Lease Payment Schedule
| Start Date | End Date | Due Date | Payment Type | Amount (with initial Index Rate 10) | Amount (with new Index Rate 20, switched on 27th Nov, 2023) | Yearly escalation |
|---|---|---|---|---|---|---|
| 03/01/2021 | 03/31/2021 | 03/01/2021 | GTO | $1,000.00 | $1,000.00 | Start of Lease |
| 04/01/2021 | 04/30/2021 | 04/01/2021 | GTO | $1,000.00 | $1,000.00 | |
| 05/01/2021 | 05/31/2021 | 05/01/2021 | GTO | $1,000.00 | $1,000.00 | |
| 06/01/2021 | 06/30/2021 | 06/01/2021 | GTO | $1,000.00 | $1,000.00 | |
| 07/01/2021 | 07/31/2021 | 07/01/2021 | GTO | $1,000.00 | $1,000.00 | |
| 08/01/2021 | 08/31/2021 | 08/01/2021 | GTO | $1,000.00 | $1,000.00 | |
| 09/01/2021 | 09/30/2021 | 09/01/2021 | GTO | $1,000.00 | $1,000.00 | |
| 10/01/2021 | 10/31/2021 | 10/01/2021 | GTO | $1,000.00 | $1,000.00 | |
| 11/01/2021 | 11/30/2021 | 11/01/2021 | GTO | $1,000.00 | $1,000.00 | |
| 12/01/2021 | 12/31/2021 | 12/01/2021 | GTO | $1,000.00 | $1,000.00 | |
| 01/01/2022 | 01/31/2022 | 01/01/2022 | GTO | $1,000.00 | $1,000.00 | |
| 02/01/2022 | 02/28/2022 | 02/01/2022 | GTO | $1,000.00 | $1,000.00 | |
| 03/01/2022 | 03/31/2022 | 03/01/2022 | GTO | $1,100.00 | $1,100.00 | First year escalation |
| 04/01/2022 | 04/30/2022 | 04/01/2022 | GTO | $1,100.00 | $1,100.00 | |
| 05/01/2022 | 05/31/2022 | 05/01/2022 | GTO | $1,100.00 | $1,100.00 | |
| 06/01/2022 | 06/30/2022 | 06/01/2022 | GTO | $1,100.00 | $1,100.00 | |
| 07/01/2022 | 07/31/2022 | 07/01/2022 | GTO | $1,100.00 | $1,100.00 | |
| 08/01/2022 | 08/31/2022 | 08/01/2022 | GTO | $1,100.00 | $1,100.00 | |
| 09/01/2022 | 09/30/2022 | 09/01/2022 | GTO | $1,100.00 | $1,100.00 | |
| 10/01/2022 | 10/31/2022 | 10/01/2022 | GTO | $1,100.00 | $1,100.00 | |
| 11/01/2022 | 11/30/2022 | 11/01/2022 | GTO | $1,100.00 | $1,100.00 | |
| 12/01/2022 | 12/31/2022 | 12/01/2022 | GTO | $1,100.00 | $1,100.00 | |
| 01/01/2023 | 01/31/2023 | 01/01/2023 | GTO | $1,100.00 | $1,100.00 | |
| 02/01/2023 | 02/28/2023 | 02/01/2023 | GTO | $1,100.00 | $1,100.00 | |
| 03/01/2023 | 03/31/2023 | 03/01/2023 | GTO | $1,210.00 | $1,210.00 | Second year escalation |
| 04/01/2023 | 04/30/2023 | 04/01/2023 | GTO | $1,210.00 | $1,210.00 | |
| 05/01/2023 | 05/31/2023 | 05/01/2023 | GTO | $1,210.00 | $1,210.00 | |
| 06/01/2023 | 06/30/2023 | 06/01/2023 | GTO | $1,210.00 | $1,210.00 | |
| 07/01/2023 | 07/31/2023 | 07/01/2023 | GTO | $1,210.00 | $1,210.00 | |
| 08/01/2023 | 08/31/2023 | 08/01/2023 | GTO | $1,210.00 | $1,210.00 | |
| 09/01/2023 | 09/30/2023 | 09/01/2023 | GTO | $1,210.00 | $1,210.00 | |
| 10/01/2023 | 10/31/2023 | 10/01/2023 | GTO | $1,210.00 | $1,210.00 | |
| 11/01/2023 | 11/30/2023 | 11/01/2023 | GTO | $1,210.00 | $1,210.00 | Index Rate switched or rate changed (27 November 2023) |
| 12/01/2023 | 12/31/2023 | 12/01/2023 | GTO | $1,210.00 | $1,210.00 | |
| 01/01/2024 | 01/31/2024 | 01/01/2024 | GTO | $1,210.00 | $1,210.00 | |
| 02/01/2024 | 02/29/2024 | 02/01/2024 | GTO | $1,210.00 | $1,210.00 | |
| 03/01/2024 | 03/31/2024 | 03/01/2024 | GTO | $1,331.00 | $1,452.00 | Third year escalation |
| 04/01/2024 | 04/30/2024 | 04/01/2024 | GTO | $1,331.00 | $1,452.00 | |
| 05/01/2024 | 05/31/2024 | 05/01/2024 | GTO | $1,331.00 | $1,452.00 | |
| 06/01/2024 | 06/30/2024 | 06/01/2024 | GTO | $1,331.00 | $1,452.00 | |
| 07/01/2024 | 07/31/2024 | 07/01/2024 | GTO | $1,331.00 | $1,452.00 | |
| 08/01/2024 | 08/31/2024 | 08/01/2024 | GTO | $1,331.00 | $1,452.00 | |
| 09/01/2024 | 09/30/2024 | 09/01/2024 | GTO | $1,331.00 | $1,452.00 | |
| 10/01/2024 | 10/31/2024 | 10/01/2024 | GTO | $1,331.00 | $1,452.00 | |
| 11/01/2024 | 11/30/2024 | 11/01/2024 | GTO | $1,331.00 | $1,452.00 | |
| 12/01/2024 | 12/31/2024 | 12/01/2024 | GTO | $1,331.00 | $1,452.00 | |
| 01/01/2025 | 01/31/2025 | 01/01/2025 | GTO | $1,331.00 | $1,452.00 | |
| 02/01/2025 | 02/28/2025 | 02/01/2025 | GTO | $1,331.00 | $1,452.00 | |
| 03/01/2025 | 03/31/2025 | 03/01/2025 | GTO | $1,464.10 | $1,742.40 | Fourth year escalation |
| 04/01/2025 | 04/30/2025 | 04/01/2025 | GTO | $1,464.10 | $1,742.40 | |
| 05/01/2025 | 05/31/2025 | 05/01/2025 | GTO | $1,464.10 | $1,742.40 | |
| 06/01/2025 | 06/30/2025 | 06/01/2025 | GTO | $1,464.10 | $1,742.40 | |
| 07/01/2025 | 07/31/2025 | 07/01/2025 | GTO | $1,464.10 | $1,742.40 | |
| 08/01/2025 | 08/31/2025 | 08/01/2025 | GTO | $1,464.10 | $1,742.40 | |
| 09/01/2025 | 09/30/2025 | 09/01/2025 | GTO | $1,464.10 | $1,742.40 | |
| 10/01/2025 | 10/31/2025 | 10/01/2025 | GTO | $1,464.10 | $1,742.40 | |
| 11/01/2025 | 11/30/2025 | 11/01/2025 | GTO | $1,464.10 | $1,742.40 | |
| 12/01/2025 | 12/31/2025 | 12/01/2025 | GTO | $1,464.10 | $1,742.40 | |
| 01/01/2026 | 01/31/2026 | 01/01/2026 | GTO | $1,464.10 | $1,742.40 | |
| 02/01/2026 | 02/28/2026 | 02/01/2026 | GTO | $1,464.10 | $1,742.40 | |
| 03/01/2026 | 03/31/2026 | 03/01/2026 | GTO | $1,610.51 | $2,090.88 | Fifth year escalation |
| 04/01/2026 | 04/30/2026 | 04/01/2026 | GTO | $1,610.51 | $2,090.88 | |
| 05/01/2026 | 05/31/2026 | 05/01/2026 | GTO | $1,610.51 | $2,090.88 | |
| 06/01/2026 | 06/30/2026 | 06/01/2026 | GTO | $1,610.51 | $2,090.88 | |
| 07/01/2026 | 07/31/2026 | 07/01/2026 | GTO | $1,610.51 | $2,090.88 | |
| 08/01/2026 | 08/31/2026 | 08/01/2026 | GTO | $1,610.51 | $2,090.88 | |
| 09/01/2026 | 09/30/2026 | 09/01/2026 | GTO | $1,610.51 | $2,090.88 | |
| 10/01/2026 | 10/31/2026 | 10/01/2026 | GTO | $1,610.51 | $2,090.88 | |
| 11/01/2026 | 11/30/2026 | 11/01/2026 | GTO | $1,610.51 | $2,090.88 | |
| 12/01/2026 | 12/31/2026 | 12/01/2026 | GTO | $1,610.51 | $2,090.88 | |
| 01/01/2027 | 01/31/2027 | 01/01/2027 | GTO | $1,610.51 | $2,090.88 | |
| 02/01/2027 | 02/28/2027 | 02/01/2027 | GTO | $1,610.51 | $2,090.88 |