Understanding the Straight-line Rent Billing Process

This table describes the steps of the straight-line rent billing process:

Step	Description
Define straight-line rent bill codes	You must define which billing codes, which are used when setting up recurring billing records on a lease, should be included in straight-line rent processing. (Release 9.2 Update) There are two methods you can use to define billing codes for straight-line rent processing: Add up to 10 standard, and 10 conversion bill codes to the processing options of the Straight-line Rent Generation Program (R15130). Use the value in the Recurring Billing Information program (P1502) to specify which bill codes should be included in the process. Note that you define the default value using the P1512. That value is automatically added to the recurring billing records. You can override this value on the recurring billing record. Additionally, you use the processing options on the R15130 to specify which of the above methods the system uses when generating straight-line rent information.
Generate straight-line rent information	Run the Straight-line Rent Generation program (R15130) to calculate the effect of straight-line processing on the rent that you bill. The system calculates the straight-line rent for each period, compares it to the actual rent for the period, and determines the accrual or deferral (adjustment) amount.
Update recurring billings with straight-line rent information	Run the Straight-line Rent Recurring Billing Update program (R15132) to generate the straight-line rent recurring billing records that you process into general ledger entries.
Generate the billing edit register	After you generate recurring billings, you must run the Billing Edit/Register program (R15300) to ensure that the batch is ready to post. (Release 9.2 Update) The R15300 has been updated to determine if billing records should be included in the revenue recognition process. The program compares the information on the billing transaction to the revenue recognition trigger configuration, and if the record should be included in the revenue recognition process, the system validates that the appropriate AAIs and accounts are set up. Be aware that billing records that have been through straight-line rent processing should not also be included in revenue recognition processing. It is important to review this report before posting invoices to ensure that none of the invoices that have gone through straight-line rent processing will be included in revenue recognition process. See Generating the Billing Edit/Register Report.
Review and approve batches (optional)	If the Manager Approval of Input option is enabled in the Accounts Receivable or Accounts Payable constants, the system changes the batch status to pending when you successfully generate the billing edit register. You must approve batches that are in a pending status before you can post them.
Post Real Estate invoices and vouchers	When batches are at a status of Approved, they are ready to post. Depending on how the lease is set up, you run either the Post RE Invoices to generate invoices or the Post RE Vouchers program (R15199) to generate vouchers. You can use either version of the program to post accrual entries, but you should post the entries in a separate batch. You can segregate billing records that generate accrual entries from other billing records by specifying in the data selection for the post program that the transaction type equals A. (Release 9.2 Update) This program has been updated to send invoices that contain billing transactions that meet revenue recognition trigger criteria through the revenue recognition process. Before you run this program, be sure that your invoices do not include both straight-line rent transactions and revenue recognition transactions. See Posting Invoices and Vouchers.
Print real estate statements (optional).	If you print real estate statements, use the Print RE Statements program (R155001).
Print real estate invoices (optional).	If you print real estate invoices, use the Print RE Invoices program (R15500).