Scheduled Commercial Charges |
Escalation Charges See Commercial How To document 353
This function determines Escalation candidates based on the information entered in the Commercial Lease, Escalation function. The escalation charge is then calculated using that information. When the candidate list appears, the tenant and the charge amount are displayed. Clicking on that line will display the calculated fields for your review. The Source Amount can be changed. The other fields are for information only.
Use the Skip box to skip the charge for that tenant.
The Edit box
When you are satisfied with the information on the screen, click the Post button to post the charges to the tenant ledger. Example 1: Suppose the tax bill comes in for $8500 for a building and a portion of that is charged to the tenants as an escalation charge.
Escalation Profile Escalation % - 2.5 Base - 1000 Cap - 250 Schedule - Semi-annual Charge ID - Escalation Account List - contains account Tax
Scheduled Charges, Escalation calculations Source Amount - 8,500 total of Tax account in owner’s ledger for past 6 months Escalation % - 2.5 Base - 1000 Charge Amount - 187.50 formula: (Source Amount - Base) x 2.5 / 100 calculations: (8500 - 1000) x 2.5 / 100 Cap - 250 Net Charge - 187.50
An Escalation charge is posted to the tenant for $187.50 and the Next Scheduled date in the Escalation profile is advanced 6 months.
Reconcile If you clicked Reconcile in the Escalation profile and you have been charging the tenant $20 each month for the past six months either through the Estimated Charges function or the Charge Tenant and marked it an estimated charge, then: Reconciled - 100 Total Charge - 87.50 187.50 - 100
An Escalation charge is posted to the tenant for $87.50 and the Next Scheduled date in the Escalation profile is advanced 6 months.
Example 2: Suppose the tax bill comes in for $8500 for a building and a portion of that is charged to the tenants as an escalation charge. The tenant’s Move In date is 4/22/07. The Base and the charge amount will be adjusted accordingly.
Escalation Profile Escalation % - 2.5 Base - 1000 Cap - 250 Schedule - Semi-annual Charge ID - Escalation Account List - contains account Tax
Scheduled Charges, Escalation calculations Source Amount - 8,500 total of Tax account in owner’s ledger for past 6 months Escalation % - 2.5 Days - 70 / 181 70=9 days in April, 31 days in May, 30 days in June) % Days - 38.674 computed from Days above - days occupied divided by days in schedule period (Jan-June) Adjusted % - 0.9669 formula: percentage x % Days% calculations: 2.5 x 38.674 / 100 = 0.9669 Base (recalculated) - 386.74 formula: Base x % Days % calculations: 1000 x 38.674 / 100 Charge Amount - 78.44 formula: Source Amount - Base (recalculated) x Adjusted % / 100 calculations: (8500 - 386.74) x .9669 / 100 Cap - 250 Net Charge - 78.44
An Escalation charge is posted to the tenant for $78.44 and the Next Scheduled date in the Escalation profile is advanced 6 months. |
above the vertical scroll bar will toggle the line item charges from view, to one line edit, to every line edit.