Scheduled Commercial Charges |
Overage Charges See Commercial How To document 353
This function determines Overage candidates based on the information entered in the Commercial Lease, Overage function. The overage 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 The tenant has negotiated an arrangement to have a $250 deductible on all maintenance charges. After that he pays different percentages of the maintenance charges as follows:
50% of the next $500, 25% of any amount between $750 and $2000, 100% of any amount over $2000.
Overage Profile
Scheduled Charges - Overage
Source Amount - $2,742.80 from the transactions in the owner ledger 1st Break - 250 formula: (Second - Base) x Base Percentage calculations: (750 - 250) = 500 x 50% 2nd Break - 312.50 formula: (Third - Second) x Second Percentage calculations: (2000 - 750) = 1250 x 25% 3rd Break (last) - 742.80 formula: (Source Amount - Third x Third Percentage calculations: (2742.80 - 2000) x 100% = 742.80 Net Charge - 1,305.30 formula: the sum of each break, in this case 1st Break + 2nd Break + 3rd Break calculations: 250 + 312.50 + 742.80
A charge is posted to the tenant for $1,305.30.
Example 2 Overage charges are calculated annually based on annual sales figures for the tenant. The first $7,000 in sales will not be subject to overage charges. After that, the following charges apply:
any amount between $7,000 and 10,000 will be charged 10%; between 10,000 and 15,000 will be charged 7%, between 15,000 and 18,000 will be charged 3%; and above 18,000 will be charged 1%.
Overage Profile
Account List - no account list is selected since this is not an amount that is found in the owner ledger. Instead, the sales figure will be entered in the Source Amount field in the Scheduled Charges function.
Scheduled Charges - Overage Compile the overage charges. The Source Amount for the tenant will be 0. Fill in the Source Amount with the $25,000 and the amounts will be calculated. 1st Break - 300 formula: Second - Base x Base Percentage calculations: 10,000 - 7,000 = 3,000 x 10% 2nd Break - 350 formula: Third - Second x Second Percentage calculations: 15,000 - 10,000 = 5,000 x 7% 3rd Break - 90 formula: Fourth - Third x Third Percentage calculations: 18,000 - 15,000 = 3,000 x 3% 4th Break - 70 formula: Source Amount - Fourth x Fourth Percentage calculations: 25,000 - 18,000 = 7,000 x 1% Net Charge - 810 formula: the sum of each break, in this case 1st Break + 2nd Break + 3rd Break + Fourth Break calculations: 300 + 350 + 90 + 70
A charge will posted to the tenant for $810 |
above the vertical scroll bar will toggle the line item charges from view, to one line edit, to every line edit.