Summary Page - Contract Module

To add a contract:

1. Click Add RE Contract.

   This displays in the Actions menu on the right side of the page.

   The RE Contract Setup Wizard window opens.

2. Enter a unique contract ID in the Contract ID field.

3. Enter a name for your contract in the Contract Name field.

   Do not enter apostrophes in the Contract Name field. To learn our best practice recommendations for naming contracts, see our Naming Conventions in Lucernex walkthrough.

4. Select the contract status from the Status field.

5. If this contract is a sublease, select the master contract from the Master Contract field.

   To view the details of a master contract, click View to the right of the Master Contract field.

6. Select the location that you want to associate with your contract from the Location field.

7. Select the facility you want to associate with your contract from the Facility field.

   You cannot create a facility in this step. If you want to associate your contract with a facility, you must create the facility first.

8. Select the contract group you want this contract to belong to from the Contract Group field.

   Create a new group or category.

   Groups are the first level of organization in Lucernex. Groups are the parents of types, and grandparents of categories. Groups, types, and categories are used to simplify reporting.

9. Select the contract type this contract should be from the Contract Type field.

   Example contract types include leases and master leases.

   If you want to create a new type, follow the Add a Type procedures.

   Types are the second level of organization in Lucernex. Types are the children of groups, and parents of Categories. Groups, types, and categories are used to simplify reporting.

10. Select the category this contract should belong to from the Category field.

    Create a new group or category.

    Categories are the third level of organization in Lucernex. Categories are the children of types, and grandchildren of groups. Groups, types, and categories are used to simplify reporting.

11. Enter notes in the Notes field.

12. Enter the following dates:

    You can also click Calendar to open the Date Picker and select the appropriate date.

    You can enter dates in MMDDYY format and the system will automatically recognize them. For example, January 1, 2018 would be entered as 010118, and December 31, 2018 would be entered as 123118.

    • Commencement Date: Enter the date when the first term for the lease started.

    • Expiration Date: Enter the current expiration date (excluding options).

      Important!

      The Commencement Date and the Expiration Date must be populated in order to use the term wizard when setting up a lease.

    • Possession Date: Enter the date when you took possession of the asset. This date is not required for ASC 842.

    • Possession End Date: Enter the date when you released possession of the asset.

    • Execution Date: Enter the date when you signed the contract.

    • Payments Begin / End Date

      Important!

      The system will not generate payments outside the payment begin / end dates. In order to have payments outside the payment begin / end date, you will have to extend your contract.

      Note:

      The Month-to-Month Flag check box is used when you are extending a contract month-to-month. You will not need to select this check box when you are initially creating your contract.

13. Enter the rentable area in the Rentable Area field.

    Important!

    The Rentable Area must be populated in order for the system to calculate your rate. The system will remember your rentable area and populate this field whenever it is present on a page.

    If you are not going to use rentable area, do not enter 0. Leave this field blank.

14. Select the units you are using for your rentable area from the Area Unit field.

15. Select the primary use of the space from the Primary Use field.

    Create a new group or category.

16. Click Next.

    The Folder Setup page of the RE Contract Wizard opens.

17. Select the folder template you want to use for your lease documents from the RE Contract folder template field.

18. Click Next.

    The RE Contract Setup Wizard asks if you would like to upload a lease document.

    This will only occur if you select a folder template in step 17 above.

19. If you would like to upload a lease document:

    1. Select the folder where you would like to store your lease document from the Folder For Lease Document field.

    2. Click Browse.

       An Upload dialog box opens.

    3. Select the lease document from your files.

    4. Upload the document.

       The Upload dialog box closes. The file name of your lease document appears next to the Browse.

20. Click Next.

    The Step Two: Contract Terms and Options page of the RE Contract Wizard opens.

When you enter key date information on a term record, a key date record is created automatically.

When you configure your key dates, the system will create alerts based upon your Notice Period. Alerts are sent on a nightly basis and are sent every day until the alert is acted upon. Alerts are sent to all members of a contract, and escalations are sent to managers of the contract. We recommend that you use the Dashboard Alerts functionality rather than Email Alerts to keep track of lease notifications. By default, all alerts are sent out using Central Standard Time, unless specified in the contract Time Zone field. This field can be edited on the Contract > Details > Summary page.

The alerts and the fields they are tied to are listed below:

• Lease Notification Alert: tied to the Notice End Date.

• Lease Expiration Alert: tied to the Expiration Date of the lease.

• Lease Option End Date Alert: tied to the key date’s End Date.

• Lease Notification Alert: tied to the key date’s Notification End Date.

To enter your contract terms and options:

1. Do one of the following:

   • To use the automatic term generator at the top of the window:

     Note:

     This method should be used when you have multiple renewal options that are the same length. To associate a particular option with a covenant or key date, click Edit link in the Actions column of the Terms table when the appropriate term has been created.

     1. Complete the following date fields:

        • Commencement Date: Enter the date when the first term for the lease started in this field.

        • Expiration Date: Enter the current expiration date (excluding options) in this field.

     2. Enter the number of renewal options in the Number of Options field.

        Important!

        Do not include your original term in this number.

     3. Select the option type from the Option Type field.

     4. Enter the term length in years in the Term Length (years) field.

     5. Enter the number of days, weeks, months, or years in advance that you can take action on the key date in the Earliest Notice Period fields.

        The Earliest Notice Period fields are used to calculate the value of the Earliest Notice Date field, using this formula:

        Earliest Notice Date = Coverage Period Begin Date - Earliest Notice Period - 1.

     6. Enter the number of days, weeks, months, or years you have to submit notice after the notice period begins in the Last Notice Period fields.

        A notice is a warning that the key date is imminent. The system will automatically calculate the value in the Last Notice Date using this formula:

        Last Notice Date = Coverage Period Begin Date - Last Notice Period - 1

     7. Enter the rentable area in the Rentable Area field.

        The value should pre-populate if you entered it on the Step One: Contract Summary Setup Page procedures.

        Important!

        The Rentable Area is used to calculate the Average Rent / Area Unit value when Terms are linked to an expense schedule. Please ensure you enter the appropriate Rentable Area value.

     8. Select the unit of measurement you are using for your rentable area from the Area Unit field.

     9. Click Generate Contract Terms.

        This appears below the Notice Period field. Your contract terms populate in the Terms table.

   • To add contract terms manually:

     Note:

     This method should be used when you have multiple term options that are different lengths. This method also allows you to associate a term with key dates and a covenant.

     1. Click Add Contract Term in the Terms table.

        The Add Contract Term window opens.

     2. Enter the term number of the term you are creating in the Term Number field.

        Enter the term number in 2-digit format, for example, the first term would be entered as 01.

     3. Select the term type—for example, original or renewal—from the Type field.

        Create a new group or category.

     4. Select the term status from the Status field.

        According to ASC 842 regulations, you must include all likely options in your accounting. If a term option is likely, select Likely from the field.

     5. Enter the rentable area in the Rentable Area field.

        This field should pre-populate if you entered it in the Step One: Contract Summary Setup Page procedures above.

        Important!

        The Rentable Area is used to calculate the Average Rent / Area Unit value when Terms are linked to an expense schedule. Please ensure you enter the appropriate Rentable Area value.

     6. Select the measurement unit you are using for your rentable area from the Area Unit field.

     7. Select the Include in Accruals?check box to flag this term as needing to be included in your accrued expense savings.

     8. Select the key date group of the key date you want to associate with your term from the Group field.

        Create a new group or category.

        Groups are the first level of organization in Lucernex. Groups are the parents of types, and grandparents of categories. Groups, types, and categories are used to simplify reporting.

     9. Select the type of key date from the Type field.

        If you want to create a new type, follow the Add a Type procedures.

        Types are the second level of organization in Lucernex. Types are the children of groups, and parents of Categories. Groups, types, and categories are used to simplify reporting.

     10. Enter a description of the key date in the Description field.

     11. Enter the begin date in the Begin Date field.

         You can also click Calendar to open the Date Picker and select the appropriate date.

     12. Enter the end date in the End Date field.

         You can also click Calendar to open the Date Picker and select the appropriate date.

         Note:

         The Action fields and the Notice check boxes will be used when you decide to take action on an option, and when notice has been sent or received.

     13. Enter the number of days, weeks, months, or years you have to submit notice after the notice period begins in the Last Notice Period fields.

         A notice is a warning that the key date is imminent. The system will automatically calculate the value in the Last Notice Date using this formula:

         Last Notice Date = Coverage Period Begin Date - Last Notice Period - 1

         Important!

         Add notice periods to the renewal term, NOT the original term.

     14. Enter the earliest date you can give notice in the Earliest Notice Date field.

         You can also click Calendar to open the Date Picker and select the appropriate date.

     15. Enter the length of the tickler period using the Tickler Period fields.

         A Tickler is a friendly reminder that the key date is coming due.

         The system will automatically calculate the value in the Tickler Last Notice Date using this formula:

         Tickler Last Notice Date = Notice End Date - Tickler Period

         However, the Tickler Last Notice Date will not automatically update after being initially calculated unless you click Save.

     16. Enter any comments in the Comments field.

     17. Click Add.

         Your contract term appears in the Terms table. Since you do not yet have covenants associated with your contract, you cannot associate your key dates with them yet. However, once you add a covenant on the Step Three: Contract Covenants page of the RE Contract Setup Wizard, you can return to the key date and select the covenant associated with it. There will be a reminder about this option when you reach that point in the procedures.

     18. Repeat step 1 to add another term.

2. Once your terms have been added, click Next.

   The Step Three: Contract Covenants page of the RE Contract Setup Wizard opens.

To add covenants to your contract:

1. Do one of the following:

   • To use a covenant from a template:

     1. Select the appropriate template from the Select Contract Template field.

        You can view information about a covenant by selecting a covenant from the field and then clicking the View .

     2. Click Add Covenants from Template.

        The covenants appear in the Covenants table.

        You can create templates which contain commonly used covenants and responsibilities. See our Configuring Covenant and Responsibility Templates for Contracts article to learn how..

   • To add a covenant manually:

     1. Click Add Covenant in the Covenants table.

        The Add Covenant window opens.

     2. Select the covenant group from the Group field.

        For example, “Lease”.

     3. Select the type of covenant from the Type field.

        Types of covenants could include (but are not limited to) cancellation, co-tenancy, and permitted use.

     4. Select the status of the covenant from the Status field.

        For example, “Active” or “Expired”.

     5. Select the category of the covenant from the Category field.

        The category is typically used to indicate whether this is part of the original agreement or an amendment.

     6. Enter the effective date of the covenant in the Effective Date field.

        You can also click Calendar to open the Date Picker and select the appropriate date.

        The effective date should automatically populate with the effective date that you entered in the Step One: Contract Summary Setup Page procedures above.

        Note:

        The Amendment is not relevant when you initially create your contract. However, if you are adding covenants to your contract and you want to associate a covenant with an amendment, you would select the amendment from this field. To learn how to create an amendment, see the Add an Amendment procedures.

     7. Select the Covenant Exists?check box to indicate whether the covenant currently exists in the existing lease.

        A common use case for this check box is for customers who implement standard covenants for their contracts. However, these customers may have existing leases that do not have some of these standard covenants. These standard covenants could be applied to their contracts on a global level at implementation, but the customer could indicate that the covenant does not currently exist on a specific contract by clearing the Covenant Exists? check box. Then, when it is time for the customer to renegotiate the contract, they can quickly and easily see which covenants should be negotiated in the new contract.

     8. Enter the section of the lease document that this covenant is from in the Section field.

     9. Select the Standard Language check box if the language of the covenant is standard for all of your leases.

     10. Enter the language of the covenant in the field below the Covenant Exists?check box.

     11. Enter the form or version number in the Form / Version # field.

     12. If there is a financial amount associated with this covenant, enter the amount in the Financial Amount field.

     13. If this covenant is related to an accounting adjustment such as a purchase option, cancellation, or residual value guarantee, select the appropriate accounting adjustment type from the Accounting Adjustment Type field.

     14. If you selected an accounting adjustment type in step n above, select the ASC 842 schedule that adjustment type will be associated with from the ASC 842 Schedule field.

     15. (IFRS firms only) If you selected an accounting adjustment type in step n above, select the IFRS 16 schedule that adjustment type will be associated with from the IFRS 16 Schedule field.

     16. (GASB firms only) If you selected an accounting adjustment type in step n above, select the GASB 87 schedule that adjustment type will be associated with from the GASB 87 Schedule field.

     17. If you will be allocating a percentage of a covenant expense to a secondary schedule, enter the allocation percentage in the Secondary Schedule Allocation field.

     18. If there is a key date associated with this covenant and you did not create it in previously, follow steps h - p of the Add Contract Terms Manually procedures above. If you did create a key date for this covenant, skip this step.

         Note:

         This will create a key date that will appear on the Key Dates page of your contract.

     19. To add supporting documentation to your covenant:

         1. Click Add Documents.

         2. Upload a Document.

     20. Enter the page where the covenant is referenced in the Page field.

     21. Enter the paragraph where the covenant is referenced in the Paragraph field.

     22. Enter the line where the covenant is referenced in the Line field.

     23. Click Add.

         The Add Covenant window closes. The covenant is added to your Covenants table.

2. Repeat step 1 to add another covenant.

3. To associate the covenant you just created with an option key date you previously created:

   1. Click Prev.

      The Step Two: Contract Terms and Options page opens.

   2. Click Edit in the Actions column next to the option you want to associate the covenant with.

      The Edit Contract Term window opens.

   3. Select the covenant you want to associate with this option from the Covenant field.

   4. Enter the section of the document that is associated with this covenant in the Section field.

      Note:

      The Amendment is not relevant when you initially create your contract. However, if you are adding terms to your contract and you want to associate a term with an amendment, you would select the amendment from this field. To learn how to create an amendment, see the Add an Amendment procedures.

   5. Click Update.

      The Edit Contract Term window closes.

   6. Click Next.

      The Step Three: Contract Covenants page opens.

4. Click Next.

   The Step Four: Responsibilities page opens.

To add responsibilities to your contract:

1. Do one of the following:

   • To add lease responsibilities from a template:

     1. Select the template you want to use from the Select Contract Template field.

        You can view the details of a template by clicking the View next to the Select Contract Template field.

     2. Click Add Responsibilities from Template.

        The responsibilities appear in the Responsibilities table.

        You can create templates which contain commonly used covenants and responsibilities. See our Configuring Covenant and Responsibility Templates for Contracts article to learn how..

   • To add lease responsibilities manually:

     1. Click Add Responsibility.

        The Add Responsibility window opens.

     2. Select the responsibility group from the Group field.

        Create a new group or category.

        Groups are the first level of organization in Lucernex. Groups are the parents of types, and grandparents of categories. Groups, types, and categories are used to simplify reporting.

     3. Select the type of responsibility from the Type field.

        If you want to create a new type, follow the Add a Type procedures.

        Types are the second level of organization in Lucernex. Types are the children of groups, and parents of Categories. Groups, types, and categories are used to simplify reporting.

     4. Select the maintenance category from the Maintenance Category field.

        If you want to create a new category code, follow the Add an Asset Category Code procedures.

     5. Select the party responsible for maintenance from the Maintain field.

        The values that you will typically use in this and the next two fields are “landlord” and “tenant”.

     6. Select the party responsible for repairs from the Repair field.

     7. Select the party responsible for replacement from the Replace field.

        Note:

        To add selectable values for the Maintain, Repair, or Replace fields, follow the Add a Group procedures.

     8. Select how the landlord will pass the cost of the responsibility to the tenant from the Pass-Through Type field

     9. Enter the cap amount in the Cap Amount field.

     10. Enter the cap percentage in the Cap Percent field.

     11. Select the Included in Rent Flag check box if the cost associated with this responsibility is included in the base rent.

     12. Enter the level of service the service person can offer in the Service Level field.

     13. Select the individual responsible for performing the service from the Service Person field.

         To add a new person, follow the Add a Person in the Add Person window procedures.

     14. Select the expected response time from the Response Time field.

     15. Enter the effective date of the responsibility in the Effective Date field.

         You can also click Calendar to open the Date Picker and select the appropriate date.

         This field should automatically populate with the effective date you entered earlier.

     16. Enter the expiration / end date of the responsibility in the Expire / End Date field.

         You can also click Calendar to open the Date Picker and select the appropriate date.

     17. Enter the financial amount associated with this responsibility in the Contract Amount field.

     18. Enter any comments in the Comments field.

     19. Select the covenant this responsibility is associated with from the Covenant field.

     20. Enter the section of the covenant this responsibility is associated with in the Section field.

         Note:

         The Amendment is not relevant when you initially create your contract. However, if you are adding responsibilities to your contract and you want to associate a responsibility with an amendment, you would select the amendment from this field. To learn how to create an amendment, see the Add an Amendment procedures.

     21. Click Add.

         The window closes. The responsibility is added to the Responsibilities table.

     22. Repeat step 1 to add another responsibility.

2. Click Next.

   The Step Five: Recurring Expenses page opens.

To add recurring expenses to your contract:

1. Do one of the following:

   • To generate only the basic details of your expense setup record:

     Note:

     Creating an expense setup record using this first method will automatically generate vendor allocations (for a single vendor) and expense schedules utilizing the information you provide. However, you will not be able to toggle certain settings such as applicable taxes and paying in arrears. We recommend that you use this method when you expect to have escalations at regular intervals, for consistent amounts.

     1. Select the expense group from the Expense Group field.

        Create a new group or category.

        Groups are the first level of organization in Lucernex. Groups are the parents of types, and grandparents of categories. Groups, types, and categories are used to simplify reporting.

     2. Select an expense type from the Expense Type field.

        To add an expense type, follow the Add an Expense Type procedures.

     3. Select an expense category from the Expense Category field.

        Create a new group or category.

        Categories are the third level of organization in Lucernex. Categories are the children of types, and grandchildren of groups. Groups, types, and categories are used to simplify reporting.

        Note:

        Any recurring expense with a category of Rent will be included in the following calculations: Natural Breakpoint, Aggregate Base Rent, Annual Base Rent, Expense Forecast, Report Fields – Financials (Calendar & Fiscal). See Expense Categories for more information.

     4. Enter a remittance message in the Remit Message field.

        This is the message that will appear on the memo line of a check.

     5. Select the vendor who should be paid from the Vendor field.

        To add an employer, vendor, or legal party, follow the Add a Vendor procedures.

        You can view a vendor’s information by selecting a vendor from the field and then clicking the View .

     6. Select the payment frequency from the Payment Frequency field.

     7. Enter the Start Date and the End Date for the expense.

        You can also click Calendar to open the Date Picker and select the appropriate date.

     8. Select the proration method from the Proration Method field.

     9. Enter the rentable area in the Rentable Area field.

        This field should pre-populate if you entered the rentable area in the Step One: Contract Summary Setup Page procedures above.

        Important!

        Do not enter 0 in the Rentable Area field. If you are not going to use rentable area, leave the field blank.

     10. Select the units you are using to measure your rentable area from the Area Unit field.

         This field should pre-populate with the area unit you selected in the Step One: Contract Summary Setup Page procedures above.Skip this step if this field is already populated.

     11. Select the appropriate option for how the system should calculate your payment amount:

         • Payment Amount: Use this option for monthly payments.

         • Annual Amount: Use this option for annual payments.

         • Rate: Use this option for entering rates, for example $25.00 per square foot. This option requires a value in the Rentable Area field.

         Important!

         Do not enter 0 in any of these fields. If you are not going to use a field, leave it blank.

     12. Enter the amount of the payment or the rate in the Starting Amount is: field.

     13. Select the currency that the payment will be in from the Currency field.

         If this expense should escalate, select the type of escalation from the Type of Escalation field.

     14. Enter the number of years between escalations in the Escalate Every (years) field.

     15. Enter the amount that the expense should escalate by in the Amount field.

     16. Click Generate Expense Setup Records.

         The expense setup record is added to Expense Setup Records table.

     17. Repeat steps a – p to add additional expense setup records.

   • To generate an expense setup record in greater detail:

     Note:

     Creating an expense setup record using this second method will allow you more options to toggle settings, but it will not automatically generate an expense schedule. We recommend this method when you expect to have escalations that do not follow a regular interval, or escalations that differ in amount.

     1. Click Add Expense Setup in the Expense Setup table.

        The Add Expense Setup window opens.

     2. Select the expense group from the Expense Group field.

        Create a new group or category.

        Groups are the first level of organization in Lucernex. Groups are the parents of types, and grandparents of categories. Groups, types, and categories are used to simplify reporting.

     3. Select an expense type from the Expense Type field.

        To add an expense type, follow the Add an Expense Type procedures.

     4. Select an expense category from the Expense Category field.

        Create a new group or category.

        Categories are the third level of organization in Lucernex. Categories are the children of types, and grandchildren of groups. Groups, types, and categories are used to simplify reporting.

        Note:

        Any recurring expense with a category of Rent will be included in the following calculations: Natural Breakpoint, Aggregate Base Rent, Annual Base Rent, Expense Forecast, Report Fields – Financials (Calendar & Fiscal). See Expense Categories for more information.

     5. Select the payment frequency from the Frequency field.

        Note:

        You can select your payments to be paid using English, Irish, and Scottish Quarters from this field. For more information about configuring your fiscal calendar, see the Fiscal Calendars procedures.

     6. Enter a description of the expense in the Description field.

     7. Select the currency that the payment will be in from the Currency field.

     8. Enter the rentable area in the Rentable Area field.

        Important!

        Do not enter 0 in the Rentable Area field. If you are not going to use rentable area, leave the field blank.

        This field should pre-populate with the rentable area you entered in the Step One: Contract Summary Setup Page procedures above.

     9. Select the units you are using to measure your rentable area from the Area Unit field.

        This field should pre-populate with the area unit you selected in the Step One: Contract Summary Setup Page procedures above. Skip this step if this field is already populated.

     10. Enter the pro rata share percentage in the Pro Rata Share field.

         Pro Rata Share refers to a proportionate share of an expense. For example, many contracts for tenants of indoor malls stipulate that each tenant pay a pre-determined percentage of common area maintenance (CAM) expenses.

     11. Enter the general ledger that this recurring expense will be charged to in the GL, Internal Ref # field.

         This field is information-only. You will still need to configure your account information when you create your expense types and allocations.

     12. Enter the cap of any percentage increases in the Percent Increase Cap field.

     13. If you will be allocating a percentage of the expense to a secondary schedule, enter the allocation percentage in the Secondary Schedule Allocation field.

         Learn more about Secondary Schedule Allocations.

     14. Enter a remittance message in the Remit Message field.

         This is the message that will appear on the memo line of a check.

     15. Select the payment method you will be using from the Payment Method field.

         Create a new group or category.

     16. Enter the number value of the due date in the Payment Due Day field.

         If your payment was due on the 15th of every month, you would enter 15 in the Payment Due Day field.

         Important!

         If your payment is due on the last day of the month, enter 0 in the Payment Due Day field.

     17. Select the proration method from the Proration Method field.

     18. Select or clear the following check boxes:

         • Apply Tax #1? to Apply Tax #4?: Applies the selected taxes set at the location level.

         • Taxes Included In Amount?: Indicates that taxes are included in the total expense amount.

         • Pay in Arrears?: Selecting this check box means that your payments will be considered paid at the end of the month. Therefore, interest expense in a schedule will accrue first before the payment is applied. One very distinct outcome of this is that a schedule that is paid at the beginning of the month should not have an interest expense in its last month.

         • A / R Flag: Select this flag if the expense setup record is for an accounts receivable item, also known as an income item.

           As part of their lease, lessees (typically sub-lessees) may sometimes receive a discount if payments are made within a certain period before the payment due date. If you have a clause like this in your lease, you may want to leverage the Early Payment Discount Option for A/R Leases.

         • Reconcilable?: Select this check box if the expense is reconcilable.

         • Ready For Payment: Select this check box to indicate this transaction is ready to be paid.

         • Hold Flag: Informational only. Select this check box to indicate that this payment should be held.

         • Include in Planning and Forecasting: Select this check box to make this expense available in the planning and forecasting feature in the accruals area.

     19. If you selected the Include in Planning and Forecasting check box, select the plan / forecast group to associate this expense setup with from the Plan / Forecast Group field.

         Create a new group or category.

     20. Enter any notes about planning and forecasting in the Planning and Forecasting Notes field.

     21. Enter any additional comments in the Comments, Additional Information field.

     22. To associate this expense setup with a covenant, select the covenant from the Covenant field.

     23. Enter the section of the covenant that refers to this expense setup in the Section field.

         Note:

         The Amendment is not relevant when you initially create your contract. However, if you are adding expenses to your contract and you want to associate an expense with an amendment, you would select the amendment from this field. To learn how to create an amendment, see the Add an Amendment procedures.

     24. Click Add.

         The Add Expense Setup window closes. Your new expense setup record appears in the Expense Setup Records table.

     25. Repeat steps a – x to add additional expense setup records.

         Once an expense setup record is created, you can add vendor allocations, expense schedules and escalations, and expense allocations. Follow steps 2 – 6 to learn how to perform these actions. If you do not want to perform these actions at this time, skip to step 7.

2. Click Edit link in the Actions column of the Expense Setup Records table.

   The Edit Expense Setup window opens. If the Edit Expense Setup window is too large, hover your cursor over the corner of the window. Your cursor will change to a resize cursor. Click and drag to resize the window.

3. To add a vendor allocation:

   Note:

   Your vendor allocations must total 100%.

   Allocations are processed in order from largest to smallest. The smallest allocation will receive what remains of a payment. This means that it is very important that vendor allocations are entered correctly. For example, if two vendors have been entered as having a 60-50 split when the allocation should have been 50-50, the first vendor would be paid 60%, while the second would be paid 40%.

   If a vendor allocation does not exist, transactions will still be generated with an empty Vendor field.

   Any changes to the vendor allocation will set current and future expense schedule statuses to Review. They will need to be approved using the Approvals Process procedures.

   1. Click Add Expense Vendor Allocation in the Vendor Allocations table.

      The Add Expense Vendor Allocation window opens.

   2. Select the vendor from the Vendor field.

      To add an employer, vendor, or legal party, follow the Add a Vendor procedures.

      You can view an vendor’s information by selecting a vendor from the field and then clicking the View .

   3. Enter the begin date and the end date for the allocation in the Begin Date and End Date fields.

      You can also click Calendar to open the Date Picker and select the appropriate date.

      Important!

      Leave the End Date blank unless you anticipate that your vendor will change.

   4. Enter the allocation percentage in the Payment Percent field.

   5. Enter any comments in the Comments field.

   6. Click Add.

      The window closes. The vendor allocation record appears in the Vendor Allocations table.

   7. Repeat steps a – f to add additional vendor allocations.

4. To add an expense schedule:

   Note:

   Any changes made to the expense setup with approved schedules will set the current and future schedules back to Review status. Any changes made to an individual expense schedule that is approved will set the approval status back to Review. To learn how to approve schedules, see the Approvals Process procedures.

   1. Click Add Expense Schedule in the Expense Schedule / Escalations table.

      A dialog box opens, asking if you want to use the Expense Schedule Wizard.

   2. Click No.

      The Add Expense Schedule window opens.

   3. Enter the begin date and end date of the expense schedule in the Begin Date and End Date fields.

      You can also click Calendar to open the Date Picker and select the appropriate date.

   4. Select the Hold Flag check box if this recurring expense should be listed as on hold.

      The Hold flag flows from the recurring expenses to the transaction record to show that the payment is on hold. The Hold flag will NOT prevent rent from being generated. To learn more about the Hold flag, see our article Hold and Processed Flags.

   5. Select Payment Amount or Annual Amount from the Calculate Amounts to tell the system on which amount to base its calculations.

      The Calculate Amounts appears below the Payment Amount, Annual Amount, First Payment, and Last Payment fields.

   6. Choose between three options:

      Important!

      Do not enter 0 in these three fields.

      • Enter the monthly payment amount in the Payment Amount field.

      • Enter the annual payment amount in the Annual Amount field.

      • Enter the rate in the Rate field, for example, $25 per square foot.

   7. If you need to override the value for the First Payment and Last Payment fields, enter the correct value in the appropriate field.

      The system will calculate these values based upon the proration method you chose for your expense setup record.

   8. Enter a description of the expense schedule in the Description field.

   9. Select the adjustment method type from the Adjustment Method Type field.

      Adjustment method types are user-defined and information-only. Common adjustment method types include Consumer Price Indexes (CPIs), Fixed Amounts, and Percentages. This field is used for reporting.

   10. Enter the reasoning for the adjustment in the Adjustment Method field.

       The Adjustment Method is information-only. This field allows you to enter why you made the adjustment.

   11. Select the Option Rent check box to identify the expense schedule record as part of an option, as opposed to an expense schedule included in the original term of the contract.

   12. To override the amount of taxes calculated by the system, enter the dollar amount in the Primary Tax, Secondary Tax, and Tertiary Tax fields in the Override Amount column.

       The system automatically estimates the amount of taxes you will pay based upon the tax rate of your asset’s associated entity.

       Important!

       Do not enter 0 in these fields. These fields are used in the scenario that a user needs to override a pre-calculated tax amount.

   13. Add any additional comments in the Additional Comments field.

   14. Click Add.

       The Add Expense Schedule window closes. Your new expense schedule appears in the Expense Schedule / Escalations table in the Edit Expense Setup window.

   15. Repeat steps a – o to add additional expense schedules.

       You can have multiple expense schedules per expense type.

5. To add an expense allocation:

   Note:

   Your expense allocations must total 100%.

   1. Click Add Expense Allocation in the Expense Allocations table.

      The Add Expense Allocation window opens.

   2. Enter the begin date and the end date for the allocation in the Begin Date and End Date fields.

      You can also click Calendar to open the Date Picker and select the appropriate date.

   3. Enter the allocation percentage in the Allocation Percentage field.

   4. Select the organization from the Organization field.

      An organization is an internal cost center that is debited for payments.

      To add an organization, follow the Add an Organization procedures.

      You can view a organization’s information by selecting an organization from the field and then clicking the View .

   5. Enter any comments in the Comments field.

   6. Click Add.

      The window closes. The expense allocation record appears in the Expense Allocations table.

   7. Repeat steps a – f to add additional expense allocations.

6. Click Update in the bottom-right corner of the Edit Expense Setup window.

   The Edit Expense Setup window closes. Your expense setup is updated.

7. Repeat steps 1 – 6 to add additional expense setup records.

8. Click Next.

   The Assign Members page of the RE Contract Setup Wizard opens.

The final step of the RE Contract Setup Wizard allows you to assign members to the contract. Assigning a member allows that member to access specific folders, documents, pages, fields, and actions within the contract. A member is any Lucernex user with a unique login ID and password. Before a member can have access to any part of a contract, you must first set up that member in your firm. This must only be done once for each Member.

Once a Lucernex user is set up as a Member of your Firm, they must be added to each contract and assigned user classes. The Member’s User Class determines which folders, documents, pages, fields, and actions within the contract that member may access.

Set Up a Member

Assign Members to a Contract

To finish setting up your contract:

1. If you need to make any more changes to your contract, click Previous in the bottom-right corner of the RE Contract Setup Wizard window.

   This will return you to the previous steps in the contract setup process. You can make any necessary changes before completing the contract.

2. Once you are satisfied that your contract is complete, click Finish in the bottom-right corner of the RE Contract Setup Wizard window.

   The RE Contract Setup Wizard window closes, and your browser refreshes the page. Your new contract appears on the page.

To set up alternate rent using the Alternate Rent Wizard:

1. Click Alternate Rent.

   This displays in the Actions menu on the right side of the page.

   The Alternate Rent Wizard window opens.

2. Enter the begin date in the Begin Date field.

   You can also click Calendar to open the Date Picker and select the appropriate date.

   Typically, you will not know when an alternate rent scenario will end. For this reason, your End Date is not required.

3. Enter the description of the alternate rent scenario in the Description field.

4. Enter notes in the Notes field.

5. Select one of three options from the Alternative Rent Options field:

   • Pay Both Recurring and Percentage Rent

   • Pay Greater of Recurring or Percentage Rent

   • Pay Lesser of Recurring or Percentage Rent

     Important!

     This field is for record keeping purposes only. It has no functional impact on the generated payment . Once you generate alternate rent, you will need to approve or reject the appropriate payments from the Approve Payments window.

6. Select the Changes in Recurring Expenses? check box if you want the alternate rent record to impact changes in recurring expenses.

7. If the Changes in Recurring Expenses? check box is selected, select one of the four following option bullets:

   • Continue To Pay: changes to your recurring expenses are paid as entered into the system. For example, you could keep the original schedule but mark all transactions with the Hold flag while in alternate rent.

   • Stop Payment: places a stop payment on the selected expenses.

   • Reduce by % Amount: reduces the amount of a generated transaction by a percentage amount. Enter the percentage amount in the Reduction Percent (this field does not appear until the Reduce by % Amount option is selected).

   • Reduce by Fixed Amount: reduces the amount of a generated transaction by a fixed amount. Enter the fixed amount in the Reduction Amount (this field does not appear until the Reduce by Fixed Amount option is selected).

8. To set a Hold flag on all transactions generated while the contract is in alternate rent:

   1. Ensure that the Put on Hold Recurring Expense Payment Transactions? check box is selected.

      Important!

      This flag is information-only.

   2. Select the check box next to the expense setup you want to place on hold in the table below the Put on Hold Recurring Expense Payment Transactions? check box.

      Only one expense setup can be selected per alternate rent record.

      The Hold flag flows from the recurring expenses to the transaction record to show that the payment is on hold. The Hold flag will NOT prevent rent from being generated. To learn more about the Hold flag, see our article Hold and Processed Flags.

9. If your alternate rent scenario is specific to changes in the percentage rent schedule:

   Note:

   Sometimes a simpler treatment of percentage rent applies in alternate rent scenarios. This means that there might be no breakpoints, caps, or floors.

   1. Select the Changes in Percentage Rent? check box.

      Additional fields appear.

   2. Select the appropriate sales group from the Sales Group field.

      In alternate rent scenarios, different sales figures can apply.

      Any percentage rent schedules with this sales group will be affected if they fall within the time range of the alternate rent schedule.

      To add a sales group, follow the Add a Sales Group procedures.

   3. Select one of three options:

      • Continue to Pay: Leave this option selected if you would like to continue paying the recurring expenses at the amount specified in expense schedule.

      • Stop Payment: Select this option if you would like no transactions to be generated for the time in which the contract is in alternate rent.

      • Pay X% of Gross Sales: To calculate your percentage rent based on gross sales rather than breakpoints:

        1. Select the Pay X% of Gross Sales option.

           Two fields appear.

        2. Enter the percent rent rate you would like to pay in the Percent Rent Rate field.

        3. Select the Deduct Exclusions check box if you would like to continue to deduct exclusions from your percentage rent.

   4. Enter the minimum, or floor cap in the Monthly Min Cap (Floor) field.

   5. Enter the maximum, or ceiling cap into the Monthly Max Cap (Ceiling) field.

10. If you would like to set a Hold flag on all percentage rent transactions generated while the contract is in alternate rent, ensure that the Put on Hold Percentage Rent Payment Transactions? check box is selected.

    The Hold flag flows from the recurring expenses to the transaction record to show that the payment is on hold. The Hold flag will NOT prevent percent rent from being generated. To learn more about the Hold flag, see our article Hold and Processed Flags.

11. Click Create Alternate Rent.

    The alternate rent schedule is created. It appears in the Alternate Rent Schedule List.

12. To add another alternate rent record, repeat steps 3 – 13.

13. To view your alternate rent scenario in the Contract Expense Forecast:

    1. Navigate to Contract > Payment Info > Recurring Expenses.

       Use the links in the Navigation Pane on the leftmost side of the page.

    2. Select Contract Expense Forecast from the field to the left of the Actions menu on the right side of the page.

    3. Select the expense type that is in alternate rent from the for Expense Type field.

    4. Find the month and year when the begin date of your alternate rent scenario occurs in the Contract Expense Forecast table.

       The change in alternate rent appears in the cell.