Example Retroactive Payments Scenario
It is March of 2015, and there is a change to the Base Rent expense effective as of January 2015. This escalation is due to a CPI increase. The current payment amount is $1,000.00 per month. As of January, the payment amount should have been $1,500.00 per month. The expense schedule needs to be updated so that going forward the payments will be generated at the new amount, and catch up payments need to be created for the months that have already been paid at the old amount.
Original Expense Schedule Calculation
The following table lists the basic values necessary for the original expense schedule calculation.
| Begin Date | End Date | Payment Amount |
|---|---|---|
| 01/01/2010 | 12/31/2029 | $1,000.00 |
What Values Should Be Entered in the Retro-Payment Setup window?
The following list contains the data that is entered in the Retro-Payment Setup window.
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Retro Date: 01/01/2015
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New Effective Date: 04/01/2015
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New End Date: 12/31/2029
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Posting Date: 04/01/2015
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Due Date: 04/01/2015
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New Payment Amount: $1,500.00
New Expense Schedule Information
The following table lists basic information about the new expense schedule.
| Begin Date | End Date | Payment Amount | Description |
|---|---|---|---|
| 01/01/2015 | 03/31/2015 | $1,000.00 | Old Schedule |
| 01/01/2015 | 03/31/2015 | $500.00 | Catch-Up Payment Schedule |
| 04/01/2015 | 12/39/2029 | $1,500.00 | New Schedule |
Generated Transactions*
The following table lists the transactions generated by the retro payment.
| Effective Date | Posting Date | Due Date | Amount |
|---|---|---|---|
| 01/01/2015 | Date Generated | Date Generated | $500.00 |
| 01/01/2015 | Date Generated | Date Generated | $500.00 |
| 04/01/2015 | Date Generated | Date Generated | $500.00 |
*If the Create Retro Payment as One Lump-Sum? check box had been selected, the system would have instead generated one payment on 01/01/2015 for $1,500.00.
