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Expense Group: Select a group or create a new group or category and select it.
Groups are the first level of organization. These are the parents of types, and grandparents of Categories. Use groups, types, and categories to simplify reporting.
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Expense Type: Select an expense type or add a new Expense Type and select it.
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Expense Category: Select an expense category or create a new group or category and select it.
Categories are the third level of organization. These are the children of types, and grandchildren of Groups. Use groups, types, and categories simplify reporting.
Recurring expenses with a category of Rent are included in calculations such as Natural Breakpoint, Aggregate Base Rent, Annual Base Rent, Expense Forecast, Report Fields – Financials (Calendar & Fiscal). We recommend that you use four expense categories.
Important!
Do not delete or edit the Rent category. It has functionality in the system.
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Frequency: Payment frequency. If you select a frequency other than Monthly, the Monthly Amount is replaced with a Period Amount field. You can select your payments to be paid using English, Irish, and Scottish quarters to match the fiscal calendar you use.
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Description
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Currency: Currency that the payment will be made in.
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Rentable Area: Amount of space in the selected Area Unit that is rentable. Do not enter 0. If you are not going to use rentable area, leave it blank.
This populates with the rentable area you entered in Step One: Contract Summary Setup Page.
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Area Unit: Units to measure the Rentable Area in. This populates with the valus you entered in Step One: Contract Summary Setup Page.
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Pro Rata Share: Proportionate share of the 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.
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GL, Internal Ref #: General ledger to charge this recurring expense to.
This is only for information. You must configure your account information when you create your expense types and allocations.
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Secondary Schedule Allocations:
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Enter a Secondary Schedule Allocation percentage to allocate a percentage of the expense to a secondary schedule.
OR
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Enter the Secondary Rent Schedule Allocation Amount to allocate an amount of the expense to a secondary schedule.
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Remit Message: Enter the message you want to appear on the memo line of a check.
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CPI Index: Select the CPI Index this expense setup should be associated with. To view information about a CPI index, select an index from the field then click View
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If this not a CPI-indexed expense, do not select a CPI Index. If you are using Daily Rent, this field does not display.
If you have added a contract-level CPI index, this CPI index is labeled Contract Specific in the CPI Index field. Review our Frequently Asked Questions about CPI Indexes.
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CPI Notes: Enter notes about your CPI Index. If you use Daily Rent, this field does not display.
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Payment Method: Select the payment method you will use or create a new group or category.
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Payment Due Day: Enter the numeric value of due day. For example, if your payment is due on the 15th of every month, enter 15.
If your payment is due on the last day of the month, enter 0.
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Proration Method: Proration is disabled in the first period of a re-measured Straight Line schedule, because doing so changes the total obligation. If you use Daily Rent, this field does not display.
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Annual (actual): When calculating a partial period, the system uses the annual amount divided by the actual number of days in the year. Then, it multiplies by the number of days in the period.
Normal years use 365 days and leap years use 366 days.
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Annual 360: When calculating a partial period, the system uses the annual amount divided by 360 days. Then, it multiplies by the number of days in the period.
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Annual 365: When calculating a partial period, the system uses the annual amount divided by 365 days. Then, it multiplies by the number of days in the period.
The system uses 365 as the denominator even if it is a leap year.
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Monthly (actual): When calculating a partial period, the system uses the period amount such as the monthly or quarterly expense amount and divides it by the number of days in that period. Then, it multiplies by the number of days in the period.
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Apply Tax #1? to Apply Tax #4?: Apply the selected taxes set at the location level.
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Taxes Included In Amount?: Indicates that taxes are included in the total expense amount.
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Pay in Arrears?: Select to consider your payments paid at the end of the month. This means 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.
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A / R Flag: Select 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.
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Reconcilable?: Select if the expense is reconcilable.
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Ready For Payment: Select if this transaction is ready to be paid.
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Hold Flag: Informational only. Select if this payment should be held.
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Include in Planning and Forecasting: Select to make this expense available in the planning and forecasting feature in the accruals area.
Review the Plan / Forecast page.
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Plan / Forecast Group: If you selected Include in Planning and Forecasting, select the plan / forecast group to associate this expense setup with or create a new group or category.
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Planning and Forecasting Notes
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Comments, Additional Information
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Covenant: To associate this expense setup with a covenant, select the covenant.
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Section: Section of the covenant that refers to this expense setup.
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Amendment: Select Amendment this recurring expense is associated with. To view the details of an amendment, click View next to Amendment.
Add Expense Setup