Recoveries - Contract Module

To add a recovery:

Do one of the following:

• To set up a recovery using the Recovery Setup Wizard, follow the Recovery Setup Wizard procedures below.

• To set up a recovery manually:

  1. Click Add Item.

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

  2. Select the recovery group from the Recovery 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 recovery type from the Recovery 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. Enter the begin date and end date for the recovery in the Begin Date and End Date fields.

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

     Your beginning and end dates should span the whole year, unless the building is new—for example, if the building was first built in June, you would not enter a reconciliation for the whole year because there were no expenses prior to June.

  5. Select the status of the recovery from the Status field.

     This status drop-down is informational-only. You are not required to receive approval for recoveries.

  6. 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.

  7. Select the expense type from the Expense Type field.

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

  8. Select the payment frequency from the Payment Freq. field.

     The payment frequency refers to how often you make payments for your estimated expenses.

  9. Select the reconciliation frequency from the Reconciliation Freq. field.

     Important!

     Do not select the Complete? check box until the recovery is complete. Once the recovery is marked as complete, it is not possible to make adjustments.

  10. Select the calculation method from the Calculation Method field.

      The values in this field are information-only, and have no functional impact.

  11. Select the payment method from the Payment Method field.

      Create a new group or category.

  12. Select the expense basis from the Expense Basis field.

      The expense basis is how your expense values are being determined.

      Create a new group or category.

  13. Enter the number of days you have been a tenant in the Occupancy (#days) field.

      Note:

      The Occupancy (#days) is used by the system to prorate your costs. If you leave this field blank, the system will assume that you were a tenant for the entire year (100% occupancy factor). We recommend that you leave this field blank unless you were a tenant for less than the entire year. This eliminates the chance of error in situations where the reconciliation year is a leap year.

  14. Select how the landlord determines your pro rata share from the Pro Rata Share Method field.

      Create a new group or category.

      The system has a feature that will calculate your pro rata share from the ratio of gross leasable area to total rentable area. See step 2 of the Enter Your Recovery Data procedures to learn how to use this feature.

  15. Enter the base year in the Base Year field.

  16. Select the base year type from the Base Year Type field.

      Create a new group or category.

  17. Enter the base year amount in the Base Year Amount field.

  18. Enter the period that you perform your recovery in the Recovery Period field.

  19. Select the cap type from the Cap Type field.

      Create a new group or category.

  20. Enter any notes about additions, exclusions, and deductions in the Additions, Exclusions, & Deductions field.

  21. Do one of the following:

      • Enter the cumulative cap percentage per period change in the Cap Amount Per-Period Change (Percent) field.

        On the Contract Expense Recovery (Net) page, the cap percentage is a percentage of the prior approved amount.

      • Enter the cumulative cap value per period change in the Cap Amount Per-Period Change (Value) field.

        The cap limits the amount that the landlord can charge for expenses. Caps are applied against the approved amount, but they do not stop you from entering values above the approved amount.

  22. Select the Is Escalation Non-Cumulative? check box if the escalation is non-cumulative.

  23. Enter the following dates:

      • Date Received

      • Tenant Due Date

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

  24. If you want to use a different currency for your recovery transaction, select your preferred currency from the Currency field.

      This field auto-populates based on the currency set for the expense setup that shares the same expense group and expense type as the recovery. If the expense group and expense type are not specified, the currency will auto-populate with the currency from the contract-level.

  25. Click Save Changes.

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

      The page refreshes. Your recovery record appears in the Contract Expense Recovery List.

  26. If it is not already selected, select the recovery record you just created from the Contract Expense Recovery List.

      The values in the Current Period sub-section are now clickable.

      If you have performed a recovery in Lucernex before, the values will appear in the Prior Period section of the page.

To enter your recovery data:

1. Follow a procedure below.

   Add Controllable or Grouped Expenses

   To enter your controllable, or grouped expenses:

   1. Click the link in the Reported column of the Grouped Expenses row.

      The link should appear as a currency amount, such as $0.00.

      A window opens.

   2. Click Add Expense Recovery Item.

      The Add Expense Recovery Item window opens.

   3. Select the recovery item group from the Recovery Item 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.

      For the sake of usability in reporting, limit the number of recovery item groups you create.

   4. Select the recovery item type from the Recovery Item 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.

   5. Select the status of the recovery item from the Status field.

   6. Do one of the following:

      • Enter an admin fee percentage in the Admin Fee Percentage field.

      • Enter an admin fee amount in the Admin Fee Amount field.

   7. Do one of the following:

      • Enter a cap percentage in the Cap Percentage field.

      • Enter a cap amount in the Cap Amount field.

   8. Enter the reported amount for the period in the Reported Amount field.

   9. Enter the budgeted amount for the period in the Budgeted Amount field.

   10. Enter the approved amount for the period in the Approved Amount field.

       Note:

       If you entered recoveries for the previous period, they will appear in the Prior Period column. The system will automatically calculate your admin fee based on the amounts you entered. The system will also automatically calculate the variance amount and the total amount.

   11. Enter any notes about the recovery item in the Notes field.

   12. Click Add.

       The expense recovery item appears in the Expense Recovery Item List.

   13. Repeat steps b - l to add another expense recovery item.

   14. Once you have finished entering expense recovery items, click Finish.

       The values you entered are populated across the Reported, Approved, and Budgeted columns of the Current Period section. Your Reported values are what the landlord claims you owe, the Budgeted values are what you expected to owe, and the Approved values are what you end up saying you owe after looking at all the factors that contribute. The variance between your values is automatically calculated and populated by the system.

   15. Enter the cap amount for your grouped expenses in the Group Cap Amount field.

       Note:

       On the Contract Expense Recovery page, the Group Cap Amount is applied against the total of your Grouped / Controllable Expenses.

   Add Non-Controllable or Additional Expenses

   Non-controllable or additional expenses could include items that cannot be predicted or capped, such as snow removal or additional security costs.

   Additional expenses are not subject to the group cap amount.

   To enter your non-controllable, or additional expenses:

   1. Click the link in the Reported column of the Additional Expenses row.

      The link should appear as a currency amount, such as $0.00.

   2. Follow steps b - l of the Add Controllable or Grouped Expenses procedures above.

   Add Deductions

   To enter your deductions:

   1. Click the link in the Reported column of the Deductions row.

      The link should appear as a currency amount, such as $0.00.

   2. Follow steps b - l of the Add Controllable or Grouped Expenses procedures above.

2. If your admin fees are charged as a percentage, enter the admin fee percentage in the Admin Fee Percent fields of the Reported, Approved, and Budgeted columns.

   Note:

   The admin fee percent amount is automatically calculated by the system for the three columns. On the Contract Expense Recovery page, the Admin Fee is calculated as a percentage of your subtotal. On the Contract Expense Recovery (Net) page, the Admin Fee is calculated as a percentage of your approved amount.

3. Follow a procedure below.

   Add Admin Fees as Amounts

   If your admin fees are entered as amounts:

   1. Click the link in the Reported column of the Admin Fees row.

      The link should appear as a currency amount, such as $0.00.

   2. Follow steps b - l of the Add Controllable or Grouped Expenses procedures above.

   Add Expenses Not Subject to Group Admin Fees

   To add any expenses not subject to the group admin fees:

   1. Click the link in the Reported column of the Additions row.

      The link should appear as a currency amount, such as $0.00.

   2. Follow steps b - l of the Add Controllable or Grouped Expenses procedures above.

   Add Itemized Deductions

   To add itemized deductions:

   1. Click the link in the Reported column of the Recoveries row.

      The link should appear as a currency amount, such as $0.00.

   2. Follow steps b - l of the Add Controllable or Grouped Expenses procedures above.

4. Enter the gross leasable area in the Gross Leasable Area fields of the Reported, Approved, and Budgeted columns.

   Note:

   The rentable area automatically populates if you entered it at the contract level.

5. Do one of the following:

   • Enter the pro-rata share in the Pro-Rata Share of the Reported column.

     Use this option if you have a negotiated pro-rata share that is not dependent upon your gross leasable area.

   • Click Calculator next to the Pro-Rata Share fields of the Approved and Budgeted columns.

     The pro-rata share is calculated by the system based upon your gross leasable area and rentable area.

6. Enter any prepaid amounts in the Pre-Paid Amount fields of the Reported, Approved, and Budgeted columns.

   The Set Pre-paid Amount window on the Recoveries page has filtering based on currency type:

   1. The window is filtered based on the currency of the expense recovery.

   2. If the expense recovery does not have a currency, the window is filtered based on the currency set for the contract.

   3. If there is no currency set for the contract, the window filters based on the currency of the location.

   4. If there is no currency set for the location, the window filters based on the default currency of the firm.

   To associate posted transactions to the Pre-Paid Amount of the Approved column:

   1. Click View next to the Pre-Paid Amount of the Approved column.

      The Set Pre-Paid Amount window opens, with a table of applicable transactions.

   2. Find the transaction you want to associate with the prepaid amount.

   3. Select the check box in the left-most column of the transaction.

      You can select more than one transaction. The Total Amount at the bottom of the window updates with the total of the currently selected items.

   4. Click Set Pre-paid Amount.

      The window closes. The total of the transactions you selected appears in the Pre-Paid Amount of the Approved column.

7. Enter any adjustment amounts in the Adjustment Amount fields of the Reported and Approved columns.

   The adjustment amount value can be entered as a positive or negative number.

   Important!

   The Current Amount, Percent Increase, New Amount, and Catch-Up Payment fields are from the Lucernex legacy software. The first three fields are information-only, and the Catch-Up Payment was used to generate catch-up payments. Instead of using this field, we recommend that you use the Retroactive Payments functionality to create catch-up payments and update your escrow.

8. Enter any comments in the Comments field.

   Important!

   Always enter comments when you make an adjustment.

9. To attach documents to your recovery record:

   1. Click Add Documents.

   2. Upload a document.

10. Select the covenant you want to associate with this recovery from the Covenant field.

11. Enter the section of the document that is associated with this recovery in the Section field.

12. If this recovery is associated with an amendment, select the amendment from the Amendment field.

    You can view information about an amendment by selecting an amendment from the field and then clicking the View .

13. Click Save Changes.

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

    The page refreshes. A message appears, confirming that your changes have been saved.

1. Select the recovery you want to delete from the Contract Expense Recovery List.

2. Click Delete Item.

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

   A dialog opens, asking you to confirm your choice.

3. Click Yes.

   The recovery is deleted. It no longer appears in the Contract Expense Recovery List.

These are generic procedures that are common across all or multiple areas of Lucernex. As such, these procedures do not call out specific navigation to the page.

To view the audit log:

1. Select the record whose audit log you want to view from the list at the top of the page.

2. Click Audit Log.

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

   The Audit Log window opens, displaying a list of changes.

   There are three click-able areas in the Audit Log:

   • If you click a link in the Entity column a window will open with all activity for the associated entity.

   • If you click a link in the Item ID column a window will open with all activity for a specific item, such as a straight line summary record for a contract. The Item ID is a unique identifier that persists indefinitely for that particular record.

   • Occasionally items in the Old Value or New Value columns will be hyperlinked because those fields are hyperlinked in the system. These hyperlinks have no associated functionality.

You can create a printable view of the data on the page.

1. If the page has a list layout, select the record you want to print from the list at the top of the page.

2. Click Printable View.

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

   A window opens, with the page data in a printer-friendly format.

3. Print the contents of the window.

To perform a reconciliation:

1. If it is not already selected, select the recovery record you want to reconcile from the Contract Expense Recovery List.

   The recovery information populates on the page.

2. Click Reconcile.

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

   The Reconcile window opens.

3. Enter the following dates:

   • Effective Date

   • Posting Date

   • Due Date

   • Invoice Date

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

4. Enter the invoice number in the Invoice Number field.

5. Select the Send Email? check box if you want an email confirmation once the reconciliation is processed.

6. Enter a description in the Payment Description field.

7. Do one of the following:

   • If you want to use the vendor allocations for the existing recurring expense record, select the Allocate by Vendor check box.

   • If you want to pay a different vendor or you do not have vendor allocations on the existing recurring expense record, 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 an vendor’s information by selecting a vendor from the field and then clicking the View .

8. Click OK.

   The window closes.A Success window opens.

9. Click OK.

   The dialog box closes.

10. Select the Complete? check box in the right side of the Expense Recovery Summary table once the reconciliation is complete.

11. To view the generated transaction, navigate to Contract > Payment Info > Transactions.

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

    The transaction appears in the Contract Payments List.

    Important!

    You will need to approve and process the payment. See the Approvals Process and Generate Payments procedures.

The Update Escrow tool is part of Lucernex's legacy recoveries functionality. The best practice for updating escrow data is by following the Retroactive Payments procedures.

To set up a recovery using the Recovery Setup Wizard:

1. Click Recovery Setup in the Actions menu on the right side of the page.

   The Recovery Setup window opens.

2. Enter the Begin Date and End Date.

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

3. Select one of three options:

   Note:

   This value is an escalation on the prior year’s value for the cap, not on escalation on the prior year’s actual amount paid. This value is sometimes referred to as “cumulative group escalations”.

   • No Escalation: Select this option if you do not want an escalation over the group cap.

   • Escalation Amount: Select this option if you do want an escalation over the group cap, and enter the escalation amount in the field that appears.

   • Escalation Percent: Select this option if you do want an escalation over the group cap, and enter the escalation percent in the field that appears.

4. If you selected the Escalation Amount option or the Escalation Percent option in step 5:

   1. Choose the appropriate option:

      • Enter the cap for the escalation amount in the Escalation Amount field.

      • Enter the cap for the escalation percent in the Escalation Percent field.

   2. Do one of the following:

      • Select the Cumulative option if you want to automatically escalate your cap amount.

        An example of a cumulative escalation cap is a cap that increases by 5% every year. Landlords prefer this option because it gives them a higher threshold to recover expenses against.

      • Select the Non Cumulative option if you want to escalate your cap based upon the lesser of either your previous year’s cap or your previous year’s grouped expenses.

        An example of a non-cumulative escalation cap is a cap that is either 5% above the previous year’s cap, or 5% above the previous year’s total grouped expenses, whichever is lower.

        If you select the Non-Cumulative option, the Is Escalation Non-Cumulative check box will be automatically selected on your recovery record.

5. Clear the check boxes for the following items if you want to maintain their values from the prior period. If you want to have their values from the prior period removed, leave their check boxes selected.

   • Reported Amounts

   • Approved Amounts

   • Budget Amounts

6. Click OK.

   The window closes, and the page refreshes. The new recovery record appears in the Contract Expense Recovery List.

7. Select the recovery record from the Contract Expense Recovery List.

   The recovery record’s data populates on the page.

8. Review the data in the Expense Recovery Summary and Assumptions sections.

9. Follow steps z - ap of the Add a Recovery procedures above.

You can save a page to your documents.

1. Click Save to Documents.

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

   A window opens.

2. Select the folder where you want to save the document from the Folder for Generated Document field.

3. Enter a File Name.

4. Select Send email notifications? to send an email notification to anyone who is a member of the folder.

5. Click Save.

   The window closes. The document is saved.

6. To view your document:

   1. Navigate to the Documents page.

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

      The Documents page is a third-level tab under the Details sub-tab.

   2. Navigate to the folder where you saved the document.

      The document will appear in the folder.

These are generic procedures that are common across all or multiple areas of Lucernex. As such, these procedures do not call out specific navigation to the page.

The Link provides direct links and XML data for exports into TRAIN.

• To access the Links to this page window, click Link.

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

  The Links to this page window opens.

Entity Links

• Page URL for current [Entity]: Provides the link for the current page in the UI.

• Page URL for [Entity] '[Name Here]': Provides a direct link to the page in the UI for the specific entity that you are currently viewing.

  This URL is useful when you want to share a direct link to a page via email.

• Top Menu Item URL for current [Entity]: Provides a direct link to this page for use in your top menu.

Export as XML Options

To export XML data for this page:

1. Enter any XML elements you want to include in the XML element includes field.

2. Enter any XML elements you want to exclude in the XML element excludes field.

3. Select or clear the following check boxes as necessary:

   • Want firm defined fields: Include your user-defined fields.

   • Want referenced records: Include referenced records, such as location data for a contract.

   • Include all records of this type: Include all records of a particular entity type, such as a contract, location, or portfolio.

   • Importing into a different firm / env: Select if you will be importing this data into a different firm or environment.

4. Click Export.

   The export processes. An Export Status window opens.

5. Click Save XML File.

   A Save dialog box opens.

6. Save the file somewhere you will be able to find it on your computer.