Daily Rent in Lucernex

Daily rent is calculated using the following formula:

Payment Amount = (number of days in coverage period) * (daily rent rate)

Then, the system will apply any relevant tax rates to the total payment amount for the period.

ASC 842, IFRS 16, GASB 87

• In an ASC 842, IFRS 16, or GASB 87 schedule with a monthly fiscal calendar—where the expense schedule has a Monthly frequency and a daily rent rate—you can see the cash varying from month to month with values in line with the number of days in the month.

• In an ASC 842, IFRS 16, or GASB 87 schedule with a 4-4-5 fiscal calendar—where the expense schedule has a Monthly frequency and a daily rent rate —you can see the cash varying from month to month, including instances of 4-week periods with no cash and instances of a 5-week period with two months' cash.

• In an ASC 842, IFRS 16, or GASB 87 schedule with a monthly fiscal calendar—where the expense schedule has a Quarterly frequency and a daily rent rate—you can see the cash appearing in the payment quarter months with values in line with the number of days in the quarter.

Straight Line

• In a Straight Line schedule with a monthly fiscal calendar—where the expense schedule has a Monthly frequency and a daily rent rate—you can see the cash varying from month to month with values in line with the number of days in the month.

• In a Straight Line schedule with a 4-4-5 fiscal calendar—where the expense schedule has a Monthly frequency, a daily rent rate, and a Per Period proration rate—you can see the proration maps to the number of days multiplied against the daily rent rate.

To create a new expense setup page:

1. Click Admin in the toolbar in the upper-right corner of the window.

   The System Administrator Dashboard page opens.

2. Click Manage Page Layouts link in the Company Administration column.

   The Manage Summary Pages page opens.

3. Select the Manage List Layouts tab.

   The Manage List Layouts page opens.

4. Click Add Item in the lower-right corner of the List Layouts table.

   The Add Item window opens.

5. Enter the name of the page layout in the Page Layout Name field.

6. Enter a description of the page layout in the Description field.

   We recommend that you add descriptions to every template, layout, or field you create in Lucernex, so that subsequent administrators will understand the purpose and context of the items you create.

7. Select the Contract > Payment Info > Recurring Expenses folder from the Parent Tab field.

8. Select Expense Setup from the Primary Table field.

9. Select the Yes option for the Allow Edit setting.

10. If you want the list layout to have even column widths, select the Even Column Widths?check box.

11. Select the Contract Expense Setup [Global Layout] layout from the Initialize layout from existing layout field.

12. Select the portfolio you want this list layout to be available for from the Available for the following Portfolios / Capital Programs field.

    All Portfolios / Capital Programs is selected by default. You can select multiple options.

13. Click Add.

    The window closes. The list layout appears in the Manage List Layouts table.

14. Follow the Add the Daily Rent Check Box to Your Expense Setup Layout procedures below.

For more information about how to configure a page layout, see the Page Layout Editor page.

To add the Daily Rent check box to your expense setup layout:

1. Click Admin in the toolbar in the upper-right corner of the window.

   The System Administrator Dashboard page opens.

2. Click Manage Page Layouts link in the Company Administration column.

   The Manage Summary Pages page opens.

3. Select the Manage List Layouts tab.

   The Manage List Layouts page opens.

4. Find the layout you want to edit.

5. Click Build Layout link in the Actions column of the list layout you want to build.

   The Layout Builder opens in a window.

6. Select the Edit Layout tab.

   The Page Layout Editor opens.

7. Enter Daily Rent in the Search field.

   The field appears in the Search pane.

8. Drag the field to the layout.

9. Drop the field on a icon in the layout.

   The field is added to layout.

10. Once you are satisfied with your layout, click Save Layout.

    The window closes. Your changes are saved.

11. Follow the Enable Daily Rent procedures below.

To enable daily rent for an expense setup:

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

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

2. Select your expense setup page layout from the field to the left of the Actions menu, if it is not your default page.

3. Select the expense setup you want to use with daily rent from the Expense Setup List.

4. Select the Daily Rent check box.

   Once the Daily Rent check box is selected, the CPI Index field, the CPI Notes field, and the Proration Method no longer appear on the page.

5. Click Save Changes.

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

   The page refreshes. Your changes are saved.

To create a daily rent expense schedule:

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

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

2. Select your expense setup page layout from the field to the left of the Actions menu, if it is not your default page.

3. Select the expense setup you want to use with daily rent from the Expense Setup List.

   The expense setup's data populates on the page.

4. Scroll down to the Expense Schedule / Escalations section of the page.

5. Click Add Expense Schedule.

   The Add Expense Schedule window opens.

6. Enter the appropriate dates in the following fields:

   • Begin Date: Enter the schedule begin date in this field.

   • End Date: Enter the schedule end date in this field.

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

7. 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.

8. Enter the daily rent rate in the Daily Rent Rate field.

   The value of the Frequency is not editable from this window. You can change the frequency at the Expense Setup-level.

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

10. 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.

11. 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.

12. 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.

13. Enter any additional information about the expense schedule in the Additional Comments field.

14. Click Add.

    The window closes. The expense schedule appears in the Expense Schedule / Escalations table.

15. Repeat steps 6 – 15 to add additional expense schedules.

    You can have multiple expense schedules per expense type.

16. Click Save Changes.

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

    The page refreshes. Your changes are saved.

The retroactive payments functionality is used to make changes to the expense schedule retroactively and create catch-up payments.

Users can also set aside funds for expected retroactive payments using the Estimated Accruals tool.

See our Example Retroactive Payments Scenario to learn more about this functionality.

To generate a retroactive payment for daily rent:

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

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

2. Select your expense setup page layout from the field to the left of the Actions menu, if it is not your default page.

3. Select the expense setup you want to create a retro payment for from the Expense Setup List.

   The expense setup's data populates on the page.

4. Click Retro Payment.

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

   The Retro-Payment Setup window opens.

5. Enter the date that the change takes (or took) effect in the Retro Date field.

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

   Note:

   The Retro Date must occur prior to the New Effective Date. In a retro payment, the adjustment is a date in the past, with an adjustment to expense schedules being made after the date has passed. This is why a catch-up payment is needed between the retro date and the date the new expense schedules take effect.

6. Enter the date that the new schedule will begin in the New Effective Date field.

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

7. Select the Stop Payment on New Effective Date?check box if you want to stop all payments on the listed expense.

8. Enter the following dates in their respective fields:

   • New End Date

   • Posting Date

   • Due Date

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

   Note:

   The Percent Increase Cap will only populate if you have populated the Percent Increase Cap on the expense setup record.

9. Select whether this revised payment will be charged as an amount or as a percentage from the New Amount / Percent Increase field.

10. Enter the new daily rent rate in the New Daily Rent Rate field.

    Important!

    Do not enter your catch-up payment amount in this field. The system will calculate your catch-up payment automatically. The amount that should be entered in this field is the new daily rent rate.

11. Select or clear the following check boxes according to your preferences:

    • Send Email?: Select this check box to send yourself a confirmation email once the retro payment has been created.

    • Use posting date for vendor allocation?: Select this check box if your catch-up payments need to be allocated according to the current vendor allocations. If the catch-up payment needs to be split between the current and previous vendor allocations, clear the check box.

    • Mark Retro Payments as One-Time Payments?: Select this check box if you would like this retro payment to be marked as a one-time payment.

    • Create Retro Payment as One Lump Sum?: Select this check box if you would like to create the retro payment as a lump sum payment.

      If this check box is not selected, the catch-up amount will be distributed in monthly payments evenly between the retro date and the new effective date.

12. Enter a description of the payment in the Payment Description field.

13. Enter a remit message in the Remit Message field.

14. To preview a summary of the changes that will be made once the retroactive payment is created:

    1. Click Preview Payment.

       A Preview window opens.

    2. Click the link above the OK.

       A second Preview window opens.

    3. Click Cancel to exit the window.

       The second Preview window closes.

    4. Click OK to exit the first Preview window.

       The first Preview window closes.

15. Click Create Payment.

    A Success dialog box opens, confirming that the retroactive payments were created.

The Lucernex team has created a global layout template you can use in order to customize the Approve Payments window for use with daily rent.

To create the Daily Rent Rate Approval layout:

1. Click Admin in the toolbar in the upper-right corner of the window.

   The System Administrator Dashboard page opens.

2. Click Manage Page Layouts link in the Company Administration column.

   The Manage Summary Pages page opens.

3. Select the Manage List Layouts tab.

   The Manage List Layouts page opens.

4. Click Add Item in the lower-right corner of the List Layouts table.

   The Add Item window opens.

5. Enter the name of the page layout in the Page Layout Name field.

6. Enter a description of the page layout in the Description field.

   We recommend that you add descriptions to every template, layout, or field you create in Lucernex, so that subsequent administrators will understand the purpose and context of the items you create.

   Important!

   Do not select a page from the Parent Tab field.

7. Select Expense Setup from the Primary Table field.

8. Select the Yes option for the Allow Edit setting.

9. Select the Daily Rent Rate Approvals layout from the Initialize layout from existing layout field.

10. Select the portfolio you want this list layout to be available for from the Available for the following Portfolios / Capital Programs field.

    All Portfolios / Capital Programs is selected by default. You can select multiple options.

11. Click Add.

    The window closes. The list layout appears in the Manage List Layouts table.

To add the Daily Rent Approval Layout to the Approve Payments window:

1. Click Admin in the toolbar in the upper-right corner of the window.

   The System Administrator Dashboard page opens.

2. Click Manage Company link in the Company Administration column.

   The Manage Company page opens.

3. Select the Financial Settings tab.

   The Financial Settings page opens.

4. Select your daily rent approval layout from the RE Contract Expense Schedule Approval Layout field.

5. Click Update.

   The page refreshes. Your changes are saved..

6. To view the new approval layout:

   1. Navigate to Contract > Details > Summary.

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

   2. Click Approve Payments.

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

      The Approve Payments window opens. It has two new columns: the Daily Rent Rate column and the Current Monthly Rent column.

   3. Follow the Approve Payments procedures as you would normally.