lease and owned property contract management user guide

IBM TRIRIGAVersion 10 Release 3.1

Lease and Owned PropertyContract ManagementUser Guide

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NoteBefore using this information and the product it supports, read the information in “Notices” on page 243.

This edition applies to version 10, release 3, modification 1 of IBM TRIRIGA and to all subsequent releases andmodifications until otherwise indicated in new editions.

© Copyright IBM Corporation 2011, 2013.US Government Users Restricted Rights – Use, duplication or disclosure restricted by GSA ADP Schedule Contractwith IBM Corp.

Contents

Chapter 1. Managing leased and ownedproperty contracts . . . . . . . . . . 1

Chapter 2. Overview of contractmanagement. . . . . . . . . . . . . 3Contract process flows . . . . . . . . . . . 3Contract roles . . . . . . . . . . . . . . 4

Application administrator . . . . . . . . . 4Real estate abstractor . . . . . . . . . . 4Real estate contract manager . . . . . . . . 5Lease accounting manager . . . . . . . . . 5Asset manager. . . . . . . . . . . . . 6

Chapter 3. Setting up contracts . . . . 7Setting up fields and records . . . . . . . . . 7

Classifications . . . . . . . . . . . . . 7Lists . . . . . . . . . . . . . . . . 8Locations . . . . . . . . . . . . . . 9Contacts . . . . . . . . . . . . . . . 9

Setting up templates . . . . . . . . . . . . 9Creating templates . . . . . . . . . . . 9Editing templates . . . . . . . . . . . 10Deleting templates . . . . . . . . . . . 11

Setting up lease defaults . . . . . . . . . . 11Setting up lease abstract defaults . . . . . . 11Setting up lease accounting defaults . . . . . 11

Setting up OSCRE tools . . . . . . . . . . 12Overview of OSCRE process. . . . . . . . 12Setting up the properties file. . . . . . . . 14Setting up administrator processes. . . . . . 15Setting up application settings . . . . . . . 15

Chapter 4. Creating lease abstracts . . 17Lease abstract records . . . . . . . . . . . 17Creating lease abstract records . . . . . . . . 18Creating lease abstract records by sending offlineforms . . . . . . . . . . . . . . . . 18Creating lease abstract records by sending OSCRE.xml files . . . . . . . . . . . . . . . 19

Exporting lease abstract records by sendingOSCRE .xml files . . . . . . . . . . . 19

Form tabs . . . . . . . . . . . . . 20Importing lease abstract records by sendingOSCRE .xml files . . . . . . . . . . . 21

Form tabs . . . . . . . . . . . . . 22Form tabs . . . . . . . . . . . . . . . 23

General tab . . . . . . . . . . . . . 23Abstract details section . . . . . . . . 23Document details section . . . . . . . . 23General section . . . . . . . . . . . 24Primary address section . . . . . . . . 24Lease contacts section . . . . . . . . . 25Units section . . . . . . . . . . . . 25Details section . . . . . . . . . . . 25

Parent real estate contract of sublease section 26Critical dates section . . . . . . . . . 27Premise location section . . . . . . . . 27Location summary section . . . . . . . 28Location cost code section . . . . . . . 28Tenant section . . . . . . . . . . . 29Landlord section. . . . . . . . . . . 29Management company section . . . . . . 29Guarantor section . . . . . . . . . . 30Default remit to section . . . . . . . . 30Abstract notifications section . . . . . . 30Additional notice addresses section . . . . 31Real estate lease section . . . . . . . . 31Other dates section . . . . . . . . . . 31Lease abstract exceptions section . . . . . 31

Rent tab . . . . . . . . . . . . . . 32Lease details section . . . . . . . . . 32Rent clause section . . . . . . . . . . 32Rent schedules section. . . . . . . . . 33Historic payment schedules section . . . . 33Fair market rate value section . . . . . . 34Index adjustments section . . . . . . . 34Percentage rent clause section . . . . . . 35Percent rent setup section. . . . . . . . 36Sales reporting details section . . . . . . 37Sales exclusions section . . . . . . . . 37Tax exclusions section . . . . . . . . . 38Allowable deductions section . . . . . . 38Percent rent schedules section . . . . . . 39Commissions section . . . . . . . . . 39Commission schedules section . . . . . . 40Commissions clauses section . . . . . . 41

Default tab . . . . . . . . . . . . . 41Default clause section . . . . . . . . . 41Default clauses section. . . . . . . . . 42

Security deposit tab . . . . . . . . . . 43Clause details section . . . . . . . . . 43Cash cost code section . . . . . . . . . 44Expense cost code section . . . . . . . 44Security deposit clauses section. . . . . . 45

Options tab . . . . . . . . . . . . . 45Instructions section . . . . . . . . . . 45Tenant renewal options section . . . . . . 45Other options section . . . . . . . . . 45

Rights tab . . . . . . . . . . . . . . 46Alterations section . . . . . . . . . . 46Alterations clauses section . . . . . . . 47Assignment and subletting section. . . . . 47Holdover section . . . . . . . . . . 48Other rights section. . . . . . . . . . 49Other rights details section . . . . . . . 51Signage section . . . . . . . . . . . 51Restoration obligations section . . . . . . 52

Allowances tab . . . . . . . . . . . . 53Clause details section . . . . . . . . . 53Allowance clauses section . . . . . . . 55

© Copyright IBM Corp. 2011, 2013 iii

OPEX/CAM tab . . . . . . . . . . . . 55Clause details section . . . . . . . . . 55CAM audit setup section . . . . . . . . 56Services included section . . . . . . . . 58Services excluded section . . . . . . . . 58CAM schedules section . . . . . . . . 58CAM clauses section . . . . . . . . . 59

Insurance tab . . . . . . . . . . . . . 59Clause details section . . . . . . . . . 59Insurance schedules section . . . . . . . 60Insurance clauses section . . . . . . . . 61

Tax tab . . . . . . . . . . . . . . . 61Tax clause section . . . . . . . . . . 61Tax schedules section . . . . . . . . . 63Tax clauses section . . . . . . . . . . 63

Parking tab . . . . . . . . . . . . . 63Clause details section . . . . . . . . . 64Space types section . . . . . . . . . . 65

Co-tenancy tab . . . . . . . . . . . . 65Clause details section . . . . . . . . . 65Co-tenancy item section . . . . . . . . 66Co-tenancy items section . . . . . . . . 67

Green lease provisions tab . . . . . . . . 67Green lease provisions clause section . . . . 67Green lease provision clauses section . . . . 68Credentials section . . . . . . . . . . 69

Responsibilities tab . . . . . . . . . . . 69Clause details section . . . . . . . . . 69Responsibility service section . . . . . . 70Responsibility services section . . . . . . 70

Other clauses tab . . . . . . . . . . . 71Other clause section . . . . . . . . . 71Other clauses section . . . . . . . . . 72

Accounting tab . . . . . . . . . . . . 72Accounting details section . . . . . . . 72Borrow rate and % growth assumptionssection . . . . . . . . . . . . . . 73Rent component assumptions section . . . . 73Likely term section . . . . . . . . . . 74Options section . . . . . . . . . . . 74Likely term option section . . . . . . . 75FASB 13 treatment section . . . . . . . 75

Chapter 5. Creating leases . . . . . . 79Overview of lease creation . . . . . . . . . 79

Real estate lease records . . . . . . . . . 79Asset lease records . . . . . . . . . . . 80Accounting tab concepts . . . . . . . . . 80

Likely terms . . . . . . . . . . . . 81Likely options . . . . . . . . . . . 81Assumptions . . . . . . . . . . . . 81Amortization . . . . . . . . . . . . 82Fiscal line items . . . . . . . . . . . 83Straight line calculations . . . . . . . . 84Lease abstract to real estate lease process . . 84

Creating real estate lease records . . . . . . . 84Form tabs . . . . . . . . . . . . . . 85

General tab . . . . . . . . . . . . 85Clauses, options, and terms tab. . . . . . 91Accounting tab . . . . . . . . . . . 92

Creating asset lease records. . . . . . . . . 102

Form tabs . . . . . . . . . . . . . 103General tab . . . . . . . . . . . . 103Assets tab . . . . . . . . . . . . 106Clauses, options, and terms tab . . . . . 107Accounting tab . . . . . . . . . . . 108

Chapter 6. Creating owned propertyagreements . . . . . . . . . . . . 119Owned property agreement records . . . . . . 119Creating owned property agreement records . . . 119Form tabs . . . . . . . . . . . . . . 120

General tab . . . . . . . . . . . . . 120General section . . . . . . . . . . . 120Units section . . . . . . . . . . . 121Details section . . . . . . . . . . . 121Accounting section . . . . . . . . . 121Critical dates section . . . . . . . . . 122Primary location section . . . . . . . . 122Primary address section . . . . . . . . 122Primary location graphic section . . . . . 122Contract notifications section . . . . . . 123

Chapter 7. Maintaining contracts . . . 125Overview of contract maintenance . . . . . . 125

Contract maintenance . . . . . . . . . 125Contract notifications . . . . . . . . . . 126

Requesting real estate data changes . . . . . . 127Form tabs . . . . . . . . . . . . . 128

General tab . . . . . . . . . . . . 128Requesting asset lease contract changes. . . . . 129

Form tabs . . . . . . . . . . . . . 130General tab . . . . . . . . . . . . 130

Requesting lease assumption changes . . . . . 132Form tabs . . . . . . . . . . . . . 132

General tab . . . . . . . . . . . . 132

Chapter 8. Managing payments. . . . 137Managing invoices . . . . . . . . . . . 137

Creating real estate invoices . . . . . . . 137Form tabs . . . . . . . . . . . . 137

Creating asset invoices . . . . . . . . . 141Form tabs . . . . . . . . . . . . 142

Managing payables . . . . . . . . . . . 146Processing payments . . . . . . . . . . 146

Form tabs . . . . . . . . . . . . 146Releasing payments . . . . . . . . . . 148

Form tabs . . . . . . . . . . . . 148Voiding payments . . . . . . . . . . . 150

Form tabs . . . . . . . . . . . . 150Stopping payments . . . . . . . . . . 152

Form tabs . . . . . . . . . . . . 152Reconciling operating expenses . . . . . . 153

Form tabs . . . . . . . . . . . . 154Calculating index adjustments . . . . . . . 157

Form tabs . . . . . . . . . . . . 158Calculating percentage rent reports . . . . . 161

Form tabs . . . . . . . . . . . . 161Managing receivables. . . . . . . . . . . 166

Processing lease invoices . . . . . . . . 166Form tabs . . . . . . . . . . . . 166

iv © Copyright IBM Corp. 2011, 2013

Processing lease receipts . . . . . . . . . 168Form tabs . . . . . . . . . . . . 168

Chapter 9. Viewing reports. . . . . . 173Home portal. . . . . . . . . . . . . . 173Viewing my reports portal . . . . . . . . . 173Viewing the reports tab . . . . . . . . . . 174

Chapter 10. Reviewing leaseassumptions. . . . . . . . . . . . 175Overview of assumptions review process . . . . 175

Individual lease process . . . . . . . . . 175Bulk create process . . . . . . . . . . 176

Reviewing an individual real estate lease record 177Assumption audit log record . . . . . . . 177

General tab . . . . . . . . . . . . 177Reviewing multiple real estate lease records . . . 179

Bulk create review record . . . . . . . . 180General tab . . . . . . . . . . . . 180

Reviewing an individual asset lease record . . . 184Reviewing multiple asset lease records . . . . . 185

Chapter 11. Common elements ofleased and owned property contracts . 187Payment schedule record . . . . . . . . . 187

General tab . . . . . . . . . . . . . 187Document reference section . . . . . . 187General section . . . . . . . . . . . 187Details section . . . . . . . . . . . 188Cash cost code section . . . . . . . . 188Expense cost code section . . . . . . . 189Accrual cost code section . . . . . . . 189Processing section . . . . . . . . . . 189Payment schedule section . . . . . . . 189Partial first payment section . . . . . . 191Partial last payment section . . . . . . 191Tax breakdown section . . . . . . . . 192Payment instruction section . . . . . . 192Clauses section . . . . . . . . . . . 193Payment line items section . . . . . . . 193

Generate payment schedules wizard. . . . . . 193General tab . . . . . . . . . . . . . 194

Document reference section . . . . . . 194General information section . . . . . . 194Payment parameters section . . . . . . 195Payment schedule section . . . . . . . 196Processing rules section . . . . . . . . 197Cash cost code section . . . . . . . . 197Expense cost code section . . . . . . . 197Accrual cost code section . . . . . . . 197Tax breakdown section . . . . . . . . 198Payment instruction section . . . . . . 198

Payment instruction record . . . . . . . . . 198General tab . . . . . . . . . . . . . 198

General section . . . . . . . . . . . 198Details section . . . . . . . . . . . 199Remit to section . . . . . . . . . . 199Paid by section . . . . . . . . . . . 199

Option wizard . . . . . . . . . . . . . 200General tab . . . . . . . . . . . . . 200

Document reference section . . . . . . 200Details section . . . . . . . . . . . 200Purchase details section . . . . . . . . 201Comments section . . . . . . . . . . 201Exercise date notifications section . . . . 201Likely term details section . . . . . . . 202Notify roles section . . . . . . . . . 202Exercise details section . . . . . . . . 202Other details section . . . . . . . . . 203Termination details section . . . . . . . 203Payment schedule section . . . . . . . 203General section . . . . . . . . . . . 204

Contract notification record. . . . . . . . . 204General tab . . . . . . . . . . . . . 204

General section . . . . . . . . . . . 204Details section . . . . . . . . . . . 204Contract section . . . . . . . . . . 205Transactions created section . . . . . . 205

Lease clause record . . . . . . . . . . . 205General tab . . . . . . . . . . . . . 205

Document reference section . . . . . . 206Lease clause details section . . . . . . . 206Covenant details section . . . . . . . . 207Clause text section. . . . . . . . . . 208Audit details section . . . . . . . . . 208Services included section . . . . . . . 210Services excluded section . . . . . . . 210Index adjustments section . . . . . . . 210Improvement clause details section . . . . 211Co-tenancy details section . . . . . . . 211Co-tenancy items section . . . . . . . 212Commission details section . . . . . . . 212Default section . . . . . . . . . . . 212Fair market rate value section . . . . . . 212Green lease provisions section . . . . . . 213Insurance clause details section . . . . . 213Parking details section . . . . . . . . 213Parking spaces section . . . . . . . . 214Percentage rent setup section . . . . . . 214Sales reporting details section . . . . . . 215Sales exclusions section . . . . . . . . 215Tax exclusions section . . . . . . . . 216Allowable deductions section . . . . . . 216Reporting section . . . . . . . . . . 216Lease responsibilities section . . . . . . 217Alterations section. . . . . . . . . . 217Deposit details section . . . . . . . . 217Cash cost code section . . . . . . . . 218Expense cost code section . . . . . . . 218Tax details section . . . . . . . . . . 218Payment schedule section . . . . . . . 219Options section. . . . . . . . . . . 219Comments section . . . . . . . . . . 220General section . . . . . . . . . . . 220Units section . . . . . . . . . . . 220

Asset lease clause record . . . . . . . . . 221General tab . . . . . . . . . . . . . 221

Document reference section . . . . . . 221Asset lease clause details section . . . . . 221Covenant details section . . . . . . . . 222Clause text section. . . . . . . . . . 222

Contents v

Audit details section . . . . . . . . . 222Index adjustments section . . . . . . . 224Commission details section . . . . . . . 225Default section . . . . . . . . . . . 226Green lease provisions section . . . . . . 226Insurance clause details section . . . . . 226Lease responsibilities section . . . . . . 226Holdover section . . . . . . . . . . 227Deposit details section . . . . . . . . 227Expense cost code section . . . . . . . 227Tax details section . . . . . . . . . . 228Payment schedule section . . . . . . . 228Options section. . . . . . . . . . . 229Comments section . . . . . . . . . . 229General section . . . . . . . . . . . 230Units section . . . . . . . . . . . 230

Lease terms record . . . . . . . . . . . 230General tab . . . . . . . . . . . . . 230

General section . . . . . . . . . . . 230Units section . . . . . . . . . . . 230Lease information section . . . . . . . 231Rent details section . . . . . . . . . 231Rent escalations section . . . . . . . . 232Standard operating expenses per area peryear section . . . . . . . . . . . . 232Other recurring expenses section . . . . . 233Expense inflation rates section. . . . . . 233Expense details section . . . . . . . . 234Buildout section . . . . . . . . . . 234

Relocation section . . . . . . . . . . 234Dilapidation and restoration section . . . . 235Fiscal year section . . . . . . . . . . 235Discount and tax rates section . . . . . . 235Depreciation schedules - tax basis section . . 235Depreciation schedules - GAAP basis section 236

Financial analysis tab. . . . . . . . . . 236Summary metrics tab . . . . . . . . . . 236

Summary metrics section . . . . . . . 236Profit and loss impact section . . . . . . 237FASB 143 section . . . . . . . . . . 237Cash flow NPV breakdown section . . . . 237Three year cash flow summary section . . . 237

Common elements of lease abstract clauses . . . 238Document references . . . . . . . . . . 238Clause details . . . . . . . . . . . . 238Fair market rate value section . . . . . . . 239Index adjustments section . . . . . . . . 240

Setting default values for the indexadjustments section . . . . . . . . . 241Populating default values for the indexadjustments section . . . . . . . . . 241

Generate payment schedules wizard. . . . . 241

Notices . . . . . . . . . . . . . . 243Privacy Policy Considerations . . . . . . . . 244Trademarks . . . . . . . . . . . . . . 245

vi © Copyright IBM Corp. 2011, 2013

Chapter 1. Managing leased and owned property contracts

You use the IBM® TRIRIGA® Real Estate Manager application to manage real estatecontracts and asset lease contracts. You can store contract documentation,conditions, clauses, options, and financial transactions in one central repository.The application contains automated notifications and alerts about upcoming leaseexpirations and other critical dates. The application also shows required actionsand contract options to avoid overpayment and late fees. You also use theapplication tools to create financial reports, maintain payment processes, andsatisfy regulatory requirements in lease accounting and allocations.

© Copyright IBM Corp. 2011, 2013 1

2 © Copyright IBM Corp. 2011, 2013

Chapter 2. Overview of contract management

To manage your real estate contracts or asset lease contracts with the IBMTRIRIGA Real Estate Manager application, you must understand the process flowsof your company practices. You must also understand the application portals thatare available to your company role.

Contract process flowsThe first phase in the real estate contract or asset lease contract managementprocess is identifying and acquiring the property. The next phase is documentingthe clauses, options, and terms for the lease or purchase transaction by enteringthem into the application. The contract process also includes maintaining contractsby sending and receiving notifications about upcoming dates, and revising eachcontract through proposed changes and amendments. The final phase includesmanaging the scheduled payments, one-time payments, pass-through payments,payment adjustments, accounts payable, and accounts receivable.

Contract process flow

Real estate contract process

The contract creation, contract maintenance, and payment management phases areexplained in this sequence. However, the process flow in your organization mightfollow a different sequence that is based on your company practices. In theapplication, real estate contract creation includes:v Creating lease abstractsv Creating real estate leasesv Creating owned property agreementsv Maintaining contractsv Managing payments

Asset lease contract process

The contract creation, contract maintenance, and payment management phases areexplained in this sequence. However, the process flow in your organization mightfollow a different sequence that is based on your company practices. In theapplication, asset lease contract creation includes:

Payment ProcessingContract

MaintenanceContract Creation

Real EstateTransactions

Portfolio Planning

Lease Accounting

Figure 1. Flow diagram for the different phases of the contract management process


v Creating asset leasesv Maintaining contractsv Managing payments

Process flow configuration

The process flows delivered with the IBM TRIRIGA application can be modifiedwith the IBM TRIRIGA Application Platform building tools, as required by yourcompany standards and policies.

Contract rolesWhen you sign into the application, you are taken to your home page. Your homepage is your entrance into the application. From your home page, you can reviewyour home portal or use the menu system to open the process portals available toyour role. Use your menu bar to open other available portals. Based on your role,your application might consist of one or many portals.

The setting of the IBM TRIRIGA home page is set in the Default Portal section ofyour profile record. Your home portal or process portals might vary, based on yourrole in the company and your security and license access. However, your portalscontain a combination of the components and section types described in thisdiscussion.

In turn, each portal consists of portal sections. Each portal section serves a specificfunction and shows the information that applies to your business role. The portalsections in your portal are configured by your application administrator for yourrole in the system.

Application administratorThe application administrator is the user role that typically sets up and configuresthe application.

The primary responsibility of the application administrator is to manage the IBMTRIRIGA application for the company. This responsibility includes creating andmanaging licenses and security groups, setting up user access, and maintainingsystem-level and application-level standards such as classification and list values.

When you sign in as an Application Administrator role, the home portal is theApplication Administrator portal. An example of the Application Administratorportal includes the following portal sections:v Reminders – Application Administratorv Last Visitedv Application Administrationv License and Securityv Application Administration - Utilities

Real estate abstractorThe real estate abstractor or abstractor manager is the user role that typicallysummarizes the real estate (RE) contract details for data entry into the application.

The primary responsibility of the real estate abstractor is to summarize or abstractreal estate leases for the company. Other responsibilities include interpreting the


lease language, and translating that information into the application. The leaseabstracting task might also be conducted by an external abstractor-role resource.

When you sign in as a Real Estate Abstractor role, your home portal is the RealEstate Abstractor portal. An example of the Real Estate Abstractor portal includesthe following portal sections:v Related Links – RE Abstractorv Work in Progress Lease Abstracts

Real estate contract managerThe real estate contract manager or contract administrator is the user role thattypically monitors the contract details and activities for real estate (RE) properties.

The primary responsibility of the real estate contract manager is to manage realestate leases and owned property agreements for the company. This responsibilityincludes verifying that payments are made, options are exercised, and renewals areevaluated. Other responsibilities include interpreting the lease language, checkingbuilding data, abstracting leases, and translating that information into theapplication. The lease abstracting task might also be conducted by an externalabstractor-role resource.

When you sign in as a Real Estate Contract Manager role, your home portal is theReal Estate Contract Manager portal. An example of the Real Estate ContractManager portal includes the following portal sections:v Reminders – RE Contract Managerv Performance Metrics – RE Contract Managerv Related Links – RE Contract Managerv Last Visitedv Lease Obligationsv Lease Expirationsv Utilization Rate / RE Contractv Area Per Person (Space Use Agreement)

Lease accounting managerThe lease accounting manager or lease accountant is the user role that typicallymanages the accounting details and activities for real estate (RE) and asset leases.

The primary responsibility of the lease accounting manager is to manage theFinancial Accounting Standards Board (FASB) data and International AccountingStandards Board (IASB) data. This responsibility includes verifying thatassumptions are reviewed, options are planned, and renewals are evaluated.

When you sign in as a Lease Accounting Manager or Lease Accountant role, yourhome portal is the Lease Accounting Manager portal. An example of the LeaseAccounting Manager portal includes the following portal sections:v Reminders – Lease Accounting Managerv Related Links – Lease Accounting Managerv Last Visitedv Overdue Lease Assumptionsv My Lease Reviewsv Amortization Schedule Summary

Chapter 2. Overview of contract management 5

v 10K Financial Report

Asset managerThe asset manager is the user role that typically manages a defined class of assetssuch as computer equipment, office equipment, point-of-sale equipment, andfurniture.

The primary responsibility of the asset manager is to identify and procure productswithin the budgetary constraints and quality standards established by thecompany. This responsibility includes managing the total cost of asset ownershipand depreciation, managing asset lease agreements and warranties, and ensuringthat purchased assets are appropriately maintained.

When you sign in as an Asset Manager role, your home portal is the AssetManager portal. An example of the Asset Manager portal includes the followingportal sections:v Reminders – Asset Managerv Related Links – Asset Managerv Asset Value by Specification Classv Last Visitedv Quick Find (Inventory)v Quick Find (Installed/Assigned Assets by Type)v My Purchase Orders


Chapter 3. Setting up contracts

Before the contract process begins, certain activities are necessary to prepare theapplication for your real estate contracts, asset lease contracts, or both. These setupactivities focus on tailoring templates, classifications, lists, locations, and contactsfor your organization. These activities also include establishing lease abstractdefaults and configuring for the Open Standards Consortium for Real Estate(OSCRE) interface.

Setting up fields and recordsTo prepare the application for your real estate or asset lease contracts, you need toset up the classifications, lists, locations, and contacts for your organization.

ClassificationsClassifications are records presented in a hierarchical fashion. If the field type is aclassification, a record in the classification hierarchy can be chosen as the fieldvalue. Real estate and asset lease contracts have several classification fields thathelp to describe each record.

For example, a real estate lease includes the following classifications:v Area typev Clause section categoryv Clause typev Contract statusv Contract typev Cost indexv Granted in leasev Late fee typev Lease classv Lease typev Maintenance priorityv Option typev Organization typev Pass through typev Payment typev Provider ratingv Responsible partyv Rolesv Time zonesv Year

The clause type classification contains a Clause Category field. Because the fieldvalues are defined by the Application Administrator, do not change or add newvalues. The field includes the following values:v Allowancev Commission


v Cotenancy or co-tenancyv Defaultv Fair market rate valuev Green provisionsv Insurancev Landlord rightsv Legal and financev Otherv Parkingv Pass throughv Percentage rentv Rentv Responsibilitiesv Rightsv Security depositv Taxv Tenant rightsv Use and restrictions

The Clause Category field drives the show-and-hide logic on the clause form. Ifyou add a clause type and set the clause category, then the form shows or hidesthe appropriate sections without a change in the workflow.

ListsThe application provides lists of predefined values for many fields in its real estateand asset lease contracts. Because these lists contain valid data, you can select therequired value from the list instead of typing the value. This method improvesdata integrity by restricting the field data to the approved list values.

The application supports the following types of lists:v Radio-button lists,v List-box lists of static values,v Dynamic lists that are derived from values in the IBM TRIRIGA database, andv Dependent lists in which the selection from one list passes a filter to another list.

For example, a real estate lease includes the following lists:v Accounting typev Calculation rulev Conversion groupv Countryv Currencyv Lease service responsibilityv Note typev Payment entry typev Payment methodv Payment schedulev Schedule type


LocationsEach location that is used in the application must be defined in the locationhierarchy. With lease abstract records, you can add a location in the hierarchy byclicking the Create New Location action in the Primary Address section.

The location hierarchy contains the following elements:v Buildingv External retail locationv Floorv Landv Location categoryv Propertyv Proposed retail locationv Proposed sitev Retail centerv Retail locationv Spacev Space groupv Structurev Vertical shaft

ContactsEach real estate contract record or asset lease record includes information about thevarious contacts for that record. You can define these contacts beforehand, thenselect the contacts when you create or update a contract record. This methodpromotes data integrity by restricting the selection of contacts to a predefined set.You can also minimize your data entry by taking advantage of autocomplete orsearch.

To define these contacts beforehand, enter their contact information in the Peopleportal of the IBM TRIRIGA application. The elements contained in the Peopleportal include:v Consultantv Employeev External contact

Setting up templatesYou can use templates to quickly create records, avoid redundant data entry, andmaintain consistency across many records. For example, you can quickly add datathat is commonly reused across multiple records, such as internal contacts, clauses,terms, and conditions. When the template is applied, the details that are entered inthe template are replicated in the new record.

Creating templatesYou can build templates as a foundation from which to quickly create records. Theprocess of building a template is similar for all templates. The following exampleuses the lease clause template.

Chapter 3. Setting up contracts 9

Before you begin

You must sign in as an Application Administrator or Real Estate Contract Manager.

About this task

The templates that are used in the management of real estate contracts include:v Lease abstract templatev Lease clause templatev Option templatev Owned property agreements templatev Real estate lease template

Meanwhile, the templates that are used in the management of asset lease contractsinclude:v Asset lease clause templatev Asset lease templatev Option template

Procedure1. Select Contracts > Set Up > Templates > Lease Clause.2. Click the Add action.3. Specify the details.4. Create the template.

What to do next

The tabs, sections, and fields in the templates mirror the structure of the recordsthat they represent. When building templates as a foundation for your contractmanagement records, use standard IBM TRIRIGA templates as a model. In otherwords, instead of updating a standard template, copy it to build your newtemplate from the original.

Editing templatesAs you build and save your templates, you can edit them as needed. The processof editing a template is similar for all templates. The following example uses thelease clause template.

Before you begin


Procedure1. Select Contracts > Set Up > Templates > Lease Clause.2. Click the link for the lease clause template that you want to edit.3. Specify the details.4. Save the template.


Deleting templatesAs you build and save your templates, you can delete them as needed. The processof deleting a template is similar for all templates. The following example uses thelease clause template.

Before you begin


Procedure1. Select Contracts > Set Up > Templates > Lease Clause.2. Select the check box for the lease clause template that you want to delete.3. Delete the template.

Setting up lease defaultsMany of the parameters that are used in various calculations and comparisons canbe set in one place for the entire application. The lease default parameters can beset in the application settings record.

Setting up lease abstract defaultsTo enable certain actions in the lease abstract record, you can set the lease abstractdefaults in the application settings record. These lease abstract defaults include theparent for an internal organization, external organization, and location.

Before you begin

You must sign in as an Application Administrator.

About this task

The lease abstract record includes the Create New Location action in the PrimaryAddress section and the Create New Organization action in the Tenant, Landlord,Management Company, and Guarantor sections. These actions require theidentification of the parent record in the hierarchy and automatically default to theparent record.

Procedure1. Select Tools > System Setup > General > Application Settings.2. In the General tab, go to the Lease Abstract Defaults section.3. Specify the settings.4. Save the record.

Setting up lease accounting defaultsTo simplify the entry of information in the real estate lease record, you can set thelease assumption and amortization defaults in the application settings record.These lease defaults include the review assumptions, lease growth assumptions,rent component assumptions, amortization periods, extended rent payments, andthe time zone for payment schedules.

Before you begin



About this task

You can also apply assumption review information to the initial assumption auditlog when the real estate lease is created from the completed lease abstract.

Procedure1. Select Tools > System Setup > General > Application Settings.2. In the Lease Accounting Settings tab, specify the settings.3. Save the record.

Setting up OSCRE toolsTo use the lease abstract tools for the Open Standards Consortium for Real Estate(OSCRE), both your server and the third-party server must be configured. Theconfiguration of the properties file, administrator console processes, andapplication settings record are typically completed by the application administrator.

Overview of OSCRE processTypically, two application servers communicate to send and receive lease abstractrecords under the Open Standards Consortium for Real Estate (OSCRE) standard.For example, assume that you employed a third-party abstractor organization toabstract leases into their own server. Assume that their application server is named"Abstractor Server" and your application server is named "Customer Server". Thefollowing overview describes the process.

Configuration

After configuration, the IBM TRIRIGA application is ready to support all of theactions in the OSCRE lease abstract standard:v Send lease abstractv Accept lease abstractv Reject lease abstractv Request lease abstract clarificationv Provide lease abstract clarification

Abstractor sends the lease abstract

The abstractor creates a lease abstract record on their IBM TRIRIGA server called"Abstractor Server". They save the record as an external draft, edit the record, andsubmit it for review. The record is approved. Then, they reopen the lease abstractrecord and send it to the incoming email account of your "Customer Server". In"Abstractor Server", the record updates to Sent status and the record is sent byemail.


You receive the lease abstract

You receive the lease abstract record in Received status on your IBM TRIRIGAserver called "Customer Server". You can open the record and accept it, reject it, orrequest clarification.v If you accept it, the record updates to Accepted status. You can edit and activate

the lease abstract record in your "Customer Server".v If you reject it, the record updates to Rejected status.v If you request clarification, the record updates to Pending Clarification status.

You send the abstract status

Your "Customer Server" sends the record status to the incoming email account of"Abstractor Server".v If the "Abstractor Server" receives an acceptance, the record updates to Accepted

status.v If the "Abstractor Server" receives a rejection, the record updates to Rejected

status.v If the "Abstractor Server" receives a request for clarification, the record updates

to Clarification Requested status.

Abstractor Customer

Lease Abstract Lease Abstract

OSCRE: SendLeaseAbstract.xml

Inbound email auto-createsLease Abstract

Figure 2. Flow diagram for sending the lease abstract under the OSCRE standard

Abstractor Customer

Lease Abstract

Notification of AbstractAccepted

Lease Abstract

Accept actionThe action auto-createsOSCRE AcceptLeaseAbstract.xml

Accept

Figure 3. Flow diagram for sending an acceptance under the OSCRE standard


Abstractor sends the clarification

When the abstractor decides to provide clarification, they reopen the clarificationrequested record, update it as needed, and send the record. The record updates toClarification Provided status.

You receive the clarification

When your "Customer Server" receives the provided clarification, the recordupdates to Clarification Provided status. You can decide to accept it, reject it, orrequest clarification again. The OSCRE processing for each lease abstract recordmight continue between the two IBM TRIRIGA servers until you decide to accept.After the lease abstract record is accepted, it can be edited or activated.

Setting up the properties fileSeveral properties in the TRIRIGAWEB.properties file must be configured for theOpen Standards Consortium for Real Estate (OSCRE). You must configure thisproperties file before you send lease abstract records or apply the OSCRE leaseabstract tools for the first time.

Before you begin

You must be an IBM TRIRIGA administrator.

Procedure1. Configure the following properties of the TRIRIGAWEB.properties file on your

server:

Property Description

mail.smtp.host The simple mail transfer protocol (SMTP) mail server.

mail.smtp.email.domain

The Internet Protocol (IP) of the SMTP mail server.

DATACONNECT_SLEEP_TIME

The duration that the DataConnect tool waits before waking tocheck for more jobs to process. The default is 10 minutes.

DC_HISTORY_RETENTION_DAYS

The age of completed or obsolete jobs that the DataConnecttool clears away. The default is 5 days.

Abstractor Customer

Lease Abstract

Provide Clarification action

Lease Abstract

Notification of ClarificationProvided

The actionauto-creates OSCREProvideLeaseAbstractClarification.xml

Provide Clarification

Figure 4. Flow diagram for providing clarification under the OSCRE standard


2. Configure the same properties on the third-party server.

Setting up administrator processesSeveral processes must be configured for the Open Standards Consortium for RealEstate (OSCRE). You must configure these processes in the administrator consolebefore you send lease abstract records or apply the OSCRE lease abstract tools forthe first time.

Before you begin


Procedure1. Use the IBM TRIRIGA administrator console to configure the following

processes on your server:a. The OSCRE .xml tools require the DataConnect and Incoming Mail agents

to be running. Start them from the administrator console if they are notalready started. You can also configure these processes in theTRIRIGAWEB.properties file to start automatically.

b. For more-detailed logging during OSCRE .xml processing, turn on thelogging for DataConnect, Incoming Mail, "Extract, Transform, and Load"(ETL), or a combination of these options.

2. Configure the same processes on the third-party server.

Setting up application settingsSeveral email and application settings must be configured for the Open StandardsConsortium for Real Estate (OSCRE). You must configure these settings before yousend lease abstract records or apply the OSCRE lease abstract tools for the firsttime.

Before you begin


Procedure1. Configure the following settings on your server:

a. Configure the Internet Protocol (IP) address and valid incoming mailaccount for the server.

b. Select the email address as the source or target system when you send alease abstract, in the system configuration record. You can open this recordfrom Tools > System Setup > Integration > System Configuration.

c. Configure the user groups to include the IBM TRIRIGA Real Estate LeaseAbstractor role and IBM TRIRIGA Real Estate Lease Abstract Manager roleas appropriate.

d. Configure the lease abstract notifications of accepted, clarification provided,clarification requested, received, and rejected for specific user roles. You canopen and revise these records from Tools > Approvals & Notifications >Notifications > Notification Requirements.


e. Verify that transformation content records exist for all OSCRE processes,such as accept, reject, send, request clarification, and provide clarification.You can create or open these records from Tools > Data Utilities > OSCREXML Import.

f. Verify that all transformation content files exist for all OSCRE processes,such as accept, reject, send, request clarification, and provide clarification, inthe application settings record. You can open this record from Tools >System Setup > General > Application Settings. The Lease AbstractTransformation section is found in the General tab.

2. Configure the same settings on the third-party server.


Chapter 4. Creating lease abstracts

While digitally storing lease data can make updates and queries more efficient,inputting the full contents of a lease contract can also be time-consuming. Instead,you can create lease abstract records to summarize leases through manual dataentry, Open Standards Consortium for Real Estate (OSCRE) .xml files, or offlineforms.

Lease abstract recordsTo reduce the time it takes to input lease contracts, you can abstract or summarizetheir full contents in lease abstract records. The lease abstract record can contain asmuch of the actual lease details as you want, based on the preferences andstandards of your organization.

Contract creation process flow

Lease abstract creation

As a lease abstractor, you can specify the entire lease contract and attach it as afile, or summarize key aspects of the lease contract. There are several data entrytechniques:v You can input lease abstract records into your IBM TRIRIGA system,v A vendor abstractor (in another IBM TRIRIGA system) inputs lease abstract

records, and sends them to you through Open Standards Consortium for RealEstate (OSCRE) .xml files,

v A vendor abstractor (outside your IBM TRIRIGA system) specifies lease abstractrecords with the offline form, and emails the form to you.

Contract CreationContract

Maintenance

ContractType?

Approved Contract

LeaseLease Abstract

Owned Property(Fee) Agreements

Asset or RE Lease

RE Lease

RE Owned

Figure 5. Flow diagram for creating the lease abstract


Upon mutual agreement, the lease abstract record serves as a formal real estatelease record. After the lease abstract record is activated, approved, and completed,it creates a real estate lease draft that is available for further transactions. As aresult, the second record can separate security between outsourced and internalresources that are abstracting leases. In addition to these techniques, a leaseabstract record can also be created upon the completion of a real estate leaseproject.

The tabs, sections, and fields in a lease abstract record have the same significanceregardless of the method that is used to specify their data. Save the lease abstractrecord after you specify the data and before you move to the next tab.

Creating lease abstract recordsYou can manually create lease abstract records to summarize the key details inlease contracts.

Before you begin

You must sign in as a Real Estate Abstractor or Real Estate Contract Manager.

Procedure1. Add the lease abstract.

Role Action

Real Estate Abstractor In the Work in Progress Lease Abstracts portal section, clickthe Add New Abstract action.

Real Estate ContractManager

Select Contracts > Leases. In the Related Links – ContractLeases portal section, click the Lease Abstracts link. Click theAdd action.

2. Specify the general details.3. Create the draft.4. Specify the details for the lease clauses, schedules, accounting, and other

information.5. Save the record.

Creating lease abstract records by sending offline formsIn some cases, the best option might be to send lease data through emailattachments. As an alternative to directly specifying lease abstract records, you canemail Microsoft Excel offline forms to a configured incoming email address. Whenthe offline form reaches the target application, the data populates a new leaseabstract record.

Before you begin

You must obtain the Real Estate Lease Abstract offline form and target emailaddress from the Application Administrator. The lease identifier (ID) of a leaseabstract record must be unique. The target application rejects any imported leaseabstract record with a lease identifier that matches a lease abstract record alreadyin the database.


Procedure1. In Microsoft Excel, open the Real Estate Lease Abstract offline form for a lease

abstract record.2. Specify the lease information in the offline form.3. When the offline form is complete, verify in your application that the Lease ID

field value does not exist. If the Lease ID field value does exist, revise the ID.4. Click the E-Mail Offline Form action.5. Verify that the subject of the email is LEASE ABSTRACT FORM.

Creating lease abstract records by sending OSCRE .xml filesIn some cases, the best option might be to send lease data from your sourceapplication to the target application. As an alternative to directly specifying leaseabstract records, you can transmit Open Standards Consortium for Real Estate(OSCRE) .xml files between applications.

Before you begin

You must sign in as a Real Estate Abstractor or Real Estate Contract Manager.

Procedure1. Add the lease abstract.

Role Action

Real Estate Abstractor In the Work in Progress Lease Abstracts portal section, clickthe Add New Abstract action.


Select Contracts > Leases. In the Related Links – ContractLeases portal section, click the Lease Abstracts link. Click theAdd action.

2. Specify the details.3. Click the Create Draft External action.4. Click the Start Abstract action. The status of the record changes to In Progress.5. Specify any other data and click the Submit for Review action. The status of

the record changes to Review In Progress.6. After the status of the record changes to Approved, open the lease abstract

record.7. Click the Send action. Specify the comment, source application, and target

application.8. Click the Submit action. The status of the record changes to Sent.

Exporting lease abstract records by sending OSCRE .xml filesThe .xml export tool for the Open Standards Consortium for Real Estate (OSCRE)is an alternative to clicking the Send action on a lease abstract record. For example,you might want to batch several records to send at a single time after they aresubmitted for review and approved. Typically, lease abstract records exportedthrough OSCRE are received directly into the IBM TRIRIGA server through itsincoming mail address.

Before you begin


Chapter 4. Creating lease abstracts 19

In addition, verify that the lease abstract business object does not contain a fieldwith a field name that includes any of following special characters:~`!#$%&*()_+-={}|[]\:”;'<>?,./ Otherwise, if a special character is present, thisprocess does not generate the OSCRE .xml file. If necessary, revise and republishthe business object.

Procedure1. Select Tools > Data Utilities > OSCRE XML Export.2. Click the Add action.3. Specify the details.4. Create the export record.5. Process the export record.

Form tabsThe tabs at the top of the OSCRE XML Export form represent the different areas ofthe export record. This record is prepared according to the Open StandardsConsortium for Real Estate (OSCRE) standard to export one or more lease abstractrecords as .xml files. Depending on your security access to the form, such tabsmight include general information and system details. Common form tabs indicatetabs that are shared across many types of forms.

You might not have access to some of these elements. The elements to which youhave access depend on your job function and role within your company and howthe application was implemented at your company.

General tab:

Use this tab of the OSCRE XML Export form to specify the lease abstracts to beexported through the Open Standards Consortium for Real Estate (OSCRE). Inaddition, specify the source system, target system, and other details.

General section:

Use this section of the OSCRE XML Export form to identify the status, name, andother general information for the export record. The export process follows thestandards by the Open Standards Consortium for Real Estate (OSCRE).

Item Description

ID The unique identifier of the export record. If you do notprovide an identifier, one is automatically generated.

Status The status of the export record.

Name The name of the export record.

Description The brief description of the export record.

Send details section:

Use this section of the OSCRE XML Export form to identify the source system,target system, and other system details. The export process follows the standardsby the Open Standards Consortium for Real Estate (OSCRE).

Item Description

Comment The brief description of the source and target details.


Item Description

Source System The name of the system that sends the lease abstracts. Tochange the system, specify a few characters of the name to

take advantage of autocomplete or click the Search icon tofind the name.

Target System The name of the system that receives the lease abstracts. Tochange the system, specify a few characters of the name to

take advantage of autocomplete or click the Search icon tofind the name.

Lease abstract section:

Use this section of the OSCRE XML Export form to identify the lease abstracts tobe exported through the Open Standards Consortium for Real Estate (OSCRE).

Item Description

Find Lease Abstract Lists the available information. Click this action on the sectionbar and select from the listed lease abstracts in Approvedstatus. Click OK.

Remove Deletes a line item. Select the line item and click this action.

Importing lease abstract records by sending OSCRE .xml filesThe .xml import tool for the Open Standards Consortium for Real Estate (OSCRE)is an alternative to receiving a lease abstract record through email from anotherserver. For example, a lease abstract record can be sent as an attachment to youremail address, instead of the incoming mail address of the IBM TRIRIGA server.You can later upload the attached .xml file into the server.

Before you begin


Procedure1. Select Tools > Data Utilities > OSCRE XML Import.2. Click the Add action.3. Specify the details.4. Create the import record.5. Process the import record. After you process the import record, the record

shows one of the following statuses:

Status Description

Waiting for DC Process Indicates that the Extract, Transform, and Load (ETL)processing was successful. It also indicates that the .xml file iswaiting to be processed by the IBM TRIRIGA DataConnect(DC) tool.

DC Process Complete Indicates that DataConnect (DC) processing was successful,and the .xml file was imported.

ETL Failed Indicates that the ETL processing failed. Look in the server logfor more information.


Form tabsThe tabs at the top of the OSCRE XML Import form represent the different areas ofthe import record. This record is prepared according to the Open StandardsConsortium for Real Estate (OSCRE) standard to import your lease abstract recordas an .xml file. Depending on your security access to the form, such tabs mightinclude general information and system details. Common form tabs indicate tabsthat are shared across many types of forms.


General tab:

Use this tab of the OSCRE XML Import form to specify the .xml file to beimported through the Open Standards Consortium for Real Estate (OSCRE). Inaddition, specify the type of import action, and other details.

General section:

Use this section of the OSCRE XML Import form to identify the status, name, andother general information for the import record. The import process follows thestandards by the Open Standards Consortium for Real Estate (OSCRE).

Item Description

ID The unique identifier of the import record. If you do notprovide an identifier, one is automatically generated.

Date Time The date and time when you first added the form for theimport record.

Status The status of the import record.

Name The name of the import record.

Description The brief description of the import record.

Transformation File The file that is separate from the OSCRE .xml file, and isgenerated after the import record is processed. There are 2actions:

v View Content: Click this action to view the file content.

v Download Transformation File: Click this icon to downloadthe file.

Type The type of the OSCRE import action, such as accept, reject,request clarification, lease abstract, and provide clarification.The selected option must match the actual OSCRE process. Forexample, if the .xml file is taken from a lease abstract recordthat was sent with the request clarification process, then selectthe request clarification type.

DC Job Number The job number that is assigned to the record for the IBMTRIRIGA DataConnect (DC) tool. This number is automaticallygenerated.


Item Description

OSCRE XML File The .xml file that contains the lease abstracts. There are 4actions:

v Upload OSCRE XML file: Click this icon to upload the file.

v Clear OSCRE XML file: Click this icon to remove the file.

v View Content: After the file is uploaded or processed, clickthis action to view the file content.

v Download OSCRE XML file: After the file is uploaded orprocessed, click this icon to download the file.

OSCRE log section:

Use this section of the OSCRE XML Import form to view the communication, .xml,and date-time information about the import as the import occurs. The importprocess follows the standards by the Open Standards Consortium for Real Estate(OSCRE).

Form tabsThe tabs at the top of the Lease Abstract form represent the different areas of alease abstract record. Depending on your security access to the form, such tabsmight include general information, notifications, system details, and reports.Common form tabs indicate tabs that are shared across many types of forms.


General tabUse this tab of the Lease Abstract form to specify the lease identifier, lease names,primary address, lease contacts, critical dates, and other details.

Abstract details sectionUse this section of the Lease Abstract form to identify who abstracted the lease andwhen it was abstracted.

Item Description

Abstracted By The name of the person who abstracted the lease. To changethe name, specify a few characters of the name to take

advantage of autocomplete or click the Search icon to findthe name.

Abstracted Date The date when the lease was abstracted. To change the date,

click the Calendar icon and select the date.

Document details sectionUse this section of the Lease Abstract form to identify the document version,document type, and other details of the physical document.

Item Description

Document Version The version of the physical document.


Item Description

Executed Date The date when the physical document was completed. Click

the Calendar icon and select the date.

Document Type The type of the physical document. Click the Search iconand select the type.

Effective Date The date when the physical document took effect. Click the

Calendar icon and select the date.

Lease File Name The name of the lease file.

General sectionUse this section of the Lease Abstract form to identify the lease identifier, leasename, legal name, and other general information for the record.

Item Description

Lease ID The unique identifier of the lease abstract record. If you do notprovide an identifier, one is automatically generated. For OpenStandards Consortium for Real Estate (OSCRE) integrations towork, a unique identifier is required.

Status The status of the lease abstract record.

Picture The image that represents the lease abstract record. Click theUpload Picture icon to select the image such as thephotograph of the property.

Lease Name The name of the lease in the lease abstract record.

Legal Name The name of the landlord or organization name as specified inthe legal documents.

Description The brief description of the lease abstract record.

Revision The revision number of the lease abstract record. This valueindicates the number of times that the record was modified.

Legacy ID The identifier that is related to the lease abstract record from aprevious system or application.

Primary address sectionUse this section of the Lease Abstract form to identify the address informationfrom the lease.

Item Description

Create New Location Creates a location. If a location is missing from the locationhierarchy, you can click this action on the section bar. Specifythe details and click the Continue action. The form populatesthe location fields with the new location.

Create New City Creates a city. If a city is missing from the location hierarchy,you can click this action. Specify the details and click theContinue action. The form populates the location fields withthe new city.

Location Lookup The location on the lease, including the full path in thelocation hierarchy. Specify a few characters to take advantage

of autocomplete or click the Search icon to find thelocation.

Location The location on the lease.


Item Description

Geography Path The geographic location on the lease, including the full path inthe geographic hierarchy. Specify a few characters to take

advantage of autocomplete or click the Search icon to findthe location.

Address The street address on the lease.

City The city on the lease. This field is automatically populatedbased on the selected geographic path.

State/Province The state or province on the lease. This field is automaticallypopulated based on the selected geographic path.

County The county on the lease.

Zip/Postal Code The postal code on the lease.

Country The country on the lease. This field is automatically populatedbased on the selected geographic path.

Lease contacts sectionUse this section of the Lease Abstract form to identify the contact information forthe lease.

Item Description

Add People Adds contacts. Click this action on the section bar and selectfrom the listed people. Click OK. The form adds the line itemsin the section.

Update Role Assigns a role to a person. Select the line item and click thisaction. The form shows the available roles. Select a role andclick OK.


Units sectionUse this section of the Lease Abstract form to identify the currency and area unitsfrom the lease.

Item Description

Currency The type of currency for all cost-related fields in the record.The form shows the default currency that is set by youradministrator.

Area Units The unit of measure (UOM) for all area-related fields in therecord.

Details sectionUse this section of the Lease Abstract form to identify the lease type, leasecategory, and other lease details.


Item Description

Lease Type The type of the lease, in terms of expense, income, and

sublease. Click the Search icon and select from the listedchoices. There are 4 classifications:

v Expense lease: This option is the most common. Use it whenyou lease space from a landlord.

v Expense lease - master sublease: An expense lease that isused when you are subleasing space from another party.

v Income lease - sublease: An income-based or accountsreceivable (AR) lease that is used when you have anexpense lease and you are subleasing part of it to anothertenant.

v Income lease - third-party lease: An income-based oraccounts receivable (AR) lease that is used when you ownthe property and have subtenants for the tenants in thebuilding.

If the value is an income lease (sublease or third-party lease),the form shows the Parent Real Estate Contract of Subleasesection in the General tab.

Lease Category The category of the lease, in terms of net and gross. Click the

Search icon and select from the listed choices.

Primary Use The main use of the lease, in terms of real estate. Click the

Search icon and select from the listed choices. When thevalue is retail, the form shows the Grand Open Date field andSoft Open Date field in the Critical Dates section.

Contract Status The status of the physical lease contract. Click the Search icon

and select from the listed choices.

Base Lease Rate The rate of the base lease. This base is the minimum leaseamount. The unit of currency is set in the Units section.

Lease Base Year The base year of the lease. This base is the initial lease period.

Memorandum of Lease Select the check box if the situation applies.

Rules and Regulation Select the check box if the situation applies.

Is Cost or Fair MarketValue Determinable

Select the check box if the situation applies.

Is it Market-Based Select the check box if the situation applies.

Accounting Type The type of the accounting method, such as accounts payable(AP) and accounts receivable (AR).

Parent real estate contract of sublease sectionUse this section of the Lease Abstract form to identify the parent lease contract ofthis lease. The form shows this section when the value of the Lease Type field isan income lease (sublease or third-party lease).

Item Description

Find Lists the available information. Click this action on the sectionbar and select from the listed lease contracts. Click OK.

Remove Erases the information. Click this action.

Name The name of the parent real estate contract. Specify a fewcharacters to take advantage of autocomplete.


Critical dates sectionUse this section of the Lease Abstract form to identify the commencement,construction, expiration, and other dates from the lease.

The form uses these dates to populate other fields in other sections and tabs in thelease abstract. If you have auditable or percentage rent clauses, you must specifythe Commencement Date field and Base Lease Expiration Date field to calculatethe amount due for the occupied duration.

Item Description

Commencement Date The date when the lease term and the contracted work on the

site begins. Click the Calendar icon and select the date.

Construction Start Date The date when actual construction on the site begins. Click the


Base Lease ExpirationDate

The date when the base lease expires, without renewal options

applied. Click the Calendar icon and select the date.

Construction End Date The date when construction on the site ends. Click the


Rent CommencementDate

The date when the obligation to pay rent begins. Click the


Occupancy Date The date when the tenant begins occupying the site. Click the


Legal Notice Date The date when the lease becomes legally valid. Click the


Soft Open Date The date when the retail site begins to operate with minimalpublic promotion. If you selected retail for the Primary Usefield in the Details section, the form shows this field. Click the


Grand Open Date The date when the retail site makes the public announcementof its official opening. If you selected retail for the PrimaryUse field in the Details section, the form shows this field.

Click the Calendar icon and select the date.

Premise location sectionUse this section of the Lease Abstract form to identify the more-detailed locationsat the primary address from the lease.

Item Description

Add Adds a location. Click this action on the section bar. The formadds a line in the section. Specify the details.

Find Lists the available information. Click this action and select anexisting location from the location hierarchy.


Linked Record Opens a line item. Click the Linked Record icon .

Premise Name The name of the premise at this location.


Item Description

Included in Rent Select the check box if the situation applies. Selecting thischeck box determines how the areas in the Total Rentablefield and Total Usable field are calculated in the LocationSummary section.

Effective From The date when this line item begins to take effect. Click the


Effective To The date when this line item no longer takes effect. Click the


Rentable (lease) The overall area available for rent in the property. The unit ofmeasure is set in the Units section.

Usable (lease) The actual usable area in the property. The unit of measure isset in the Units section.

Location summary sectionUse this section of the Lease Abstract form to identify the total areas of all of thepremises, and the proportionate shares of the location.

Item Description

Total Rentable The total area of rentable space from all of the premises at thislocation. When the record is saved, the form calculates thisfield from the line items in the Premise Location section thathave the Included in Rent check box selected. This field isalso the default on the Generate Payment Schedules wizardform and is the key to calculating the Cost Per Areacalculations.

Total Usable The total area of usable space from all of the premises at thislocation. When the record is saved, the form calculates thisfield from the line items in the Premise Location section thathave the Included in Rent check box selected.

Total Area forProportionate Share

The total area of the location that is being abstracted. The unitof measure is set in the Units section.

Proportionate Share(contractual)

The percentage of the total rentable area that is represented bythis location in the lease contract.

Proportionate Share(calculated)

The calculated percentage of the total rentable area that isrepresented by this location. When the record is saved, theform divides the area in the Total Rentable field by the area inthe Total Area for Proportionate Share field.

Location cost code sectionUse this section of the Lease Abstract form to identify the accounting costclassification of the lease location.

Item Description

Find Lists the available information. Click this action on the sectionbar and select from the listed cost codes. Click OK.

Clear Erases the information. Click this action.

ID The unique identifier of the cost code. Specify a few charactersto take advantage of autocomplete.

Name The name of the cost code.


Tenant sectionUse this section of the Lease Abstract form to identify the tenant or lesseeorganization and the contact person to whom lease questions are directed.

Item Description

Create New Organization Creates an organization. If an organization that you arelooking for is missing from the organization hierarchy, you canclick this action on the section bar. Specify the details and clickthe Continue action. The form populates the organizationfields with the new organization.

Tenant Contact OrgLookup

The name of the tenant or lessee organization. Specify a fewcharacters to take advantage of autocomplete, or click the

Search icon to find the organization. The form populatesthe tenant or lessee information from that organization record.

Contact Lookup The contact for the organization. Specify a few characters to

take advantage of autocomplete, or click the Search iconto find the contact. The form populates the contact informationfrom that people record.

Landlord sectionUse this section of the Lease Abstract form to identify the landlord or lessororganization and the contact person to whom lease questions are directed.

Item Description


Landlord/OwnerOrganization Lookup

The name of the landlord, lessor, or owner organization thatleases the property to the tenant. Specify a few characters to

take advantage of autocomplete or click the Search icon tofind the organization. The form populates the landlord, lessor,or owner information from that organization record.



Management company sectionUse this section of the Lease Abstract form to identify the organization on the leasethat is responsible for supervising the functioning of the property. This section alsoidentifies the contact person to whom property questions are directed.

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ManagementOrganization Lookup

The organization that provides management services for thelease. Specify a few characters to take advantage of

autocomplete or click the Search icon to find theorganization. The form populates the management companyinformation from that organization record.



Guarantor sectionUse this section of the Lease Abstract form to identify the cosigning organizationon the lease and the contact person to whom lease questions are directed.

Item Description


Guarantor OrganizationLookup

The organization that guarantees the lease. Specify a fewcharacters to take advantage of autocomplete, or click the

Search icon to find the organization. The form populatesthe guarantor information from that organization record.



Default remit to sectionUse this section of the Lease Abstract form to identify the organization thatreceives the lease payment.

Item Description

Update PaymentInstructions

Updates the Remit To field on payment instructions that areattached to payment schedules for this lease abstract. Toupdate those instructions with the default Remit To Look Upinformation, click this action on the section bar.

Remit To Look Up The organization that receives the payment. Specify a fewcharacters to take advantage of autocomplete, or click the

Search icon to find the organization. The form populatesthe address information from that organization record. Theorganization selected in this section is used as the default inthe payment instruction record for payment schedulesassociated to this lease. You can click the hyperlinked fieldlabel to view or modify the record details.

Abstract notifications sectionUse this section of the Lease Abstract form to identify any notifications that aresent, their types, and the roles that are notified.


Item Description

Add Adds a notification. Click this action on the section bar.Specify the details and click the Create action. The form addsa line in the section.


Additional notice addresses sectionUse this section of the Lease Abstract form to identify any related addresses thatare not covered elsewhere in the record.

Item Description

Add Adds an address. Click this action on the section bar. Specifythe details and click the Create action. The form adds a line inthe section.


Real estate lease sectionWhen the lease abstract record is approved and completed, this section identifiesthe real estate lease record that is created from the abstract information.

Item Description

ID The unique lease identifier of the real estate lease record.

Name The name of the real estate lease record.

Lease Type The type of the lease for the real estate lease record, in termsof expense, income, and sublease.

Status The status of the real estate lease record.

Other dates sectionUse this section of the Lease Abstract form to identify any significant dates that arenot covered elsewhere in the record.

Item Description

Add Adds a date. Click this action on the section bar. The formadds a line in the section. Specify the details.



Date Type The type of the lease date, such as construction start, grand

open, occupancy, and soft open. Click the Search icon andselect from the listed choices.

Date The specific calendar date. Click the Calendar icon andspecify the date.

Description The brief description of the date.

Lease abstract exceptions sectionUse this section of the Lease Abstract form to identify any issues such as missing,unsigned, or inconsistent documents, and errors in mathematics or dates.


Item Description

Add Adds an exception. Click this action on the section bar. Theform adds a line in the section. Click the line item to specifyand save the details.


Rent tabUse this tab of the Lease Abstract form to specify the document reference, clausesummary, and other clause details for each rent-related clause that you add. Theserent-related clauses can include rent, percentage rent, and commission clauses. Thistab also contains lease details, rent schedules, default index adjustment values,percentage rent schedules, and commission schedules.

Lease details sectionUse this section of the Lease Abstract form to identify the use of fair market ratevalue, index adjustment, sales reports, and commissions.

Item Description

Lease Adjustment Type The type of the lease adjustment, such as fair market ratevalue and index adjustment.

v If you select the fair market rate value, the Rent tab showsthe Fair Market Rate Value section.

v If you select the index adjustment, the Rent tab shows theIndex Adjustments section.

Does lease have SalesReporting requirements?

Select the check box if the situation applies. If selected, theRent tab shows several sections. These sections include thePercentage Rent Clause, Percent Rent Setup, Sales ReportingDetails, Sales Exclusions, Tax Exclusions, AllowableDeductions, and Percent Rent Schedules sections.

Does lease haveCommissions Due?

Select the check box if the situation applies. If selected, theRent tab shows the Commissions, Commission Schedules, andCommissions Clauses sections.

Rent clause sectionUse this section of the Lease Abstract form to identify the document references,clause summary, and other clause details that relate to the rent.

Document References. This area of the clause identifies where to go in the legaldocument to find the clause details.

Item Description

Document Type The type of legal document, such as an amendment, lease,

notice letter, and sublease. Click the Search icon and selectfrom the listed choices.

Granted In Lease The legal status of this clause. Click the Search icon andselect from the listed choices.

Section The section where the clause details are found in the legaldocument.

Page The page where the clause details are found in the legaldocument.


Item Description

Abstract Notes The notes that are related to the legal document.

Clause Details. This area of the clause summarizes and captures the clause text inthe legal document. This section shows a different set of clause details that dependon the specific clause that you open.

Item Description

Clause Type The type of the clause. Depending upon the clause, the form

might not show this field. If available, click the Search iconand select from the listed choices.

Allowance Type, CAMType, Insurance Type, TaxType, or Co-Tenancy Type

The type of the specific clause. Depending upon the clause,the form might not show this field. If available, click the


Includes IndexAdjustment

Depending upon the clause, the form might not show thisfield. Select this check box if the situation applies. The formshows the Index Adjustment section when the clause iscreated. Before you specify data in other clauses, specify thedefault index adjustment values on the Index Adjustmentsection of the Rent tab. When you select this check box anddefault data is available, the form copies the data into theIndex Adjustment section of the current clause. Then, you canedit the default data.

Clause Summary The summary of the clause text from the legal document.

Clause Text The text of the specific clause from the legal document.Depending upon the clause, the form might not show thisfield. If available, specify the clause text from the legaldocument.

Rent schedules sectionUse this section of the Lease Abstract form to identify the payment frequency, startdate, end date, and other scheduling details for the rent.

Item Description

Add Adds one rent schedule at a time. Click this action on thesection bar. Specify the details and click the Create action. Theform adds a line in the section.

Generate PaymentSchedules

Adds several rent schedules at one time. Click this action.Specify the details and click the Create Schedule action. Thewizard form remains open for you to specify and createanother schedule. When you close the wizard form, the leaseabstract form adds the lines in the section.


Historic payment schedules sectionUse this section of the Lease Abstract form to identify the frequency, start date, andother scheduling details from past rental schedules.

The historical data cannot be manually added into the system, but must begenerated from past rental data.


Fair market rate value sectionUse this section of the Lease Abstract form to identify the monetary value of therate, adjustment frequency, and other related values.

The Rent tab shows this section if you selected the fair market rate value for theLease Adjustment Type field. This section provides the default values for the FairMarket Rate Value section in other tabs of the lease abstract. Therefore, specify thisinformation in the Rent tab before you specify the same information in other tabs.

Item Description

Percentage of Rate The current rate of the rental fair market value.

Rate Source The source from which the current rate is obtained. Click the


Current Rate The monetary value of the current rate.

Current Rate Date The date when the current rate took effect. Click the Calendar

icon to specify the date.

Original Rate The monetary value of the original rate.

Original Rate Date The date when the original rate took effect. Click the Calendar


Unit of Rate The unit of area that applies to the monetary value.

Adjustment Frequency The frequency at which the current rate is adjusted, such asannually, monthly, quarterly, and semi-annually.

Adjustment Reminder The duration before the system sends a reminder to you. Click

the Calendar icon and specify the duration.

First Adjustment Date The first date in the frequency at which the current rate is

adjusted. Click the Calendar icon to specify the date.

Minimum % Increase The minimum percentage that the current rate increases peradjustment.

Lifetime Min % Increase The minimum percentage that the current rate increasesduring the life of the lease.

Maximum % Increase The maximum percentage that the current rate increases peradjustment.

Lifetime Max % Increase The maximum percentage that the current rate increasesduring the life of the lease.

Index adjustments sectionUse this section of the Lease Abstract form to identify the cost index, index source,base index rate, adjustment frequency, and other related values.

The Rent tab shows this section if you selected the index adjustment for the LeaseAdjustment Type field. This section provides the default values for the IndexAdjustment section in other tabs of the lease abstract. Therefore, specify and savethis information in the Rent tab before you specify the same information in othertabs. Similarly, if you select the Includes Index Adjustment check box in a clause,the clause shows the Index Adjustments section.


Item Description

Cost Index The current index by which the rental costs are adjusted. Click

the Search icon and select from the listed choices.

Index Source The source from which the current index is obtained.

Base Year The original year during which the costs are adjusted.

Base Index Date The date when the original index took effect. Click the

Calendar icon to specify the date.

Base Index (Percent) The percentage of the original index.

Index Percent at BaseYear

The percentage of the current index during the original year.

Adjustment Frequency The frequency at which the current index is adjusted, such asannually, monthly, quarterly, and semi-annually.



First Adjustment Date The first date in the frequency at which the current index is


Frequency Type The frequency at which the current index is applied. Click the


Minimum % Increase The minimum percentage that the current index increases peradjustment.

Lifetime Min % Increase The minimum percentage that the current index increasesduring the life of the lease.

Maximum % Increase The maximum percentage that the current index increases peradjustment.

Lifetime Max % Increase The maximum percentage that the current index increasesduring the life of the lease.

Description The description of the index adjustments that are involved.

Percentage rent clause sectionUse this section of the Lease Abstract form to identify the document references,clause summary, and other clause details of the percentage rent. The rent iscalculated as a percentage of the annual sales that are made by the tenant in orfrom the premises.

If you select the Does lease have Sales Reporting requirements? check box, theRent tab shows additional sections that include this one.

Item Description

Find Template Applies a template with default data to this section. Click thisaction on the section bar.




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Percent rent setup sectionUse this section of the Lease Abstract form to identify the reporting dates,reporting frequency, and other details of the percentage rent.


Item Description

Clear Erases the information. Click this action on the section bar.

First Reporting PeriodStart Date

The date when the first reporting period is due to start. Click



Item Description

Reporting Frequency The frequency at which the rent reporting occurs, such asannually, monthly, quarterly, or semi-annually.

First Reporting PeriodEnd Date

The date when the first reporting period is due to end. Click


Billing Frequency The frequency at which billing occurs. Click the Search icon


Reporting Only Select the check box if this situation applies to the rentreporting.

Natural Breakpoint The point where the base rent equals the percentage rent.Select the check box if this situation applies to the rentreporting.

Due Within The duration within which the rent reporting is due. Click the

Calendar icon and select the duration.

Cumulative The accumulated data that is collected over a duration. Selectthe check box if this situation applies to the rent reporting.

Landlord Audit Rights The right of the landlord to conduct a lease audit. Select thecheck box if this situation applies to the rent reporting.

Description The additional details for the percentage rent reporting.

Sales reporting details sectionUse this section of the Lease Abstract form to identify the effective dates, base salesamounts, and other details of the reported sales.


Item Description

Add Adds a sales line item. Click this action on the section bar. Theform adds a line in the section. Specify the details.



Sales Category The category of this sales line item. Click the Search iconand select from the listed choices.

Effective From The date when this sales line item goes into effect. Click the


Effective To The date when this sales line item is no longer in effect. Click


Base Sales From The lower limit amount that applies to this sales line item.

Base Sales To The upper limit amount that applies to this sales line item.

% Rent The rental percentage that applies to this sales line item.

Sales exclusions sectionUse this section of the Lease Abstract form to identify the exclusion category andcap amount for the sales that are excluded from reporting.



Item Description

Add Adds a sales line item. Click this action on the section bar. Theform adds a line in the section. Specify the details.




Exclusion Category The category of this sales exclusion. Click the Search iconand select from the listed choices.

Cap Amount The maximum amount that applies to this sales exclusion.

Tax exclusions sectionUse this section of the Lease Abstract form to identify the tax type and tax rate forthe taxes that are excluded from reporting.


Item Description

Add by Tax Type Adds a tax line item. Click this action on the section bar. Selectfrom the listed choices and click OK. The form adds a line inthe section. Specify the details.



Tax Type The type of the tax, such as city, local, and state.

Tax Rate The percent rate that applies to this tax exclusion.

Allowable deductions sectionUse this section of the Lease Abstract form to identify the payment type and capamount for allowable tax deductions.


Item Description

Add by Payment Type Adds a deduction line item. Click this action on the sectionbar. Select from the listed choices and click OK. The form addsa line in the section. Specify the details.



Payment Type The type of the service or item that is being paid for, such asadministrative fees, heating charges, operating expenses, andsignage rent.

Cap Amount The maximum amount that applies to this allowable taxdeduction.


Percent rent schedules sectionUse this section of the Lease Abstract form to identify the payment frequency, startdate, end date, and other scheduling details for the percentage rent.


Item Description

Add Adds one rent schedule at a time. Click this action on thesection bar. Specify the details and click the Create action. Theform adds a line in the section.


Adds several rent schedules at one time. Click this action.Specify the details and click the Create Schedule action. Thewizard form remains open for you to specify and createanother schedule. When you close the wizard form, the leaseabstract form adds the lines in the section.


Commissions sectionUse this section of the Lease Abstract form to identify the document references,clause summary, and other clause details for commissions.

If you select the Does lease have Commissions Due? check box, the Rent tabshows additional sections that include this one.

Item Description

Add Clause Adds the just-completed clause to the Commissions Clausessection. After specifying the commissions clause information,click this action on the section bar. The information that youspecified remains so that you do not have to retype theinformation for the next clause. Continue to build and addclauses until all commissions clauses are represented.

Save Clause Saves the information in the wizard. Click this action.

Clear Wizard Erases the information in the wizard. Click this action.


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Commissions Details. This area of the clause captures the commissionrequirements, dates, and other values.

Item Description

Requirements The requirements for the commission.

Percent The percentage of the commission.

Expected Amount The amount of expected commission. The unit of currency istaken from the General tab.

Due Date The date when the commission is due. Click the Calendar icon

and select the date.

Paid Date The date when the commission is paid. Click the Calendar

icon and select the date.

Receipt Date The date when the commission is received. Click the Calendar


Amount Due The remaining amount that is due. The unit of currency istaken from the General tab.

Commission schedules sectionUse this section of the Lease Abstract form to identify the payment frequency, startdate, end date, and other scheduling details for commissions.



Item Description

Add Adds one commission schedule at a time. Click this action onthe section bar. Specify the details and click the Create action.The form adds a line in the section.


Commissions clauses sectionUse this section of the Lease Abstract form to adjust the list of commissions clausesin the lease.


Item Description

Hide Wizard Closes the wizard in the Commissions section. Click thisaction on the section bar. When the wizard is hidden, thissection shows the Show Wizard action.

Find Template Applies a clause template with default data to this section.Click this action. Select from the listed choices and click OK.The form adds a line in the section.


Default tabUse this tab of the Lease Abstract form to specify the document reference, clausesummary, and other clause details for each monetary-default clause that you add.

Default clause sectionUse this section of the Lease Abstract form to identify the document references,clause summary, and other clause details for monetary default.

Item Description

Add Clause Adds the just-completed clause to the Default Clauses section.After specifying the monetary-default clause information, clickthis action on the section bar. The information that youspecified remains so that you do not have to retype theinformation for the next clause. Continue to build and addclauses until all monetary-default clauses are represented.




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Default Clause Details. This area of the clause captures the monetary-defaultrequirements, durations, and other values.

Item Description

Default Clause Details The required and relevant monetary-default information fromthe lease contract. For assistance, consult your leaseadministrator, lease accountant, or lease contacts.

Default clauses sectionUse this section of the Lease Abstract form to adjust the list of monetary-defaultclauses in the lease.

Item Description

Hide Wizard Closes the wizard in the Default Clause section. Click thisaction on the section bar. When the wizard is hidden, thissection shows the Show Wizard action.


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Security deposit tabUse this tab of the Lease Abstract form to specify the document reference, clausesummary, and other clause details for each security-deposit clause that you add.

Clause details sectionUse this section of the Lease Abstract form to identify the document references,clause summary, and other clause details for security deposits.

Item Description

Add Clause Adds the just-completed clause to the Security Deposit Clausessection. After specifying the security-deposit clauseinformation, click this action on the section bar. Theinformation that you specified remains so that you do nothave to retype the information for the next clause. Continue tobuild and add clauses until all security-deposit clauses arerepresented.




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Deposit Details. This area of the clause captures the security-deposit requirements,dates, and other values.

Item Description

Deposit Details The required and relevant deposit information from the leasecontract. For assistance, consult your lease administrator, leaseaccountant, or lease contacts.

Cash cost code sectionUse this section of the Lease Abstract form to identify the accounting costclassification for cash payments.

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Expense cost code sectionUse this section of the Lease Abstract form to identify the accounting costclassification for expenses.

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Security deposit clauses sectionUse this section of the Lease Abstract form to adjust the list of security depositclauses in the lease.

Item Description

Hide Wizard Closes the wizard in the Clause Details section. Click thisaction on the section bar. When the wizard is hidden, thissection shows the Show Wizard action.



Options tabUse this tab of the Lease Abstract form to specify the option type, option text, andother details for each tenant-renewal option that you add. You can also use theOption wizard form to add more options.

Instructions sectionUse this section of the Lease Abstract form to access the Option Wizard action.You can add multiple options to the Tenant Renewal Options section or OtherOptions section.

Item Description

Option Wizard Opens the Option wizard form. Click this action on the sectionbar. Specify the details and click the Create Option action. Thewizard form remains open for you to specify another option.When you close the wizard form, the lease abstract form addsthe lines in the Tenant Renewal Options section or OtherOptions section.

Tenant renewal options sectionUse this section of the Lease Abstract form to identify the option type, effectivedate, expiration date, and other option details for tenant renewals.

Item Description

Add Adds an option. Click this action on the section bar. The formadds a line in the section.


Other options sectionUse this section of the Lease Abstract form to identify the option type, effectivedate, and other option details for additional options.

Item Description

Add Adds an option. Click this action on the section bar. The formadds a line in the section.



Rights tabUse this tab of the Lease Abstract form to specify the document reference, clausesummary, and other clause details for each rights-related clause that you add.These rights-related clauses can include alteration, assignment, subletting,holdover, signage, and restoration obligations.

Alterations sectionUse this section of the Lease Abstract form to identify the document references,clause summary, and other clause details for physical alterations.

Item Description

Add Clause Adds the just-completed clause to the Alterations Clausessection. After specifying the alteration clause information, clickthis action on the section bar. The information that youspecified remains so that you do not have to retype theinformation for the next clause. Continue to build and addclauses until all alteration clauses are represented.




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Alteration Details. This area of the clause captures the physical-alterationrequirements and other values.

Item Description

Alteration Details The required and relevant alteration information from thelease contract. For assistance, consult your lease administrator,lease accountant, or lease contacts.

Alterations clauses sectionUse this section of the Lease Abstract form to adjust the list of alterations clausesin the lease.

Item Description

Hide Wizard Closes the wizard in the Alterations section. Click this actionon the section bar. When the wizard is hidden, this sectionshows the Show Wizard action.



Assignment and subletting sectionUse this section of the Lease Abstract form to identify the document references,clause summary, and other clause details for lease assignment and subletting.


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Assignment and Subletting Details. This area of the clause captures theassignment-subletting requirements, duration, and other values.

Item Description

Assignment andSubletting Details

The required and relevant assignment and sublettinginformation from the lease contract. For assistance, consultyour lease administrator, lease accountant, or lease contacts.The abbreviation "LL" denotes the landlord.

Holdover sectionUse this section of the Lease Abstract form to identify the document references,clause summary, and other clause details for holdover tenancy.



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Holdover Details. This area of the clause captures the holdover-tenancy penalties,duration, and other values.

Item Description

Holdover Details The required and relevant holdover information from the leasecontract. For assistance, consult your lease administrator, leaseaccountant, or lease contacts.

Other rights sectionUse this section of the Lease Abstract form to identify the document references,clause summary, and other clause details for any additional rights.


Item Description

Add Clause Adds the just-completed clause to the Other Rights Detailssection. After specifying the clause information, click thisaction on the section bar. The information that you specifiedremains so that you do not have to retype the information forthe next clause. Continue to build and add clauses until alladditional clauses are represented.




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Other Rights Details. This area of the clause captures the requirements, dates, andother values for any additional rights.

Item Description

Other Rights Details The required and relevant rights information from the leasecontract. For assistance, consult your lease administrator, leaseaccountant, or lease contacts.

Other rights details sectionUse this section of the Lease Abstract form to adjust the list of additional rightsclauses in the lease.

Item Description

Hide Wizard Closes the wizard in the Other Rights section. Click this actionon the section bar. When the wizard is hidden, this sectionshows the Show Wizard action.



Signage sectionUse this section of the Lease Abstract form to identify the document references,clause summary, and other clause details for tenant signage.


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Signage Details. This area of the clause captures the tenant-signage requirementsand other values.

Item Description

Signage Details The required and relevant signage information from the leasecontract. For assistance, consult your lease administrator, leaseaccountant, or lease contacts. The abbreviation "LL" denotesthe landlord. The abbreviation "PRS" denotes the percentagerent.

Restoration obligations sectionUse this section of the Lease Abstract form to identify the document references,clause summary, and other clause details for premises restoration.


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Restoration Obligation Details. This area of the clause captures thepremises-restoration requirements, duration, and other values.

Item Description

Restoration ObligationDetails

The required and relevant restoration information from thelease contract. For assistance, consult your lease administrator,lease accountant, or lease contacts.

Allowances tabUse this tab of the Lease Abstract form to specify the document reference, clausesummary, and other clause details for each allowance clause that you add.

Clause details sectionUse this section of the Lease Abstract form to identify the document references,clause summary, and other clause details for allowances and improvements.

Item Description

Add Clause Adds the just-completed clause to the Allowance Clausessection. After specifying the allowance clause information,click this action on the section bar. The information that youspecified remains so that you do not have to retype theinformation for the next clause. Continue to build and addclauses until all allowance clauses are represented.





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Improvement Clause Details. This area of the clause captures the restrictions,dates, and other values for allowances and improvements.

Item Description

Improvement ClauseDetails

The required and relevant allowances and improvementsinformation from the lease contract. For assistance, consultyour lease administrator, lease accountant, or lease contacts.The abbreviation "LL" denotes the landlord. The abbreviation"TI" denotes the tenant improvement.


Allowance clauses sectionUse this section of the Lease Abstract form to adjust the list of allowance andimprovement clauses in the lease.

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OPEX/CAM tabUse this tab of the Lease Abstract form to specify the clause details for eachoperating expenses (OPEX) and common area maintenance (CAM) clause. This tabalso contains services included, services excluded, and CAM schedules.

Clause details sectionUse this section of the Lease Abstract form to identify the document references,and other clause details for operating expenses (OPEX) and common areamaintenance (CAM).

Item Description

Add Clause Adds the just-completed clause to the CAM Clauses section.After specifying the CAM clause information, click this actionon the section bar. The information that you specified remainsso that you do not have to retype the information for the nextclause. Continue to build and add clauses until all CAMclauses are represented.




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CAM audit setup sectionUse this section of the Lease Abstract form to identify the base year, paymentfrequency, and other details for the common area maintenance (CAM) audit setup.

Item Description

Save Setup Saves the information in the section. Click this action on thesection bar.

Base Year The base year of the lease. This base is the initial lease period.

Reconciliation Frequency The frequency of the payment reconciliation, such as annually,semi-annually, quarterly, and monthly.

Base Cost/Sq ft. The base cost per area (in square feet) of the lease payment.

Payment Frequency The frequency of the payments, such as 13-period, annually,

monthly, and weekly. Click the Search icon and selectfrom the listed choices.

Base Year Cap Amount The maximum amount for the base year of the lease.

Reconciliation Start The date when reconciliation begins. Click the Calendar icon


Cap Type The type of the maximum value, such as the amount or

percentage. Click the Search icon and select from thelisted choices.

First Billing End Date The date when the first billing period ends. Click the Calendar


Cap Growth % The maximum percentage for the growth rate of the leasepayment.


Item Description

Landlord AssessmentDeadline

The duration within which the reconciliation assessment by

the landlord or lessor is due. Click the Calendar icon andspecify the duration.

Min Percent Increase The minimum percentage for the increase in the leasepayment.

Tenant ReconciliationDeadline

The duration within which the reconciliation by the tenant or

lessee is due. Click the Calendar icon and specify theduration.

Max Percent Increase The maximum percentage for the increase in the leasepayment.

Responsible forExpansion Increases


Calculation Rule The rule that calculates the current year costs, based on theprorated share due (P/S), previous year charges (Prev. Yr.),base year cap amount (Base), or a combination of these values.The abbreviation "CPI" denotes the consumer price index.Select from the 6 rules:

v Rule 1: The lower of Prorated Share Due or (Previous YearCharges x Cap Growth %).

v Rule 2: The lower of Prorated Share Due or (Base Year CapAmount x (Number of Years x Cap Growth %)).

v Rule 3: The lower of (Previous Year Charges x CPI %) or(Previous Year Charges x Cap Growth %).

v Rule 4: The lower of (Previous Year Charges x CPI %) or(Base Year Cap Amount x (Number of Years x Cap Growth%)).

v Rule 5: The lowest of Prorated Share Due or (Base Year CapAmount x (Number of Years x Increase %)) or (PreviousYear Charges x Cap Growth %).

v Rule 6: The lowest of Prorated Share Due or (Previous YearCharges x Increase %) or (Previous Year Charges x CPIIncrease %).

Proof of PaymentRequired


Index Type The type of the index, such as the consumer price index (CPI),producer price index (PPI), or other local index. Click the


Supporting DocumentsRequired


Index Base The index percentage for the base year of the lease.

Landlord Credit Allowed Select the check box if the situation applies.

Administration Fee % The percentage for the administration fee in the leasepayment.

Pro Rata Method The method of prorating the lease payment, such as fixed,leased area, 30-day basis, 31-day basis, 360-day basis, and

365-day basis. Click the Search icon and select from thelisted choices.

Current Year Cap The maximum amount for the current year of the lease.


Item Description

Pro Rata Negotiated(Percent)

The negotiated percentage of prorating the lease payment.

Credit Balance The amount of the payments that is more than the calculatedamount, as of the previous due date.

Expense Exclusions The exclusion of specific expenses from the lease payment.

Services included sectionUse this section of the Lease Abstract form to identify the cost, proportionate share,and other details for the services that are included in the lease.

Item Description

Find Finds an existing service. Click this action on the section barand select from the listed choices.


Service The service that is included in the lease, such as janitorial,snow removal, and electric.

Estimated Cost The estimated annual cost for this included service.

Proportionate Share The percentage share of this included service compared to allincluded services. If the contractual value is not provided orequals zero, then the calculated value is used. If thecontractual value is provided, then that value is used.

Apply to Total Cap Select this check box if this included service is counted againstthe total cap for all included services.

Service Cap Amount The maximum amount that applies to this included service. Azero value indicates that there is no cap amount. The unit ofcurrency is taken from the General tab.

Services excluded sectionUse this section of the Lease Abstract form to identify the services that areexcluded from the lease.

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Service The service that is excluded from the lease, such as janitorial,snow removal, and electric.

CAM schedules sectionUse this section of the Lease Abstract form to identify the payment frequency, startdate, end date, and other scheduling details for common area maintenance (CAM).

Item Description

Add Adds one CAM schedule at a time. Click this action on thesection bar. Specify the details and click the Create action. Theform adds a line in the section.


Item Description


Adds several CAM schedules at one time. Click this action.Specify the details and click the Create Schedule action. Thewizard form remains open for you to specify and createanother schedule. When you close the wizard form, the leaseabstract form adds the lines in the section.


CAM clauses sectionUse this section of the Lease Abstract form to adjust the list of operating expenses(OPEX) and common area maintenance (CAM) clauses in the lease.

Item Description




Insurance tabUse this tab of the Lease Abstract form to specify the document reference, clausesummary, and other clause details for each insurance clause that you add. This tabalso contains insurance schedules.

Clause details sectionUse this section of the Lease Abstract form to identify the document references,clause summary, and other clause details for property insurance.

Item Description

Add Clause Adds the just-completed clause to the Insurance Clausessection. After specifying the insurance clause information, clickthis action on the section bar. The information that youspecified remains so that you do not have to retype theinformation for the next clause. Continue to build and addclauses until all insurance clauses are represented.




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Insurance Clause Details. This area of the clause captures the property-insurancerequirements, dates, and other values.

Item Description

Insurance Clause Details The required and relevant insurance information from thelease contract. For assistance, consult your lease administrator,lease accountant, or lease contacts.

Insurance schedules sectionUse this section of the Lease Abstract form to identify the payment frequency, startdate, end date, and other scheduling details for property insurance.

Item Description

Add Adds one insurance schedule at a time. Click this action onthe section bar. Specify the details and click the Create action.The form adds a line in the section.


Item Description


Adds several insurance schedules at one time. Click thisaction. Specify the details and click the Create Scheduleaction. The wizard form remains open for you to specify andcreate another schedule. When you close the wizard form, thelease abstract form adds the lines in the section.


Insurance clauses sectionUse this section of the Lease Abstract form to adjust the list of insurance clauses inthe lease.

Item Description




Tax tabUse this tab of the Lease Abstract form to specify the document reference, clausesummary, and other clause details for each tax clause that you add. This tab alsocontains tax schedules.

Tax clause sectionUse this section of the Lease Abstract form to identify the document references,clause summary, and other clause details for property taxes.

Item Description

Add Clause Adds the just-completed clause to the Tax Clauses section.After specifying the tax clause information, click this action onthe section bar. The information that you specified remains sothat you do not have to retype the information for the nextclause. Continue to build and add clauses until all tax clausesare represented.




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Tax Details. This area of the clause captures the property-tax requirements, rate,and other values.

Item Description

Taxes Paid Via The method by which taxes are paid, such as landlordreimbursement and the taxing authority.

Tax Authority The organization with the authority to collect the taxes.

Tax ID The unique identification number that is assigned to thetaxpayer.

Tax Rate % The percentage rate of the tax.

Does Tenant Have Rightto Appeal Tax


Are Discounts Entitled Select the check box if the situation applies.

Is Attorney Required forAppeals



Item Description

Annual Appeals Deadline The duration until the tax appeal deadline is reached. Click


Are Appeal Fees Includedin Pro-Rata


Are Consulting FeesIncluded in Pro-Rata


Taxes Paid Directly toMunicipality


If Taxes Reimbursed,Landlord Required toProvide Tax Bill


Right to Contest Taxes Select the check box if the situation applies.

Tax schedules sectionUse this section of the Lease Abstract form to identify the payment frequency, startdate, end date, and other scheduling details for property taxes.

Item Description

Add Adds one tax schedule at a time. Click this action on thesection bar. Specify the details and click the Create action. Theform adds a line in the section.


Adds several tax schedules at one time. Click this action.Specify the details and click the Create Schedule action. Thewizard form remains open for you to specify and createanother schedule. When you close the wizard form, the leaseabstract form adds the lines in the section.


Tax clauses sectionUse this section of the Lease Abstract form to adjust the list of tax clauses in thelease.

Item Description

Hide Wizard Closes the wizard in the Tax Clause section. Click this actionon the section bar. When the wizard is hidden, this sectionshows the Show Wizard action.



Parking tabUse this tab of the Lease Abstract form to specify the document reference, clausesummary, and other clause details for the parking clause. This tab also contains thetype of parking space, number of parking spaces, parking rate, and other parkingdetails for each space type that you add.


Clause details sectionUse this section of the Lease Abstract form to identify the document references,clause summary, and other clause details for vehicle parking.

Item Description



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Parking Details. This area of the clause captures the total number of parkingspaces, and other values.

Item Description

Included in Rent Select the check box if the situation applies.

Landlord or Third Party The party that is responsible for the parking spaces, such aslandlord and third party.

Total Parking Spaces The total number of parking spaces that is calculated from theSpace Types section.

Space types sectionUse this section of the Lease Abstract form to identify the location, number, rate,and other values for each type of parking space in the lease.

Item Description

Quick Add Adds a space type. Click this action on the section bar. Theform adds a line in the section. Specify the details.



Space Type The type of the parking space, such as bicycle, covered,executive, and reserved.

Include in Parking SpaceCount

The value determines whether the number of parking spacesfor this space type is included in the total number of parkingspaces.

Location The location of the parking spaces on the property.

Parking Denominator The rate denominator for this space type, such as spaces per100 and spaces per 1000. The rate denominator is applied tothe rate cost.

Number of Spaces The number of parking spaces for this space type.

Rate The rate cost that is related to this space type.

Co-tenancy tabUse this tab of the Lease Abstract form to specify the document reference, clausesummary, and other clause details for the co-tenancy clause. This tab also containsthe effective dates, sales percentage, rent reduction, and other details for eachco-tenant that you add.

Clause details sectionUse this section of the Lease Abstract form to identify the document references,clause summary, and other clause details for property co-tenancy.

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Co-Tenancy Details. This area of the clause captures the co-tenancy rent reduction,termination, and other values.

Item Description

Co-Tenancy Details The required and relevant co-tenancy information from thelease contract. For assistance, consult your lease administrator,lease accountant, or lease contacts.

Co-tenancy item sectionUse this section of the Lease Abstract form to identify the effective dates, rentreduction, and other values for each co-tenant in the lease.


Item Description

Add Co-Tenancy Adds the just-completed item to the Co-Tenancy Items section.After specifying the co-tenant information, click this action onthe section bar. The information that you specified remains sothat you do not have to retype the information for the nextitem. Continue to build and add items until all co-tenants arerepresented.

Save Co-Tenancy Saves the information in the wizard. Click this action.


Co-tenancy items sectionUse this section of the Lease Abstract form to adjust the list of co-tenants in thelease.

Item Description

Hide Wizard Closes the wizard in the Clause Details section andCo-Tenancy Item section. Click this action on the section bar.When the wizard is hidden, this section shows the ShowWizard action.


Green lease provisions tabUse this tab of the Lease Abstract form to specify the document reference, clausesummary, and other clause details for each green-lease clause that you add. Thistab also contains the credential type, certifying body, and other details for eachgreen credential that you add.

Green lease provisions clause sectionUse this section of the Lease Abstract form to identify the document references,clause summary, and other clause details for green lease provisions.

Item Description

Add Clause Adds the just-completed clause to the Green Lease ProvisionClauses section. After specifying the green-lease clauseinformation, click this action on the section bar. Theinformation that you specified remains so that you do nothave to retype the information for the next clause. Continue tobuild and add clauses until all green-lease clauses arerepresented.




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Green Lease Provision Clause Details. This area of the clause captures thegreen-lease requirements, access to property, and other values.

Item Description

Green Lease ProvisionClause Details

The required and relevant green-lease information from thelease contract. For assistance, consult your lease administrator,lease accountant, or lease contacts.

Green lease provision clauses sectionUse this section of the Lease Abstract form to adjust the list of green leaseprovision clauses in the lease.


Item Description

Hide Wizard Closes the wizard in the Green Lease Provisions Clausesection. Click this action on the section bar. When the wizardis hidden, this section shows the Show Wizard action.



Credentials sectionUse this section of the Lease Abstract form to identify the credential type,certifying body, level, and other values for each green-lease credential in the lease.

Item Description

Add Adds a credential. Click this action on the section bar. Theform adds a line in the section. Specify the details.


Responsibilities tabUse this tab of the Lease Abstract form to specify the document reference, clausesummary, and other clause details for the service responsibility clause. This tabalso contains the service, responsibility type, responsible parties, and other detailsfor each service responsibility that you add.

Clause details sectionUse this section of the Lease Abstract form to identify the document references,clause summary, and other clause details for service responsibilities.

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Responsibility service sectionUse this section of the Lease Abstract form to identify the responsible party,primary vendor, and other values for each service responsibility in the lease.

Item Description

Add Responsibility Adds the just-completed item to the Responsibility Servicessection. After specifying the service information, click thisaction on the section bar. The information that you specifiedremains so that you do not have to retype the information forthe next item. Continue to build and add items until allservices are represented.

Save Responsibility Saves the information in the wizard. Click this action.


Responsibility Service The required and relevant service-responsibility informationfrom the lease contract. For assistance, consult your leaseadministrator, lease accountant, or lease contacts.

Responsibility services sectionUse this section of the Lease Abstract form to adjust the list of serviceresponsibilities in the lease.

Item Description

Hide Wizard Closes the wizard in the Clause Details section andResponsibility Service section. Click this action on the sectionbar. When the wizard is hidden, this section shows the ShowWizard action.


Item Description


Other clauses tabUse this tab of the Lease Abstract form to specify the document reference, clausesummary, and other clause details for each clause that you add.

Other clause sectionUse this section of the Lease Abstract form to identify the document references,clause summary, and other clause details for additional clauses.

Item Description

Add Clause Adds the just-completed clause to the Other Clauses section.After specifying the clause information, click this action on thesection bar. The information that you specified remains so thatyou do not have to retype the information for the next clause.Continue to build and add clauses until all other clauses arerepresented.




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Other Clause Details. This area of the clause captures the effective dates, area, andother values.

Item Description

Other Clause Details The required and relevant clause information from the leasecontract. For assistance, consult your lease administrator, leaseaccountant, or lease contacts.

Other clauses sectionUse this section of the Lease Abstract form to adjust the list of additional clauses inthe lease.

Item Description

Hide Wizard Closes the wizard in the Other Clause section. Click this actionon the section bar. When the wizard is hidden, this sectionshows the Show Wizard action.



Accounting tabUse this tab of the Lease Abstract form to specify the accounting details, borrowingrate, growth assumptions, rent component assumptions, and likely term option.This tab also calculates the Financial Accounting Standards Board (FASB) treatmentof "Capital" or "Operating" for the lease. The form shows this tab only if you haveaccess as a Lease Accountant or Lease Accounting Manager role with a Real EstateManager license.

Accounting details sectionUse this section of the Lease Abstract form to identify the accounting type,accounting dates, initial costs, and other details for lease accounting.

Item Description

Accounting Type The type of the accounting method for this lease, such asaccounts payable (AP) and accounts receivable (AR).


Item Description

Spend Category The acquisition or disposition category for this lease. Click the


Accounting Start Date The date when accounting begins. The form populates thisdate from the Commencement Date field. To change the date,


Accounting Cost Center The responsible cost center. Specify a few characters to take

advantage of autocomplete, or click the Search icon andselect from the listed choices.

Accounting End Date The date when accounting ends. The form populates this datefrom the Expiration Date field. To change the date, click the


Create Straight LineAdjustments

Select the check box if the situation applies. The straight-linecalculation takes the accounting start and end dates todetermine the duration. These dates are populated from thelease commencement and expiration dates of the specific lease.You can change these dates to include renewal periods orextensions. This calculation also includes free rent (or rentabatement) periods. If there are payments within any day in amonth of the accounting dates on the lease, the straight-linecalculation uses the full month. Straight-line adjustments aremade to payment line items as accrual amounts.

Operating Portion ofCapital Lease

The percentage for the operating portion.

Straight Line CapitalPortion of Rent

The interval of the straight-line calculation, such as annually,monthly, quarterly, and semi-annually.

Initial Direct Costs The direct costs at the start of the lease. The unit of currency istaken from the General tab.

Borrow rate and % growth assumptions sectionUse this section of the Lease Abstract form to identify the incremental borrowingrate, index growth percentage, and fair market rental value (FMRV) growthpercentage.

Item Description

Incremental BorrowingRate

The percentage for the borrowing rate.

Index Growth % The percentage for the growth rate. The form shows this fieldif the lease abstract record contains an index-based clause.

FMRV Growth % The percentage for the growth rate. The form shows this fieldif the lease abstract record contains an FMRV-based clause.

Rent component assumptions sectionUse this section of the Lease Abstract form to identify the maintenance, tax,base-rent, and other portions of the lease payment. If the Lease Category fieldselection (in the General tab) contains the term “Gross”, the form shows thissection.


Item Description

% Is Maintenance The percentage for the maintenance portion of the leasepayment.

% Is Tax The percentage for the tax portion of the lease payment.

% Is Other The percentage for other (non-rental) costs in the leasepayment.

% Is Base Rent The form calculates the percentage for the base-rent portion ofthe lease payment, as 100% minus the three previouspercentages.

Likely term sectionUse this section of the Lease Abstract form to identify the likely term end date.

Item Description

Likely Term Option The method to define the likely term end date. There are 3choices:

v Manual entry: The Likely Term End Date field becomesactive. Select the likely term end date.

v Select an option for likely term: The form shows theOptions section and Likely Term Option section. Select thelikely term option to define the likely term end date.

v Use lease expiration date: The form applies the Base LeaseExpiration Date field (in the General tab) as the likely termend date.

Likely Term End Date This field becomes active if the Likely Term Option field

selection is manual entry. Click the Calendar icon andselect the date.

Options sectionUse this section of the Lease Abstract form to identify the likely term option thatdefines the likely term end date.

Item Description

Clear Likely TermSelection

Removes the selection of the likely option. Click this action onthe section bar. The form removes the selection.

Option Type The type of the option, such as an amendment, break option,and lease expiration. If the renewal type is selected, thefollowing fields apply:

v Term (Renewal Term),

v Renewal Expiration Date

v Landlord Notice Date (Must Exercise By)

Option # The number that identifies the option record, such as 0, 1, 2,and 3.

Term (Renewal Term) The duration of the renewal. This field applies if the renewaltype is selected in the Option Type field.

Likely Term End Date(Likely Expiration Date)

The date when the term of the current likely option ends orexpires.

Status The status of the lease option record.

Likely Term The check box that indicates whether this lease option is thecurrent likely option for the likely term.


Likely term option sectionUse this section of the Lease Abstract form to identify the details of the selectedlikely term option.

Item Description

Name The name of the lease option record. The name is populatedfrom the Option Type field.

Option Type The type of the option, such as amendment, break option, andlease expiration.



The date when the term of the likely option ends or expires.

FASB 13 treatment sectionUse this section of the Lease Abstract form to apply the FASB-specific standard bythe Financial Accounting Standards Board (FASB). This standard calculates thetreatment of "Capital" (capitalized) or "Operating" (non-capitalized) for the lease.Meanwhile, the draft of the joint standard by the FASB and InternationalAccounting Standards Board (IASB), which is not finalized, treats all leases ascapitalized leases.

Item Description

FASB Lease Type The type of the FASB lease, such as partial building, buildingand land, and land only. Depending on your selection, theform shows a different set of fields.

Does Property TransferOwnership at End ofLease

Select from yes or no. If the value is yes, then the leasetreatment is "Capital".

Does Lease have BargainPurchase Option


Does Lease begin in thelast 25% of Building Life

Select from yes or no.

Is Cost or Fair ValueDeterminable

Select from yes or no. Depending on your selection, the formshows a different set of fields. If the value is no, then the leasetreatment is "Operating".

Is Lessor Implicit InterestKnown



The percentage for the borrowing or discount rate.

Lease Rate Used(Calculated)

The calculated percentage for the lease rate.

Est. Economic Life ofAsset (Yrs)

The estimated years for the economic life of the asset.

Estimated FMV ofBuilding

The estimated fair market value (FMV) of the buildingcomponent only.

Land Percentage The percentage of the lease that is represented by the landcomponent.


Does lease have abargain purchase

option?

Does lease begin in last25% of life?

Is lease term 75% >=asset’s economic life?

Does propertytransfer ownership at end of

lease?

Is NPV >= 90% ofasset’s FMV?

Lease treatment =

Operating

Lease treatment =

Capital

Lease treatment =

Capital

Lease treatment =

Capital

No

No

No

No

Yes

Yes

Yes

Yes

Lease treatment =

Capital

No

Yes

Figure 6. Flow diagram for calculating the FASB treatment of a building-and-land lease


Is cost or fair valuedeterminable?

Does leasebegin in last 25% of

life?



Lease treatment =

Operating

Lease treatment =

Operating

Lease treatment =

Capital

Lease treatment =

Capital

No

No

No

Yes

Yes

No

Yes

Yes

Figure 7. Flow diagram for calculating the FASB treatment of a partial-building lease



option?

Lease treatment =

Operating


lease?

Lease treatment =

Capital

Lease treatment =

Capital

No

Yes

No

Yes

Figure 8. Flow diagram for calculating the FASB treatment of a land-only lease


Chapter 5. Creating leases

To make updates and queries more efficient, you can digitally store lease data bycreating lease records. You can create real estate lease records through manual dataentry, or by approving and completing lease abstract records. Meanwhile, you cancreate asset lease records through manual data entry.

Overview of lease creationWhen you input and store lease records, the records are presented as lease forms,and the forms are organized into different tabs. These forms include the RealEstate Lease form and Asset Lease form. The form tabs include the Clauses,Options, and Terms tab and the Accounting tab.

Real estate lease recordsTo digitally store lease data, you can input the contents into lease records. The realestate lease record can contain as much of the actual lease details as you want,based on the preferences and standards of your organization.


Real estate lease creation

As a real estate contract manager, you can specify the entire lease contract andattach it as a file, or summarize key aspects of it. You can input real estate leaserecords into your IBM TRIRIGA application, or approve and complete a leaseabstract record that is already in the application.

Upon mutual agreement, the lease abstract record serves as a formal real estatelease record. After the lease abstract record is activated, approved, and completed,


Maintenance

ContractType?

Approved Contract

LeaseLease Abstract


Asset or RE Lease

RE Lease

RE Owned

Figure 9. Flow diagram for creating the real estate lease


it creates a real estate lease draft that is available for further transactions. As aresult, the second record can separate security between outsourced and internalresources that are abstracting leases.

The tabs, sections, and fields in a real estate lease record have the samesignificance regardless of the method that is used to specify their data. Save thereal estate lease record after you specify the data and before you move to the nexttab.

Asset lease recordsTo digitally store lease data, you can input the contents into lease records. Theasset lease record can contain as much of the actual lease details as you want,based on the preferences and standards of your organization.


Asset lease creation

As an asset lease contract manager, you can specify the entire lease contract andattach it as a file, or summarize key aspects of it. You can input asset lease recordsinto your IBM TRIRIGA application.

Save the asset lease record after you specify the data and before you move to thenext tab.

Accounting tab conceptsUse this tab of the lease form to specify the Financial Accounting Standards Board(FASB) and International Accounting Standards Board (IASB) information. Thisinformation includes the accounting details, borrowing rate, growth assumptions,rent component assumptions, and likely term option. This tab also calculates theFASB-specific treatment of "Capital" or "Operating" for the lease. The form showsthis tab only if you have access as a Lease Accounting Manager role with a RealEstate Manager license.


Maintenance

ContractType?

Approved Contract

LeaseLease Abstract


Asset or RE Lease

RE Lease

RE Owned

Figure 10. Flow diagram for creating the asset lease


Likely termsLikely term is an important concept within the lease accounting standards of theFinancial Accounting Standards Board (FASB) and International AccountingStandards Board (IASB). According to these standards, payments must beamortized for the entire likely term of a lease. This likely term amortizationcalculates a more accurate financial impact analysis for the leases in a businessportfolio.

The likely term of the lease is a calculated duration from the start date to the enddate of the likely term for the lease. The calculation is as follows:v (End Date – Start Date) = Likely Term (Duration)v The Start Date is represented by the Commencement Date field.v The End Date is represented by the Likely Term Expiration Date field.

Likely optionsBased on contractual or non-contractual business reasons or unexpected economicconditions, you might be prompted to change the expected lease term. If thatoccurs, you can click the Review Assumptions action to identify the “likelyoption”, or the lease option that is most likely to be exercised.

The identified option determines the new end date for the likely term. The list ofoptions is filtered to show only active selections, and only valid Option Type fieldselections are used to determine the likely term: renewal, termination, or purchaseoption.

When you select the “likely option” to be exercised, the application sets a newLikely Term Expiration Date based on the following logic:v If you select the purchase option, then the application extends the amortization

to the Economic Life End as the Likely Term Expiration Date.v If you select the renewal option, then the application extends the amortization to

the Renewal Expiration Date as the Likely Term Expiration Date.v If you select the termination option, then the application extends the

amortization to the Likely Termination Execute Date as the Likely TermExpiration Date.

v If none of the options are likely to be exercised, then the application uses thebase lease Expiration Date as the Likely Term Expiration Date.

AssumptionsAssumptions models are used in amortization schedule calculations to forecast thefuture “best estimate” of payment obligations for the likely term of the lease.Companies can use assumption models to determine the impact that leases haveon their financial balance sheets.

The lease accounting standards by the Financial Accounting Standards Board(FASB) and International Accounting Standards Board (IASB) define specific fieldsand processes for assumptions. For instance, any change to any type of assumptionmust be recorded in a log or history record. If a financial audit occurs, such logscan be provided. This record is called the assumption audit log.

Assumptions can be broken down into several main categories, all of which havean impact on amortization schedules and financial line-item generation.

Chapter 5. Creating leases 81

Incremental Borrowing Rate

The borrowing or discount rate is used to determine the discount of futureestimated lease payments. This discount rate is used in net present value (NPV)along with straight-line rent per year to obtain the present value of rent.

Percent Growth Assumptions

The percent growth assumptions have rules to determine whether an assumptionapplies to the lease. When a growth assumption that is based on an index or fairmarket rental value (FMRV) does not apply, the form hides the correspondingfield.

For the index growth assumption, you can use any cost or price index, includingthe following examples:v The Consumer Price Index (CPI) measures the average change over time in the

prices paid by consumers for a market of consumer goods and services.v The Construction Cost Index (CCI) is a business cycle indicator that shows the

trend in the costs incurred by the contractor in the construction process.v The Producer Price Index (PPI) measures the average change over time in the

selling prices received by producers for their output. The prices included in thePPI are from the first commercial transaction for many products and someservices.

Rent Component Assumptions

The rent component assumptions deal with gross leases that combine leasecomponents and services components together in rental payments. However, theFASB-IASB requires a cost breakdown of these payment components. Thisbreakdown allows the lessee or tenant to exclude the service-related componentsfrom the amortization schedule (in fiscal line items) and from financial or liabilityreports.

Typically, for gross leases, the tenant pays a single amount that includes both therent and operating expenses. However, the tenant needs to amortize only the rentalportion of the amount, based on the percentage breakdown that is provided by thelandlord. The portion of the payments for services is excluded from rent financialcalculations.

These assumptions apply if the Lease Category selection contains the term "gross",such as full service gross or modified gross. If it is not a gross lease, the form hidesthe Rent Component Assumptions section.

AmortizationAmortization is the process of paying off a debt over time through regularlyscheduled payments. Lease payments are amortized for the likely term of the leaseby using the straight-line method. The Financial Accounting Standards Board(FASB) and International Accounting Standards Board (IASB) require the lessee todetermine the present value of the estimated likely lease payments.

There are many methods used in depreciating assets or leases. Generally,companies use the straight-line method for book purposes or financial purposes.The FASB-IASB requires rental expenses to be “recognized on a straight-line basis.”This means that the same amount of expense must be recognized each month,regardless of the actual rent payment during the month.


The Accounting tab can be used to amortize over the shorter of (a) the lease termor (b) the economic life of the leased property. This amortization can be reflected inthe profit and loss (P&L) as depreciation expense. This tab can also amortize theobligation to pay rent liability with the debt amortization method, and reflect thatamortization in the P&L as interest expense.

Any time the Lease Accountant submits an assumption for a single lease ormultiple leases (for bulk processing), the application does two things:v Sets the Amortization Recalc (Recalculation) Needed field to true.v Triggers a background process to generate or recalculate the amortization

schedule for each lease.

There are several ways that an amortization can be triggered in the application.v Click the Complete action on a lease abstract to create a real estate lease. If

payment schedules are defined for the real estate lease, then the applicationgenerates an amortization schedule.

v Click the Activate action on a real estate lease or asset lease to generate anamortization schedule.

v Click the Review Assumptions action to review the likely term and assumptionson a real estate lease or asset lease, and generate an amortization schedule. Thelease can be in Draft, Revision In Progress, or Active status.

Fiscal line itemsFiscal line items (FLIs) track the amortization schedule values for each fiscalperiod. These FLIs are created or recalculated depending on your values for directcosts, one-time payments, partial payments, option types, or other values.

The application applies the following business rules to create or recalculate FLIs:v If a lease has an Initial Direct Costs value in the Accounting tab, the value is

included in the FLI for the first fiscal period.v Any one-time payments within the likely term are spread equally across all the

fiscal periods for the likely term.v Any partial first and partial last payments are included in the fiscal period to

which they belong. The application looks for the Expected Date to be in thefiscal period.

v If the Lease Category contains the term "gross", the lease components andservices components are separated based on their values from the RentComponent Assumptions section.

v If a likely term includes a likely option with an Option Type selection ofpurchase or termination, the following logic updates the FLI.– If the selection is the purchase option, then spread the purchase price evenly

across the life of the lease. The price is reflected under the Other RentObligations section on the FLI.

– If the selection is the termination option, then sum the projected paymentplus the penalty, and spread that total evenly across the life of the lease. Thistotal is reflected under the Other Rent Obligations section in the FLI.

v Finally, on accounts payable (AP) leases, sum the AP payments minus theaccounts receivable (AR) payments. On AR leases, sum the AR payments minusthe AP payments. Meanwhile, on the FLI, the liability value, asset value, and netequity always decrease to zero.


Straight line calculationsThe rent expense values from multiple fiscal line items (FLIs) are summed toobtain the total rent expenses in the Accounting tab. This total value is used tocalculate the straight-line rent per year. Future estimated lease payments arediscounted by the incremental borrowing rate of the lessee. This discount rate isapplied to the net present value (NPV), along with straight-line rent per year, tocalculate the present value of rent.

Lease abstract to real estate lease processWhen the completed lease abstract generates a real estate lease, the FinancialAccounting Standards Board (FASB) or International Accounting Standards Board(IASB) information might be absent. This information is optional and might not beavailable to the lease abstractor or lease administrator when the process begins. Inthese cases, the application provides the necessary default information.

The following business rules apply to the likely term option:v If a likely term option is selected on the lease abstract, then the application

populates the Likely Term Expiration Date field based on that selection.v If a likely term option is not selected on the lease abstract, then the application

retrieves the Lease Expiration Date value to populate the Likely TermExpiration Date field.

The following business rules apply to the assumption review information and theinitial assumption audit log that is generated when the real estate lease is created:v If the lease abstract has data in any assumption field, then the application maps

this data to the lease.– The application also creates an initial assumption audit log from this data

with the Review Type field set to "Other".– Meanwhile, the Review Comments field is set to "Assumption Audit Log was

auto-created from data entered on the Lease Abstract".v If the lease abstract does not have data in any assumption field, then the

application maps the data from the application settings to the lease.– The application also creates an initial assumption audit log from this data

with the Review Type field set to "Other".– Meanwhile, the Review Comments field is set to "Assumption Audit Log was

auto-created from Application Settings since assumption data was notprovided on the Lease Abstract".

– You can access the application settings by selecting Tools > System Setup >General > Application Settings then clicking the Lease Accounting Settingstab.

Creating real estate lease recordsTo input lease data into lease records, you can manually create real estate leaserecords.

Before you begin

You must sign in as a Real Estate Contract Manager.

Procedure1. Select Contracts > Leases.


2. In the Related Links – Contract Leases portal section, select RE Contracts >Leases.

3. Click the Add action.4. Specify the details.5. Click the Contact Details tab.6. Click the Contract Administrator role.7. In the Contact section, click the Find action, select a name, click OK, and save

the role.8. Create the draft.

Form tabsThe tabs at the top of the Real Estate Lease form represent the different areas of areal estate lease record. Depending on your security access to the form, such tabsmight include general information, notifications, system details, and reports.Common form tabs indicate tabs that are shared across many types of forms.


General tabUse this tab of the Real Estate Lease form to specify the lease identifier, leasenames, critical dates, primary address, and other details for the lease.

General section:

Use this section of the Real Estate Lease form to identify the lease identifier, leasename, legal name, and other general information for the record.

Item Description

ID The unique identifier of the real estate lease record. If you donot provide an identifier, one is automatically generated.

Revision The number of times that the lease was revised, such as 0, 1, 2,and 3. You can modify an active record by clicking the Reviseaction.


Picture The image that represents the real estate lease. Click theUpload Picture icon to select the image, such as thephotograph of the property.

Name The name of the real estate lease.

Description The brief description of the real estate lease.

Legal Name The name of the real estate lease as specified in the legaldocuments.

Display Color The color that is assigned to this record when this record is

shown in query results. Click the Search icon and selectthe color.

Legacy ID The identifier that is related to this record from a previoussystem or application.


Units section:

Use this section of the Real Estate Lease form to identify the currency and unit ofmeasure for area, carbon, and energy from the lease.

Item Description



Carbon Reporting UOM The unit of measure (UOM) for all carbon-related fields in therecord.

Energy Reporting UOM The unit of measure (UOM) for all energy-related fields in therecord.

Details section:

Use this section of the Real Estate Lease form to identify the lease type, leasecategory, and other lease details.

Item Description





v Income lease – sublease: An income-based or accountsreceivable (AR) lease that is used when you have anexpense lease and you are subleasing part of it to anothertenant.

v Income lease – third-party lease: An income-based oraccounts receivable (AR) lease that is used when you ownthe property and have subtenants for the tenants in thebuilding.

If the value is an income lease (sublease or third-party lease),the form shows the Parent Real Estate Contract of Subleasesection in the General tab.



Primary Use The main use of the property, such as administration,education, manufacturing, and warehouse. Click the Search

icon and select from the listed choices. If you select theretail option, the form shows the Grand Open Date field andSoft Open Date field in the Critical Dates section.



Co-location Select the check box if multiple internal organizations use theproperty.


Item Description

Conversion Group The currency-exchange group that is applied to all cost-relatedfields in the record.

Currency Exchange Date The date of the currency exchange. This date wasautomatically generated when the record was first opened bythe Add action. To change the value, click the Calendar icon




Memorandum of Lease Select the check box if the situation applies.

Rules and Regulation Select the check box if the situation applies.

Is Cost or Fair MarketValue Determinable


Is it Market-Based Select the check box if the situation applies.


Parent real estate contract of sublease section:

Use this section of the Real Estate Lease form to identify the parent real estatelease for this sublease.

Item Description

Find Lists the available information. Click this action on the sectionbar and select from the listed real estate leases. Click OK.


Name The name of the parent real estate lease record. Specify a fewcharacters to take advantage of autocomplete.

ID The unique identifier of the parent real estate lease record.

Critical dates section:

Use this section of the Real Estate Lease form to identify the commencement,construction, expiration, and other dates from the lease.

The form uses these dates to populate other fields in other sections and tabs in thereal estate lease. If you have auditable or percentage rent clauses, you must specifythe Commencement Date field and Base Lease Expiration Date field to calculatethe amount due for the occupied duration.

Item Description

Commencement Date The date when the lease term and the contracted work on the


Lease Term The term that begins with the Commencement Date and endswith the Base Lease Expiration Date.





Item Description

Expiration Reminder The duration before which you want advance notification of

the lease expiration date. Click the Calendar icon andspecify the duration.

Expiration NotificationDate

The date when the expiration reminder is sent. This date iscalculated from the Base Lease Expiration Date and theExpiration Reminder duration.

Rent CommencementDate

The date when the obligation to pay rent begins. Click the


Occupancy Date The date when the tenant begins occupying the site. Click the


Vacate Date The date when the tenant vacates the site. Click the Calendar


Inception (Execution)Date

The date when the lease becomes legally enforced and thelegal commitment to the agreement begins. Click the Calendar


Abstracted Date The date when the lease is abstracted. Click the Calendar icon




Legal Notice Reminder The duration before which you want advance notification of

the legal notice date. Click the Calendar icon and specifythe duration.

Legal Notification Date The date when the legal notice reminder is sent. This date iscalculated from the Legal Notice Date and the Legal NoticeReminder duration.

Original Expiration Date The date when the original base lease expires, without renewal

options or other changes applied. Click the Calendar iconand select the date.

Construction Start Date The date when actual construction on the site begins. Click the


Construction End Date The date when construction on the site ends. Click the


Soft Open Date The date when the retail site begins to operate with minimalpublic promotion. If you selected the retail option for thePrimary Use field in the Details section, the form shows this

field. Click the Calendar icon and select the date.

Grand Open Date The date when the retail site makes the public announcementof its official opening. If you selected the retail option for thePrimary Use field in the Details section, the form shows this

field. Click the Calendar icon and select the date.

Cost summary section:

Use this section of the Real Estate Lease form to identify the annual costs ofoperations, fixed assets, and estimated spending for the lease.


Item Description

Annual Cost ofOperations

The cost per year of the operations for the lease.

Annual Spend(Estimated)

The estimated spending per year for the lease. The read-onlyvalue is obtained from other sections in the record.

Annual Fixed AssetsCosts

The cost per year of the fixed assets for the lease.

Environmental details section:

Use this section of the Real Estate Lease form to identify the annual totals ofenergy usage and carbon emissions for the lease.

Item Description

Annual Energy Use The total per year of energy usage for the lease. The unit ofmeasure is obtained from the Units section.

Annual Total CO2e The total per year of carbon emissions for the lease. The unitof measure is obtained from the Units section.

Primary location section:

Use this section of the Real Estate Lease form to identify the primary location atthe primary address from the lease.

Item Description

Find Lists the available information. Click this action on the sectionbar and select an existing location from the location hierarchy.


Hierarchy Path The primary location at the primary address. This field showsthe same path as the Hierarchy Path field in the Locations tab.

Location cost code section:

Use this section of the Real Estate Lease form to identify the accounting costclassification of the lease location.

Item Description





Primary address section:

Use this section of the Real Estate Lease form to identify the address informationfrom the lease.


Item Description

Address The street address on the lease.

Zip/Postal Code The postal code on the lease.

Geography Path The geographic location on the lease, including the full path inthe geographic hierarchy. Specify a few characters to take

advantage of autocomplete or click the Search icon to findthe location.

City The city on the lease. This field is automatically populatedbased on the selected geographic path.

State/Province The state or province on the lease. This field is automaticallypopulated based on the selected geographic path.

Country The country on the lease. This field is automatically populatedbased on the selected geographic path.

Other dates section:

Use this section of the Real Estate Lease form to identify any significant dates thatare not covered elsewhere in the record.

Item Description

Add Adds a date. Click this action on the section bar. The formadds a line in the section.



Date Type The type of lease date. Click the Search icon and selectfrom the listed choices.

Date The specific calendar date. Click the Calendar icon andselect the date.

Description Specify a description for the date.

Lease notifications section:

Use this section of the Real Estate Lease form to identify the notifications that aresent, their types, and the roles that are notified. When you activate the lease, thenotifications for the lease expiration, legal notice, option dates, and optionreminders are automatically scheduled and generated. You can also manuallycreate other notifications.

Item Description

Add Adds a notification. Click this action on the section bar.Specify the details and click Create. The form adds a line inthe section.


Notification The date when the notification is sent.

Deadline The date of the target event for which the notification is sent.

Name The name of the target event for which the notification is sent.

Notification Type The type of the notification, such as a lease expiration, legalnotice, and other types that you can manually create.


Item Description

Notify Role The role that receives the notification, such as a BusinessRepresentative, Contract Administrator, and Portfolio Manager.

Status The status of the lease notification record.

Clauses, options, and terms tabUse this tab of the Real Estate Lease form to specify the clauses, options, and termsthat are related to the lease. After you create the lease draft, all of the sectionactions on this tab are enabled. You can also use the Option wizard form to addmore lease options.

Clauses section:

Use this section of the Real Estate Lease form to identify the clauses that arerelated to the lease.

Item Description

Add Adds a clause. Click this action on the section bar. Specify thedetails and click the Create action. The form adds a line in thesection.

Find Template Adds a clause that is based on a predefined clause template.Click this action on the section bar. Select the template andclick OK. The form adds a line in the section. Open the lineitem to edit the details.


Section Category The category of the lease clause, such as allowance, insurance,rights, and use restrictions.

Clause Type The type of the lease clause within the clause category, such asabatement, earthquake, occupancy, and signage.

Granted in Lease The legal status of this clause.




Options section:

Use this section of the Real Estate Lease form to identify the options that arerelated to the lease.

Item Description

Add Adds one option at a time. Click this action on the section bar.Specify the details and click the Create action. The form addsa line in the section.

Options Wizard Adds several options at one time. Click this action. Specify thedetails and click the Create Option action. The wizard formremains open for you to specify and create another option.When you close the wizard form, the lease form adds the linesin the section.



Item Description







Option Effective Date The date when the option takes effect.

Renewal Expiration Date The date when the renewal expires. This date is calculatedfrom the Option Effective Date and the Term (Renewal Term)duration. This field applies if the renewal type is selected inthe Option Type field.

Landlord Notice Date(Must Exercise By)

The date by which the option must be exercised. This fieldapplies if the renewal type is selected in the Option Typefield.

Exercise Notice Date The date when your exercise notification is sent.

Option Text The text that describes the option.


Terms section:

Use this section of the Real Estate Lease form to identify the terms and termrevisions that are related to the lease.

Item Description

Add Revision Adds a revision of the terms. Click this action on the sectionbar. Specify the details and click the Create action. The formadds a line in the section.

Revision Number The number of times that the lease terms were revised, such as0, 1, 2, and 3.

Analysis Date The date of the revision or revision analysis.

Revision Description The brief description of the revision or revision analysis.

Status The status of the lease terms record.

Accounting tabUse this tab of the Real Estate Lease form to specify the accounting details,borrowing rate, growth assumptions, rent component assumptions, and likely termoption. This tab also calculates the Financial Accounting Standards Board (FASB)treatment of "Capital" or "Operating" for the lease. The form shows this tab only ifyou have access as a Lease Accountant or Lease Accounting Manager role with aReal Estate Manager license.

Accounting details section:

Use this section of the Real Estate Lease form to identify the accounting type,accounting dates, initial costs, and other details for lease accounting.


Item Description






Accounting Cost Center The responsible cost center for this lease.






The percentage for the operating portion. When the leasetreatment is "Operating", this field is not used in thestraight-line rent-liability calculation.


The interval for the straight-line calculations, such as annually,monthly, quarterly, and semi-annually.

Initial Direct Costs The direct costs at the start of the lease. The unit of currency istaken from the General tab. If a value is specified, the value isincluded in the fiscal line item (FLI) for the first fiscal period.

10k Disclosure The disclosure of financial performance and accountingpractices as required by the US Securities and ExchangeCommission (SEC) in the Form 10-K report.

Financial assumption reviews section:

Use this section of the Real Estate Lease form to identify the previous and nextassumptions review dates for the lease.

Item Description

Last Review Date The date of the previous assumptions review, if one occurred.

Review Period The duration between assumptions reviews. Click the

Calendar icon and specify the duration.

Next Review Date The date of the next assumptions review. This date iscalculated from the Last Review Date and the Review Periodduration.

Last Review By The name of the Lease Accountant or Lease Administratorwho processed the previous assumptions review, if oneoccurred.


Likely term assumption section:

Use this section of the Real Estate Lease form to identify the length of the likelyterm. If the likely term is considered "short term", you can choose to include orexclude the lease from the amortization schedule.

Item Description

Commencement Date The date when the lease term and the contracted work on thesite begins. This date is populated from the same field on theGeneral tab.

Short Term Lease The value that indicates whether the likely term is less than 12months long, or more than 12 months long.

v If the value is yes, then the likely term is less than 12months long, and considered "short term". According to theFinancial Accounting Standards Board (FASB), a short-termlease is not necessarily considered a financial liability. Theform shows the Include in Amortization Schedule checkbox to give you the option to include or exclude the leasefrom the amortization schedule.

v If the value is no, then the likely term is more than 12months long.

Likely Expiration Date(Likely Term End Date)

The date when the term of the current likely option ends orexpires. The value of this read-only field is determined by thereview assumptions process.

Include in AmortizationSchedule

Select the check box if the situation applies. The form showsthis field if the likely term is less than 12 months long, andconsidered "short term". According to the FASB, a short-termlease is not necessarily considered a financial liability. Theform shows this check box to give you the option to includeor exclude the lease from the amortization schedule.

Likely Term The duration of the likely term. This duration is calculatedfrom the Commencement Date and the Likely ExpirationDate.

Extend Rent Payments forLikely Term

Select the check box if the situation applies. If the check box isselected, then the rental payments are extended with fiscal lineitems (FLIs). Here are a couple of examples of extendedpayments:

v The fiscal end date occurs later than the likely term enddate: In this case, the payments are extended on the FLIsafter the last scheduled payment until the fiscal end date.

v The payment schedule ends before the likely term end date.In this case, the payments are extended on the FLIs after thelast scheduled payment until the likely term end date.

The form shows the default value that is set by youradministrator in the application settings record.

Borrow rate and % growth assumptions section:

Use this section of the Real Estate Lease form to identify the borrowing rate andgrowth rates for the lease. The fiscal line items (FLIs) are adjusted by these rates todetermine the “best estimate” of payment obligations for the likely term of thelease.


Item Description


The percentage for the borrowing or discount rate. Theprojected payments on the FLIs are adjusted by this rate.

Index Growth % The percentage for the index growth rate. The form shows thisfield if the lease contains an index-based clause. If the clausehas a payment schedule, the projected payments on the FLIsare adjusted by this rate.

FMRV Growth % The percentage for the fair market rental value (FMRV) growthrate. The form shows this field if the lease contains anFMRV-based clause. If the clause has a payment schedule, theprojected payments on the FLIs are adjusted by this rate.

Rent component assumptions section:

Use this section of the Real Estate Lease form to identify the maintenance, tax,base-rent, and other portions of the lease payment. The form shows this section ifthe Lease Category selection contains the term "gross", such as full service gross ormodified gross.

Item Description





Likely term option section:

Use this section of the Real Estate Lease form to identify the likely term end date,and other details of the current likely term option.

Item Description


Option Type The type of the option, such as an amendment, break option,and lease expiration.




Amortization summary section:

Use this section of the Real Estate Lease form to identify the fiscal periods,operating expenses, and other amortization details for the lease. The read-onlydetails are summarized from the fiscal line items (FLIs) in the amortizationschedule.


Item Description

Number of Periods The number of periods between the Fiscal Start date and theFiscal End date.

Number of Years The number of years between the Fiscal Start date and theFiscal End date.

Straight Line Rent PerYear

The rental payment per year that is calculated by thestraight-line method.

Total Rent Present Value The present value of the estimated future rental payments forthe likely term of the lease.

Total Rent Expenses The amount of rental expenses that is summed from the FLIsfor the likely term of the lease.

Total MaintenanceExpenses

The amount of maintenance and repair expenses that issummed from the FLIs for the likely term of the lease.

Total Tax Expenses The amount of property taxes that is summed from the FLIsfor the likely term of the lease.

Total Insurance Expenses The amount of property insurance that is summed from theFLIs for the likely term of the lease.

Total Security Expenses The amount of security expenses that is summed from theFLIs for the likely term of the lease.

Total Utilities Expenses The amount of utility expenses that is summed from the FLIsfor the likely term of the lease.

Total Other Expenses The amount of other recurring expenses that is summed fromthe FLIs for the likely term of the lease.

Total Incentive Expenses The amount of lease incentives that is summed from the FLIsfor the likely term of the lease.

Periods Per Year The number of fiscal periods per year. The form shows thedefault number that is set by your administrator in theapplication settings record.

Fiscal Start The date when the first fiscal period begins.

v For many cases, the Fiscal Start date is the same as theCommencement Date.

v But in some cases, when the accounting starts earlier thanthe lease commencement, the Fiscal Start date is the sameas the Accounting Start Date.

Fiscal End The date when the last fiscal period ends.

v For many cases, the Fiscal End date is the same as theLikely Expiration Date.

v But in some cases, when the accounting ends later than thelease expiration, the Fiscal End date is the same as theAccounting End Date.

Amortization schedule section:

Use this section of the Real Estate Lease form to identify the fiscal line items (FLIs)in the amortization schedule for the lease. The straight-line FLI payments areadjusted by any assumptions to determine the “best estimate” of paymentobligations for the likely term of the lease. Each FLI record contains its fiscalperiod, rental payment, principal, interest, equity, and other amortization details.


Item Description

Period # The number that identifies the FLI record, such as 1, 2, 3, and4. The number of FLIs in the amortization schedule isdetermined by the Number of Periods field.

Fiscal Period The period within the year that identifies the FLI record, suchas 2013 - 01 and 2015 - 12.

Rent Expense The amount of rental expenses for the specific fiscal period.

Net Rent Payment The net payment of rent for the specific fiscal period.

Interest Expense The amount of interest expenses for the specific fiscal period.

Principal The amount of principal expenses for the specific fiscal period.

Amortization The straight-line amount for the specific fiscal period. Thisamount is constant for all FLIs in the amortization schedule.

Asset Value The value of the asset for the specific fiscal period.

Net Equity The net equity of the asset for the specific fiscal period. Thisvalue is calculated from the Asset Value amount and theLiability Value amount in the FLI record.

P&L Impact (P&L BookExpense)

The amount of profit-and-loss (P&L) expense for the specificfiscal period. This expense is calculated from the InterestExpense amount and the Amortization amount in the FLIrecord.

Impact report section:

Use this section of the Real Estate Lease form to identify the impact of the jointaccounting standard. The draft of this joint standard by the Financial AccountingStandards Board (FASB) and International Accounting Standards Board (IASB),which is not finalized, treats all leases as capitalized leases. Meanwhile, theFASB-specific standard calculates the treatment of "Capital" (capitalized) or"Operating" (non-capitalized) for the lease.

Item Description

X Axis The fiscal period, such as fiscal month, fiscal quarter, andfiscal year.

Y Axis The rental expenses or profit-and-loss (P&L) expenses.

P&L (Book Expense) In the joint standard, the amount of profit-and-loss (P&L)expense for the specific fiscal period. This expense iscalculated from the Interest Expense amount and theAmortization amount in the fiscal line item (FLI) record.

Rent Straight-LineExpense

In the FASB-specific standard, the straight-line amount ofrental expenses for the specific fiscal period. This amount isconstant for all FLIs in the amortization schedule.

FASB 13 treatment section:

Use this section of the Real Estate Lease form to apply the FASB-specific standardby the Financial Accounting Standards Board (FASB). This standard calculates thetreatment of "Capital" (capitalized) or "Operating" (non-capitalized) for the lease.Meanwhile, the draft of the joint standard by the FASB and InternationalAccounting Standards Board (IASB), which is not finalized, treats all leases ascapitalized leases.


Item Description

Calculate Lease Treatment Calculates the lease treatment of "Capital" (capitalized) or"Operating" (non-capitalized) for the lease. Click this action onthe section bar. The form shows the treatment in the LeaseTreatment field.

FASB Lease Type The type of FASB lease, such as partial building, building andland, and land only. Depending on your selection, the formshows a different set of fields.

Lease Treatment The calculated treatment of "Capital" (capitalized) or"Operating" (non-capitalized) for the lease.








Select from yes or no. Depending on your selection, the formshows a different set of fields. If the value is no, then the leasetreatment is "Operating".





Is Lease Term 75% >=Asset's Economic Life

The value of yes or no. If the lease term is at least 75% of theeconomic life of the asset, then the lease treatment is "Capital".



Is NPV of Rent >= 90% ofAsset's FMV

The value of yes or no. If the net present value (NPV) of rentis 90% of the fair market value (FMV) of the asset, then thelease treatment is "Capital".



Total Rent The amount of the rental expenses for the length of the lease.

Fair Market Value The estimated fair market value (FMV) for the building.

Rent Obligation as % ofFMV

The percentage of the fair market value (FMV) of the assetthat is represented by the rental expenses.

Land Percentage The percentage of the lease that is represented by the landcomponent.

PV of Rent The present value (PV) of the rental expenses for the length ofthe lease.

Fair Value of Building The fair market value (FMV) of the building component only.

PV of Rent / BuildingOnly (Discounted)

The present value (PV) of the rental expenses for the buildingcomponent only.

Fair Value of Land The fair value (FV) or fair market value (FMV) of the landcomponent only.

Land Portion of Rent The amount of rental expenses for the length of the lease forthe land component only.


Item Description

Land's Value > 25% of FVof Property

The value of yes or no. If the value of the land component isgreater than 25% of the fair value (FV) of the property, thenthe value is yes.

Lease Term (in Years) The length of the lease in years.


option?




lease?


Lease treatment =

Operating

Lease treatment =

Capital

Lease treatment =

Capital

Lease treatment =

Capital

No

No

No

No

Yes

Yes

Yes

Yes

Lease treatment =

Capital

No

Yes

Figure 11. Flow diagram for calculating the FASB treatment of a building-and-land lease


Is cost or fair valuedeterminable?

Does leasebegin in last 25% of

life?



Lease treatment =

Operating

Lease treatment =

Operating

Lease treatment =

Capital

Lease treatment =

Capital

No

No

No

Yes

Yes

No

Yes

Yes

Figure 12. Flow diagram for calculating the FASB treatment of a partial-building lease


Assumption audit log section:

Use this section of the Real Estate Lease form to identify the assumption audit logsthat were created through the review assumptions process. Each read-only logrecord contains its review date, review type, and review comments.

Item Description

Assumptions ReviewDate

The date of the assumptions review.

Review Type The type of the assumptions review, such as business factors,contractual factors, non-contractual factors, and other factors.

Review Comments The comments for the assumptions review.

Status The status of the assumption audit log record.

Balance sheet effect section:

Use this section of the Real Estate Lease form to identify the net equity of the assetfor the likely term of the lease.

Item Description


Y Axis The net equity of the asset.

Net Equity The net equity of the asset for the specific fiscal period. Thisvalue is calculated from the Asset Value amount and theLiability Value amount in the fiscal line item (FLI) record.


option?

Lease treatment =

Operating


lease?

Lease treatment =

Capital

Lease treatment =

Capital

No

Yes

No

Yes

Figure 13. Flow diagram for calculating the FASB treatment of a land-only lease


Projected annual portfolio expense section:

Use this section of the Real Estate Lease form to identify the rental expenses andrental payments for the likely term of the lease. The profit-and-loss expenses arebased on the joint standard by the Financial Accounting Standards Board (FASB)and International Accounting Standards Board (IASB). Meanwhile, the rentalexpenses are based on the FASB-specific standard.

Item Description


Y Axis The amount of the expenses or payments.




Cash Flow (RentPayment)

The net payment of rent for the specific fiscal period.

Asset value section:

Use this section of the Real Estate Lease form to identify the asset value andliability value for the likely term of the lease.

Item Description


Y Axis The value of the asset or liability.

Asset Value The value of the asset for the specific fiscal period. This valueis obtained from the Asset Value amount in the fiscal line item(FLI) record.

Liability Value The value of the liabilities for the specific fiscal period. Thisvalue is obtained from the Liability Value amount in the fiscalline item (FLI) record.

Creating asset lease recordsTo input lease data into lease records, you can manually create asset lease records.

Before you begin

You must sign in as a Real Estate Contract Manager. The Real Estate ContractManager role can create both asset lease records and real estate lease records.

Procedure1. Select Contracts > Leases.2. In the Related Links – Contract Leases portal section, select Asset Leases >

Asset Leases.3. Click the Add action.


4. Specify the details.5. Click the Contact Details tab.6. Click the Contract Administrator role.7. In the Contact section, click the Find action, select a name, click OK, and save


Form tabsThe tabs at the top of the Asset Lease form represent the different areas of an assetlease record. Depending on your security access to the form, such tabs mightinclude general information, notifications, system details, and reports. Commonform tabs indicate tabs that are shared across many types of forms.


General tabUse this tab of the Asset Lease form to specify the lease identifier, lease names,critical dates, and other details for the lease.

General section:

Use this section of the Asset Lease form to identify the lease identifier, lease name,legal name, and other general information for the record.

Item Description

ID The unique identifier of the asset lease record. If you do notprovide an identifier, one is automatically generated.

Revision The number of times that the lease was revised, such as 0, 1, 2,and 3. You can modify an active record by clicking the Reviseaction.

Status The status of the asset lease record.

Picture The image that represents the asset lease. Click the UploadPicture icon to select the image, such as the photograph of theasset.

Name The name of the asset lease.

Date The date of the asset lease record. This date was automaticallygenerated when the record was first opened by the Add

action. To change the value, click the Calendar icon andselect the date.

Description The brief description of the asset lease.

Legal Name The name of the asset lease as specified in the legaldocuments.

Units section:

Use this section of the Asset Lease form to identify the currency details and unit ofmeasure from the lease.


Item Description


Asset Units The unit of measure (UOM) for this specific asset.




Details section:

Use this section of the Asset Lease form to identify the lease type, lease category,and other lease details.

Item Description



v Expense lease: This option is the most common. Use it whenyou lease the asset from a lessor.

v Expense lease - master sublease: An expense lease that isused when you are subleasing the asset from another party.

v Income lease – sublease: An income-based or accountsreceivable (AR) lease that is used when you have anexpense lease and you are subleasing part of it to anotherlessee.

v Income lease – third-party lease: An income-based oraccounts receivable (AR) lease that is used when you ownthe asset and have sublessees for the lessees of the asset.

If the value is an income lease (sublease or third-party lease),the form shows the Parent Asset Lease section in the Generaltab.





Escalation Cap % The maximum percentage increase per year of the base leaseamount.

Deposit The amount of the monetary deposit that is given to the lessoras proof of the intent to lease.

Late Fee Type The type of the late fee, such as a flat rate and interest rate

plus prime rate. Click the Search icon and select from thelisted choices.

Late Fee Flat Amount The flat amount of the late fee, if this late fee type applies.

Late Fee Flat Rate % The flat percentage rate of the late fee, if this late fee typeapplies.


Item Description


Parent asset lease section:

Use this section of the Asset Lease form to identify the parent asset lease for thissublease.

Item Description



Name The name of the parent asset lease record. Specify a fewcharacters to take advantage of autocomplete.

ID The unique identifier of the parent asset lease record.

Critical dates section:

Use this section of the Asset Lease form to identify the commencement, expiration,acquisition, and other dates from the lease.

The form uses these dates to populate other fields in other sections and tabs in theasset lease. If you have auditable or percentage rent clauses, you must specify theCommencement Date field and Base Lease Expiration Date field to calculate theamount due for the duration of asset possession.

Item Description

Commencement Date The date when the lease term begins. Click the Calendar icon


Lease Term The term that begins with the Commencement Date and endswith the Base Lease Expiration Date.




Expiration Reminder The duration before which you want advance notification of

the lease expiration date. Click the Calendar icon andspecify the duration.

Expiration NotificationDate

The date when the expiration reminder is sent. This date iscalculated from the Base Lease Expiration Date and theExpiration Reminder duration.

Inception (Execution)Date

The date when the lease becomes legally enforced and thelegal commitment to the agreement begins. Click the Calendar


Abstracted Date The date when the lease is abstracted. Click the Calendar icon





Item Description

Legal Notice Reminder The duration before which you want advance notification of

the legal notice date. Click the Calendar icon and specifythe duration.

Legal Notification Date The date when the legal notice reminder is sent. This date iscalculated from the Legal Notice Date and the Legal NoticeReminder duration.

Original Expiration Date The date when the original base lease expires, without renewal

options or other changes applied. Click the Calendar iconand select the date.

Acquired Date The date when the asset is acquired. Click the Calendar icon


Returned Date The date when the asset is returned. Click the Calendar icon


Lease notifications section:

Use this section of the Asset Lease form to identify the notifications that are sent,their types, and the roles that are notified. When you activate the lease, thenotifications for the lease expiration, legal notice, option dates, and optionreminders are automatically scheduled and generated. You can also manuallycreate other notifications.

Item Description








Status The status of the lease notification record.

Assets tabUse this tab of the Asset Lease form to specify the assets on the lease.

Leased assets section:

Use this section of the Asset Lease form to identify the image, name, specificationclass, ownership status, and availability for each asset on the lease.

Item Description

Find Lists the available information. Click this action on the sectionbar and select from the listed assets. Click OK.



Item Description

Image The image that represents the asset.

ID The unique identifier of the asset record.

Name The name of the asset.

Spec Class The specification class of the asset, such as air conditioner,boiler, electric motors, and seating.

Ownership Status The status of the asset ownership, such as lease.

Ownership Status Color The color of the asset ownership status, such as yellow (lease).

Asset Status The status of the asset availability, such as available andassigned.

Asset Status Color The color of the asset availability status, such as green(available) and blue (assigned).

Record Status The status of the asset record.

Clauses, options, and terms tabUse this tab of the Asset Lease form to specify the clauses, options, and terms thatare related to the lease. After you create the lease draft, all of the section actions onthis tab are enabled. You can also use the Option wizard form to add more leaseoptions.

Clauses section:

Use this section of the Asset Lease form to identify the clauses that are related tothe lease.

Item Description

Add Adds a clause. Click this action on the section bar. Specify thedetails and click the Create action. The form adds a line in thesection.

Find Template Adds a clause that is based on a predefined clause template.Click this action on the section bar. Select the template andclick OK. The form adds a line in the section. Open the lineitem to edit the details.


Section Category The category of the asset lease clause, such as default,insurance, rights, and security deposit.

Asset Clause Type The type of the asset lease clause within the clause category,such as lessee default, insurance, holdover, and guarantee.

Granted in Lease The legal status of this clause.




Options section:

Use this section of the Asset Lease form to identify the options that are related tothe lease.


Item Description


Options Wizard Adds several options at one time. Click this action. Specify thedetails and click the Create Option action. The wizard formremains open for you to specify and create another option.When you close the wizard form, the lease form adds the linesin the section.





v Lessor Notice Date (Must Exercise By)





Lessor Notice Date (MustExercise By)





Terms note section:

Use this section of the Asset Lease form to identify the terms that are related to thelease.

Accounting tabUse this tab of the Asset Lease form to specify the accounting details, borrowingrate, growth assumptions, rent component assumptions, and likely term option.This tab also calculates the Financial Accounting Standards Board (FASB) treatmentof "Capital" or "Operating" for the lease. The form shows this tab only if you haveaccess as a Lease Accountant or Lease Accounting Manager role with a Real EstateManager license.

Accounting details section:

Use this section of the Asset Lease form to identify the accounting type, accountingdates, initial costs, and other details for lease accounting.


Item Description






Accounting Cost Center The responsible cost center for this lease.






The percentage for the operating portion. When the leasetreatment is "Operating", this field is not used in thestraight-line rent-liability calculation.


The interval for the straight-line calculations, such as annually,monthly, quarterly, and semi-annually.

Initial Direct Costs The direct costs at the start of the lease. The unit of currency istaken from the General tab. If a value is specified, the value isincluded in the fiscal line item (FLI) for the first fiscal period.

Fair Market Value The fair market value (FMV) of the asset when accountingbegins.

10k Disclosure The disclosure of financial performance and accountingpractices as required by the US Securities and ExchangeCommission (SEC) in the Form 10-K report.

Financial assumption reviews section:

Use this section of the Asset Lease form to identify the previous and nextassumptions review dates for the lease.

Item Description

Last Review Date The date of the previous assumptions review, if one occurred.

Review Period The duration between assumptions reviews. Click the


Next Review Date The date of the next assumptions review. This date iscalculated from the Last Review Date and the Review Periodduration.


Item Description

Last Review By The name of the Lease Accountant or Lease Administratorwho processed the previous assumptions review, if oneoccurred.

Likely term assumption section:

Use this section of the Asset Lease form to identify the length of the likely term. Ifthe likely term is considered "short term", you can choose to include or exclude thelease from the amortization schedule.

Item Description

Commencement Date The date when the lease term and the contracted work on thesite begins. This date is populated from the same field on theGeneral tab.

Short Term Lease The value that indicates whether the likely term is less than 12months long, or more than 12 months long.

v If the value is yes, then the likely term is less than 12months long, and considered "short term". According to theFinancial Accounting Standards Board (FASB), a short-termlease is not necessarily considered a financial liability. Theform shows the Include in Amortization Schedule checkbox to give you the option to include or exclude the leasefrom the amortization schedule.

v If the value is no, then the likely term is more than 12months long.

Likely Expiration Date(Likely Term End Date)



Select the check box if the situation applies. The form showsthis field if the likely term is less than 12 months long, andconsidered "short term". According to the FASB, a short-termlease is not necessarily considered a financial liability. Theform shows this check box to give you the option to includeor exclude the lease from the amortization schedule.

Likely Term The duration of the likely term. This duration is calculatedfrom the Commencement Date and the Likely ExpirationDate.

Extend Rent Payments forLikely Term

Select the check box if the situation applies. If the check box isselected, then the rental payments are extended with fiscal lineitems (FLIs). Here are a couple of examples of extendedpayments:

v The fiscal end date occurs later than the likely term enddate: In this case, the payments are extended on the FLIsafter the last scheduled payment until the fiscal end date.

v The payment schedule ends before the likely term end date.In this case, the payments are extended on the FLIs after thelast scheduled payment until the likely term end date.

The form shows the default value that is set by youradministrator in the application settings record.



Use this section of the Asset Lease form to identify the borrowing rate and growthrates for the lease. The fiscal line items (FLIs) are adjusted by these rates todetermine the “best estimate” of payment obligations for the likely term of thelease.

Item Description






Use this section of the Asset Lease form to identify the maintenance, tax, base-rent,and other portions of the lease payment. The form shows this section if the LeaseCategory selection contains the term "gross", such as full service gross or modifiedgross.

Item Description






Use this section of the Asset Lease form to identify the likely term end date, andother details of the current likely term option.

Item Description







Amortization summary section:

Use this section of the Asset Lease form to identify the fiscal periods, operatingexpenses, and other amortization details for the lease. The read-only details aresummarized from the fiscal line items (FLIs) in the amortization schedule.

Item Description

Number of Periods The number of periods between the Fiscal Start date and theFiscal End date.

Number of Years The number of years between the Fiscal Start date and theFiscal End date.

Straight Line Rent PerYear

The rental payment per year that is calculated by thestraight-line method.

Total Rent Present Value The present value of the estimated future rental payments forthe likely term of the lease.

Total Rent Expenses The amount of rental expenses that is summed from the FLIsfor the likely term of the lease.

Total MaintenanceExpenses

The amount of maintenance and repair expenses that issummed from the FLIs for the likely term of the lease.

Total Tax Expenses The amount of property taxes that is summed from the FLIsfor the likely term of the lease.

Total Insurance Expenses The amount of property insurance that is summed from theFLIs for the likely term of the lease.

Total Security Expenses The amount of security expenses that is summed from theFLIs for the likely term of the lease.

Total Utilities Expenses The amount of utility expenses that is summed from the FLIsfor the likely term of the lease.

Total Other Expenses The amount of other recurring expenses that is summed fromthe FLIs for the likely term of the lease.

Total Incentive Expenses The amount of lease incentives that is summed from the FLIsfor the likely term of the lease.

Periods Per Year The number of fiscal periods per year. The form shows thedefault number that is set by your administrator in theapplication settings record.

Fiscal Start The date when the first fiscal period begins.

v For many cases, the Fiscal Start date is the same as theCommencement Date.

v But in some cases, when the accounting starts earlier thanthe lease commencement, the Fiscal Start date is the sameas the Accounting Start Date.

Fiscal End The date when the last fiscal period ends.

v For many cases, the Fiscal End date is the same as theLikely Expiration Date.

v But in some cases, when the accounting ends later than thelease expiration, the Fiscal End date is the same as theAccounting End Date.

Amortization schedule section:

Use this section of the Asset Lease form to identify the fiscal line items (FLIs) inthe amortization schedule for the lease. The straight-line FLI payments are adjusted


by any assumptions to determine the “best estimate” of payment obligations forthe likely term of the lease. Each FLI record contains its fiscal period, rentalpayment, principal, interest, equity, and other amortization details.

Item Description

Period # The number that identifies the FLI record, such as 1, 2, 3, and4. The number of FLIs in the amortization schedule isdetermined by the Number of Periods field.

Fiscal Period The period within the year that identifies the FLI record, suchas 2013 - 01 and 2015 - 12.

Rent Expense The amount of rental expenses for the specific fiscal period.

Net Rent Payment The net payment of rent for the specific fiscal period.

Interest Expense The amount of interest expenses for the specific fiscal period.

Principal The amount of principal expenses for the specific fiscal period.

Amortization The straight-line amount for the specific fiscal period. Thisamount is constant for all FLIs in the amortization schedule.

Asset Value The value of the asset for the specific fiscal period.

Net Equity The net equity of the asset for the specific fiscal period. Thisvalue is calculated from the Asset Value amount and theLiability Value amount in the FLI record.

P&L Impact (P&L BookExpense)

The amount of profit-and-loss (P&L) expense for the specificfiscal period. This expense is calculated from the InterestExpense amount and the Amortization amount in the FLIrecord.

Impact report section:

Use this section of the Asset Lease form to identify the impact of the jointaccounting standard. The draft of this joint standard by the Financial AccountingStandards Board (FASB) and International Accounting Standards Board (IASB),which is not finalized, treats all leases as capitalized leases. Meanwhile, theFASB-specific standard calculates the treatment of "Capital" (capitalized) or"Operating" (non-capitalized) for the lease.

Item Description


Y Axis The rental expenses or profit-and-loss (P&L) expenses.




FASB 13 treatment section:

Use this section of the Asset Lease form to apply the FASB-specific standard by theFinancial Accounting Standards Board (FASB). This standard calculates thetreatment of "Capital" (capitalized) or "Operating" (non-capitalized) for the lease.


Meanwhile, the draft of the joint standard by the FASB and InternationalAccounting Standards Board (IASB), which is not finalized, treats all leases ascapitalized leases.

Item Description

Calculate Lease Treatment Calculates the lease treatment of "Capital" (capitalized) or"Operating" (non-capitalized) for the lease. Click this action onthe section bar. The form shows the treatment in the LeaseTreatment field.

Lease Treatment The calculated treatment of "Capital" (capitalized) or"Operating" (non-capitalized) for the lease.













Is Lease Term 75% >=Asset's Economic Life

The value of yes or no. If the lease term is at least 75% of theeconomic life of the asset, then the lease treatment is "Capital".



Is NPV of Rent >= 90% ofAsset's FMV

The value of yes or no. If the net present value (NPV) of rentis 90% of the fair market value (FMV) of the asset, then thelease treatment is "Capital".



Total Rent The amount of the rental expenses for the length of the lease.

Fair Market Value The estimated fair market value (FMV) for the building.

Rent Obligation as % ofFMV

The percentage of the fair market value (FMV) of the assetthat is represented by the rental expenses.

PV of Rent The present value (PV) of the rental expenses for the length ofthe lease.

Lease Term (in Years) The length of the lease in years.


Assumption audit log section:

Use this section of the Asset Lease form to identify the assumption audit logs thatwere created through the review assumptions process. Each read-only log recordcontains its review date, review type, and review comments.


option?




lease?


Lease treatment =

Operating

Lease treatment =

Capital

Lease treatment =

Capital

Lease treatment =

Capital

No

No

No

No

Yes

Yes

Yes

Yes

Lease treatment =

Capital

No

Yes

Figure 14. Flow diagram for calculating the FASB treatment of an asset lease


Item Description

Assumptions ReviewDate

The date of the assumptions review.



Status The status of the assumption audit log record.

Balance sheet effect section:

Use this section of the Asset Lease form to identify the net equity of the asset forthe likely term of the lease.

Item Description


Y Axis The net equity of the asset.

Net Equity The net equity of the asset for the specific fiscal period. Thisvalue is calculated from the Asset Value amount and theLiability Value amount in the fiscal line item (FLI) record.

Projected annual portfolio expense section:

Use this section of the Asset Lease form to identify the rental expenses and rentalpayments for the likely term of the lease. The profit-and-loss expenses are based onthe joint standard by the Financial Accounting Standards Board (FASB) andInternational Accounting Standards Board (IASB). Meanwhile, the rental expensesare based on the FASB-specific standard.

Item Description


Y Axis The amount of the expenses or payments.




Cash Flow (RentPayment)

The net payment of rent for the specific fiscal period.

Asset value section:

Use this section of the Asset Lease form to identify the asset value and liabilityvalue for the likely term of the lease.


Item Description


Y Axis The value of the asset or liability.

Asset Value The value of the asset for the specific fiscal period. This valueis obtained from the Asset Value amount in the fiscal line item(FLI) record.

Liability Value The value of the liabilities for the specific fiscal period. Thisvalue is obtained from the Liability Value amount in the fiscalline item (FLI) record.


Chapter 6. Creating owned property agreements

To make updates and queries more efficient, you can digitally store ownedagreement data by creating owned agreement records. You can create ownedproperty agreement records through manual data entry.

Owned property agreement recordsTo digitally store owned agreement data, you can input the contents into ownedagreement records. The owned property agreement record can contain as much ofthe actual agreement details as you want, based on the preferences and standardsof your organization.


Owned property agreement creation

As a real estate contract manager, you can specify the entire owned propertyagreement and attach it as a file, or summarize key aspects of it. You can inputowned property agreement records into your IBM TRIRIGA application.

Save the owned property agreement record after you specify the data and beforeyou move to the next tab.

Creating owned property agreement recordsTo input owned agreement data into owned agreement records, you can manuallycreate owned property agreement records.


Maintenance

ContractType?

Approved Contract

LeaseLease Abstract


Asset or RE Lease

RE Lease

RE Owned

Figure 15. Flow diagram for creating the owned property agreement


Before you begin


Procedure1. Select Projects > Real Estate.2. In the Related Links – Real Estate portal section, select Contracts > Owned

Property (Fee) Agreements.3. Click the Add action.4. Specify the details.5. Click the Contact Details tab.6. Click the Contract Administrator role.7. In the Contact section, click the Find action, select a name, click OK, and save


Form tabsThe tabs at the top of the Owned Property Agreement form represent the differentareas of an owned property agreement record. Depending on your security accessto the form, such tabs might include general information, notifications, systemdetails, and reports. Common form tabs indicate tabs that are shared across manytypes of forms.


General tabUse this tab of the Owned Property Agreement form to specify the agreementidentifier, agreement names, primary address, agreement contacts, critical dates,and other details.

General sectionUse this section of the Owned Property Agreement form to identify the agreementidentifier, agreement name, legal name, and other general information for therecord.

Item Description

ID The unique identifier of the owned property agreement record.If you do not provide an identifier, one is automaticallygenerated.

Revision The number of times that the owned property agreementrecord was revised, such as 0, 1, 2, and 3. You can modify anactive record by clicking the Revise action.

Status The status of this record.

Picture The image that represents this record. Click the UploadPicture icon to select the image such as the photograph of theproperty.

Name The name of the agreement in this record.

Description The brief description of this record.


Units sectionUse this section of the Owned Property Agreement form to identify the currencyand unit of area from the agreement.

Item Description



Details sectionUse this section of the Owned Property Agreement form to identify the legal name,primary use, purchase price, and other agreement details.

Item Description

Legal Name The name of the owner or organization name as specified inthe legal documents.

Display Color The color that is assigned to this record when this record is

shown in query results. Click the Search icon and selectthe color.

Primary Use The main use of the property, such as administration,education, manufacturing, and warehouse. Click the Search

icon and select from the listed choices.



Purchase Price The price at which the property was purchased.




Accounting sectionUse this section of the Owned Property Agreement form to identify the accountingtype, spend category, and other accounting details for the agreement.

Item Description


Spend Category The acquisition or disposition category for this agreement.

Click the Search icon and select from the listed choices.

Accounting Cost Center The responsible cost center for this agreement.

Chapter 6. Creating owned property agreements 121

Critical dates sectionUse this section of the Owned Property Agreement form to identify the acquisition,purchase, occupancy, and vacate dates from the agreement. The form uses thesedates to populate other fields in other sections and tabs in the owned propertyagreement.

Item Description

Acquired Date The date when the property is acquired. Click the Calendar


Purchase Date The date when the property is purchased. Click the Calendar


Occupancy Date The date when the owner begins occupying the property. Click


Vacate Date The date when the owner vacates the property. Click the


Primary location sectionUse this section of the Owned Property Agreement form to identify the primarylocation at the primary address from the agreement.

Item Description

Find Lists the available information. Click this action on the sectionbar and select an existing location from the location hierarchy.


Hierarchy Path The primary location at the primary address. This field showsthe same path as the Hierarchy Path field in the Locations tab.

Primary address sectionUse this section of the Owned Property Agreement form to identify the addressinformation from the agreement.

Item Description

Address The street address on the agreement.

Zip/Postal Code The postal code on the agreement.

Geography Path The geographic location on the agreement, including the fullpath in the geographic hierarchy. Specify a few characters to

take advantage of autocomplete or click the Search icon tofind the location.

City The city on the agreement. This field is automaticallypopulated based on the selected geographic path.

State/Province The state or province on the agreement. This field isautomatically populated based on the selected geographicpath.

Country The country on the agreement. This field is automaticallypopulated based on the selected geographic path.

Primary location graphic sectionUse this section of the Owned Property Agreement form to view the graphicalrepresentation of the primary location from the agreement.


Contract notifications sectionUse this section of the Owned Property Agreement form to identify thenotifications that are sent, their types, and the roles that are notified.

Item Description






Notification Type The type of the notification, such as a legal notice, and othertypes that you can manually create.


Status The status of the contract notification record.

Chapter 6. Creating owned property agreements 123

Chapter 7. Maintaining contracts

To maintain the accuracy and efficiency of your contracts, you can send andreceive notifications about upcoming dates, and revise each contract throughproposed changes.

Overview of contract maintenanceThe overall contract process consists of the contract creation, contract maintenance,and payment management phases. The contract maintenance phase includessending and receiving notifications about upcoming dates, and revising eachcontract through proposed change requests and amendments. With thesenotifications and change requests, you can maintain the accuracy and efficiency ofyour contracts.

Contract maintenanceTo ensure the accuracy of your contracts, you can revise each contract throughproposed change requests and adjustments.

Contract maintenance process flow

Data ChangeRequest

ContractMaintenance

Notifications

Adjust ContractLease AssumptionChange Request

Figure 16. Flow diagram for requesting data changes


Real estate contract maintenance

In the application, real estate contract maintenance includes the followingelements:v Contract notifications that can be sent to any number of defined roles,v Real estate data change requests that are sent to the Contract Administrator role,v Real estate lease assumption change requests that are sent to the Lease

Accountant role, andv Adjustments to the real estate contract that might be necessary after these

events.

Asset lease contract maintenance

In the application, asset lease contract maintenance includes the followingelements:v Contract notifications that can be sent to any number of defined roles,v Asset lease data change requests that are sent to the Contract Administrator role,v Asset lease assumption change requests that are sent to the Lease Accountant

role, andv Adjustments to the asset lease contract that might be necessary after these

events.

Contract notificationsTo ensure the efficient update or adjustment of your contracts, you can send andreceive notifications about upcoming dates.

Data ChangeRequest

ContractMaintenance

Notifications


Figure 17. Flow diagram for requesting lease assumption changes


Contract maintenance process flow

Creating contract notifications

In the application, creating contract notifications includes the following elements:v Use the Contract Notification form to specify when and to whom to send

notifications for the lease or agreement. You can open this form from the LeaseNotifications section of your lease, or the Contract Notifications section of youragreement.

v For leases, when you activate the lease, the notifications for the lease expiration,legal notice, option dates, and option reminders are automatically scheduled andgenerated.

v For leases and agreements, you can manually create other notifications.

Receiving contract notifications

In the application, receiving contract notifications includes the following elements:v You receive notifications in your home page.v Each notification requests an action and often contains an escalation if you do

not respond within the time allotted.v After you complete the activity that is directed by the notification, an adjustment

might be made to the contract.

Requesting real estate data changesYou can create and submit a request for a data change to a real estate (RE) lease oragreement. After approval, the change request is sent to the Contract Administratorof the selected real estate lease or agreement for review. After review, a revision oramendment to the lease or agreement might be necessary.

Before you begin

You must sign in as a Request Central role or Real Estate Contract Manager.

Data ChangeRequest

ContractMaintenance

Notifications


Figure 18. Flow diagram for sending contract notifications

Chapter 7. Maintaining contracts 127

Procedure1. Open the change request.

Role Action

Request Central role In the Request Central portal section, select Contract > REContract Change Request.


Select Requests > My Requests. In the Request Central portalsection, select Contract > RE Contract Change Request.

2. Specify the details.3. In the General section, select whether the request is for you or someone else.4. In the Real Estate Contract section, click the Find action, select a lease, and

click OK.5. Create the draft.6. Submit the request.

Form tabsThe tabs at the top of the Real Estate Data Change Request form represent thedifferent areas of a real estate data change request record. Depending on yoursecurity access to the form, such tabs might include general information,notifications, system details, and reports. Common form tabs indicate tabs that areshared across many types of forms.


General tabUse this tab of the Real Estate Data Change Request form to specify your requestfor a data change to a real estate lease or agreement.

General section:

Use this section of the Real Estate Data Change Request form to identify the director indirect requestor for the change request.

Item Description

ID The unique identifier of the change request record. If you donot provide an identifier, one is automatically generated. Theform shows this field after you create the draft.

Status The status of the change request record. The form shows thisfield after you create the draft.

Request is for The requestor who is making the change request, such asyourself or someone else. If you select the latter option, theform shows the Requested For section and Requested Bysection.

Requested for section:

Use this section of the Real Estate Data Change Request form to identify the nameand contact details of the indirect requestor for the change request. The formshows this section if the request is for someone else in the Request is for field.


Item Description

Name The name of the indirect requestor of the change request.Specify a few characters to take advantage of autocomplete, or

click the Search icon and select from the listed names.

Work Phone The work phone of the indirect requestor.

Email The email address of the indirect requestor.

Requested by section:

Use this section of the Real Estate Data Change Request form to identify the nameand contact details of the direct requestor for the change request. The form showsthis section if the request is for someone else in the Request is for field.

Item Description

Name The name of the direct requestor of the change request. Thisperson is making the change request for someone else.

Work Phone The work phone of the direct requestor.

Email The email address of the direct requestor.

Real estate contract section:

Use this section of the Real Estate Data Change Request form to identify the realestate lease or agreement that is related to the change request.

Item Description

Find Lists the available information. Click this action on the sectionbar and select from the listed real estate contracts. Click OK.


ID The unique identifier of the real estate lease or agreement.

Status The status of the real estate lease or agreement.

Name The name of the real estate lease or agreement.

Describe your request section:

Use this section of the Real Estate Data Change Request form to identify thedescription for the change request.

Requesting asset lease contract changesYou can create and submit a request for a contract change to an asset lease. Afterapproval, the change request is sent to the Contract Administrator of the selectedasset lease for review. After review, a revision of the lease might be necessary.

Before you begin




Role Action

Request Central role In the Request Central portal section, select Contract >Contract Change.


Select Requests > My Requests. In the Request Central portalsection, select Contract > Contract Change.

2. Specify the details.3. In the General section, select whether the request is for you or someone else.4. In the Contract section, click the Find action, select a lease, and click OK.5. Create the draft.6. Submit the request.

Form tabsThe tabs at the top of the Contract Change Request form represent the differentareas of an asset lease contract change request record. Depending on your securityaccess to the form, such tabs might include general information, notifications,system details, and reports. Common form tabs indicate tabs that are shared acrossmany types of forms.


General tabUse this tab of the Contract Change Request form to specify your request for acontract change to an asset lease.

General section:

Use this section of the Contract Change Request form to identify the direct orindirect requestor for the change request.

Item Description

Request ID The unique identifier of the change request record. If you donot provide an identifier, one is automatically generated. Theform shows this field after you create the draft.

Status The status of the change request record. The form shows thisfield after you create the draft.



Use this section of the Contract Change Request form to identify the name andcontact details of the indirect requestor for the change request. The form showsthis section if the request is for someone else in the Request is for field.


Item Description






Use this section of the Contract Change Request form to identify the name andcontact details of the direct requestor for the change request. The form shows thissection if the request is for someone else in the Request is for field.

Item Description




Contract section:

Use this section of the Contract Change Request form to identify the asset leasethat is related to the change request.

Item Description

Find Lists the available information. Click this action on the sectionbar and select from the listed asset leases. Click OK.


ID The unique identifier of the asset lease record.

Type The type of the form, such as an asset lease.

Contract Name The name of the asset lease record.

Details section:

Use this section of the Contract Change Request form to identify the current detailsand requested details for the change request.

Item Description

Current Contract Value The current value of the asset lease.

Requested Contract Value The requested value of the asset lease.

Current Contract Date The date of the current asset lease. Click the Calendar iconand select the date.

Requested Contract Date The date of the requested asset lease. Click the Calendar icon




Use this section of the Contract Change Request form to identify the descriptionfor the change request.

Requesting lease assumption changesYou can create and submit a request for an assumptions change to a real estate(RE) lease or asset lease. After approval, the change request is sent to the LeaseAccountant or Lease Administrator of the selected lease for review. After review, arevision or amendment to the lease might be necessary.

Before you begin



Role Action

Request Central role In the Request Central portal section, select Contract > LeaseAssumption Change Request.


Select Requests > My Requests. In the Request Central portalsection, select Contract > Lease Assumption Change Request.

2. Specify the details.3. In the General section, select whether the request is for you or someone else.4. In the Identify Leases to Update section, click the Find action, select a lease,

and click OK.5. Create the draft.6. Submit the request.

Form tabsThe tabs at the top of the Lease Assumption Change Request form represent thedifferent areas of a lease assumption change request record. Depending on yoursecurity access to the form, such tabs might include general information,notifications, system details, and reports. Common form tabs indicate tabs that areshared across many types of forms.


General tabUse this tab of the Lease Assumption Change Request form to specify your requestfor an assumptions change to a real estate lease or asset lease.

General section:

Use this section of the Lease Assumption Change Request form to identify thedirect or indirect requestor for the change request.


Item Description



Use this section of the Lease Assumption Change Request form to identify thename and contact details of the indirect requestor for the change request. The formshows this section if the request is for someone else in the Request is for field.

Item Description






Use this section of the Lease Assumption Change Request form to identify thename and contact details of the direct requestor for the change request. The formshows this section if the request is for someone else in the Request is for field.

Item Description





Use this section of the Lease Assumption Change Request form to identify thedescription for the change request.

Identify leases to update section:

Use this section of the Lease Assumption Change Request form to identify theleases for the change request.

Item Description

Find Lists the available information. Click this action on the sectionbar and select from the listed leases. Click OK.


ID The unique identifier of the lease record.

Name The name of the lease record.

Lease Type The type of the lease, such as an expense lease, expense lease -master sublease, income lease – sublease, and income lease –third-party lease.


Item Description

Lease Category The category of the lease, in terms of net and gross.

Form Name The name of the form, such as an asset lease and real estatelease.

Includes Index This check box is selected if the lease includes an index-basedclause.

Includes FMRV This check box is selected if the lease includes a fair marketrate value (FMRV) clause.

City The city where the lease property is located.

State/Province The state or province where the lease property is located.

Country The country where the lease property is located.

Status The status of the lease record.

Enter review details for auditing section:

Use this section of the Lease Assumption Change Request form to identify thereview type and review comments for the change request.

Item Description

Review Type The type of the review that is requested, such as businessfactors, contractual factors, non-contractual factors, and other

factors. Click the Search icon and select from the listedchoices.

Review Comments The comments for the review that is requested.


Use this section of the Lease Assumption Change Request form to identify theborrowing rate and growth rates for the change request. The fiscal line items (FLIs)are adjusted by these rates to determine the “best estimate” of payment obligationsfor the likely term of the lease.

Item Description



Index Growth % The percentage for the index growth rate. If the lease containsan index-based clause with a payment schedule, the projectedpayments on the FLIs are adjusted by this rate.

FMRV Growth % The percentage for the fair market rental value (FMRV) growthrate. If the lease contains an FMRV-based clause with apayment schedule, the projected payments on the FLIs areadjusted by this rate.


Use this section of the Lease Assumption Change Request form to identify themaintenance, tax, base-rent, and other rental portions for the change request. Thesevalues apply if the Lease Category selection in the lease record contains the term"gross", such as full service gross or modified gross.


Item Description

% Is Maintenance The requested percentage for the maintenance portion of thelease payment.

% Is Tax The requested percentage for the tax portion of the leasepayment.

% Is Other The requested percentage for other (non-rental) costs in thelease payment.



Chapter 8. Managing payments

To manage the various forms of payments over the lifetime of your contracts, youcan set up scheduled payments, one-time payments, pass-through payments, andpayment adjustments. You can also create invoices for "accounts payable" (AP) and"accounts receivable" (AR).

Managing invoicesTo itemize the payments that a tenant or lessee owes to the landlord or lessor, youcan create invoices for real estate contracts or asset leases. You can also create theseinvoices for "accounts payable" (AP) or "accounts receivable" (AR).

Creating real estate invoicesTo input billing data into invoice records, you can manually create real estateinvoice records.

Before you begin


Procedure1. Select Contracts > Payables > Invoices > Real Estate.2. Click the Add action.3. Specify the details.4. Create the draft.

Form tabsThe tabs at the top of the Real Estate Invoice form represent the different areas of areal estate invoice record. Depending on your security access to the form, such tabsmight include general information, notifications, system details, and reports.Common form tabs indicate tabs that are shared across many types of forms.


General tab:

Use this tab of the Real Estate Invoice form to specify the amount, dates, real estatecontract, payments, and other billing details for the invoice.

General section:

Use this section of the Real Estate Invoice form to identify the invoice number,invoice type, and status of the invoice.

Item Description

Invoice Number The unique number of the real estate invoice record. If you donot provide a number, one is automatically generated.

Status The status of the real estate invoice record.


Item Description

Invoice Type The type of the invoice, such as accounts payable (AP) andaccounts receivable (AR). If you select the accounts receivable(AR) option, the form shows the Bill To section.

Units section:

Use this section of the Real Estate Invoice form to identify the currency details inthe invoice. The currency details in the invoice might differ from the currencydetails in the lease.

Item Description




Invoice details section:

Use this section of the Real Estate Invoice form to identify the amount, dates,totals, and other details for the invoice.

Item Description

Invoice Amount The actual amount of the invoice. This amount might differfrom the Invoice Total amount.

Invoice Date The date of the invoice. Click the Calendar icon and selectthe date.

Payable Total (Calculated) If you are the lessee, the calculated total that the lessee owes(or must pay) to the lessor for this invoice.

Due Date The date when the invoice payment is due. Click the Calendar


Currency The type of currency for all cost-related fields in the invoice.

Receivable Total(Calculated)

If you are the lessor, the calculated total that the lessor isowed (or must receive) by the lessee for this invoice.



Invoice Total The calculated total of the invoice. This total is calculated fromthe Payable Total (Calculated) and the Receivable Total(Calculated) values.


Use this section of the Real Estate Invoice form to identify the real estate contractthat is related to this invoice.


Item Description

Find Lists the available information. Click this action on the sectionbar and select from the listed real estate contracts. Click OK.


ID The unique identifier of the real estate contract record.

Status The status of the real estate contract record.

Name The name of the real estate contract record.

Past Due Payments The amount of the payments that is less than the calculatedamount, as of the previous due date.

Currency The type of currency for all cost-related fields in the real estatecontract.

Credit Remaining The amount of the payments that is more than the calculatedamount, as of the previous due date.

Remit to section:

Use this section of the Real Estate Invoice form to identify the organization thatreceives the payments in the invoice.

Item Description

Remit To Look Up The name of the organization that receives the payments inthe invoice. Specify a few characters to take advantage of

autocomplete or click the Search icon to find theorganization. The form populates the name and addressinformation from that organization record.

Payable To The specific name of the organization or person that receivesthe payments.

Bill to section:

Use this section of the Real Estate Invoice form to identify the organization thatsends the payments in the invoice. The form shows this section if you select theaccounts receivable (AR) option in the Invoice Type field.

Item Description

Bill To Look Up The name of the organization that sends the payments in theinvoice. Specify a few characters to take advantage of


Payable To The specific name of the organization or person that sends thepayments.

Contract payments to process section:

Use this section of the Real Estate Invoice form to identify the payment type,accounting type, due date, and expected amount for each contract payment due. Ifa sublease is affected, you can also identify the payments that pass-through to thesublessee.

Chapter 8. Managing payments 139

Item Description

Get Payments Due Adds the payment line items that are due for the real estatecontract. Click this action on the section bar and select fromthe listed payment line items. Click OK. The form adds theline items in the section.

Sublease Pass-Through Adds the payment line items to the Sublease Pass-ThroughPayments section. Click this action, select the payment lineitems that pass-through to the sublessee, and click the Processaction. The form adds the line items to the SubleasePass-Through Payments section.


Payment Type The type of service or item that is being paid for with thiscontract payment, such as administrative fees, heating charges,signage rent, and water charges.


Due Date The date when the contract payment is due. This date mightdiffer from the Due Date value for the invoice payment.

Expected Cash with Tax The cash plus tax amount that is expected for this contractpayment.

Status The status of the contract payment line item record.

One time payments to process section:

Use this section of the Real Estate Invoice form to identify the payment type,accounting type, due date, and expected amount for each one-time payment.

Item Description

Quick Add Adds a payment line item for a one-time payment. Click thisaction on the section bar. The form adds a line in the section.Specify the details.


Payment Type The type of service or item that is being paid for with thisone-time payment, such as administrative fees, heatingcharges, signage rent, and water charges. Click the Search icon



Due Date The date when the one-time payment is due. This date mightdiffer from the Due Date value for the invoice payment. Click


Expected Cash Before Tax The pre-tax cash amount that is expected for this one-timepayment.

Expected Cash with Tax The cash plus tax amount that is expected for this one-timepayment.

Status The status of the one-time payment line item record.


Sublease pass-through payments section:

Use this section of the Real Estate Invoice form to identify the sublease name,payment type, due date, and pass-through amount for each pass-through payment.These pass-through payments are selected and calculated from the ContractPayments To Process section.

Item Description

Contract Name The name of the real estate sublease record.

Payment Type The type of service or item that is being paid for with thispass-through payment, such as administrative fees, heatingcharges, signage rent, and water charges.

Due Date The date when the pass-through payment is due. This datemight differ from the Due Date value for the invoice payment.

Expected Amount The cash plus tax amount that is expected for thispass-through payment.

Allocation Percent The percentage of the fixed-allocation payment type that isresponsible by the sublessee organization.

Pass-Through Amount The cash plus tax amount that is responsible by the sublesseeorganization. This amount is calculated from the ExpectedAmount and the Allocation Percent values.

Payment processed section:

Use this section of the Real Estate Invoice form to identify the payment type,accounting type, expected amount, and paid amount for each processed payment.

Item Description

Payment Type The type of service or item that is being paid for with thispayment, such as administrative fees, heating charges, signagerent, and water charges.


Expected Cash with Tax The cash plus tax amount that is expected for this payment.

Paid Amount The actual amount of this payment.

Status The status of the payment line item record.

Creating asset invoicesTo input billing data into invoice records, you can manually create asset invoicerecords.

Before you begin

You must sign in as a Real Estate Contract Manager. The Real Estate ContractManager role can create both asset invoice records and real estate invoice records.

Procedure1. Select Contracts > Payables > Invoices > Asset.2. Click the Add action.3. Specify the details.


4. Create the draft.

Form tabsThe tabs at the top of the Asset Invoice form represent the different areas of anasset invoice record. Depending on your security access to the form, such tabsmight include general information, notifications, system details, and reports.Common form tabs indicate tabs that are shared across many types of forms.


General tab:

Use this tab of the Asset Invoice form to specify the amount, dates, asset lease,payments, and other billing details for the invoice.

General section:

Use this section of the Asset Invoice form to identify the invoice number, invoicetype, and status of the invoice.

Item Description

Invoice Number The unique number of the asset invoice record. If you do notprovide a number, one is automatically generated.

Status The status of the asset invoice record.

Invoice Type The type of the invoice, such as accounts payable (AP) andaccounts receivable (AR). If you select the accounts receivable(AR) option, the form shows the Bill To section.

Units section:

Use this section of the Asset Invoice form to identify the currency details in theinvoice. The currency details in the invoice might differ from the currency detailsin the lease.

Item Description





Use this section of the Asset Invoice form to identify the amount, dates, totals, andother details for the invoice.

Item Description

Invoice Amount The actual amount of the invoice. This amount might differfrom the Invoice Total amount.


Item Description


Payable Total (Calculated) If you are the lessee, the calculated total that the lessee owes(or must pay) to the lessor for this invoice.

Due Date The date when the invoice payment is due. Click the Calendar


Currency The type of currency for all cost-related fields in the invoice.

Receivable Total(Calculated)

If you are the lessor, the calculated total that the lessor isowed (or must receive) by the lessee for this invoice.



Invoice Total The calculated total of the invoice. This total is calculated fromthe Payable Total (Calculated) and the Receivable Total(Calculated) values.

Asset lease section:

Use this section of the Asset Invoice form to identify the asset lease that is relatedto this invoice.

Item Description

Find Lists the available information. Click this action on the sectionbar and select from the listed asset leases. Click OK.




Name The name of the asset lease record.

Past Due Payments The amount of the payments that is less than the calculatedamount, as of the previous due date.

Currency The type of currency for all cost-related fields in the assetlease.

Credit Remaining The amount of the payments that is more than the calculatedamount, as of the previous due date.

Remit to section:

Use this section of the Asset Invoice form to identify the organization that receivesthe payments in the invoice.

Item Description

Remit To Look Up The name of the organization that receives the payments inthe invoice. Specify a few characters to take advantage of



Item Description


Bill to section:

Use this section of the Asset Invoice form to identify the organization that sendsthe payments in the invoice. The form shows this section if you select the accountsreceivable (AR) option in the Invoice Type field.

Item Description

Bill To Look Up The name of the organization that sends the payments in theinvoice. Specify a few characters to take advantage of


Billable To The specific name of the organization or person that sends thepayments.

Contract payments to process section:

Use this section of the Asset Invoice form to identify the payment type, accountingtype, due date, and expected amount for each contract payment due. If a subleaseis affected, you can also identify the payments that pass-through to the sublessee.

Item Description

Get Payments Due Adds the payment line items that are due for the asset lease.Click this action on the section bar and select from the listedpayment line items. Click OK. The form adds the line items inthe section.

Sublease Pass-Through Adds the payment line items to the Sublease Pass-ThroughPayments section. Click this action, select the payment lineitems that pass-through to the sublessee, and click the Processaction. The form adds the line items to the SubleasePass-Through Payments section.


Payment Type The type of service or item that is being paid for with thiscontract payment, such as administrative fees, heating charges,signage rent, and water charges.


Due Date The date when the contract payment is due. This date mightdiffer from the Due Date value for the invoice payment.

Expected Cash with Tax The cash plus tax amount that is expected for this contractpayment.

Status The status of the contract payment line item record.

One time payments to process section:

Use this section of the Asset Invoice form to identify the payment type, accountingtype, due date, and expected amount for each one-time payment.


Item Description

Quick Add Adds a payment line item for a one-time payment. Click thisaction on the section bar. The form adds a line in the section.Specify the details.


Payment Type The type of service or item that is being paid for with thisone-time payment, such as administrative fees, heatingcharges, signage rent, and water charges. Click the Search icon



Due Date The date when the one-time payment is due. This date mightdiffer from the Due Date value for the invoice payment. Click


Expected Cash Before Tax The pre-tax cash amount that is expected for this one-timepayment.

Expected Cash with Tax The cash plus tax amount that is expected for this one-timepayment.

Status The status of the one-time payment line item record.

Sublease pass-through payments section:

Use this section of the Asset Invoice form to identify the sublease name, paymenttype, due date, and pass-through amount for each pass-through payment. Thesepass-through payments are selected and calculated from the Contract Payments ToProcess section.

Item Description

Contract Name The name of the asset sublease record.

Payment Type The type of service or item that is being paid for with thispass-through payment, such as administrative fees, heatingcharges, signage rent, and water charges.

Due Date The date when the pass-through payment is due. This datemight differ from the Due Date value for the invoice payment.

Expected Amount The cash plus tax amount that is expected for thispass-through payment.

Allocation Percent The percentage of the fixed-allocation payment type that isresponsible by the sublessee organization.

Pass-Through Amount The cash plus tax amount that is responsible by the sublesseeorganization. This amount is calculated from the ExpectedAmount and the Allocation Percent values.

Payment processed section:

Use this section of the Asset Invoice form to identify the payment type, accountingtype, expected amount, and paid amount for each processed payment.


Item Description




Paid Amount The actual amount of this payment.


Managing payablesIf you are the tenant or lessee, you can manage the obligations that you owe (ormust pay) to the landlord or lessor. You can process payments, reconcile expenses,and calculate adjustments. These "accounts payable" (AP) are also known as"payables".

Processing paymentsTo process payments, you can manually create and issue process payments records.After the issued record is approved, each selected payment line item is marked aspaid.

Before you begin


About this task

The application accepts the full payment, not a partial payment, of a payment lineitem (PLI). Partial values might yield unexpected results.

Procedure1. Select Contracts > Payables > Payments > Process Payments.2. Click the Add action.3. Specify the details.4. Create the draft.5. Issue the record.

Form tabsThe tabs at the top of the Process Payments form represent the different areas of aprocess payments record. Depending on your security access to the form, such tabsmight include general information, notifications, system details, and reports.Common form tabs indicate tabs that are shared across many types of forms.


General tab:

Use this tab of the Process Payments form to specify the record name, dates,process period, payment line items, and other processing details for the record.


General section:

Use this section of the Process Payments form to identify the name, planned date,description, and other processing details.

Item Description

ID The unique identifier of the process payments record.

Revision The number of times that the process payments record wasrevised, such as 0, 1, 2, and 3.

Status The status of the process payments record.

Name The name of the process payments record.

Planned Date The date when the processing is planned. Click the Calendar


Description The brief description of the payment that is processed.

Details section:

Use this section of the Process Payments form to identify the processed date of thepayments. The form updates this section when the process payments record isissued.

Item Description

Processed Date The date when the process payments record is issued.

Parameters section:

Use this section of the Process Payments form to identify the process period anddue-before date of the payments.

Item Description

Process Period The period during which the processing occurs, such as theend of the month, last week, week 1, and week 2. Click the


Due Before The date before which the processing is due. Click the


Payment line items section:

Use this section of the Process Payments form to identify the contract, paymenttype, due date, actual amount, and expected amount for each payment to process.

Item Description

Get Payments Due Adds the payment line items that are ready for processing andmeet the values in the Parameters section. Click this action onthe section bar and select from the listed payment line items.Click OK. The form adds the line items in the section.

Find Lists the available information. Click this action and selectfrom the listed payment line items. Click OK.



Item Description

Contract Name The name of the real estate contract or asset lease record.

Contract Type The type of the contract, such as a real estate contract andasset lease.


Due Date The date when the payment is due. This date might differfrom the Due Before date for processing.


Actual Amount The actual amount of this payment.


Releasing paymentsTo release or disburse payments, you can manually create and submit paymentrelease records. After the released payment is approved, the payment releaserecord is marked as issued.

Before you begin


Procedure1. Select Contracts > Payables > Payments > Release.2. Click the Add action.3. Specify the details.4. In the Invoices tab, specify your invoices.5. Create the draft.6. Issue the record.

Form tabsThe tabs at the top of the Payment Release form represent the different areas of apayment release record. Depending on your security access to the form, such tabsmight include general information, invoices, notifications, and system details.Common form tabs indicate tabs that are shared across many types of forms.


General tab:

Use this tab of the Payment Release form to specify the record name, bank checkamount, vendor company, and other releasing details for the record.

General section:

Use this section of the Payment Release form to identify the name, description, andother releasing details.


Item Description

ID The unique identifier of the payment release record.

Revision The number of times that the payment release record wasrevised, such as 0, 1, 2, and 3.

Status The status of the payment release record.

Name The name of the payment release record.

Description The brief description of the payment that is released.

Units section:

Use this section of the Payment Release form to identify the unit of currency forthe record.

Item Description


Details section:

Use this section of the Payment Release form to identify the bank name, checkamount, check date, and other check details.

Item Description

Bank The name of the bank on the check payment.

Check # The number that is shown on the check payment.

Check Payable To The specific name of the organization or person that receivesthe payments.

Check Amount The amount of the check payment that is released.

Check Date The date that is shown on the check payment. Click the


Date The date when the payment release is planned. Click the


Vendor company section:

Use this section of the Payment Release form to identify the vendor organizationand the contact person to whom the payment is released.

Item Description

Vendor Company Lookup The contact for the vendor organization. Specify a fewcharacters to take advantage of autocomplete, or click the

Search icon to find the contact. The form populates thecontact information from that people record.


Item Description

Organization The vendor organization that receives the payment release.Specify a few characters to take advantage of autocomplete, or

click the Search icon to find the organization. The formpopulates the vendor information from that organizationrecord.

Invoices tab:

Use this tab of the Payment Release form to specify the invoices for the record.

Invoices section:

Use this section of the Payment Release form to identify the amount, date, andother details for each invoice.

Item Description

Find Finds an existing invoice. Click this action on the section barand select from the listed choices.


ID The unique identifier of the invoice record.

Name The name of the invoice.

Date The date of the invoice.

Total Invoice The total amount of the invoice.

Status The status of the invoice record.

Voiding paymentsTo void payments, you can manually create and submit void payments records.After the voided payment is approved, each selected payment line item is markedas void.

Before you begin


Procedure1. Select Contracts > Payables > Payments > Void.2. Click the Add action.3. Specify the details.4. Create the draft.5. Void the payment.

Form tabsThe tabs at the top of the Void Payments form represent the different areas of avoid payments record. Depending on your security access to the form, such tabsmight include general information, notifications, system details, and reports.Common form tabs indicate tabs that are shared across many types of forms.



General tab:

Use this tab of the Void Payments form to specify the record name, record date,payment line items, and other voiding details for the record.

General section:

Use this section of the Void Payments form to identify the name, description, andother voiding details.

Item Description

ID The unique identifier of the void payments record.

Status The status of the void payments record.

Name The name of the void payments record.

Description The brief description of the payment that is voided.

Details section:

Use this section of the Void Payments form to identify the voided date of thepayments. The form updates this section when the void payments record issubmitted.

Item Description

Date The date when the voiding is planned. Click the Calendar icon


Process Date The date when the void payments record is submitted.

Payments section:

Use this section of the Void Payments form to identify the payment type,accounting type, due date, and expected amount for each payment to void.

Item Description

Find Lists the available information. Click this action on the sectionbar and select from the listed payment line items. Click OK.




Due Date The date when the payment is due.




Stopping paymentsTo stop payments, you can manually create and submit stop payments records.After the stopped payment is approved, each selected payment line item is markedas stopped.

Before you begin


Procedure1. Select Contracts > Payables > Payments > Stop.2. Click the Add action.3. Specify the details.4. Create the draft.5. Stop the payment.

Form tabsThe tabs at the top of the Stop Payments form represent the different areas of astop payments record. Depending on your security access to the form, such tabsmight include general information, notifications, system details, and reports.Common form tabs indicate tabs that are shared across many types of forms.


General tab:

Use this tab of the Stop Payments form to specify the record name, record date,payment line items, and other stopping details for the record.

General section:

Use this section of the Stop Payments form to identify the name, description, andother stopping details.

Item Description

ID The unique identifier of the stop payments record.

Status The status of the stop payments record.

Name The name of the stop payments record.

Description The brief description of the payment that is stopped.

Details section:

Use this section of the Stop Payments form to identify the stopped date of thepayments. The form updates this section when the stop payments record issubmitted.

Item Description

Process Date The date when the stop payments record is submitted.


Item Description

Date The date when the stopping is planned. Click the Calendar


Payments section:

Use this section of the Stop Payments form to identify the payment type,accounting type, due date, and expected amount for each payment to stop.

Item Description



Add Adds a payment line item. Click this action. Specify the detailsand click the Create action. The form adds a line in thesection.



Due Date The date when the payment is due.



Reconciling operating expensesTo reconcile operating expenses (OPEX) or common area maintenance (CAM)expenses, you can open and submit payment reconciliation records. After theissued record is approved, the application creates a one-time payment for theamount due or credit owed.

Before you begin


About this task

If a lease contains a clause with the Payment Auditable check box selected, theclause shows the Audit Details section. When the lease is activated, the applicationsends scheduled notifications to the Contract Administrator for paymentreconciliation. The notification schedule is based on the Reconciliation Frequencypattern and Reconciliation Start date.

After the reconciliation is issued, you can review the payment line items (PLIs) thatare created from the reconciliation. Return to the lease. In the Payments tab, go tothe Payments section and select the Payments - Projected (AR) related report. Thesection shows the PLIs from the reconciliation and other accounts receivable (AR)items.


Procedure1. Select Contracts > Payables > Real Estate Transactions > My OPEX/CAM

Reconciliations.2. Open a record.3. Specify the details.4. Issue the record. You can find the issued record by selecting Contracts >

Payables > Real Estate Transactions > All Scheduled OPEX/CAMReconciliations.

Form tabsThe tabs at the top of the Payment Reconciliation form represent the different areasof a payment reconciliation record. Depending on your security access to the form,such tabs might include general information, notifications, system details, andreports. Common form tabs indicate tabs that are shared across many types offorms.


General tab:

Use this tab of the Payment Reconciliation form to specify the invoice, real estatelease, lease clause, expenses, and other details for the reconciliation.

General section:

Use this section of the Payment Reconciliation form to identify the invoice andinvoice status for the reconciliation.

Item Description

Invoice Number The unique number of the real estate invoice record.

Status The status of the real estate invoice record.


Use this section of the Payment Reconciliation form to identify the audit year, duedates, and billing dates for the reconciliation.

Item Description


Audit Year The year of the payment audit.

Due Date The date when the invoice payment is due.

Billing Start Date The date when billing begins.

Landlord ReconciliationDeadline (LandlordAssessment Deadline)

The duration within which the reconciliation assessment bythe landlord or lessor is due.

Billing End Date The date when billing ends.


Real estate lease section:

Use this section of the Payment Reconciliation form to identify the real estate leasethat is related to the reconciliation.

Item Description



ID The unique identifier of the real estate lease record.



Commencement Date The date when the lease term and the contracted work on thesite begins.

Expiration Date The date when the base lease expires, without renewal optionsapplied.

Gross Rentable The gross area of rentable space from all of the contractpremises at this location.

Proportionate Share(calculated)

The calculated percentage of the rental share that isrepresented by this location.

Total Area forProportionate Share

The total area of the location in the lease contract.

Proportionate Share(contractual)

The percentage of the rental share that is represented by thislocation in the lease contract.

Clause section:

Use this section of the Payment Reconciliation form to identify the lease clause andaudit details that are related to the reconciliation.

Item Description

Find Lists the available information. Click this action on the sectionbar and select from the listed lease clauses. Click OK.


Clause Type The type of the lease clause, such as abatement, earthquake,occupancy, and signage.

Status The status of the lease clause record.

Name The name of the lease clause record.





The check box is selected if the situation applies.





Item Description

Calculation Rule The rule that calculates the current year costs, based on theprorated share due (P/S), previous year charges (Prev. Yr.),base year cap amount (Base), or a combination of these values.The abbreviation "CPI" denotes the consumer price index.




Landlord Credit Allowed The check box is selected if the situation applies.

Previous Year Charges The total charges for the previous year in the lease.


Expense breakdown section:

Use this section of the Payment Reconciliation form to identify the estimatedamount, actual amount, and other details for each service expense in thereconciliation.

Item Description

Find Finds an existing service. Click this action and select from thelisted choices.


Service The service that is included in the lease clause, such asjanitorial, snow removal, and electric.


Landlord Actual Amount The actual annual amount for this included service that ischarged to the landlord or lessor.

Proportionate Share The percentage share of this included service when comparedto all included services. If the contractual value is notprovided or equals zero, then the calculated value is used. Ifthe contractual value is provided, then that value is used.

Service Cap Amount The maximum amount that applies to this included service. Azero value indicates that there is no cap amount.

Tenant Responsibility The amount of the service responsibility that belongs to thetenant.

Apply to Total Cap This check box is selected if this included service is countedagainst the total cap for all included services.

Amount for Cap The amount that is counted against the maximum amount forthis included service.

Amount for Non-Cap The remaining amount that is not counted against themaximum amount for this included service.

Occupancy details section:

Use this section of the Payment Reconciliation form to identify the occupancy startdate, occupancy end date, and current occupied percentage for the reconciliation.


Item Description

Occupancy Start Date(Occupancy Date)

The date when the tenant begins occupying the site.

Occupancy % CurrentBilling Period

The percentage of the planned occupied duration that isrepresented by the current billing period.

Occupancy End Date(Vacate Date)

The date when the tenant vacates the site.

Payment calculation section:

Use this section of the Payment Reconciliation form to calculate the costs, fees,taxes, payment or credit, and other values for the reconciliation.

Item Description

Calculate Calculates the final payment or credit for the reconciliation.Click this action on the section bar.

Escrow payment details section:

Use this section of the Payment Reconciliation form to calculate the escrowpayments, adjustment, and other values for the reconciliation.

Item Description

Calculate Calculates the escrow payments for the reconciliation. Clickthis action on the section bar.

Payments After BillingPeriod

The total amount of escrow payments that remain after thecurrent billing period.

Scheduled Payments inNext Billing Period

The scheduled number of escrow payments in the next billingperiod.

Unpaid Payments in NextBilling Period

The unpaid number of escrow payments in the next billingperiod.

Occupancy % NextBilling Period

The percentage of the planned occupied duration that isrepresented by the next billing period.

Projected Next BillingPeriod

The projected amount of escrow payments in the next billingperiod.

New Monthly EscrowPayment

The new monthly amount of the escrow payment.

Additional EscrowAdjustment Payment

The additional amount of the adjustment escrow payment.

Calculating index adjustmentsTo calculate adjustments that are based on your current cost index, such as theconsumer price index (CPI), you can open and submit index adjustment records.After the issued record is approved, the application creates a payment adjustmentfor the payment line items affected.

Before you begin



About this task

If a lease contains a clause with the Includes Index Adjustment check boxselected, the clause shows the Index Adjustments section. When the lease isactivated, the application sends scheduled notifications to the ContractAdministrator for index adjustments. The notification schedule is based on theAdjustment Frequency pattern and First Adjustment Date value.

Procedure1. Select Contracts > Payables > Real Estate Transactions > My Index

Adjustments.2. Open a record.3. Specify the details.4. Issue the record. You can find the issued record by selecting Contracts >

Payables > Real Estate Transactions > All Scheduled Index Adjustments.

Form tabsThe tabs at the top of the Index Adjustment Calculator form represent the differentareas of an index adjustment record. Depending on your security access to theform, such tabs might include general information, notifications, system details,and reports. Common form tabs indicate tabs that are shared across many types offorms.


General tab:

Use this tab of the Index Adjustment Calculator form to specify the paymentschedule, base index, reference indexes, and other details for the adjustment.

General section:

Use this section of the Index Adjustment Calculator form to identify the recordrevision, record name, and currency for the adjustment.

Item Description

ID The unique identifier of the index adjustment record.

Revision Number The number of times that the index adjustment record wasrevised, such as 0, 1, 2, and 3.

Status The status of the index adjustment record.

Name The name of the index adjustment record.



Use this section of the Index Adjustment Calculator form to identify the real estatecontract that is related to the adjustment.


Item Description

ID The unique identifier of the real estate contract record.

Status The status of the real estate contract record.

Name The name of the real estate contract record.

Asset lease section:

Use this section of the Index Adjustment Calculator form to identify the asset leasethat is related to the adjustment.

Item Description


Name The name of the asset lease record.


Adjust payment schedule section:

Use this section of the Index Adjustment Calculator form to identify the paymentschedule, payment type, accounting type, and scheduled amount for theadjustment.

Item Description

Name The name of the payment schedule record.

Scheduled Amount The scheduled amount of the payment.

Payment Type The type of service or item that is being paid for with thispayment schedule, such as administrative fees, heatingcharges, signage rent, and water charges.

Payment Schedule The pattern of the scheduled payments, such as one-timepayment, pay on a certain day of the month, and advancedschedule.


Adjustment details section:

Use this section of the Index Adjustment Calculator form to identify the start date,end date, and description of the adjustment.

Item Description

Start Date The date when the adjustment begins. Click the Calendar icon


End Date The date when the adjustment ends. Click the Calendar icon


Description The brief description of the adjustment.


Calculator section:

Use this section of the Index Adjustment Calculator form to calculate theadjustment.

Item Description

Calculate Calculates the adjustment. Click this action on the section bar.



Base Index The percentage of the original index. Specify the value, or clickthe Lookup Last action to select a previous adjustment as yourbase index.

Minimum % The minimum percentage that the current index increases peradjustment.

New Index The percentage of the new index for the adjustment. Specifythe value, or click the Use Average action to calculate theaverage from the index values in the Reference Index section.Only the active duration of the reference index value appliesto the adjustment duration.

Maximum % The maximum percentage that the current index increases peradjustment.

% Change The percentage change from the base index to the new index.

% Used The final percentage that is used for the adjustment.

Adjust The type of the amount that is adjusted. Select from the lastadjustment amount or the scheduled amount.

Adjust Payment The amount that the payment is adjusted.

Calculated Adjustment The calculated amount of the adjusted payment that is basedon the selected payment amount and the final percentage forthe index value.

Actual Adjustment The actual amount of the adjusted payment.

Reference index section:

Use this section of the Index Adjustment Calculator form to identify the start date,end date, and cost index value for each reference index in the adjustment.

Item Description

Find Lists the available information. Click this action on the sectionbar and select from the listed cost index values. Click OK.


From Date The date when the cost index value begins to apply.

To Date The date when the cost index value no longer applies.

Index Value The percentage value of the cost index.

Status The status of the cost index value record.


Calculating percentage rent reportsTo evaluate or recalculate reports that are based on your percentage rent, you canopen and submit percentage rent report records. After the issued record isapproved, the application creates a one-time payment for the amount due to thelandlord or lessor.

Before you begin


About this task

If a lease contains a clause with the Clause Type of percentage rent, the clauseshows several sections for percentage rent. When the lease is activated, theapplication generates percentage rent report records. The reporting schedule isbased on the Reporting Frequency pattern and First Reporting Period Start Datevalue.

Procedure1. Select Contracts > Payables > Real Estate Transactions > My Sales Reporting.2. Open a record.3. Specify the details.4. Issue the record. You can find the issued record by selecting Contracts >

Payables > Real Estate Transactions > All Scheduled Sales Reporting.

Form tabsThe tabs at the top of the Percentage Rent Reporting form represent the differentareas of a percentage rent report record. Depending on your security access to theform, such tabs might include general information, notifications, system details,and reports. Common form tabs indicate tabs that are shared across many types offorms.


General tab:

Use this tab of the Percentage Rent Reporting form to specify the reportingmonths, due date, sales categories, exclusions, and other details for the percentagerent.

General section:

Use this section of the Percentage Rent Reporting form to identify the reportingmonths, due date, and other details for the percentage rent.

Item Description

Recorded Date The date when the percentage rent report record was opened.

Number The unique identifier of the percentage rent report record.

Status The status of the percentage rent report record.

Reporting From The date when the sales report data begins.

Reporting To The date when the sales report data ends.


Item Description

Due Date The date when the percentage rent is due.

Number of ReportingMonths

The number of months that the sales report data spans.

Sales section:

Use this section of the Percentage Rent Reporting form to identify the salescategory, effective dates, sales amounts, and other details for the percentage rent.

Item Description


Refresh Sales Data Reloads the sales line items. Click this action on the sectionbar.


Sales Category The category of this sales line item.

From Date The date when this sales line item goes into effect.

To Date The date when this sales line item is no longer in effect.

Total Sales The total amount of gross sales for this sales line item.

Sales Exclusion The amount that is excluded from sales for this sales line item.

Net Sales The amount of gross sales minus discounts, allowances, andreturns for this sales line item.

Tax Rate % The tax percentage that applies to this sales line item.

Total Tax Exclusion The tax amount that is excluded from sales for this sales lineitem.

Net Sales Less TaxExclusion

The amount of net sales minus the tax exclusion amount forthis sales line item.

Sales exclusions section:

Use this section of the Percentage Rent Reporting form to identify the sales detailsfor the sales that are excluded from the percentage rent.

Item Description




Exclusion Category The category of this sales exclusion.

Total Sales The total amount of gross sales for this sales line item.


Sales Exclusion The amount that is excluded from sales for this sales line item.

From Date The date when this sales line item goes into effect.

To Date The date when this sales line item is no longer in effect.


Tax exclusions section:

Use this section of the Percentage Rent Reporting form to identify the tax detailsfor the taxes that are excluded from the percentage rent.

Item Description


Tax Type The type of the tax, such as city, local, or state.


Deductions section:

Use this section of the Percentage Rent Reporting form to identify the paymenttype and deduction amounts for tax deductions in the percentage rent.

Item Description

Refresh Deductions Reloads the deduction line items. Click this action on thesection bar.



Total Deduction The total amount of the deduction for this payment type.

Cap Amount The maximum amount that applies to this tax deduction.

Allowable Deductions The allowable amount of the deduction for this payment type.

Percentage rent detail summary section:

Use this section of the Percentage Rent Reporting form to identify the base salesamounts, rental percentage to apply, and other details for the percentage rent. Clickthe Calculate action to calculate the values in both the Percentage Rent DetailSummary section and the Percentage Rent Calculations section.

Item Description

Calculate Calculates the percentage rent data in this section and thePercentage Rent Calculations section. Click this action on thesection bar.




Net Sales Less TaxExclusion

The amount of net sales minus the tax exclusion amount forthis sales line item.

Working Total The final sales amount before the rental percentage is appliedfor this sales line item.


Percentage Rent(Calculated)

The calculated amount for the percentage rent, based on thefinal sales amount and the rental percentage for this sales lineitem.


Percentage rent calculations section:

Use this section of the Percentage Rent Reporting form to identify the calculatedpercentage rent, percentage rent due, and other details for the percentage rent.Click the Calculate action in the Percentage Rent Detail Summary section tocalculate the values in this section.

Item Description

Percentage Rent The total amount of the calculated percentage rent for all ofthe sales line items.

Total Deductions The total amount of the allowable tax deductions for all of thepayment types.

Percentage Rent Due The total percentage rent minus the total deductions.

Adjustment Amount The amount of any additional adjustment. You can also specifyan adjustment comment.

Total of Escrow Payments The total amount of the escrow payments.

Total Due The overall total amount of the total percentage rent and theadditional adjustment amount, minus the total escrowpayments.

Occupancy details section:

Use this section of the Percentage Rent Reporting form to identify the occupancystart date, occupancy end date, and current occupied percentage for the percentagerent.

Item Description

Occupancy Start Date(Occupancy Date)

The date when the tenant begins occupying the site.

Occupancy (%) The percentage of the planned occupied duration that isrepresented by the current billing period.

Occupancy End Date(Vacate Date)

The date when the tenant vacates the site.

Accrual details section:

Use this section of the Percentage Rent Reporting form to identify the accrualpayments, adjustment, and other details for the percentage rent.

Item Description

Payments Made AfterThis Period

The total amount of accrual payments that are made after thecurrent billing period.

Scheduled Payments inNext Period

The scheduled number of accrual payments in the next billingperiod.

Unpaid Payments in NextPeriod

The unpaid number of accrual payments in the next billingperiod.

Next Period Start Date The date when the next billing period begins.

Next Period End Date The date when the next billing period ends.

Occupancy % NextBilling Period

The percentage of the planned occupied duration that isrepresented by the next billing period.


Item Description

Projected Next Period The projected amount of accrual payments in the next billingperiod.

New Monthly Accrual The new monthly amount of the accrual payment.

Additional AccrualAdjustment

The additional amount of the adjustment accrual payment.

Next Occupancy Date The date when the next tenant begins occupying the site.

Next Occupancy End Date The date when the next tenant vacates the site.

Real estate lease section:

Use this section of the Percentage Rent Reporting form to identify the real estatelease that is related to the percentage rent.

Item Description


ID The unique identifier of the real estate lease record.


Commencement Date The date when the lease term and the contracted work on thesite begins.


Clause section:

Use this section of the Percentage Rent Reporting form to identify the lease clausethat is related to the percentage rent.

Item Description


Name The name of the lease clause record.

Remit to section:

Use this section of the Percentage Rent Reporting form to identify the organizationthat receives the payments for the percentage rent.

Item Description

Remit To Look Up The name of the organization that receives the payments forthe percentage rent. Specify a few characters to take advantage

of autocomplete or click the Search icon to find theorganization. The form populates the name and addressinformation from that organization record.



Managing receivablesIf you are the landlord or lessor, you can manage the obligations that you areowed (or must receive) by a tenant or lessee. You can process lease invoices andlease receipts. These "accounts receivable" (AR) are also known as "receivables".

Processing lease invoicesTo generate and process lease invoices for your accounts receivable (AR) leases,you can manually create and submit invoice-processing records. After theprocessing record is approved, the application creates a draft lease invoice for eachselected AR lease.

Before you begin


Procedure1. Select Contracts > Receivables > Generate Lease Invoices.2. Click the Add action.3. Specify the details.4. Create the draft.5. Process the record.

Form tabsThe tabs at the top of the Generate Lease Invoices form represent the differentareas of a generate lease invoices record. Depending on your security access to theform, such tabs might include general information, notifications, system details,and reports. Common form tabs indicate tabs that are shared across many types offorms.


General tab:

Use this tab of the Generate Lease Invoices form to specify the process month,accounts receivable (AR) leases, and other details for the lease-invoice process.

General section:

Use this section of the Generate Lease Invoices form to identify the process year,process month, due before date, and other details for the lease-invoice process.

Item Description

ID The unique identifier of the generate lease invoices record.

Status The status of the generate lease invoices record.

Name The name of the generate lease invoices record.

Process Year The year when the lease invoices are processed. Click the


Process Month The month when the lease invoices are processed. Click the



Item Description

Due Before The date before which the processing is due. Click the


Description The brief description of the lease invoices that are processed.

AR leases section:

Use this section of the Generate Lease Invoices form to identify the accountsreceivable (AR) leases for the lease-invoice process.

Item Description



Lease ID The unique identifier of the lease contract record.

Contract Name The name of the lease contract record.

Contract Type The type of the lease contract, such as real estate contract andasset lease.

Accounting Type The type of the accounting method, such as accounts payable(AP) and accounts receivable (AR). Verify that only accountsreceivable (AR) leases are selected.


Contract Status The status of the lease contract record.

AR invoices section:

Use this section of the Generate Lease Invoices form to identify the accountsreceivable (AR) lease invoices that are created by the lease-invoice process. Afterthe generate lease invoices record is processed, the application creates a draft leaseinvoice for each selected AR lease.

Item Description

Bulk Print RE Invoices Prints all of the real estate (RE) invoices that are listed in thesection. Click this action on the section bar and print theinvoices.

Bulk Print Asset Invoices Prints all of the asset invoices that are listed in the section.Click this action on the section bar and print the invoices.

Invoice Number The unique number of the invoice record.

Contract ID The unique identifier of the lease contract record that is relatedto the invoice.

Contract Name The name of the lease contract record that is related to theinvoice.

Contract Type The type of the lease contract, such as real estate contract andasset lease.

Status The status of the invoice record.


Processing lease receiptsTo generate and process lease receipts for the accounts receivable (AR) paymentsfrom tenants or lessees, you can manually create and submit receipt-processingrecords. After the processing record is approved, each selected payment line item ismarked as paid. Every time another processing record is issued for the samecontract, the application recalculates the current total of any overpayment orunderpayment.

Before you begin


About this task

If the actual amount is less than the expected amount, the application processes theoriginal payment line item and creates a second payment line item. The newpayment line item contains the same due date and other details from the originalpayment line item. However, the expected amount of the new payment is set tothe difference between the actual and expected amounts of the original payment.

Procedure1. Select Contracts > Receivables > Receive Lease Receipts.2. Click the Add action.3. Specify the details.4. Create the draft.5. Issue the record.

Form tabsThe tabs at the top of the Process AR Receipts form represent the different areas ofa process lease receipts record for accounts receivable (AR). Depending on yoursecurity access to the form, such tabs might include general information,notifications, system details, and reports. Common form tabs indicate tabs that areshared across many types of forms.


General tab:

Use this tab of the Process AR Receipts form to specify the lease, payment lineitems, and other details for the accounts receivable (AR) lease-receipt process.

General section:

Use this section of the Process AR Receipts form to identify the status of theprocess lease receipts record for accounts receivable (AR).

Item Description

ID The unique identifier of the process lease receipts record.

Status The status of the process lease receipts record.


Receipt details section:

Use this section of the Process AR Receipts form to identify the receipt date,process date, and other details for the accounts receivable (AR) lease-receiptprocess. The form updates this section when the process lease receipts record isissued.

Item Description

Receipt Date The date when the payment is received. Click the Calendar


Payment Method The method of payment, such as cash, check, and electronicfunds transfer (EFT).

Process Date The date when the process lease receipts record is issued.


Contract section:

Use this section of the Process AR Receipts form to identify the lease contract forthe accounts receivable (AR) lease-receipt process.

Item Description



Contract Name The name of the lease contract record.

ID The unique identifier of the lease contract record.

Contract Type The type of the lease contract, such as a real estate contractand asset lease.

Contract Status The status of the lease contract record.


Tenant/Lessee LegalName

The legal name of the tenant or lessee organization that leasesthe property from the landlord or lessor. The form populatesthe tenant or lessee information from that organization record.

Tenant/Lessee The name of the tenant or lessee organization that leases theproperty from the landlord or lessor. The form populates thetenant or lessee information from that organization record.

Tenant/Lessee Contact The name of the contact for the tenant or lessee organization.The form populates the contact information, such as the phonenumber, fax number, and email address, from that peoplerecord.

AR Receipt Amount The calculated amount of all payments that must be receivedby the current due date.

AR Receipt PreviousAmount

The calculated amount of all payments that must be receivedby the previous due date.

AR Receipt Credit The calculated difference that exceeds the total amount thatmust be received by the current due date.

AR Receipt PreviousCredit

The calculated difference that exceeds the total amount thatmust be received by the previous due date.


Item Description

Past Due AR The calculated difference that falls below the total amount thatmust be received by the current due date.

Payment details section:

Use this section of the Process AR Receipts form to identify the check payment,process amounts, and other details for the accounts receivable (AR) lease-receiptprocess.

Item Description

Check Date The date that is shown on the check payment. Click the


Check # The number that is shown on the check payment.

Amount Received The amount of the check payment that is received.

Process Amount The amount of the payment that is processed.

Credit Balance The calculated difference that exceeds the total amount thatmust be received by the current due date.

Process Credit Amount The amount of the credit balance that is processed.

Amount Available The amount of the payment that is available after processing.

Process CreditAdjustment

The additional amount of the credit adjustment that isprocessed.

Memo The brief reminder or description of the payment that isreceived.

Payment parameters section:

Use this section of the Process AR Receipts form to identify the due-before date forthe accounts receivable (AR) lease-receipt process.

Item Description

Due Date Before The date before which the processing is due. Click the


AR payments due section:

Use this section of the Process AR Receipts form to identify the payment details foreach payment line item in the accounts receivable (AR) lease-receipt process.

Item Description

Calculate Calculates the total and delta amounts. Click this action on thesection bar.





Item Description

Payment Type The type of service or item that is being paid for with this ARpayment, such as administrative fees, heating charges, signagerent, and water charges.

Due Date The date when the AR payment is due.

Expected Amount The calculated amount that is expected for the AR paymentline item.

Actual Amount The actual amount that is received for the AR payment lineitem.

Delta Amount The difference between the expected amount and actualamount for the AR payment line item.



Chapter 9. Viewing reports

To view the various forms of reports throughout the application, you can findthem in several places. You can find reports in the Home portal, in the My Reportsportal, or in the Reports tab of a particular record.

Home portalYou can view various forms of reports throughout the application. One place youcan find them is in your Home portal. You must sign in as a Real Estate ContractManager. From your Home portal, locate the report.

Depending on your security access as a Real Estate Contract Manager, you can findthe following reports in your Home portal:v Lease Abstract – Abstracts for Reviewv Lease Abstract – My Abstractsv Lease Abstract Summary Abstractorv Leases Expiring within a Yearv My Draft Real Estate Contractsv My Leased and Owned Propertiesv My Proposed and Draft Real Estate Contractsv My Rejected RELs and OPs (Real Estate Leases and Owned Property

Agreements)

Viewing my reports portalYou can view various forms of reports throughout the application. One place youcan find them is in the My Reports portal. Depending on the report, you mustspecify the query parameters and prompt values to access the report.

Before you begin


About this task

Depending on your security access as a Real Estate Contract Manager, you can findthe following reports in the My Reports portal:v Accounts Payable Historyv Contract Payment Detailsv Contract Payment Summaryv Contract Summaryv Future Rent Obligations Detailv Lease Critical Datesv Line Item Masterv List of Lease Abstractsv Option Masterv Portfolio Summary


v Tenant Payment Aging

Procedure1. Select the My Reports portal.2. Click the Community tab.3. Specify the title of the report in the Title filter. You can use additional filters to

locate the report.4. Click the Apply Filters action. The report is shown in the list.5. Click the Run Report icon beside the report. Depending on the report, the

report opens. If the report does not open, continue with the next step.6. Specify the query parameters and click the Submit action.7. Specify the prompt values and click OK. The report opens.

Viewing the reports tabYou can view various forms of reports throughout the application. One place youcan find them is in the Reports tab of a particular record. Depending on therecord, you must select the title of the report or specify the data in the report filtersto access the report.

Before you begin


About this task

The record that you open can be an owned property agreement, paymentreconciliation, percentage rent report, process payment, real estate invoice, or realestate lease record. Depending on your security access as a Real Estate ContractManager, you can find the following reports in the Reports tab of the relatedrecord:v AR RE Contract Payment Summary (Accounts Receivable Real Estate Contract)v Owned Property Abstractv Owned Property Recordv Payment Reconciliation Invoicev Percentage Rentv Real Estate Invoicev Real Estate Invoice Recordv Real Estate Invoice Summary Bulk Printv Real Estate Lease Abstractv Real Estate Lease Record

Procedure1. Open a particular record and review the form.2. Click the Reports tab. Depending on the record, the report opens. If the report

does not open, continue with the next step.3. Select the report title. Depending on the record, the report opens. If the report

does not open, continue with the next step.4. Specify the data in the report filters and click the Submit action. The report

opens.


Chapter 10. Reviewing lease assumptions

You can review the likely term and assumptions for an individual lease or formultiple leases. These leases can include real estate (RE) leases and asset leases.

Overview of assumptions review processThe review assumptions process can review the likely term and assumptions of alease on a regularly scheduled basis, and on an as-needed or as-requested basis.Whether the review is regularly scheduled or unscheduled, the Lease AccountingManager can review the likely terms and assumptions for an individual lease ormultiple leases.

The Lease Accounting Manager role is responsible for reviewing the likely termand assumptions on a lease, and processing the necessary changes with eithermethod. When a review results in necessary changes, the Lease AccountingManager must specify the type of review, review comments, and other review data.The application automatically logs this data along with the actual changed valuesfor historical-tracking and financial-auditing purposes.

In other cases, a review might not result in a necessary change to the likely term orassumptions. Nevertheless, whether the Lease Accounting Manager specifies achange or no changes, all reviews are recorded as log records for auditingpurposes.

Individual lease processThe Lease Accounting Manager role can open the Assumptions Audit Log form toreview and update the likely term and assumptions on an individual lease record.

The following approval process applies to the review assumptions process for anindividual lease:v The Lease Accounting Manager opens the Assumptions Audit Log form with the

Review Assumptions action on an individual lease record. The ReviewAssumptions action is shown when the lease record is in Draft, Revision InProgress, or Active status.

v The form is pre-populated with the current lease assumption data. The LeaseAccounting Manager enters the required review information, edits the likelyterm or assumptions, and submits the form.

v Upon submit, the application routes the assumption audit log from the LeaseAccounting Manager to the specified contact role, if an approval process isconfigured. Otherwise, the application applies the changes to the lease record asentered by the Lease Accounting Manager.

v Upon approval, the application applies the changes to the lease record asentered by the Lease Accounting Manager. The assumption audit log recordcaptures the changes to the likely term and assumptions. Afterward, the leaserecord stores the assumption audit log in its Accounting tab.

v Otherwise, upon rejection, the application applies no changes to the lease record.The assumptions audit log record changes to Returned status.

v You can use the Revise action to edit the record and resubmit for approval.


The application also enforces the following rules when the lease is storingassumption audit log records:v An assumption audit log cannot be altered after it is logged. The log remains

read-only.v An assumption audit log cannot be added manually outside the review

assumptions process.v An assumption audit log cannot be removed manually.v An initial assumption audit log is generated when the real estate lease is created

from a completed lease abstract.

Bulk create processNot only the Lease Accounting Manager role, but other personnel can submit arequest to review the likely term and assumptions for one or more leases. Theseother personnel can include financial executives, financial managers, and storemanagers. After the request is received, the Lease Accounting Manager can openthe Bulk Create Review Assumptions Request form to update multiple leases.

The following approval process applies to the review assumptions process formultiple leases:v The Lease Accounting Manager opens the Bulk Create Review Assumptions

Request form from one of several places in the application, including the menuand portal. For example, this form can be opened with the Update LeaseAssumptions link on the Lease Accounting Manager home portal.

v The form is not pre-populated with the current lease assumption data. Instead,after the draft is created, the Lease Accounting Manager can enter or select anexisting lease assumption change request. Then, the application populates theform with the change request data.

v The same rules that apply to updating an individual lease also apply tobulk-updating multiple leases. The Lease Accounting Manager enters therequired review information, edits the likely term or assumptions, and submitsthe form.

v Upon submit, the application routes the bulk create review from the LeaseAccounting Manager to the Requested For person, if an approval process isconfigured. Otherwise, the application applies the changes to the lease records asentered by the Lease Accounting Manager.

v Upon approval, the application applies the changes to the lease records asentered by the Lease Accounting Manager. Afterward, each lease record storesan assumption audit log in its Accounting tab.

v Otherwise, upon rejection, the application applies no changes to the leaserecords. The change request record changes to Retired status. Similarly, the bulkcreate review record changes to Returned status.

v You can use the Revise action to edit the record and resubmit for approval.

The application also enforces the following rules when the lease is storingassumption audit log records:v An assumption audit log cannot be altered after it is logged. The log remains

read-only.v An assumption audit log cannot be added manually outside the review

assumptions process.v An assumption audit log cannot be removed manually.v An initial assumption audit log is generated when the real estate lease is created

from a completed lease abstract.


Reviewing an individual real estate lease recordYou can review and revise the likely term and assumptions for an individual realestate (RE) lease. After the submitted review is approved, the application appliesthe changes to the lease record. In addition, the lease record stores the assumptionaudit log in its Accounting tab.

Before you begin

You must sign in as a Lease Accounting Manager.

Procedure1. Select Contracts > Leases.2. In the Related Links – Contract Leases portal section, select RE Contracts >

Leases.3. Open the real estate lease record.4. Click the Review Assumptions action.5. Specify the review type and your review comments.6. If necessary, edit the assumptions and likely term details.7. Submit the review.

Assumption audit log recordUse the Assumption Audit Log form to capture the review comments, likely termoption, and other details for the assumptions review of an individual lease.

General tabUse this tab of the Assumption Audit Log form to specify the review comments,growth assumptions, rent assumptions, and likely term option for the assumptionsreview.

General section:

Use this section of the Assumption Audit Log form to identify the review date,review type, and review comments for the assumptions review.

Item Description

Review Date The date when the form is first opened.

Reviewed By The Lease Accountant or Lease Administrator who firstopened the form for the assumptions review.



Review Complete (ResetDates)

Select the check box if the assumptions review is complete. Ifthe check box is selected, the application resets the LastReview Date and the Next Review Date values on the leaserecord.


Chapter 10. Reviewing lease assumptions 177


Use this section of the Assumption Audit Log form to identify the borrowing rateand growth rates for the lease. The fiscal line items (FLIs) are adjusted by theserates to determine the “best estimate” of payment obligations for the likely term ofthe lease.

Item Description






Use this section of the Assumption Audit Log form to identify the maintenance,tax, base-rent, and other portions of the lease payment. The form shows thissection if the Lease Category selection in the lease record contains the term "gross",such as full service gross or modified gross.

Item Description





Likely term section:

Use this section of the Assumption Audit Log form to identify the end date of thecurrent likely term of the lease.

Item Description

Likely Term End Date The date when the term of the current likely option ends orexpires. The value of this read-only field is determined by thereview assumptions process.

Options section:

Use this section of the Assumption Audit Log form to identify the option type,likely term end date, and other details for the assumptions review. If necessary,change the selection for the likely term of the lease.


Item Description

Clear Selection of LikelyTerm

Removes the in-review selection of the likely option. Click thisaction on the section bar. The form removes the selection.

Option Type The type of the option, such as an amendment, break option,and lease expiration. If the renewal type is selected, theRenewal Term field applies.


Renewal Term The duration of the renewal. This field applies if the renewaltype is selected in the Option Type field.

Likely Term End Date The date when the likely term of the option ends or expires.


Likely Term This check box is selected if this lease option is the currentlikely option for the likely term. The value of this read-onlyfield is determined by the review assumptions process.


Use this section of the Assumption Audit Log form to identify the likely term enddate, and other details of the current likely term option.

Item Description






Reviewing multiple real estate lease recordsYou can review and revise the likely terms and assumptions for multiple real estate(RE) leases at the same time. After the submitted review is approved, theapplication applies the changes to each lease record. In addition, each lease recordstores the assumption audit log in its Accounting tab.

Before you begin


Procedure1. In the Related Links – Lease Accounting Manager portal section, click the

Update Lease Assumptions link.2. Specify the details.3. Specify the review type and your review comments.4. If necessary, edit the assumptions and likely term details.5. Create the draft.


6. Submit the review. You can find the submitted review by returning to theRelated Links – Lease Accounting Manager portal section, and clicking theReview Lease Assumptions link.

Bulk create review recordUse the Bulk Create Review Assumptions Request form to capture the reviewcomments, likely term option, and other details for the assumptions review ofmultiple leases.

General tabUse this tab of the Bulk Create Review Assumptions Request form to specify thechange request, review comments, assumptions, and leases for the assumptionsreview.

General section:

Use this section of the Bulk Create Review Assumptions Request form to identifythe direct or indirect requestor and update type for the assumptions review.

Item Description

Request ID The unique identifier of the bulk create review record. Thisidentifier is automatically generated.

Status The status of the bulk create review record.

Request is for The requestor who is making the review request, such asyourself or someone else. If you select the latter option, theform shows the Requested For section and Requested Bysection.

Update Option The type of update, such as financial percentage assumptionsand financial percentage assumptions with likely term option.If you select the latter option, the form shows the Optionssection.


Use this section of the Bulk Create Review Assumptions Request form to identifythe name and contact details of the indirect requestor for the assumptions review.The form shows this section if the request is for someone else in the Request is forfield.

Item Description

Name The name of the indirect requestor of the assumptions review.Specify a few characters to take advantage of autocomplete, or





Use this section of the Bulk Create Review Assumptions Request form to identifythe name and contact details of the direct requestor for the assumptions review.The form shows this section if the request is for someone else in the Request is forfield.


Item Description

Name The name of the direct requestor of the assumptions review.This person is making the review request for someone else.



Lease assumption change request section:

Use this section of the Bulk Create Review Assumptions Request form to identifythe lease assumption change request and requestor for the assumptions review.Click the Create action to create the draft and enable the actions in this section.

Item Description

Find Lists the available information. Click this action on the sectionbar and select from the listed change requests. Click OK. Youcan also access the change requests directly by clicking theRequests > Manage Requests > Contract > Lease AssumptionChange Request menu item.


ID The unique identifier of the change request record. Specify afew characters to take advantage of autocomplete.

Requested By The name of the direct requestor of the change request record.Specify a few characters to take advantage of autocomplete.

Description The brief description of the change request record.

Reason section:

Use this section of the Bulk Create Review Assumptions Request form to identifythe review type and review comments for the assumptions review.

Item Description





Use this section of the Bulk Create Review Assumptions Request form to identifythe borrowing rate and growth rates for the lease. The fiscal line items (FLIs) areadjusted by these rates to determine the “best estimate” of payment obligations forthe likely term of the lease.

Item Description





Item Description



Use this section of the Bulk Create Review Assumptions Request form to identifythe maintenance, tax, base-rent, and other portions of the lease payment. The formshows this section if the Lease Category selection in the lease record contains theterm "gross", such as full service gross or modified gross.

Item Description





Lease filters section:

Use this section of the Bulk Create Review Assumptions Request form to filter bylocation or asset lease, then find the leases for the assumptions review.

Item Description

Apply Filter Lists the available leases in the Leases section. Specify theinformation to filter in the related fields and click this actionon the section bar. The available leases are listed in the Leasessection.

Clear Erases the filter information in the related fields. Click thisaction.

City The filter for cities.

State The filter for states.

Country The filter for countries.

Building The filter for building names. Specify a few characters to take

advantage of autocomplete, or click the Search icon andselect from the listed choices.

Asset Lease Name The filter for asset lease names.

Leases section:

Use this section of the Bulk Create Review Assumptions Request form to identifythe leases for the assumptions review. Depending on your Update Optionselection, the form shows a different set of section actions.


Item Description

Create ReviewAssumption

Adds a review assumptions item (or assumption audit log) tothe Review Assumption Items section. Select the line item andclick this action on the section bar. A new line item is listed inthe Review Assumption Items section.

Find Lists the available information. Click this action and selectfrom the listed leases. Click OK.


Remove All Deletes every line item in this section. Click this action.


Name The name of the lease record.


Lease Category The category of the lease, in terms of net and gross.

Form Name The name of the form, such as a real estate lease.

Includes Index This check box is selected if this lease includes an index-basedclause.

Includes FMRV This check box is selected if this lease includes a fair marketrate value (FMRV) clause.


State/Province The state or province where the lease property is located.


Status The status of the lease record.

Options section:

Use this section of the Bulk Create Review Assumptions Request form to identifythe option type, likely term, and other details for the assumptions review.Depending on your Update Option selection, the form shows or hides this section.

Item Description

Create ReviewAssumption

Adds a review assumptions item (or assumption audit log) tothe Review Assumption Items section. Select the line item andclick this action on the section bar. A new line item is listed inthe Review Assumption Items section.

Option Type The type of the option, such as an amendment, break option,and lease expiration. If the renewal type is selected, theRenewal Term field applies.


Renewal Term The duration of the renewal. This field applies if the renewaltype is selected in the Option Type field.





Review assumption items section:

Use this section of the Bulk Create Review Assumptions Request form to identifythe assumption audit log details for the assumptions review.

Item Description




Contract Name The name of the lease record.


Form Name The name of the form, such as a real estate lease.



Borrowing Rate The percentage for the borrowing or discount rate.

Index Growth % The percentage for the index growth rate.

FMRV Growth % The percentage for the fair market rental value (FMRV) growthrate.


Likely Option (OptionType)

The type of the likely option, such as an amendment, breakoption, and lease expiration.

Reviewing an individual asset lease recordYou can review and revise the likely term and assumptions for an individual assetlease. After the submitted review is approved, the application applies the changesto the lease record. In addition, the lease record stores the assumption audit log inits Accounting tab.

Before you begin


Procedure1. Select Contracts > Leases.2. In the Related Links – Contract Leases portal section, select Asset Leases >

Asset Leases.3. Open the asset lease record.4. Click the Review Assumptions action.5. Specify the review type and your review comments.6. If necessary, edit the assumptions and likely term details.7. Submit the review.


Reviewing multiple asset lease recordsYou can review and revise the likely terms and assumptions for multiple assetleases at the same time. After the submitted review is approved, the applicationapplies the changes to each lease record. In addition, each lease record stores theassumption audit log in its Accounting tab.

Before you begin


Procedure1. In the Related Links – Lease Accounting Manager portal section, click the

Update Lease Assumptions link.2. Specify the details.3. Specify the review type and your review comments.4. If necessary, edit the assumptions and likely term details.5. Create the draft.6. Submit the review. You can find the submitted review by returning to the

Related Links – Lease Accounting Manager portal section, and clicking theReview Lease Assumptions link.


Chapter 11. Common elements of leased and owned propertycontracts

Leased and owned property contracts share many common elements, whether youabstract leases, create leases without abstracts first, or create owned propertyagreements.

You might not have access to any or all of these elements. The elements to whichyou have access depend on your job function and role within your company andhow the application was implemented at your company.

Payment schedule recordUse the Payment Schedule form to create one payment schedule record at a time.The application generates payment schedule line items when the real estate leaserecord is activated, and when the owned property agreement is activated.

General tabUse this tab of the Payment Schedule form to specify the late fees, cost codes,payment instructions, and other details.

Document reference sectionUse this section of the Payment Schedule form to identify where to find thepayment schedule details in the legal document.

Item Description



Section The section where the payment details are found in the legaldocument.

Page The page where the payment details are found in the legaldocument.

Abstract Notes The notes for the abstract.

General sectionUse this section of the Payment Schedule form to identify the unique identifier,status, name, and description for the payment schedule.

Item Description

ID The unique identifier of the payment schedule record. Thisidentifier is automatically generated.

Status The status of this record.

Name The name of the payment schedule in this record.

Description The description of the payment schedule.


Details sectionUse this section of the Payment Schedule form to identify the payment type,accounting type, late fee type, and other details for the payment schedule.

Item Description

Payment Type The type of service or item that is being paid for with thispayment schedule, such as administrative fees, heatingcharges, signage rent, and water charges. Click the Search icon


Summary Type The type of summary that is based on the payment type.

Option Term Payment Select the check box if the situation applies.


Accounting Cost Center The cost center for this payment schedule.

Expected Cash Amount The amount for this payment schedule.

Currency The form populates the unit of currency.

Expected Accrual Amount The amount for this payment schedule.

Charge Amount Basis The frequency or frequency per area for this paymentschedule, such as per annual, per month, per area (annually),and per area (monthly).

Expected ExpenseAmount

The form calculates the amount that is based on the ExpectedCash Amount field and the Expected Accrual Amount field.

Annual Amount The form calculates the amount.

Total Tax Rate The form calculates the rate.

Total Tax Amount The form calculates the amount.

Contract Rentable The rentable area for this payment schedule.

Cost Per Unit The cost per unit for this payment schedule.

Units The form populates the units.

Conversion Group The currency-exchange group that is applied to all cost-relatedfields in the record. The form populates the group.

Currency Exchange Date The date of the currency exchange. The form populates thedate.

Late Fees Select the check box if the situation applies. The form showsnew fields where you can specify additional late feeinformation.

Based on Estimate Select the check box if the situation applies.


Select the check box if the situation applies. If the contract isan owned property agreement, then amortization does notapply, and the form does not show this field.

Late Fee Type The type of late fee. Click the Search icon and select fromthe listed choices.

Late Fee Flat Rate The flat percentage that is appropriate for the type of late fee.

Late Fee Flat Amount The flat amount that is appropriate for the type of late fee.

Cash cost code sectionUse this section of the Payment Schedule form to identify the accounting costclassification for cash payments.


Item Description



Cash Cost Code ID The unique identifier of the cost code. Specify a few charactersto take advantage of autocomplete.

Expense cost code sectionUse this section of the Payment Schedule form to identify the accounting costclassification for expenses.

Item Description



Expense Cost Code ID The unique identifier of the cost code. Specify a few charactersto take advantage of autocomplete.

Accrual cost code sectionUse this section of the Payment Schedule form to identify the accounting costclassification for accrued expenses.

Item Description



Accrual Cost Code ID The unique identifier of the cost code. Specify a few charactersto take advantage of autocomplete.

Processing sectionUse this section of the Payment Schedule form to identify the processing type,processing period, and posting type for the payment schedule.

Item Description

Process Type The type of processing for this payment schedule, such asprocess payments and real estate (RE) invoice.

Process Period The period in which to process this payment schedule. Click


Post Type The type of posting for this payment schedule, such aspost-payment and pre-payment.

Payment schedule sectionUse this section of the Payment Schedule form to identify the schedule pattern, thedate that payments start, and other details for the payment schedule.

Chapter 11. Common elements of contracts 189

Item Description

Payment Schedule The pattern of the scheduled payments, such as one-timepayment, pay on a certain day of the month, and advancedschedule. Depending on your selection, the form shows morefields and sections.

Frequency The frequency of this payment schedule. Click the Search icon


Depending on your selection, the form shows a differentpayment schedule:

v If you selected a frequency of other, then the paymentschedule is set to a one-time payment.

v If you selected a frequency of monthly or 13-period, thenthe payment schedule is set to be paid on the selected dayof the month. For example, the payment schedule is set tobe paid on the 15th of every 1 month.

v If you selected a frequency of monthly and manuallychange the Payment Schedule type to an advancedschedule, then the payment schedule is set differently. Forexample, the payment schedule is set to be paid on the firstMonday of every 1 month.

v If you selected a frequency of annually, quarterly,semiannually, weekly, biweekly, or specific quarterly, thenthe payment schedule is set to an advanced schedule.

Depending on your selection, the form shows a differentrecurrence pattern:

v If you selected an annual frequency, then the recurrencepattern is set to a yearly pattern.

v If you selected a quarterly or semiannual frequency, thenthe recurrence pattern is set to a monthly pattern of every 3or 6 months.

v If you selected a monthly frequency, then the recurrencepattern is set to a monthly pattern of every 1 month.

v If you selected a weekly or biweekly frequency, then therecurrence pattern is set to a weekly pattern of every 1 or 2weeks.

v

Pro Rata Basis The prorated calculation for partial payments. This value isselected from the Generate Payment Schedules wizard form.

Location Specific Quarter The quarter of the specific location. If you selected the specificquarterly (location specific) frequency, then the form shows

this field. Click the Search icon and select from the listedchoices.

Start Date The date when the payment schedule begins. This date mightnot be the same as the lease commencement date; it might be

earlier or later. Click the Calendar icon and specify thedate.

Day of Month The day of the month when the payment is made. If youselected to pay on a certain day of the month, the form showsthis field. Select from the listed choices.


Item Description

End Date (editable field) The date when the payment schedule ends. This date mightnot be the same as the lease expiration date; it might be earlieror later. If you selected to pay on a certain day of the month,

the form shows this field. Click the Calendar icon andspecify the date.

End Date (link) The date when the payment schedule ends. This date mightnot be the same as the lease expiration date; it might be earlieror later. If you selected an advanced schedule, the form showsthis link. Click the link. Specify the details, then save and closethe event record.

Recurrence Pattern (link) The pattern of more-complex scheduled payments. If youselected an advanced schedule, the form shows this link. Clickthe link. Specify the details, then save and close the eventrecord.

Partial first payment sectionUse this section of the Payment Schedule form to identify the payment period,expected date, expected amount, and other details for the partial payment. Theform hides this section if the Payment Schedule type is a one-time payment.

Item Description

Period From The date when the partial payment period begins.

v If you selected to pay on a certain day of the month, theform generates this date from the information in thePayment Schedule section.

v If you selected an advanced schedule, click the Calendar

icon and specify the date.

Period To The date when the partial payment period ends.




Expected Date The date when the partial payment is expected. Click the

Calendar icon and specify the date.

Expected Amount The amount of the expected partial payment.

Comments The comments for this partial payment.

Partial last payment sectionUse this section of the Payment Schedule form to identify the payment period,expected date, expected amount, and other details for the partial payment. Theform hides this section if the Payment Schedule type is a one-time payment.


Item Description

Period From The date when the partial payment period begins.




Period To The date when the partial payment period ends.




Expected Date The date when the partial payment is expected. Click the

Calendar icon and specify the date.

Expected Amount The amount of the expected partial payment.

Comments The comments for this partial payment.

Tax breakdown sectionUse this section of the Payment Schedule form to identify the tax type and tax ratefor each line item that you add.

Item Description

Add Tax Type Adds a line item. Click this action on the section bar. Selectfrom the listed choices and click OK. The form adds a line inthe section.



Tax Type The type of tax, such as city, local, and state. To change the

selection, click the Search icon and select from the listedchoices.

Tax Rate The percentage for the tax. The form updates the total in thetax rate column when the payment schedule record is created.

Payment instruction sectionUse this section of the Payment Schedule form to identify the allocationpercentages, organizations, and other details for how to pay the payment schedule.

Item Description

Add Adds a payment instruction. Click this action on the sectionbar. The Payment Instruction form opens.


Allocation Percentage The percentage of the total amount due that is covered by thispayment instruction.

Organization The organization to which the payments are made.

Payable To The name of the organization or person to whom thepayments are made.


Item Description

Status The status of the payment instruction record.

Clauses sectionUse this section of the Payment Schedule form to identify the clause type, clausename, and other clause details that relate to the payment schedule.

Item Description

Find Lists the available information. Click this action on the sectionbar and select from the listed clauses. Click OK.



Clause Name The name of the lease clause.

Status The status of the lease clause record.

Clause Comment The comment that is related to the lease clause.

Payment line items sectionUse this section of the Payment Schedule form to identify the due date, paymenttype, expected cash, and other payment details for each line item. The line itemsare generated when the real estate lease record is activated.

Item Description

Due Date The date when the payment is due. Click the Calendar icon


Payment Type The type of service or item that is being paid for with thispayment, such as administrative fees, heating charges, signage

rent, and water charges. Click the Search icon and selectfrom the listed choices.


Expected Cash Before Tax The pre-tax cash amount that is expected for this payment.


Expected Accrual The expected revenue that is associated with this payment.

Expected Expense The expected expense that is associated with this payment.The form calculates the amount that is based on the ExpectedCash with Tax field and the Expected Accrual field.


Generate payment schedules wizardUse the Generate Payment Schedules wizard form to create multiple paymentschedules records at a time, without leaving the wizard. The application generatespayment schedule line items when the real estate lease record is activated, andwhen the owned property agreement is activated.


General tabUse this tab of the Generate Payment Schedules wizard form to specify the latefees, cost codes, payment instructions, and other details for each paymentschedule.

Document reference sectionUse this section of the Generate Payment Schedules wizard form to identify whereto find the payment schedule details in the legal document.

Item Description



Section The section where the payment details are found in the legaldocument.

Page The page where the payment details are found in the legaldocument.


General information sectionUse this section of the Generate Payment Schedules wizard form to identify theaccounting type, late fee type, and other general information for the paymentschedule.

Item Description

Payment Type The type of service or item that is being paid for with thispayment schedule, such as administrative fees, heatingcharges, signage rent, and water charges. Click the Search icon


Summary Type The type of summary that is based on the payment type.

Option Term Payment Select the check box if the situation applies.

Description The description for this payment schedule.


Accounting Cost Center The cost center for this payment schedule.

Conversion Group The currency-exchange group that is applied to all cost-relatedfields in the record. The form populates the group.

Currency The form populates the unit of currency.

Late Fees Select the check box if the situation applies. The form showsnew fields where you can specify additional late feeinformation.

Based on Estimate Select the check box if the situation applies.

Late Fee Type The type of late fee. Click the Search icon and select fromthe listed choices.

Late Fee Flat Rate % The flat percentage that is appropriate for the type of late fee.

Late Fee Flat Amount The flat amount that is appropriate for the type of late fee.


Item Description

Taxable Select the check box if the situation applies. When selected, theform shows the Tax Breakdown section. Scroll down to the TaxBreakdown section and click the Add action. The form adds aline in the section.


Select the check box if the situation applies. If the contract isan owned property agreement, then amortization does notapply, and the form does not show this field.

Payment parameters sectionUse this section of the Generate Payment Schedules wizard form to identify thecharge amount basis, first payment date, and other details for the paymentschedule.

Item Description

Frequency The frequency of this payment schedule. Click the Search icon


Location Specific Quarter The quarter of the specific location. If you selected the specificquarterly (location specific) frequency, then the form shows

this field. Click the Search icon and select from the listedchoices.

Charge Amount Basis The frequency or frequency per area for this paymentschedule, such as per annual, per month, per area (annually),and per area (monthly).

Contract Rentable The rentable area for this payment schedule. The formpopulates the area.

First Payment Date The date of the first payment. Click the Calendar icon andspecify the date.

Day of Month Due The day on which the payment is due.

Growth Type The type of growth for this payment schedule, such as fixedand percent.

Fixed Growth The monetary value of the growth. If you selected the fixedgrowth type, then the form shows this field.

% Growth The percentage of the growth. If you selected the percentgrowth type, then the form shows this field.

Amount Per Basis The amount of the first payment.

Number of Schedules The number of payment schedules.


Item Description

Pro Rata Basis The prorated calculation for partial payments. If you selected amonthly frequency, the form shows this field. Click the Search


v 30-day basis: The monthly payment of the lease is dividedequally by 30 days whether the partial month has 28, 29, 30,or 31 days.

v 31-day basis: The monthly payment of the lease is dividedequally by 31 days whether the partial month has 28, 29, 30,or 31 days.

v 360-day basis: The yearly payment of the lease is dividedequally by 360 days and then multiplied by the number ofdays in the partial month.

v 365-day basis: The yearly payment of the lease is dividedequally by 365 days and then multiplied by the number ofdays in the partial month.

v Actual month day: The monthly payment of the lease isdivided equally by the actual number of days in the partialmonth.

Adjust Every [x] Months The duration of the payment schedule before the schedule isadjusted. Because this value sets the duration, it alsodetermines the end date of each schedule. When the end dateof the payment schedule duration is reached, the FixedGrowth or % Growth is applied. This value cannot be zero.

Payment schedule sectionUse this section of the Generate Payment Schedules wizard form to identify thedate that payment starts, payment amount, and other details for the paymentschedule.

Item Description

Add Adds a line item. Click this action on the section bar.

Calculate Amounts Calculates the cost per unit (year), monthly amount, andannual amount. Click this action. The form calculates thesevalues from the charge amount basis that you selected.

Generate Schedule(s) Adds payment schedules with fixed or percent growth. Clickthis action. The form creates these schedules from the growthtype, growth value, and the number of schedules that youspecified.


Linked Record Opens the read-only payment terms of a line item. Click the

Linked Record icon .

From Date The date when the payment schedule begins. This date mightnot be the same as the lease commencement date; it might be

earlier or later. Click the Calendar icon and specify thedate.

To Date The date when the payment schedule ends. This date mightnot be the same as the lease expiration date; it might be earlier

or later. Click the Calendar icon and specify the date.

Amount The amount for this payment schedule.

Contract Rentable The rentable area for this payment schedule.


Item Description

Cost/Unit (Year) The cost per unit. To calculate, click the Calculate Amountsaction.

Monthly Amount The cost per month. To calculate, click the Calculate Amountsaction.

Annual Amount The cost per year. To calculate, click the Calculate Amountsaction.

Processing rules sectionUse this section of the Generate Payment Schedules wizard form to identify theprocessed mode, process period, and post type for the payment schedule.

Item Description

Processed Mode The type of processing for this payment schedule, such asprocess payments and real estate (RE) invoice.

Process Period The period in which to process this payment schedule. Click


Post Type The type of posting for this payment schedule, such aspost-payment and pre-payment.

Cash cost code sectionUse this section of the Generate Payment Schedules wizard form to identify theaccounting cost classification for cash payments.

Item Description



Cash Cost Code ID The unique identifier of the cost code. Specify a few charactersto take advantage of autocomplete.

Expense cost code sectionUse this section of the Generate Payment Schedules wizard form to identify theaccounting cost classification for expenses.

Item Description



Expense Cost Code ID The unique identifier of the cost code. Specify a few charactersto take advantage of autocomplete.

Accrual cost code sectionUse this section of the Generate Payment Schedules wizard form to identify theaccounting cost classification for accrued expenses.

Item Description



Item Description


Accrual Cost Code ID The unique identifier of the cost code. Specify a few charactersto take advantage of autocomplete.

Tax breakdown sectionUse this section of the Generate Payment Schedules wizard form to identify the taxtype and tax rate for each line item that you add. If the Taxable check box isselected, the form shows this section.

Item Description

Add Adds a line item. Click this action on the section bar.



Tax Type The type of tax, such as city, local, and state. Click the Search


Tax Rate The percentage for the tax. The form updates the total in thetax rate column when the payment schedule record is created.

Payment instruction sectionUse this section of the Generate Payment Schedules wizard form to identify theallocation percentages, organizations, and other details for how to pay the paymentschedule.

Item Description

Add Adds a payment instruction. Click this action on the sectionbar. The Payment Instruction form opens.


Allocation Percentage The percentage of the total amount due that is covered by thispayment instruction.

Organization The organization to which the payments are made.

Payable To The name of the organization or person to whom thepayments are made.

Status The status of the payment instruction record.

Payment instruction recordUse the payment instruction record to specify how to pay the payment schedule.

General tabUse this tab of the Payment Instruction form to specify the allocation percentages,organizations, and other details.

General sectionUse this section of the Payment Instruction form to identify the unique identifier,status, and name for the payment instruction.


Item Description

ID The unique identifier of the payment instruction record. Thisidentifier is automatically generated.

Status The status of this payment instruction record.

Name The name of this payment instruction record.

Details sectionUse this section of the Payment Instruction form to identify the allocationpercentage, payment method, bank name, and other details for the payment.

Item Description

Allocation % The percentage of the total amount due that is covered by thispayment instruction when compared to all of the paymentinstructions.

Payment Method The method of payment, such as cash, check, electronic fundstransfer (EFT), or other method.

Bank Name The name of the bank.

Bank Transit # The routing transit number for this bank.

Bank Account The account number at this bank.

Check Memo The notes for the check option.

Remit to sectionUse this section of the Payment Instruction form to identify the organization thatreceives the payment.

Item Description


Remit To Lookup The organization that receives the payment. Specify a fewcharacters to take advantage of autocomplete, or click the

Search icon to find the organization. The form populatesthe address information from that organization record. Theorganization that is selected in the Default Remit To section ofthe lease abstract record is shown as the default. You can clickthe hyperlinked field label to view or modify the recorddetails.

Paid by sectionUse this section of the Payment Instruction form to identify the organization that isresponsible for making the payment.

Item Description


Paid By Lookup The organization that is making the payment. Specify a fewcharacters to take advantage of autocomplete, or click the

Search icon to find the organization. The form populatesthe department and division information from thatorganization record. You can click the hyperlinked field labelto view or modify the record details.


Option wizardUse the Option wizard form to create multiple lease option records at a time,without leaving the wizard. You can specify the option type, option text, dates, andother details for the lease options.

General tabUse this tab of the Option wizard form to specify the effective date, option type,likely term end date, and other details for each lease option.

Document reference sectionUse this section of the Option wizard form to identify where to find the leaseoption details in the legal document.

Item Description



Granted In Lease The legal status of this option. Click the Search icon andselect from the listed choices.

Section The section where the option details are found in the legaldocument.

Page The page where the option details are found in the legaldocument.


Details sectionUse this section of the Option wizard form to identify the option number, optiontype, option dates, and other details for the lease option.

Item Description

Option # The number that identifies the option record, such as 0, 1, 2,and 3. If you do not provide a number, one is automaticallygenerated.

Rolling Option Select this check box to extend the option for another period.If you select this check box, the form shows the Effective toDate field.

Effective Date The date when the option takes effect. Click the Calendar icon


Effective to Date The date when the option is no longer legally valid. The formshows this field if you selected the Rolling Option check box.



Item Description

Option Type The type of the option, such as an amendment, break option,

and lease expiration. Click the Search icon and select fromthe listed choices.

v If you select the purchase option type, the form shows thePurchase Details section.

v If you select the renewal type, the form shows the RenewalTerm field, Renewal Expiration Date field, and MustExercise By field.

v If you select the termination type, the form shows theTermination Details section.

Option Category The category of the option, such as renewal and other.

Renewal Term The duration of the renewal. Click the Calendar icon andspecify the duration. The form shows this field if you selectedthe renewal option in the Option Type field.

Renewal Expiration Date The date when the renewal expires. This date is calculatedfrom the Effective Date and the Renewal Term duration. Theform shows this field if you selected the renewal option in theOption Type field.

Must Notify Within The duration before which you must exercise the option in

advance of the Effective Date. Click the Calendar iconand specify the duration.

Must Exercise By The date by which the option must be exercised. This date iscalculated from the Effective Date and the Must NotifyWithin duration. The form shows this field if you selected therenewal option in the Option Type field.


Purchase details sectionUse this section of the Option wizard form to identify the likely purchase date,likely purchase cost, and other purchase details for the lease option. The formshows this section if you select the purchase option type in the Option Type field.

Item Description

Likely Purchase Execute The date when the property is purchased, if it is the likely

option. Click the Calendar icon and select the date.

Purchase Exercise Cost The costs that are involved with the purchase of the property,such as the loss of rental income.

Economic Life End The date when the property reaches the end of its economic

life. Click the Calendar icon and select the date.

Purchase Price The price at which the property is purchased.

Comments sectionUse this section of the Option wizard form to identify the comments, notes, anddescriptions for the lease option.

Exercise date notifications sectionUse this section of the Option wizard form to identify the exercise notice dates forthe lease option.


Item Description

Exercise Notice The duration before which you want advance notification of

the exercise date or effective date. Click the Calendar iconand specify the duration.

Exercise Notice Date The date when your exercise notification is sent. This date iscalculated from the Effective Date and the Exercise Noticeduration.

Year Exercise Notice The date when the automatic exercise notification is sent, oneyear in advance of the exercise date or effective date. This dateis calculated one year from the Effective Date.

Half Year Exercise Notice The date when the automatic exercise notification is sent, onehalf year in advance of the exercise date or effective date. Thisdate is calculated one half year from the Effective Date.

Likely term details sectionUse this section of the Option wizard form to identify the current likely term enddate for the lease option.

Item Description


Likely Term End Date The date when the term of the current likely option ends orexpires. The value of this read-only field is determined by thereview assumptions process.

Notify roles sectionUse this section of the Option wizard form to identify the roles to notify for thelease option.

Item Description

Find Lists the available information. Click this action on the sectionbar and select from the listed roles. Click OK.



Exercise details sectionUse this section of the Option wizard form to identify the exercise date, the personwho exercised the option, and other details for the lease option.

Item Description

Exercise Date The date when the lease option is exercised. Click the


Exercised By The name of the person who exercised the lease option.Specify a few characters to take advantage of autocomplete, or

click the Search icon and select from the listed choices.The form populates the phone and email information from thepeople record.


Item Description

Work Phone The work phone number of the person who exercised the leaseoption.

Email The email address of the person who exercised the leaseoption.

Other details sectionUse this section of the Option wizard form to identify any other details for thelease option.

Item Description

Rate The rate amount that is related to the lease option.


Penalty The penalty amount that is related to the lease option.

Termination details sectionUse this section of the Option wizard form to identify the residual value of theproperty and likely termination date for the lease option. The form shows thissection if you select the termination type in the Option Type field.

Item Description

Residual Value Guarantee The value of the property when it reaches the end of itseconomic or useful life, as guaranteed by the residual valueinsurance.

Likely TerminationExecute

The date when the lease is terminated or prematurely closed,

if it is the likely option. Click the Calendar icon and selectthe date.

Payment schedule sectionUse this section of the Option wizard form to identify the payment type, schedulepattern, expected cash, and other scheduling details for the lease option.

Item Description

Add Adds one payment schedule at a time. Click this action on thesection bar. Specify the details and click the Create action. Theform adds a line in the section.

Find Lists the available information. Click this action and selectfrom the listed schedules. Click OK.


Payment Type The type of service or item that is being paid for with thispayment.



Start Date The date when the payment schedule begins.


Item Description

End Date The date when the payment schedule ends.



Status The status of the payment schedule record.

General sectionUse this section of the Option wizard form to identify the unique identifier andstatus for the lease option.

Item Description

ID The unique identifier of the lease option record. This identifieris automatically generated.


Contract notification recordUse the Contract Notification form to specify when and to whom to sendnotifications for the lease or agreement. For leases, when you activate the lease, thenotifications for the lease expiration, legal notice, option dates, and optionreminders are automatically scheduled and generated.

General tabUse this tab of the Contract Notification form to specify the name and descriptionof the notification, target date, notification date, and role to notify. For real estatenotifications, after you create the notification, you can also add the real estateproject transactions that are related to the notification.

General sectionUse this section of the Contract Notification form to identify the unique identifier,status, name, and description of the notification.

Item Description

ID The unique identifier of the contract notification record. If youdo not provide an identifier, one is automatically generated.

Status The status of this contract notification record.

Name The name of this contract notification record.

Description The brief description of this contract notification record.

Details sectionUse this section of the Contract Notification form to identify the target date,notification date, and role to notify.

Item Description

Target Date The date of the target event for which the notification is sent.

Click the Calendar icon and specify the date.


Item Description

Notify me how long prior The duration before which you want advance notification of

the target date. Click the Calendar icon and specify theduration.

Notification Date(calculated)

The date when the notification is sent. This date is calculatedfrom the Target Date and the Notify me how long priorduration.




Contract sectionUse this section of the Contract Notification form to identify the lease or agreementthat is associated with this notification.

Item Description

ID The unique identifier of the lease or agreement record.

Name The name of the lease or agreement record.

Status The status of the lease or agreement record.

Commencement Date For a real estate lease, the date when the lease term and thecontracted work on the site begins. For an owned propertyagreement, the date when the property was purchased.

Expiration Date The date when the base lease expires, without renewal optionsapplied. This field applies to leases only.

Transactions created sectionUse this section of the Contract Notification form to add or identify the real estateproject transactions that are related to the notification. The form shows this sectionif you created a real estate notification.

Item Description

Add Transaction Adds a real estate project transaction. Click this action on thesection bar. Click Continue. The form adds two lines in thesection:

v The current terms of the current lease or agreement.

v The proposed draft for the real estate project transactionthat is based on the current lease or agreement.

Name The name of the real estate project transaction record.

Status The status of the real estate project transaction record.

Lease clause recordUse the Lease Clause form to specify the various clauses for the lease.

General tabUse this tab of the Lease Clause form to specify the clause details, covenant details,clause text, payment schedules, lease options, and comments.


Document reference sectionUse this section of the Lease Clause form to identify where to find the lease clausedetails in the legal document.

Item Description







External Document The document that is located outside the application. Specify afew characters to take advantage of autocomplete, or click the


Lease clause details sectionUse this section of the Lease Clause form to identify the clause type, clausecategory, and clause summary for the lease clause.

Item Description

Clause Type The type of the lease clause within the clause category, such asabatement, earthquake, occupancy, and signage. Specify a fewcharacters to take advantage of autocomplete, or click the



Item Description

Section Category The category of the lease clause, such as allowance, insurance,rights, and use restrictions.

v If you select a clause type within the allowance category, theform shows the Improvement Clause Details section.

v If you select a clause type within the co-tenancy category,the form shows the Co-Tenancy Details section andCo-Tenancy Items section.

v If you select a clause type within the commission category,the form shows the Commission Details section.

v If you select a clause type within the default category, theform shows the Default section.

v If you select a clause type within the fair market rate value(FMRV) category, the form shows the Fair Market RateValue section.

v If you select a clause type within the green provisionscategory, the form shows the Green Lease Provisionssection.

v If you select a clause type within the insurance category, theform shows the Insurance Clause Details section.

v If you select a clause type within the parking category, theform shows the Parking Details section and Parking Spacessection.

v If you select a clause type within the percentage rentcategory, the form shows the following sections: PercentageRent Setup, Sales Reporting Details, Sales Exclusions, TaxExclusions, Allowable Deductions, and Reporting.

v If you select a clause type within the responsibilitiescategory, the form shows the Lease Responsibilities section.

v If you select a clause type within the rights category, theform shows the Alterations section.

v If you select a clause type within the security depositcategory, the form shows the following sections: DepositDetails, Cash Cost Code, and Expense Cost Code.

v If you select a clause type within the tax category, the formshows the Tax Details section.


Covenant details sectionUse this section of the Lease Clause form to identify the effective dates, covenantamount, covenant areas, and other overall details for the lease clause.

Item Description

Effective From The date when the lease clause takes effect. Click the Calendar


Effective To The date when the lease clause is no longer legally valid. Click


Covenant Amount The total amount that is related to the covenant or leaseclause.


Select this check box if the situation applies. The form showsthe Index Adjustments section.


Item Description

Covenant Area The total area that is related to the covenant or lease clause.Specify the type of the area in the Area Type field.

Payment Auditable Select this check box if the situation applies. The form showsthe following sections: Audit Details, Services Included, andServices Excluded.

Area Type The type of the area, such as the depth, gross, land area, andnet rentable area.

Waiver of Subrogation Select this check box if the situation applies.

Notice Requirements The requirements for any legal notice that is related to thecovenant or lease clause.

Clause text sectionUse this section of the Lease Clause form to identify the lease clause text in thelegal document.

Audit details sectionUse this section of the Lease Clause form to identify the base year, paymentfrequency, and other audit details for the lease clause.

The form shows this section if you selected the Payment Auditable check box inthe Covenant Details section. When the lease is activated, the application sendsscheduled notifications to the Contract Administrator for payment reconciliation.The notification schedule is based on the Reconciliation Frequency pattern andReconciliation Start date.

Item Description



















Item Description







Calculation Rule The rule that calculates the current year costs. The calculationis based on the prorated share due (P/S), previous yearcharges (Prev. Yr.), base year cap amount (Base), or acombination of these values. The abbreviation "CPI" denotesthe consumer price index. Select from the 6 rules:
























Services included sectionUse this section of the Lease Clause form to identify the cost, share, and otherdetails for the services that are included in the lease clause. The form shows thissection if you selected the Payment Auditable check box in the Covenant Detailssection.

Item Description

Find Finds an existing service. Click this action and select from thelisted choices.


Refresh OPEX/CAMDetails

Updates the details for operating expenses (OPEX) andcommon area maintenance (CAM) expenses. Click this actionto update the included services in the payment reconciliationrecords.

Service The service that is included in the lease clause, such asjanitorial, snow removal, and electric.


Proportionate Share The percentage share of this included service when comparedto all included services. If the contractual value is notprovided or equals zero, then the calculated value is used. Ifthe contractual value is provided, then that value is used.

Apply to Total Cap Select this check box if this included service is counted againstthe total cap for all included services.

Service Cap Amount The maximum amount that applies to this included service. Azero value indicates that there is no cap amount. The unit ofcurrency is taken from the General tab.

Services excluded sectionUse this section of the Lease Clause form to identify the services that are excludedfrom the lease clause. The form shows this section if you selected the PaymentAuditable check box in the Covenant Details section.

Item Description



Service The service that is excluded from the lease clause, such asjanitorial, snow removal, and electric.

Index adjustments sectionUse this section of the Lease Clause form to identify the cost index, index rate,adjustment frequency, and other related values in the lease clause. The form showsthis section if you selected the Includes Index Adjustment check box in theCovenant Details section.

Item Description

Cost Index The current index by which the lease costs are adjusted. Click





Item Description







Adjustment Reminder The duration before the application sends a reminder to you.

Click the Calendar icon and specify the duration.










Improvement clause details sectionUse this section of the Lease Clause form to identify the restrictions, dates, andother values for allowances and improvements in the lease clause. The form showsthis section if you select a clause type within the allowance category.

Item Description

Improvement ClauseDetails

The required and relevant allowances and improvementsinformation from the lease clause. For assistance, consult yourlease administrator, lease accountant, or lease contacts. Theabbreviation "LL" denotes the landlord. The abbreviation "TI"denotes the tenant improvement.

Co-tenancy details sectionUse this section of the Lease Clause form to identify the co-tenancy rent reduction,termination, and other values in the lease clause. The form shows this section ifyou select a clause type within the co-tenancy category.

Item Description

Co-Tenancy Details The required and relevant co-tenancy information from thelease clause. For assistance, consult your lease administrator,lease accountant, or lease contacts.


Co-tenancy items sectionUse this section of the Lease Clause form to adjust the list of co-tenants in the leaseclause. The form shows this section if you select a clause type within theco-tenancy category.

Item Description

Add Adds a co-tenant. Click this action on the section bar. Specifythe details and click the Create action. The form adds a line inthe section.


Commission details sectionUse this section of the Lease Clause form to identify the commission requirements,dates, and other values in the lease clause. The form shows this section if youselect a clause type within the commission category.

Item Description


Percent The percentage of the commission.








Amount Due The remaining amount that is due.

Default sectionUse this section of the Lease Clause form to identify the monetary-defaultrequirements, durations, and other values in the lease clause. The form shows thissection if you select a clause type within the default category.

Item Description

Default Clause Details The required and relevant monetary-default information fromthe lease clause. For assistance, consult your leaseadministrator, lease accountant, or lease contacts.

Fair market rate value sectionUse this section of the Lease Clause form to identify the monetary value of therate, adjustment frequency, and other related values in the lease clause. The formshows this section if you select a clause type within the fair market rate value(FMRV) category.

Item Description





Item Description

















Green lease provisions sectionUse this section of the Lease Clause form to identify the green-lease requirements,access to property, and other values in the lease clause. The form shows thissection if you select a clause type within the green provisions category.

Item Description

Green Lease Provisions The required and relevant green-lease information from thelease clause. For assistance, consult your lease administrator,lease accountant, or lease contacts.

Insurance clause details sectionUse this section of the Lease Clause form to identify the property-insurancerequirements, dates, and other values in the lease clause. The form shows thissection if you select a clause type within the insurance category.

Item Description

Insurance Clause Details The required and relevant insurance information from thelease clause. For assistance, consult your lease administrator,lease accountant, or lease contacts.

Parking details sectionUse this section of the Lease Clause form to identify the total number of parkingspaces, and other values in the lease clause. The form shows this section if youselect a clause type within the parking category.


Item Description

Included in Rent Select the check box if the situation applies.

Landlord or Third Party The party that is responsible for the parking spaces, such asthe landlord and third party.

Total Parking Spaces The total number of parking spaces that is calculated from theParking Spaces section.

Parking spaces sectionUse this section of the Lease Clause form to identify the location, number, rate, andother values for each type of parking space. The form shows this section if youselect a clause type within the parking category.

Item Description

Add Adds a space type. Click this action on the section bar. Theform adds a line in the section.



Space Type The type of the parking space, such as bicycle, covered,executive, and reserved.

Include in Parking SpaceCount

This check box is selected if the number of parking spaces forthis space type is included in the total number of parkingspaces.

Location The location of the parking spaces on the property.

Parking Denominator The rate denominator for this space type, such as spaces per100 and spaces per 1000. The rate denominator is applied tothe rate cost.

Number of Spaces The number of parking spaces for this space type.

Rate The rate cost that is related to this space type.

Percentage rent setup sectionUse this section of the Lease Clause form to identify the reporting dates, reportingfrequency, and other details in the lease clause. The form shows this section if youselect a clause type within the percentage rent category.

Item Description

First Reporting PeriodStart Date

The date when the first reporting period starts. Click the


Reporting Frequency The frequency at which the rent reporting occurs, such asannually, monthly, quarterly, and semi-annually.

First Reporting PeriodEnd Date

The date when the first reporting period ends. Click the


Billing Frequency The frequency at which billing occurs. Click the Search icon


Reporting Only Select the check box if this situation applies to the rentreporting.

Natural Breakpoint The point where the base rent equals the percentage rent.Select the check box if this situation applies to the rentreporting.


Item Description

Due Within The duration within which the rent reporting is due. Click the

Calendar icon and select the duration.

Cumulative The accumulated data that is collected over a duration. Selectthe check box if this situation applies to the rent reporting.

Landlord Audit Rights The right of the landlord to audit or examine the lease. Selectthe check box if this situation applies to the rent reporting.

Description The additional details for the percentage rent reporting.

Sales reporting details sectionUse this section of the Lease Clause form to identify the effective dates, base salesamounts, and other details in the lease clause. The form shows this section if youselect a clause type within the percentage rent category.

Item Description

Add Adds a sales line item. Click this action on the section bar. Theform adds a line in the section.




Effective From The date when this sales line item goes into effect. Click the


Effective To The date when this sales line item is no longer in effect. Click





Sales exclusions sectionUse this section of the Lease Clause form to identify the exclusion category andcap amount for the sales that are excluded from the lease clause. The form showsthis section if you select a clause type within the percentage rent category.

Item Description

Add Adds a sales line item. Click this action on the section bar. Theform adds a line in the section.




Exclusion Category The category of this sales exclusion. Click the Search iconand select from the listed choices.



Tax exclusions sectionUse this section of the Lease Clause form to identify the tax type and tax rate forthe taxes that are excluded from the lease clause. The form shows this section ifyou select a clause type within the percentage rent category.

Item Description

Add by Tax Type Adds a tax line item. Click this action on the section bar. Selectfrom the listed choices and click OK. The form adds a line inthe section.



Tax Type The type of tax, such as city, local, and state.


Allowable deductions sectionUse this section of the Lease Clause form to identify the payment type and capamount for allowable tax deductions in the lease clause. The form shows thissection if you select a clause type within the percentage rent category.

Item Description

Add by Payment Type Adds a deduction line item. Click this action on the sectionbar. Select from the listed choices and click OK. The form addsa line in the section.



Payment Type The type of payment that you selected for an allowable taxdeduction.

Cap Amount The maximum amount that applies to this allowable taxdeduction.

Reporting sectionUse this section of the Lease Clause form to identify the reporting months,percentage rent, and other details in the lease clause. The form shows this sectionif you select a clause type within the percentage rent category.

Item Description

ID The unique identifier of this reporting line item.

Reporting From The date when the sales report data begins.

Reporting To The date when the sales report data ends.

Due Date The date when the percentage rent is due.

Number of ReportingMonths

The number of months that the sales report data spans.

Occupied (%) The percentage of the rental area that is occupied by thetenant.

Percentage Rent Due The amount of the percentage rent that is due.


Lease responsibilities sectionUse this section of the Lease Clause form to identify the responsible party, primaryvendor, and other values for each service responsibility in the lease clause. Theform shows this section if you select a clause type within the responsibilitiescategory.

Item Description

Add Adds a responsibility line item. Click this action on the sectionbar. The form adds a line in the section.


Service The service of responsibility, such as alterations,heating-ventilation-and-air-conditioning (HVAC) service,parking lot, and water system.

Pass Through Type The type of the pass-through billing that can be charged to thetenant along with the base rent. The types include direct bill,included in common area maintenance or operating expenses(CAM/OPEX), not applicable, and other billing.

Responsibility Type The type of the service responsibility, such as maintain, repair,and replace.

Execution ResponsibleParty

The party who is responsible for the performance of theservice, such as the landlord, tenant, and other party.

Financial ResponsibleParty

The party who is responsible for the payment of the service,such as the landlord, tenant, and other party.

Landlord % The percentage of the service responsibility that belongs to thelandlord.

Tenant % The percentage of the service responsibility that belongs to thetenant.

Primary Vendor The name of the primary service provider.

Alterations sectionUse this section of the Lease Clause form to identify the physical-alterationrequirements and other values in the lease clause. The form shows this section ifyou select a clause type within the rights category.

Item Description

Landlord ConsentRequired for Alterations


Threshold Amount, if any The amount of the alteration cost before landlord consent isrequired.

Explicit Design Criteriafor Premises Alterations


Is Architectural ApprovalRequired for Alterations


Deposit details sectionUse this section of the Lease Clause form to identify the security-depositrequirements, dates, and other values in the lease clause. The form shows thissection if you select a clause type within the security deposit category.


Item Description

Deposit Details The required and relevant deposit information from the leaseclause. For assistance, consult your lease administrator, leaseaccountant, or lease contacts.

Cash cost code sectionUse this section of the Lease Clause form to identify the accounting costclassification for cash payments in the lease clause. The form shows this section ifyou select a clause type within the security deposit category.

Item Description





Expense cost code sectionUse this section of the Lease Clause form to identify the accounting costclassification for expenses in the lease clause. The form shows this section if youselect a clause type within the security deposit category.

Item Description





Tax details sectionUse this section of the Lease Clause form to identify the property-tax requirements,rate, and other values in the lease clause. The form shows this section if you selecta clause type within the tax category.

Item Description

Taxes Paid Via The method by which taxes are paid, such as landlordreimbursement and taxing authority.










Item Description












Payment schedule sectionUse this section of the Lease Clause form to identify the payment type, schedulepattern, expected cash, and other scheduling details for the lease clause. Theassociated payment schedules are treated as escrow payments. The details from thepayment schedules are copied into one-time payments. These details include thepayment type, cost codes, and payment instructions.

Item Description


Find Lists the available information. Click this action and selectfrom the listed schedules. Click OK.










Options sectionUse this section of the Lease Clause form to identify the option number, optiontype, option dates, and other details for the lease clause.


Item Description


Find Lists the available information. Click this action on the sectionbar and select from the listed options. Click OK.















Comments sectionUse this section of the Lease Clause form to identify the comments, notes, anddescriptions for the lease clause.

General sectionUse this section of the Lease Clause form to identify the name and status for thelease clause.

Item Description

Name The name of this lease clause record.

Status The status of this lease clause record.

Units sectionUse this section of the Lease Clause form to identify the currency and unit of areafor the lease clause.

Item Description



Item Description


Asset lease clause recordUse the Asset Lease Clause form to specify the various clauses for the lease.

General tabUse this tab of the Asset Lease Clause form to specify the clause details, covenantdetails, clause text, payment schedules, lease options, and comments.

Document reference sectionUse this section of the Asset Lease Clause form to identify where to find the leaseclause details in the legal document.

Item Description







External Document The document that is located outside the application. Specify afew characters to take advantage of autocomplete, or click the


Asset lease clause details sectionUse this section of the Asset Lease Clause form to identify the clause type, clausecategory, and clause summary for the lease clause.

Item Description

Asset Clause Type The type of the asset lease clause within the clause category,such as lessee default, insurance, holdover, and guarantee.Specify a few characters to take advantage of autocomplete, or

click the Search icon and select from the listed choices.


Item Description

Section Category The category of the asset lease clause, such as default,insurance, rights, and security deposit.

v If you select a clause type within the commission category,the form shows the Commission Details section.

v If you select a clause type within the default category, theform shows the Default section.

v If you select a clause type within the green provisionscategory, the form shows the Green Lease Provisionssection.

v If you select a clause type within the insurance category, theform shows the Insurance Clause Details section.

v If you select a clause type within the responsibilitiescategory, the form shows the Lease Responsibilities section.

v If you select the clause type of holdover within the rightscategory, the form shows the Holdover section.

v If you select another clause type within the rights category,the form does not add a section.

v If you select a clause type within the security depositcategory, the form shows the following sections: DepositDetails, and Expense Cost Code.

v If you select a clause type within the tax category, the formshows the Tax Details section.


Covenant details sectionUse this section of the Asset Lease Clause form to identify the effective dates,covenant amount, and other overall details for the lease clause.

Item Description

Effective From The date when the lease clause takes effect. Click the Calendar


Effective To The date when the lease clause is no longer legally valid. Click


Covenant Amount The total amount that is related to the covenant or leaseclause.


Select this check box if the situation applies. The form showsthe Index Adjustments section.

Waiver of Subrogation Select this check box if the situation applies.

Payment Auditable Select this check box if the situation applies. The form showsthe Audit Details section.

Notice Requirements The requirements for any legal notice that is related to thecovenant or lease clause.

Clause text sectionUse this section of the Asset Lease Clause form to identify the lease clause text inthe legal document.

Audit details sectionUse this section of the Asset Lease Clause form to identify the base year, paymentfrequency, and other audit details for the lease clause. The form shows this section


if you selected the Payment Auditable check box in the Covenant Details section.When the lease is activated, the application sends scheduled notifications to theContract Administrator for payment reconciliation. The notification schedule isbased on the Reconciliation Frequency pattern and Reconciliation Start date.

Item Description

























Item Description

Calculation Rule The rule that calculates the current year costs. The calculationis based on the prorated share due (P/S), previous yearcharges (Prev. Yr.), base year cap amount (Base), or acombination of these values. The abbreviation "CPI" denotesthe consumer price index. Select from the 6 rules:























Index adjustments sectionUse this section of the Asset Lease Clause form to identify the cost index, indexrate, adjustment frequency, and other related values in the lease clause. The formshows this section if you selected the Includes Index Adjustment check box in theCovenant Details section.


Item Description

Cost Index The current index by which the lease costs are adjusted. Click



















Commission details sectionUse this section of the Asset Lease Clause form to identify the commissionrequirements, dates, and other values in the lease clause. The form shows thissection if you select a clause type within the commission category.

Item Description


Commission Percent The percentage of the commission.








Amount Due The remaining amount that is due.


Default sectionUse this section of the Asset Lease Clause form to identify the monetary-defaultrequirements, durations, and other values in the lease clause. The form shows thissection if you select a clause type within the default category.

Item Description

Default Clause Details The required and relevant monetary-default information fromthe lease clause. For assistance, consult your leaseadministrator, lease accountant, or lease contacts.

Green lease provisions sectionUse this section of the Asset Lease Clause form to identify the green-leaserequirements, access to property, and other values in the lease clause. The formshows this section if you select a clause type within the green provisions category.

Item Description

Green Lease Provisions The required and relevant green-lease information from thelease clause. For assistance, consult your lease administrator,lease accountant, or lease contacts.

Insurance clause details sectionUse this section of the Asset Lease Clause form to identify the property-insurancerequirements, dates, and other values in the lease clause. The form shows thissection if you select a clause type within the insurance category.

Item Description

Insurance Clause Details The required and relevant insurance information from thelease clause. For assistance, consult your lease administrator,lease accountant, or lease contacts.

Lease responsibilities sectionUse this section of the Asset Lease Clause form to identify the responsible party,vendor, and other values for each service responsibility in the lease clause. Theform shows this section if you select a clause type within the responsibilitiescategory.

Item Description

Add Adds a responsibility line item. Click this action on the sectionbar. The form adds a line in the section.


Service The service of responsibility, such as alterations,heating-ventilation-and-air-conditioning (HVAC) service,parking lot, and water system.

Pass Through Type The type of the pass-through billing that can be charged to thetenant along with the base rent. The types include direct bill,included in common area maintenance or operating expenses(CAM/OPEX), not applicable, and other billing.

Responsibility Type The type of the service responsibility, such as maintain, repair,and replace.

Execution ResponsibleParty

The party who is responsible for the performance of theservice, such as the landlord, tenant, and other party.


Item Description

Financial ResponsibleParty

The party who is responsible for the payment of the service,such as the landlord, tenant, and other party.

Landlord % The percentage of the service responsibility that belongs to thelandlord.

Tenant % The percentage of the service responsibility that belongs to thetenant.

Primary Vendor The name of the primary service provider.

Holdover sectionUse this section of the Asset Lease Clause form to identify the tenancy and penaltyfor occupying the property after the lease expiration date. The form shows thissection if you select the clause type of holdover within the rights category.

Item Description

Tenancy Type The type of the tenancy, such as written lease and tenant atwill.

Rent Penalty - Percentage The percentage of the rental penalty.

Consequential DamagesPayable

Select this check box if the situation applies.

Rent Penalty - Amount The amount of the rental penalty.

Tenancy Terminated UponNotice

Select this check box if the situation applies.

Time Period for Notice The duration before which the tenant is given advancenotification of the termination or eviction date. Click the


Deposit details sectionUse this section of the Asset Lease Clause form to identify the security-depositrequirements, dates, and other values in the lease clause. The form shows thissection if you select a clause type within the security deposit category.

Item Description

Deposit Details The required and relevant deposit information from the leaseclause. For assistance, consult your lease administrator, leaseaccountant, or lease contacts.

Expense cost code sectionUse this section of the Asset Lease Clause form to identify the accounting costclassification for expenses in the lease clause. The form shows this section if youselect a clause type within the security deposit category.

Item Description






Tax details sectionUse this section of the Asset Lease Clause form to identify the property-taxrequirements, rate, and other values in the lease clause. The form shows thissection if you select a clause type within the tax category.

Item Description

Taxes Paid Via The method by which taxes are paid, such as landlordreimbursement and taxing authority.




















Payment schedule sectionUse this section of the Asset Lease Clause form to identify the payment type,schedule pattern, expected cash, and other scheduling details for the lease clause.The associated payment schedules are treated as escrow payments. The detailsfrom the payment schedules are copied into one-time payments. These detailsinclude the payment type, cost codes, and payment instructions.

Item Description


Find Lists the available information. Click this action on the sectionbar and select from the listed schedules. Click OK.





Item Description







Options sectionUse this section of the Asset Lease Clause form to identify the option number,option type, option dates, and other details for the lease clause.

Item Description


Find Lists the available information. Click this action on the sectionbar and select from the listed options. Click OK.















Comments sectionUse this section of the Asset Lease Clause form to identify the comments, notes,and descriptions for the lease clause.


General sectionUse this section of the Asset Lease Clause form to identify the name and status forthe lease clause.

Item Description

Name The name of this asset lease clause record.

Status The status of this asset lease clause record.

Units sectionUse this section of the Asset Lease Clause form to identify the currency and unit ofarea for the lease clause.

Item Description



Lease terms recordUse the Lease Terms form to specify the various terms for the lease.

General tabUse this tab of the Lease Terms form to specify the lease information, rent details,rent escalations, standard operating expenses, inflation rates, and other terms.

General sectionUse this section of the Lease Terms form to identify the revision, status, name,date, and description of the lease terms.

Item Description

ID The unique identifier of the lease terms record. If you do notprovide an identifier, one is automatically generated.

Revision The number of times that the lease terms were revised, such as0, 1, 2, and 3.

Status The status of this lease terms record.

Name The name of this lease terms record.

Date (Analysis Date) The date of the revision or revision analysis.

Revision Description The brief description of the revision or revision analysis.

Units sectionUse this section of the Lease Terms form to identify the currency and unit of areafor the lease terms.

Item Description



Item Description


Lease information sectionUse this section of the Lease Terms form to identify the site location, rentableareas, headcount, work stations, and parking spaces in the lease terms.

Item Description

Site Location The location of the property.

Total Building RentableArea

The total area of rentable building space at the property.

Lease Rentable Area The area of rentable building space in the primary lease.

Lease Rentable - Other The area of rentable space in an additional lease.

Total Rentable for thisLease

The total area of rentable space in the lease terms that iscalculated from the rentable building space and other rentablespace.

Headcount Capacity(Employees)

The number of employees in the lease terms.

Work Stations The number of work stations in the lease terms.

Parking Spaces The number of parking spaces in the lease terms.

Rent details sectionUse this section of the Lease Terms form to identify the lease type, lease dates,base rent, and other rental details for the lease terms.

Item Description

Type of Lease (LeaseType)

The type of the lease, in terms of expense, income, and




v Income lease - sublease: An income-based or accountsreceivable (AR) lease that is used when you have anexpense lease and you are subleasing part of it to anothertenant.

v Income lease - third-party lease: An income-based oraccounts receivable (AR) lease that is used when you ownthe property and have subtenants for the tenants in thebuilding.

Lease CommencementDate

The date when the lease term and the contracted work on the


Lease Expiration Date The date when the base lease expires, without renewal options


Lease Term (in years) The term that begins with the Lease Commencement Dateand ends with the Lease Expiration Date.


Item Description

Estimated Property Value/ Area

The estimated value per unit area of the property.

Base Rent / Area / Year The minimum rent per unit area per year in the primary lease.

Base Rent - Other / Area /Year

The minimum rent per unit area per year in an additionallease.

Blended Base Rent / Area/ Year

The minimum rent per unit area per year that is calculated bydividing the combined base rent by the combined rentablearea.

Concessions (Month ofAbatement)

The percentage discount or rebate on the monthly rent.

Tenant ImprovementAllowance / Area

The amount per unit area that the landlord provides for tenantimprovements in the property.

Other Incentives The amount of any additional lease incentives.

Brokerage Commission The percentage of the brokerage commission.

Rent escalations sectionUse this section of the Lease Terms form to identify the dates, amounts, andannual rate for the rental increases in the lease terms.

Item Description

1st Escalation Date The date when the first rental increase occurs. Click the


1st Escalation / Area /Year

The amount per unit area per year of the first rental increase.

2nd Escalation Date The date when the second rental increase occurs. Click the


2nd Escalation / Area /Year

The amount per unit area per year of the second rentalincrease.

3rd Escalation Date The date when the third rental increase occurs. Click the


3rd Escalation / Area /Year

The amount per unit area per year of the third rental increase.

4th Escalation Date The date when the fourth rental increase occurs. Click the


4th Escalation / Area /Year

The amount per unit area per year of the fourth rentalincrease.

5th Escalation Date The date when the fifth rental increase occurs. Click the


5th Escalation / Area /Year

The amount per unit area per year of the fifth rental increase.

Base Rent AnnualEscalation Rate

The percentage increase per year of the base rent amount.

Standard operating expenses per area per year sectionUse this section of the Lease Terms form to identify the standard operatingexpenses, property taxes, and property insurance in the lease terms.


Item Description

Utilities The amount per unit area per year for utility expenses.

Electricity The amount per unit area per year for electrical expenses.

Repair and Maintenance The amount per unit area per year for expenses that resultfrom repair and maintenance.

Janitorial The amount per unit area per year for janitorial expenses.

CAM The amount per unit area per year for expenses that resultfrom common area maintenance (CAM).

Security The amount per unit area per year for security expenses.

Property Taxes The amount per unit area per year for property taxes.

Insurance The amount per unit area per year for property insurance.

Other recurring expenses sectionUse this section of the Lease Terms form to identify the parking, storage, propertyservice, and other recurring expenses in the lease terms.

Item Description

Parking / Spot / Month The amount per parking space per month for parkingexpenses.

Storage or Warehouse /Area / Year

The amount per unit area per year for storage or warehouseexpenses.

Property Service Fee /Area / Year

The amount per unit area per year for expenses that resultfrom property services.

Other Expenses / Area /Year

The amount per unit area per year for any other recurringexpenses.

Expense inflation rates sectionUse this section of the Lease Terms form to identify the inflation rates for thestandard operating expenses, property taxes, and insurance in the lease terms.

Item Description

Utilities The percentage rate of inflation for utility expenses.

Electricity The percentage rate of inflation for electrical expenses.

Repair and Maintenance The percentage rate of inflation for expenses that result fromrepair and maintenance.

Janitorial The percentage rate of inflation for janitorial expenses.

Security The percentage rate of inflation for security expenses.

CAM The percentage rate of inflation for expenses that result fromcommon area maintenance (CAM).

Insurance The percentage rate of inflation for property insurance.

Property Taxes The percentage rate of inflation for property taxes.

Parking The percentage inflation rate for parking expenses.

Storage The percentage inflation rate for storage or warehouseexpenses.

Property Service Fee The percentage inflation rate for expenses that result fromproperty services.

Other Expenses The percentage inflation rate for any other recurring expenses.


Expense details sectionUse this section of the Lease Terms form to identify the date, amount, andescalation rate for the pass-through operating expenses in the lease terms.

Item Description

Base Date for ExpensePassthrough

The date when pass-through operating expenses can becharged to the tenant along with the base rent. Click the


Base Expense Amount /Area / Year

The minimal amount per unit area per year for pass-throughoperating expenses.

Base PassthroughEscalation Rate

The percentage increase per year of the base pass-throughexpense amount.

Buildout sectionUse this section of the Lease Terms form to identify the landlord costs of wiring,improvements, technology, and other buildout details in the lease terms.

Item Description

Targeted BuildoutCompletion Date

The date when the buildout or construction is scheduled to be

completed. Click the Calendar icon and select the date.

Wiring The cost amount of the wiring installation.

Leasehold Improvements The cost amount of the tenant improvements.

FF&E The cost amount of the furniture, fixtures, and equipment(FF&E).

Technology - Capitalized The cost amount of the technology that is characterized byone-time expenses to be amortized over time.

Technology - Expensed The cost amount of the technology that is characterized byrecurring operating expenses.

Will Improvements betreated as one-time cost


Relocation sectionUse this section of the Lease Terms form to identify the landlord costs ofallowances, fees, liquidation, and other tenant relocation details in the lease terms.

Item Description

Relocation Date The date when the relocation is scheduled to occur. Click the


Relocation Expenses The amount for expenses that result from tenant relocation.

Moving Allowance The amount that the landlord provides to the tenant towardsmoving expenses.

Professional Service Fee The amount that the landlord pays for professional services byan individual or an agency other than the moving service.

Other Costs The amount for any additional costs.

FF&E Liquidation The amount from the proceeds of selling the furniture,fixtures, and equipment (FF&E).


Item Description

Writeoffs The amount of the reduction in property value or earningsthat result from tenant relocation.

Dilapidation and restoration sectionUse this section of the Lease Terms form to identify the landlord costs of removingthe wiring, signage, and other cleanup expenses in the lease terms.

Item Description

Wiring Removal The cost amount of removing the wiring installation.

Signage Removal The cost amount of removing the tenant signage.

Satellite Dish Removal The cost amount of removing the satellite dish installation.

Cleanup The cost amount of cleaning up the tenant site.

Other Exit Costs The cost amount of any additional exit services.

Fiscal year sectionUse this section of the Lease Terms form to identify the first date and last date inthe current fiscal year for the lease terms.

Item Description

Current Fiscal Year The current year for calculating annual financial statements.


First Day of Current FY The first date of the current fiscal year (FY). Click the


Last Day of Current FY The last date of the current fiscal year (FY). Click the Calendar


Discount and tax rates sectionUse this section of the Lease Terms form to identify the business discount rate andcorporate tax rate in the lease terms.

Item Description

Business Unit DiscountRate

The percentage rate of discounts or concessions for thebusiness unit.

Corporate Tax Rate The percentage rate of taxes on corporate income.

Depreciation schedules - tax basis sectionUse this section of the Lease Terms form to identify the economic life of assets fortax accounting in the lease terms.

Item Description

Buildings The number of years in the economic life of building assets,such as 50.

Wiring The number of years in the economic life of wiring installationassets, such as 10.

Leasehold Improvements The number of years in the economic life of tenantimprovements, such as 10.


Item Description

FF&E The number of years in the economic life of furniture, fixtures,and equipment (FF&E), such as 7.

Technology - Capitalized The number of years in the economic life of one-timetechnological expenses, such as 5.

Dilapidation / Restoration The number of years in the economic life of tenant removal orcleanup costs, such as 0.

Depreciation schedules - GAAP basis sectionUse this section of the Lease Terms form to identify the economic life of assets forgenerally accepted accounting principles (GAAP) in the lease terms.

Item Description

Buildings The number of years in the economic life of building assets,such as 40.

Wiring The number of years in the economic life of wiring installationassets, such as 16.

Leasehold Improvements The number of years in the economic life of tenantimprovements, such as 10.

FF&E The number of years in the economic life of furniture, fixtures,and equipment (FF&E), such as 10.

Dilapidation / Restoration The number of years in the economic life of tenant removal orcleanup costs, such as 0.

Technology - Capitalized The number of years in the economic life of one-timetechnological expenses, such as 10.

Financial analysis tabUse this tab of the Lease Terms form to review the financial analysis model of thelease terms that are specified in the General tab.

Summary metrics tabUse this tab of the Lease Terms form to review the financial metrics for the leaseterms that are specified in the General tab. The read-only metrics include netpresent value (NPV), payment commitment, space commitment, profit-and-loss(P&L) impact, and cash flow details.

Summary metrics sectionUse this section of the Lease Terms form to identify the net present value (NPV),payment commitment, space commitment, and other metrics in the lease terms.

Item Description

Total Pretax NPV The net present value (NPV) of the tenant cash flows beforetaxes.

Total Commitment The total amount that the tenant promises to pay for leasingthe property.

Proposed SpaceCommitment

The proposed area of the rentable space that the tenantpromises to lease.

Business Unit DiscountRate

The percentage rate of discounts or concessions for thebusiness unit.


Item Description

Tax Rate Used ByBusiness (Corporate TaxRate)

The percentage rate of taxes on corporate income.

Current Year Pretax CashFlow

The net profit before taxes for the current year by the tenant.

Profit and loss impact sectionUse this section of the Lease Terms form to identify the tenant profit-and-loss(P&L) impact for the first three years in the lease terms.

Item Description

Year 1 The net effect of tenant revenue, costs, and expenses for thefirst year in the lease terms.

Year 2 The net effect of tenant revenue, costs, and expenses for thesecond year in the lease terms.

Year 3 The net effect of tenant revenue, costs, and expenses for thethird year in the lease terms.

FASB 143 sectionUse this section of the Lease Terms form to identify the asset retirement costs forFinancial Accounting Standards Board (FASB) purposes in the lease terms.

Item Description

NPV Dilapidation /Restoration Costs

The net present value (NPV) of landlord costs for removingthe wiring, signage, satellite dish installation, and othercleanup expenses in the lease terms.

Cash flow NPV breakdown sectionUse this section of the Lease Terms form to identify the net present value (NPV)components of the tenant cash flows in the lease terms.

Item Description

Total Costs The net present value (NPV) of the tenant costs and expensesbefore taxes.

Income Recovery The net present value (NPV) of the tenant income or revenuebefore taxes.

Pretax Cash Flow (TotalPretax NPV)

The net present value (NPV) of the tenant cash flows beforetaxes, by subtracting the Total Costs value from the IncomeRecovery value.

Tax Impact The net present value (NPV) of the corporate income taxes.

After Tax Cash Flow The net present value (NPV) of the tenant cash flows aftertaxes, by subtracting the Tax Impact value from the PretaxCash Flow value.

Three year cash flow summary sectionUse this section of the Lease Terms form to identify the expense totals or incometotals for each three-year cash-flow line item in the lease terms.


Item Description

ID The unique identifier of the cash-flow line item record.

Financial Category The category of the expense or income.

Revision The revision of the cash-flow line item record.

Year 1 The first year in the three-year term, such as 2013.

Year One Total The total amount of the expense or income in the first year.

Year 2 The second year in the three-year term, such as 2014.

Year Two Total The total amount of the expense or income in the second year.

Year 3 The third year in the three-year term, such as 2015.

Year Three Total The total amount of the expense or income in the third year.

Term Total The total amount of the expense or income in the three-yearterm.

Common elements of lease abstract clausesLease abstract clauses share many common elements, such as document references,clause details, fair market rate value, index adjustments, and the wizard togenerate payment schedules.

You might not have access to any or all of these elements. The elements to whichyou have access depend on your job function and role within your company andhow the application was implemented at your company.

Document referencesThis area of the clause identifies where to go in the legal document to find theclause details.

Item Description







Clause detailsThis area of the clause summarizes and captures the clause text in the legaldocument.

This section shows a different set of clause details that depend on the specificclause that you open.


Item Description










Fair market rate value sectionUse this section of the Lease Abstract form to identify the monetary value of therate, adjustment frequency, and other related values.

The Rent tab shows this section if you selected the fair market rate value for theLease Adjustment Type field. This section provides the default values for the FairMarket Rate Value section in other tabs of the lease abstract. Therefore, specify thisinformation in the Rent tab before you specify the same information in other tabs.

Item Description

















Item Description





Index adjustments sectionUse this section of the Lease Abstract form to identify the cost index, index source,base index rate, adjustment frequency, and other related values.

The Rent tab shows this section if you selected the index adjustment for the LeaseAdjustment Type field. This section provides the default values for the IndexAdjustment section in other tabs of the lease abstract. Therefore, specify and savethis information in the Rent tab before you specify the same information in othertabs. Similarly, if you select the Includes Index Adjustment check box in a clause,the clause shows the Index Adjustments section.

Item Description

Cost Index The current index by which the rental costs are adjusted. Click





















Item Description


Setting default values for the index adjustments sectionYou can set the values of the Index Adjustments section in the Rent tab to be thedefault values for other tabs that also have this section.

Procedure1. Select the Rent tab.2. For the Lease Adjustment Type field, select the index adjustment option.3. Specify the values in the Index Adjustments section.4. Save the record.

Results

The values of the Index Adjustments section in the Rent tab are set as the defaultvalues for other tabs that also have this section.

Populating default values for the index adjustments sectionAfter the default values of the Index Adjustments section in the Rent tab are set,you can populate the values of this section in other tabs.

Before you begin

Verify that the default values of the Index Adjustments section in the Rent tab areset.

Procedure1. Click the tab where you are creating a clause. For example, click the Insurance

tab.2. Select the Includes Index Adjustment check box.3. Specify the remaining clause details.4. Click the Add Clause action.

Results

The tab shows the new clause in the clauses section. For example, the Insurancetab shows the new clause in the Insurance Clauses section. The values of the IndexAdjustments section in the Rent tab also populate the values of this section in thenew clause.

Generate payment schedules wizardUse the Generate Payment Schedules wizard form to create multiple paymentschedules records at a time, without leaving the wizard. The application generatespayment schedule line items when the real estate lease record is activated, andwhen the owned property agreement is activated.


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