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Maintaining Leases: Charge Tab

• Periodic Lease Charges for Rent, Outgoings, Promotions, etc. are set up on Charge tab of the Lease screen. The Lease a/c Charges process is then used to create charge transactions each period.

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Mandatory Prerequisites

Prior to creating Lease Charges, refer to the following Topics:

• Accounting Periods (flagged as Current and Open for the Division) - Maintaining Accounting Periods

• Chart of Account - Maintaining Chart of Accounts
• Chart of Account Security (All) - Maintaining Chart of Accounts Permits - All

• Lease - Maintaining Leases

Screenshot and Field Descriptions: Charge Tab

Charges table: this is populated with the Charges attached to the Lease.

 

Component Properties table: this is populated with the Properties the Lease is for.

 

Charge: this is where the Property the Charge is for can be specified.

 

Inactive: this check box is to nominate that the Charge should no longer be raised or has been entered for reference only.

The text box directly below the Charge field is a reference only numeric field. After you add a new Charge record, the system allocates a unique reference number against the record. When you run the Lease a/c Charges report the number appears under the # column of the report.

Charge Stored: this is the how the value is going to be entered in the Amount field. The options are:

• Annual - the value entered in the Amount field is an annual value.
• Month - the value entered in the Amount field is a monthly value.
• Week - the value entered in the Amount field is a weekly value.
• Day - the value entered in the Amount field is a daily value.
• Adjustment - this option is for raising a once-off charge for the value entered in the Amount field.
• Apply-Fixed - this option is for raising the value entered in the Amount field.
• Apply-Multiple - this option is for raising the value entered in the Amount field multiplied by the value in the Apply field.
• Sales-%Rent - this option is for raising a Percentage Rent charge based on the Percentage Rent Profile attached to the Charge.

 

Apply / When: these fields are combined to determine the frequency of the Charge. A numeric multiplier is entered in the Apply field, while the type of period is selected in the When field. The options for the When field are:

• Months(Split/365) - a fixed amount is charged each month if the charge covers the whole month. If the charge does not cover the whole month then the split calculation is based on the number of days in the year.
• Months(Split/12) - a fixed amount is charged each month if the charge covers the whole month. If the charge does not cover the whole month then the split calculation is based on the number of days in the month.
• Periods - the amount is calculated based on the number of days in an Accounting Period.
• Days - the amount is calculated based on the number of days.

 

If Months(Split/365) or Months(Split/12) are selected in the When field the value in the Apply field works as follows:

• 1 - Charges will be created monthly
• 3 - Charges will be created quarterly
• 6 - Charges will be created half yearly
• 12 - Charges will be created annually
• 24 - Charges will be created bi-annually
• etc.

 

Next: this is date when the next Charge will be raised. This date must be manually entered the first time. The Lease a/c Charges process will automatically update this date from then on.

The Next date specifies the period to be covered by the charge. Eg. entering the first of the month will generate a charge for the whole month, while entering the 15th of the month will generate a charge from the 15th to the 14th of the next month.

Cash Book: this is the Bank account if the Charge transaction raised is going to be a Cash Sales / Cash Credit type transaction. Leave blank if a Invoice / Credit Note type transaction is to be raised.

 

On-Charge: this is how the Charge transaction raised is going to be on-charged. This is only applicable for Landlord type leases.

 

Due Date: this is the option for what the due date value is going to be on the Charge transaction raised. The options are:

• Due Date 1 - first of two possible due dates that are set up in the Accounting Periods screen.
• Due Date 2 - second of two possible due dates that are set up in the Accounting Periods screen.
• From & To - the due date will be set as the same as the From or To date of the charge. This is useful for Daily or Weekly charges where multiple transactions will be created for the period.

 

Report Type: this is the type of Charge for reporting purposes.

 

Group: this is the Lease Charge Group and is used in the Lease a/c Charges process for grouping charges into the one transaction (useful for rent and rental abatements) or separating them out (easier for receipting).

 

COA: this is the Chart of Account for the Charge transaction raised.

 

Details: this is the description for the Charge. It will default to the value set up for the COA.

 

From: the start date the Charge is for.

 

To: the end date the Charge is for. This can be left blank.

 

GST: this is the GST settings for the Charge. It will default to the type set up for the COA.

Inclusive: this check box is to nominate if the value in the Amount field will include GST or not. If this field is ticked, when the GST is calculated, the Charge amount will be reduced by the GST. If this check box is not ticked, the Charge amount will not be reduced and the GST will be added.

GST From: this is a historical field and current use is now irrelevant. It was used during the implementation of GST to allow contractual date based transactions to escape full GST.

Cost Code: this is the Cost Code for the Charge transaction raised. This field can be set as optional, mandatory or not required on the COA set up screen.

 

Fee: this is the Administration Fee if an extra fee is going to be raised with the Charge transaction.

If Sales-%Rent is selected in the Charge Stored field, the Fee field will change to % Rent for entry of the Percentage Rent Profile.

Rate/Unit: this is the rate per measurement unit (eg. Square Metres) of the Property the Charge is for. If entered the Area/Items and Amount field will automatically populate.

 

Area/Items: this defaults to the area/item value of the Property the Charge is for if the Rate/Unit field has been used. At this point it can be changed if a different value is required to calculated the Amount value.

 

Amount: this is the amount of the Charge. Note that the value entered is tied in with the value selected in the Charge Stored field, ie. if it is an annual amount, or a monthly amount, etc.

How Do I : Search For and Maintain Entities

These General Rules are described in the Fundamentals Manual: How Do I : Search For and Maintain Entities

How Do I : Add a new Charge to a Lease

1. At the Lease field, locate the Lease.
2. Click on the Charge tab.
3. Double click the row in the Component Properties table that the Charge is for. Alternatively, at the Charge field select the Charge Property type from the drop down list. In the text box next to this field, locate the Charge Property.
4. Tick the Inactive check box if the Charge is inactive or for reference only.
5. At the Charge Stored field, select the appropriate option from the drop down list.
6. In the Apply field, enter the numeric multiplier.
7. At the When field, select the appropriate option from the drop down list.
8. Select if the Charge is going to be raised In advance or In arrears.
9. At the Next field, enter the date the Charge should start being raised.
10. At the Cash Book field, select a Bank Account if the Charge transaction generated needs to be a Cash Sales / Cash Credit type. Leave blank to create a Invoice / Credit Note type.
11. At the On-Charge field, select the appropriate option if the Charge transaction generated is to be On-charged,
12. At the Due Date field, select the appropriate option from the drop down list.
13. At the COA field, enter the COA for this Charge.
14. The Details field will automatically populate from the COA selected. Change the value if required.
15. At the From field, enter the starting date range of the Charge.

The From date value can be in the past for historical reference as the Lease a/c Charges process uses the Next date to start raising a Charge.

16. At the To field, enter the ending date range of the Charge. This can be left blank.
17. The GST field will automatically populate from the COA selected. Change the value if required.
18. Tick the Inclusive check box if the Amount field will include GST. Otherwise the GST component will be calculated and added separately.
19. The GST From date will default to the value set up for GST.
20. At the Cost Code field, enter the Cost Code for this Charge if required.
21. At the Fee field, enter the Administration Fee for this Charge if required.
22. At the Amount field, enter the amount of the Charge. Alternatively, if the charge is based on a rate per measurement unit (eg. Square Metres) you can enter the rate into the Rate/Unit field. The Area/Item and Amount values will be automatically calculated.
23. Click the right hand side Application tool-bar push button: Add. This will add the Charge to the Charges table.
24. Repeat these steps to add (change or delete) more Charges.
25. Click the Application tool-bar push button: Change.
26. Confirm that you wish to change the record.

How Do I : Modify an existing Charge on a Lease

1. At the Lease field on the primary tab, locate the Lease.
2. Click on the Charge tab.
3. Double click the row in the Charges table to change.
4. At the Charge field select the Charge Property type from the drop down list.
5. In the text box next to this field, locate the Charge Property.
6. Tick the Inactive check box if the Charge is inactive or for reference only.
7. At the Charge Stored field, select the appropriate option from the drop down list.
8. In the Apply field, enter the numeric multiplier.
9. At the When field, select the appropriate option from the drop down list.
10. Select if the Charge is going to be raised In advance or In arrears.
11. At the Next field, enter the date the Charge should start being raised.
12. At the Cash Book field, select a Bank Account if the Charge transaction generated needs to be a Cash Sales / Cash Credit type. Leave blank to create a Invoice / Credit Note type.
13. At the On-Charge field, select the appropriate option if the Charge transaction generated is to be On-charged,
14. At the Due Date field, select the appropriate option from the drop down list.
15. At the COA field, enter the COA for this Charge.
16. The Details field will automatically populate from the COA selected. Change the value if required.
17. At the From field, enter the starting date range of the Charge.

18. At the To field, enter the ending date range of the Charge. This can be left blank.
19. The GST field will automatically populate from the COA selected. Change the value if required.
20. Tick the Inclusive check box if the Amount field will include GST. Otherwise the GST component will be calculated and added separately.
21. The GST From date will default to the value set up for GST.
22. At the Cost Code field, enter the Cost Code for this Charge if required.
23. At the Fee field, enter the Administration Fee for this Charge if required.
24. At the Amount field, enter the amount of the Charge. Alternatively, if the charge is based on a rate per measurement unit (eg. Square Metres) you can enter the rate into the Rate/Unit field. The Area/Item and Amount values will be automatically calculated.
25. Click the right hand side Application tool-bar push button: Change.
26. Repeat these steps to change (add or delete) more Charges.
27. Click the Application tool-bar push button: Change.
28. Confirm that you wish to change the record.

How Do I : Delete a Charge from a Lease

1. At the Lease field on the primary tab, locate the Lease.
2. Click on the Charge tab.
3. Double click the row in the Charges table to delete.
4. Click the right hand side Application tool-bar push button: Delete.
5. Repeat these steps to delete (add or change) more Charges.
6. Click the Application tool-bar push button: Change.
7. Confirm that you wish to change the record.

How Do I : Set up a Charge for $12,000 per annum that is raised Monthly

Refer to How Do I : Add a new Charge to a Lease:

1. At the Charge Stored field select the Annual option from the drop down list.
2. In the Apply field enter the number 1.
3. At the When field select the Months(Split/365) or the Months(Split/12) option, depending on the split month calculation, from the drop down list.
4. At the Amount field enter 12,000.
5. Enter remaining fields as required.

How Do I : Set up a Percentage Rent Charge

Using How Do I : Add a new Charge to a Lease:

1. At the Charge Stored field, select the Sales-%Rent option from the drop down list.
2. In the Apply field, change the numeric multiplier as required. It defaults to 1 which will result in a monthly charge being raised.
3. The When field, will default to Periods and In arrears. Leave as is.
4. At the From field, enter the starting date range of the Sales amounts the %Rent should be calculated on.
5. At the %Rent field, enter the Percentage Rent Profile for this Charge. If the details in the profile need to be adjusted refer to Adjusting Percentage Rent Profiles for Lease Charges.
6. No value is required in the Amount field.
7. Enter remaining fields as required.

Related Topics

Lease Charges are associated with the following Topics:

• Lease Charge Group - Maintaining Groups (Generic)

• Accounting Periods (flagged as Current and Open for Division) - Maintaining Accounting Periods

• Cash Book (Bank) Chart of Account - Maintaining Chart of Accounts
• Expense Chart of Account - Maintaining Chart of Accounts
• Income Chart of Account - Maintaining Chart of Accounts
• Cost Code - Maintaining Cost Codes
• Tax Rates, Dates and Types - Maintaining GST Rates

• Land - Maintaining Land
• Building - Maintaining Buildings
• Section - Maintaining Sections
• Suite - Maintaining Suites
• Annexe - Maintaining Annexes

• Administration Fee - Maintaining Administration Fees
• Percentage Rent Profile - Maintaining Percentage Rent Profiles
• Percentage Rent Profile - Adjusting Percentage Rent Profiles for Lease Charges
• Sales - Entering Sales Amounts

• Lease Account Charges - Running Lease a/c Charges