PSM - Sub_Esc_SL_2V4

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PSM - Sub_Esc_SL_2V4

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  1. Property Management

    Slide 1 - Property Management

    • Microsoft Dynamics GP
  2. Slide 5

    • To add charges to the lease, click the expansion button next to the unit
    • Binary Stream Inc.
  3. Slide 6

    • Here we can see the list of charges added to this lease. Suppose we wanted to add a new charge, called Miscellaneous.
    • Binary Stream Inc.
  4. Slide 7

    • Here is what the default charge master record looks like. Notice that it is a generic record, with a generic GL assigned to it.
    • Binary Stream Inc.
  5. Slide 8

    • Property Management has modified the charge ID GL coding to ensure that the revenue from this charge goes to 000-4100-30, since we set up the building with a third segment value of 30. Thus, you can rest assured that the underlying accounting is correct.
    • Binary Stream Inc.
  6. Slide 9

    • Now, I've added a value of $1,200 per month to this charge. Let's build the escalation. Start by highlighting the charge...
    • Binary Stream Inc.
  7. Slide 10

    • And click the expansion arrow to view the escalation details
    • Binary Stream Inc.
  8. Slide 11

    • This adds the associated Term to my lease, in this case, a 10 year term
    • Binary Stream Inc.
  9. Slide 12

    • Here, I can modify the escalation parameters. First, I can decide if I want to use a simple escalation, or escalate based on a Greater Than or Lesser Than comparison
    • Binary Stream Inc.
  10. Slide 13

    • I can build the escalation based on a Amount increase...
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  11. Slide 14

    • A percentage increase...
    • Binary Stream Inc.
  12. Slide 15

    • A CPI schedule...
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  13. Slide 16

    • Or a rate driver, such as a cost per square foot.
    • Binary Stream Inc.
  14. Slide 17

    • In this case, let's use a percentage increase...
    • Binary Stream Inc.
  15. Slide 18

    • Notice in the lower half of the screen.....
    • Binary Stream Inc.
  16. Slide 19

    • ...that the periodic charges have been created....if we scroll through the list, we can see the escalations being added in future periods
    • Binary Stream Inc.
  17. Slide 20

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  18. Slide 21

    • What though, if we are in a situation where the revenue needs to be recognized in a straightline fashion, over the life of the lease. Property Maangement has that built in as well. Here, we will turn on the "Calculate Straight Line" switch
    • Binary Stream Inc.
  19. Slide 22

    • The straightline calculation can be based on the entire lease, across multiple terms....
    • Binary Stream Inc.
  20. Slide 23

    • If the lease has multiple terms setup under the term ID on the left side, each term period will have it's own straightline calculation. When the parameters, including the dates, have been confirmed, we need to Process the calculation.
    • Binary Stream Inc.
  21. Slide 24

    • Look down to the recacluated escalation table....Under the SL, or straightline, Amount column, we see the aount of revenue that needs to be accrured to bring each period to an average revenue figure.
    • Binary Stream Inc.
  22. Slide 25

    • How are these numbers calculated....look in the upper right area.
    • Binary Stream Inc.
  23. Slide 26

    • Here we see the number of periods, the total amount of revenue and the average amount per period. Again, looking at the table below, we see the actual invoice amount.....
    • Binary Stream Inc.
  24. Slide 27

    • ...the average, or the straightline, amount...
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  25. Slide 28

    • ....as well as the amount that must be accrued in order to recognize the average amount.
    • Binary Stream Inc.
  26. Slide 29

    • If we scroll down the table, we will see that as the invoice amount is escalated, of course the average amount remains the same,
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  27. Slide 30

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  28. Slide 31

    • but the amount that must be accrued changes, first becoming a smaller and smaller credit, then increasing on the debit side. The result is that by the end of the lease, the amount billed and the amount recognized are equal.
    • Binary Stream Inc.
  29. Slide 32

    • Let's jump ahead a bit now...Here, I have run the invoice creation transaction. On the right side, you can see where we record the invoice number, giving you an audit trail of the invoices presented for this lease.
    • Binary Stream Inc.
  30. Slide 33

    • But in addition to creating the invoice, the straighline amount needs to be accrued. Let's examine the documents we created. First, the invoice.
    • Binary Stream Inc.
  31. Slide 34

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  32. Slide 35

    • Notice that the distributions use the proper GL accounts, thanks to the account substitution feature we looked at earlier.
    • Binary Stream Inc.
  33. Slide 36

    • We also look after the journal entry as part of the invoice process. The JE number is recorded as part of the lease record. Let's open the Journal Entry and look at the distributions.
    • Binary Stream Inc.
  34. Slide 37

    • Notice that once again, the correct account numbers are used, including any account substitution required.
    • Binary Stream Inc.
  35. Slide 38

    • Notice that once again, the correct account numbers are used, including any account substitution required. These are just some of the features available as part of Binary Stream's Property Management. For more information, please visit our website: www.binarystream.com
    • Binary Stream Inc.
  36. Learn more at www.binarystream.com

    Slide 39 - Learn more at www.binarystream.com