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Billing Lines
Modules > Property lease management > Leases > All Leases > [select a lease] > [select charge line] > Billing lines button
Use this page to specify details for the billing lines of a charge, such as escalation and abatement. You can also review the billing lines for the periods.
Note: The lease accounting standard can be used on expense leases that have a start date that is earlier than the lease accounting start date as specified on the Start date field on the Property Lease Management Parameters page. However, if the lease accounting standard start date is in the middle of a billing period, the billing period must be split so that a billing period ends before the lease accounting standard start date, and the next billing period is on the day of or after the lease accounting start date. For more information and assistance contact your administrator.
View example.
Default Date Values
The default dates that are applied to the charge details are based on the dates of the lowest level (e.g., unit) or the lease terms. Remember, you can change these dates as needed, but the default values serve as the basis from which you can work. The following scenarios provide more information.
- Scenario 1
- Scenario 2
- Scenario 3
If start and end dates for the lowest level are provided, the charge lines use the start and end dates from the lowest level. In this scenario, it doesn't matter if lease terms exist or not.
If only the start date for the lowest level is provided, and the start and end dates for the lease term are provided, the charge lines use the start and end dates from the lease term.
If only the start date for the lowest level is provided, and no lease terms are attached to the lease, the charge lines use the start date of the lowest level, and the end date is determined by the billing frequency (e.g., monthly) of the lease.
Edit a Regular Charge
To specify the billing details for a regular charge, follow these steps:
- After you add a lease or select to edit a lease from the All Leases View, go to the Charges FastTab, select the charge you want, and select Billing lines.
- Select the Billing tab.
- On the Escalation (Billing tab) FastTab, enter the details for escalating the charge.
- On the Abatement (Billing tab) FastTab, enter any abatement discount details.
- Select Process to review the changes in the Billing Lines (Billing tab).
- If you want to change any of the lines in the Billing Lines (Billing tab), you must go back and edit the escalation or abatement as needed, and select Process again.
- Select OK.
Edit a Meter Charge
To specify the billing details for a meter charge, follow these steps:
- After you add a lease or select to edit a lease from the All Leases View, go to the Charges FastTab, select the charge you want, and select Billing lines.
- Select the Billing tab.
- On the Abatement (Billing tab) FastTab, enter any abatement discount details.
- Select Process to review the changes in the Billing Lines (Billing tab).
- If you want to change the abatement for the lines in the Billing Lines (Billing tab), you must go back and edit the abatement as needed, and select Process again.
- Select OK.
Note: Before you edit the billing lines for the charge, you must have already entered the meter reading information for the charge and processed the line(s).
To edit an already processed meter line, select the line and select Remove. If several lines for the same meter are in the list and you remove a top or middle line, the subsequent lines for the same meter are also removed. Edit the lines on the Meter Readings page and process the lines again. When you return to this window to edit the charge details, the updated billing lines are available.
Edit Lease Accounting Standard Details for a Charge
To specify the lease accounting standard details for a charge, follow these steps:
- After you add a lease or select to edit a lease from the All Leases View, go to the Charges FastTab, select the charge you want, and select Billing lines.
- In the Billing tab, add escalation or abatement to the charge as needed.
- Select the Lease accounting standard tab.
- On the Direct Cost and Incentives (Lease accounting standard tab) FastTab, enter any direct costs and incentives.
- On the Amortization Schedule (Lease accounting standard tab) FastTab, change any values as needed.
- Select Process to review the changes in the Billing Lines (Billing tab).
- Select OK.
Charge Header
The header contains the following read-only fields:
Field | Description |
Lease number |
Displays the lease number. |
Charge number |
Displays the charge number. |
Billing frequency | Displays the billing frequency for lease charges. The options are: Monthly, Weekly, Quarterly, Annually, and One Time |
Initial amount | Displays the initial amount for the charge for the lease. Not available for meter charges. |
Button
Field | Description |
Process | Updates the lines in the Billing Lines (Billing tab) FastTab based on the specified escalation and abatement changes. |
Escalation (Billing tab)
Use this FastTab to specify the details for escalating a charge. The escalation lines are automatically created based on the start and end dates of a term for the selected charge. This FastTab is not available for meter (or consumption) charges.
The escalation term dates cannot overlap. However, a date gap can occur between term dates. For example, one line has a term start date of January 1 and an end date January 15. The following term start date cannot be on or before January 15. However, it can gave a term start date on January 16 or later. When a gap occurs between escalation terms, the settings of the previous term are used until the next term begins.
Example: Escalation date within term dates
In this example, the two terms have escalations where the date is within the specified term dates:
Term line | Term start date | Term end date | Escalation date | Escalation Amount |
1 | January 01, 2018 | December 31, 2018 | December 31, 2018 | 100 |
2 | January 01, 2019 | December 31, 2019 | August 01, 2019 | 200 |
In the first term, the escalation starts on the last date of the term (31 December 2018). In the second term, the escalation starts on 01 August 2019.
Example: Escalation date of second term earlier than second start term date
In this example, the escalation date of the second term is in the first term:
Term line | Term start date | Term end date | Escalation date | Escalation Amount |
1 | January 01, 2018 | December 31, 2018 | December 31, 2018 | 100 |
2 | January 01, 2019 | December 31, 2019 | August 01, 2018 | 200 |
In the first term, the escalation starts on the last date of the term (31 December 2018). For the second term, the escalation starts on 01 January 2019. Since the start of the second term is later than the escalation date, the escalation cannot start until the term has started.
Example: Rate schedules and escalations
If the escalation uses a rate schedule, the escalation amount that is applied to the charge is based both on the escalation frequency and the frequency of the rate schedule selected.
For example, the following rate schedule is created:
Rate schedule: | Rate1 | |
Description: | Rate schedule 1 | |
Cost driver: | None | |
Effective date | Frequency | Rate |
March 01, 2020 | Monthly | 50.00 |
The escalation line for a charge is as follows is as follows:
Escalation date | Term start date | Term end date | Billing frequency | Type | Rate schedule |
---|---|---|---|---|---|
March 01, 2020 | March 01, 2020 | April 15, 2020 | Weekly | Lesser of | Rate1 |
When the rate schedule is applied to the charge, the rate amount is applied on a weekly basis (i.e., four weeks in a month). As a result the escalation is calculated as follows:
- Monthly rate/Weekly frequency = 50/4 = 12.50.
A weekly escalation of 12.50 is applied to the lease.
Add an escalation charge
To add an escalation to a charge, follow these steps:
- Select New.
- Specify the escalation and term start dates and the term end date. The term end date must be later than the term start date.
- Select the Escalation frequency and Type of escalation.
- Specify the escalation to use, Percent, Amount, CPI schedule, and Rate Schedule.
You can specify one or more of these escalation methods. - Repeat these steps to add more escalation lines.
When the escalation is calculated, it uses the escalation Type selected, to determine how much the escalation is. For example, Type is set to Greater of and escalation values are specified for Percent, Amount, CPI schedule, and Rate Schedule. The escalation used is the one that has the greatest calculated escalation amount.
Fields
The following field boxes are available:
Field | Description |
Escalation date |
Specify the price adjustment (or escalation) start date. The default date for the first line is the term start date as specified on the Lease Details page. The default date for subsequent lines is the day after the term end date of the previous line. You can change this date to any date between the term start and end date. If the date is outside the term start and end date range, no escalation occurs for the line. |
Term start/end date | Displays the start and end dates for the term that is selected term on the Lease Details window. The term end date can be changed as needed. |
Escalation frequency |
Select a default billing frequency for lease charges. The options are: Monthly, Weekly, Quarterly, Annually, and One Time. If you change this value, the frequency must be a longer frequency period than the billing frequency of the lease. For example, if the billing frequency of a lease is Monthly, the frequency can be changed to Quarterly or Annually. |
Type |
Select an increase option on which to base escalations:
|
Percent |
Specify a percent value to be used as the escalation. |
Amount | Specify a flat amount for the escalation. |
CPI schedule | Select a CPI schedule to attach to the escalation. If the CPI schedule you want does not exist, select CPI schedules to open the CPI Schedule page to create a CPI schedule. |
Rate schedule | Select a rate schedule to attach to the escalation. If the rate schedule you want does not exist, select Rate schedules to open the Rate Schedules page to create a rate schedule. |
Buttons
This following buttons are available:
Field | Description |
Rate schedules | Opens the Rate Schedules page where you can create a rate schedule or edit the rate schedule for the selected line. |
CPI schedules | Opens the CPI Schedule page where you can create a CPI schedule or edit the CPI schedule for the selected line. |
Abatement (Billing tab)
Use this FastTab to specify the details for abatement discount for a charge. An abatement can be one of the following:
- A recurring fixed discount amount that occurs during the start and end dates.
If the charge is less than the fixed escalation amount, the abatement amount is deducted from the charge amount. - A lump sum discount amount that begins on the start date and is applied until the lump sum is reduced to zero.
Lump sum amounts are never prorated. If the lump sum amount is greater than the amount of the charge, the remaining abatement amount is carried over to the next billing period.
When a customer moves out or a lease is terminated, the abatement discounts are forfeited. For example, for the final billing period only the set lump sum or recurring abatement amounts are applied. Any unused abatement amounts are not applied, and are therefore lost.
Invoices
Abatement amounts appear in invoices as follows:
- For lines that use the Separate invoice option, the abatement appears on the same invoice as the item.
- The abatement line appears as a separate for all sales orders, free text invoices, vendor invoices, and invoice journals.
Add an abatement discount to a charge
To add an abatement discount to a charge, follow these steps:
- Select New.
- Select the Abatement account and select the Option for applying the abatement discount.
- Specify the abatement Start date, and for a recurring abatement, specify the End date.
- Specify the Abatement amount.
- Repeat these steps to add more abatement discount lines.
- Select Process to review the abatement discount in the Billing Lines (Billing tab) FastTab.
If multiple abatement lines exist, the recurring abatement amounts are applied before the lump sum abatement amounts: Net amount = (Amount - recurring abatement) - lump sum abatement
Fields
The following field boxes are available:
Field | Description |
Abatement account | Select the account to use for abatement discounts. |
Option | Select how the abatement discount is applied: Lump sum or Recurring. |
Start date | Specify the start date for the abatement discount. The default date is the term date. |
End date | Displays the end date of the abatement discount. The end date is required for a recurring abatement discount. |
Abatement amount |
Specify the abatement |
Remaining amount |
Displays the remaining amount of the lump sum abatement discount. Read-only. For a recurring abatement, this amount is the same as the abatement amount. |
Billing Lines (Billing tab)
This FastTab shows the billing lines for each period for the charge. Selecting Process updates all billing lines with the changes to the escalation or abatement. Also, the billing lines are updated when the frequency of the charge on the Lease Details is changed.
Remove a meter charge
The Remove button is available for meter charges only. To remove lines for a regular charge, edit the lines in the Escalation (Billing tab).
To remove a meter charge, follow these steps:
- To be able to see billing lines for a meter charge, process the lines using the Mass Meter Reading Entry or Meter Readings pages.
- In the list select any line that you do not want to process, and select Remove.
Fields
The following field boxes are available:
Field | Description |
General | |
Start/End date | Displays the start and end dates of the billing period for the charge. |
Amount |
Displays the total amount after the escalation is applied. |
Abatement amount | Displays the abatement amount. This amount must be less than or equal to the Amount. |
Net amount |
Displays the net amount to appear on the invoice. The net amount is calculated as follows: Amount - Abatement amount. If the calculated net amount is less than zero, this value appears as 0.00 . |
Billed |
Indicates whether the invoice for the period has been created on the Invoice Creator.
|
Free text |
Displays the free text invoice number for the charge. This value is updated if the invoice has been created for the charge. Select the invoice number to view the details. If the sales document was created in error, it can be deleted. However, the billing line becomes unbilled, and must be billed again. |
Invoice |
Displays the invoice number for the charge. This value is updated if the invoice has been created for the charge. Select the invoice number to view the details. If the invoice was created in error, it cannot be deleted. |
Due date | Displays the date on which the invoice is due. |
Invoice line amount | Displays the invoice line amount for the charge, which is calculated as the charge amount minus abatement. |
Settled currency | Displays the payment amount applied to the invoice line amount. |
Remaining amount | Displays the remaining invoice line amount, which is calculated as follows: invoice line amount - settled currency. |
Settlement status |
Displays whether payment has been made to the invoice:
|
Settlements | |
Displays the settlement information for the line that is selected on the General tab. | |
Offset voucher | Displays the voucher number for the settlement transaction. |
Date of settlement | Displays the date on which payment was received. |
Description |
Displays the description of the line. |
Settled currency |
Displays the invoice line amount or the abatement amount.
|
Amount settled | Displays the amount paid that is applied to the invoice amount. |
Offset currency | Displays the currency type in which the payment is made. |
Exchange rate adjustment | If the payment for the invoice line is not in the same currency as the invoice, displays the exchange rate used for the payment. |
Created by | Displays the ID of the user who processed the settlement. |
Company accounts | Displays the account used for the settlement. |
Invoice | |
Invoice | Displays invoice number for billing line. |
Invoice account | Displays the account for which invoice is created. |
Date | Displays the date when invoice is created. |
Voucher | Displays the voucher for the invoice. |
Currency | Displays currency used by the sales order / free text invoice. |
Sales subtotal amount | Displays subtotal of invoiced amount. |
Invoice amount | Displays invoice amount for billing line. |
Audit | |
Sales Order/Free text | Displays original sales order and credit applied against the billing line. |
Status | Displays status for the billing line e.g. "rebill" |
Date | Displays transaction date for sales orders / free text created |
Buttons
This following buttons are available:
Button | Description |
Remove |
Available for meter charges only. Removes the selected line. This action can be useful to correct errors before creating the invoice.
After removing lines for a meter charge, you can make any corrections on the Mass Meter Reading Entry or Meter Readings page. When you review the lines, the Processed check box is cleared for all lines that appeared in this billing lines list. |
Direct Cost and Incentives (Lease accounting standard tab)
The Lease Accounting Standard tab is available for expense leases that have regular charges that use the lease accounting standard functionality (e.g., use ASC 842/IFRS 16).
Use this section to specify the direct cost or incentive amounts for the lease. Theses values can be changed in one of following situations:
- The initial journal entry has not been created.
- The initial journal entry as been created, but the invoice or stub for the period has not been created.
When the amount is changed, the ROU asset amounts and initial journal entry are recalculated.
When the amount is changed, a warning message appears. If you choose not to change the amount, all values remain as is. If you choose to change the amount, the initial journal entry is reversed with the same date, the ROU asset amounts and initial journal entry are recalculated, and a new initial journal entry is created.
If the invoice or stub for the period already exists, this amount cannot be edited.
Add direct cost or incentive
To add a direct cost or incentive line, follow these steps:
- Select New.
- Select the Type and select the Option for applying the direct cost or incentive.
- Specify the Start date, and for a recurring direct cost or incentive, specify the End date.
- Specify the Amount.
The lines in the Amortization Schedule (Lease accounting standard tab) and Audit (Lease Accounting Standard tab) FastTabs are updated based on the incentives or direct costs added.
Fields
The following field boxes are available:
Field | Description |
Type |
Select the type: Tenant incentives or Direct cost. |
Option |
Select how the incentive or direct cost is applied: Lump sum or Recurring. |
Start date |
Specify the start date for the incentive or direct cost. Required. The default date is the term date. |
End date |
Displays the end date of the incentive or direct cost. The end date is required for a recurring incentive or direct discount. |
Amount |
Specify the incentive or direct cost amount. |
Amortization Schedule (Lease accounting standard tab)
The Lease Accounting Standard tab is available for expense leases that have regular charges that use the lease accounting standard functionality (e.g., use ASC 842/IFRS 16).
This schedule shows the economic life of a right-of-use (ROU) asset during the life of the lease. The discount rate on the Lease Details is applied to the amortization schedule. Changing the values on the other FastTabs updates the amortization schedule.
Create the initial general journal
To create the initial general journal entry, follow these steps:
- Edit the direct costs and incentives and the amortization settings as needed.
- Review the updated amortization schedule.
- Select Initial journal process.
- In the dialog, specify the date on which the initial general journal is processed. If needed, specify a comment.
- Select Process.
After the initial general journal entry is created, the journal number is added to the line in the Audit (Lease Accounting Standard tab). To review the details of general journal, select the journal number to open the journal voucher.
Remeasure the lease liability and ROU asset amount
If an expense lease is modified, the lease liability and ROU asset amount must be remeasured or recalculated. Changes to the lease can include, but are not limited to the following:
- The discount rate or other changes on the Lease Details is changed
- Escalation or abatement lines are added
- Direct costs and incentives are added
- The economic life, residual amount, or purchasing option amount are changed
To remeasure the lease liability and ROU asset amount for a lease, follow these steps:
- Perform any of the changes as described, and process them on the Billing Linespage.
- Select Remeasure.
- In the dialog, specify the date on which the remeasure is processed. If needed, specify a comment.
- Select Process to remeasure the lease liability and ROU asset amount.
The amortization schedule is updated and a line is added to the Audit (Lease Accounting Standard tab). To review the details of the remeasure, select the journal number to open the journal voucher.
Remeasuring a lease liability can be performed after the initial journal entry has been created. During the remeasuring process, the original initial journal entry is reversed and a new journal entry is created. Review the transactions in the Audit (Lease Accounting Standard tab).
Fields
The following field boxes are available:
Field | Description |
Header | |
Report start date | Displays the reporting start date for the lease accounting standard. |
Start date | Displays the start date for the lease accounting standard. |
Lease incentives | Displays the total sum of the lease incentives from the Amortization Schedule (Lease accounting standard tab). |
Initial direct cost | Displays the total sum of the initial direct costs from the Amortization Schedule (Lease accounting standard tab). |
Net present value |
Displays the net present value, which is calculated as the sum of the Amount for periods with same discount rate and modification date |
Lease liability | Displays the liability for the lease. |
ROU asset |
Displays the remaining ROU asset balance. |
Amortization/Lease expense |
Displays the amortization or lease expense amount per period. This value is calculated as follows: Lease liability / economic life. Amortization expense applies to financial expense leases. Lease expense applies to operating expense leases. |
ROU asset adjustment | Specify the ROU asset adjustment amount. |
Lease term |
Displays the average length of a period of a term in months. This value is calculated as follows: Total number of months in the amortization schedule / number of periods. The economic life applies to operating expense leases. |
Economic life |
Displays the economic life of the asset for the life of the lease. This value is equivalent to the total number of periods in the lease, which is calculated based on the start and end dates of the lease. The economic life applies to financial expense leases. |
Residual amount |
Specify the residual amount of the asset at the end of the lease. This value can be edited any time during the life of the lease and does not affect periods that have already been processed (e.g., stubbed or had the invoice created). |
Purchasing options |
Specify the purchasing options (or buyout) amount of the asset at the end of the lease. This value can be edited any time during the life of the lease and does not affect periods that have already been processed (e.g., stubbed or had the invoice created). |
Lines | |
Displays the ROU amortization schedule. The list has the following information:
|
Buttons
Button | Description |
Initial journal process |
Opens a dialog where you specify the date on which the initial general journal is created. You can also specify a comment for the general journal. When you select Process, the initial general journal for the ROU asset is created. This button is available only when the initial general journal has not been created. |
Remeasure |
Opens a dialog where you specify the date on which the lease liability and ROU asset are remeasured based on various changes made. You can also specify a comment for the remeasure. Only the periods that have not been processed are affected by the remeasure. If an expense lease is modified, the lease liability and ROU asset amount must be remeasured or recalculated. Changes to the lease can include, but are not limited to the following:
|
Audit (Lease Accounting Standard tab)
The Lease Accounting Standard tab is available for expense leases that have regular charges that use the lease accounting standard functionality (e.g., use ASC 842/IFRS 16).
This audit table shows all changes made to the lease that affect the values used by the lease accounting standard.
The following field boxes are available:
Field | Description |
Start date | Displays the start date of the lease. |
Discount rate | Displays the discount rate (from the Lease Details) applied to the lease. |
Lease term | Displays the number of months in a billing period of a lease term. |
Net present value | Displays the net present value of the lease. |
Lease liability | Displays the value of the lease. |
ROU asset | Displays the ROU asset value for the lease. |
ROU asset adjustment | Displays the ROU adjustment amount for the lease. |
Amortization/Lease expense | Displays the amortization or lease expense for a period. |
Lease incentives | Displays the lease incentives for the ROU asset. |
Initial direct cost | Displays the indirect costs for the ROU asset. |
Purchasing options | Displays the purchasing option amount for the ROU asset. |
Residual amount | Displays the residual amount for the ROU asset. |
Journal number | Displays the journal number for the amounts for the lease accounting standard. |
Reversal journal number | If the journal entry is reversed, displays the journal number for the reversal. |
Comment | Displays the comment for the journal batch. |
Date | Displays the date on which the change occurred. |