New Lease Wizard

Specify the cost of the insurance policy.

Specify the insurance policy amount.

Indicates whether the period-by-period functionality is used (for example, the invoices for a lease are month to month):

• Yes: The period-by-period functionality is used. Invoices are created on a period-by-period basis, and lines are added based on the billing frequency of the lease.
• No: The period-by-period functionality is not used.

The default value is from the General tab on the Property Lease Management Parameters page.

Specify the start date for the term.

Required. The default date is from the Rent commencement date in Step 1: Set up a lease.

Specify the end date for the term. Editing the end date changes the start date for the following line.

Required.

Select a term type. The available options are created on the Term Types tab of the Property Lease Management Parameters page.

Specify the number of lead days required for lease notices.

Specify the end date of the lowest level. The default date is the end date of the last term. You can change the date as needed.

For a lease that uses the period by period functionality, the default date is empty.

When the end date is empty, the date of the is determined by the Start date and the charge frequency.

Displays the CAM expense pools attached to the property. All default values are set up on the Property Lease Management Parameters or the Expense Pools pages. You can add or remove expense pools or change the details as needed.

When a CAM expense pool is removed, the associated expense accounts from the list below are also removed.

Select the method for calculating CAM expenses: 

• Base year: CAM expenses are based on the first year of a lease.
• Current year: CAM expenses are based on the actual expenses of the current year.

For more information, see Calculations.

Once a reconciliation for a CAM expense pool exists, the calculation method cannot be changed.

Select the pro-rata share method for dividing the CAM expenses proportionately among all affected tenants.

• Fixed percentage: CAM expenses are calculated as a percent of the actual CAM expense amount.
• Property area: CAM expenses are calculated as follows: Actual CAM expense * (leaseable area of a unit / leaseable area of the building).
• Tenants area:  CAM expenses are calculated as follows:  Actual CAM expense * (chargeable area of a unit / chargeable area of all units in the building).
  When Exclude CAM calculation is selected for the lowest level on the Lease Details page, the lowest level is excluded from the calculation.

For more information, see Pro-Rata Share Method.

Specify the percent for the pro-rata calculation method.

Available and required when Fixed percentage is the pro-rata method used.

Select whether the CAM reconciliation amount is calculated based on the fiscal or lease year.

• Fiscal year: The CAM reconciliation is based on the fiscal year as set up in Microsoft Dynamics 365 for Finance and Operations.
• Lease year: The CAM reconciliation is based on the lease year.

For example, the fiscal year for a company is January to December. A lease has a start date of April 1, 2018. When the CAM reconciliation is based on the fiscal year, the reconciliation is performed on December 31, 2019. When the CAM reconciliation is based on the lease year, the reconciliation is performed on March 31, 2019.

Specify the base year for the CAM reconciliation. The default is the current year, which you can change.

Available when using the Base year calculation method.

Displays the base year amount for the CAM expenses.

This field is mainly used when importing data from a different system when implementing Property Lease Management.

Displays the associated accounts for the selected CAM expense pool. All default values are set up on the Expense Pools pages. You can add or remove expense accounts or change the details as needed.

Select the capping type: 

• Cumulative: The cap amount is calculated cumulatively starting from the base year and considering all previous years.
• Non-cumulative: The cap amount is calculated based on the current year and is reset every year.

For more information, see Capping.

Specify the cap percent.

The cap can only be used with when Calculation method is Base year.

Specify the mark-up percent.

For more information, see Markups.

Specify the gross-up percent.

For more information, see Gross Ups.

Displays the charge ID.

Select the item number that is included as an additional component for the charge.

The item number is required for Vendor Invoice and Sales order invoice types. For Invoice journal or Free text invoice types the item number is optional.

For charges for an expense lease, the item selected must be a non-stock item.

Note: An item number can be used for a revenue lease or an expense lease but not both.

Displays the name of the selected item. This value is automatically updated when the Item number is selected, but you can change it as needed.

Select the charge type: 

• CAM: The charge is used for common area maintenance (CAM) charges that are added to a revenue lease. For more information on CAM charges, see CAM Expense Calculations.
• Consumption: The charge is a measured amount based on usage that is applied to a lease. For example, electricity charge.
• Regular: The charge is a specified amount that is applied to a lease. For example, charging an amount of 200. 00.
• Sales based: The charge is used for sales based reconciliation.

The charge type is set up on the Charges page.

Select a default billing frequency for lease charges. The options are: Monthly, Weekly, Quarterly, Annually, and One Time.

Select the meter number attached to this level.

Available and required when Charge type is Consumption.

Displays the unit of measure used for item.

Select the charge recoverable type. The following options are available:

• None: No charge recoverable type is used.
• Sales: Charge recoverables are based on sales reporting information.
• Contribution: Charge recoverables are based on contribution deduction calculations.
• Meter reading: Charge recoverables are based on meter reading information.

Indicates whether the period-by-period functionality is used (for example, the invoices for a lease are month to month):

• Yes: The period-by-period functionality is used. Invoices are created on a period-by-period basis, and lines are added based on the billing frequency of the lease.
• No: The period-by-period functionality is not used.

The default value is from Step 4: Set up lease terms.

Select whether the leased item uses the lease accounting standard (e.g., ASC 842/IFRS 16).

• Yes: The leased item uses the lease accounting standard.

  When the option is selected, you must specify the main accounts you want to use for the lease components:

  • Direct Cost GL Account
  • Gain on Lease Account
  • Lease Liability Account
  • Lease Payable Clearing Account
  • Loss on Lease Account
  • Accumulative amortization account
    
    • Required for the IFRS 16 accounting standards and for ASC 842 when Use accumulative amortization account is Yes on the Property Lease Management Parameters page.
  • ROU Asset Account
  • ROU Asset Adjustment Account
  • Tenant Incentive GL Account
  • Variable Rent Expense Account
  • Financial lease (does not apply to charges)
    • Interest Expense Account
    • Amortization Expense Account
  • Operating lease
    • Lease Expense Account
• No: The leased item does not use the lease accounting standard.

Select whether or not the charge has been imported from another source.

• Yes: The charge was migrated into your PLM environment.
• No: The charge was created in your PLM environment and therefore not migrated.

Select whether to have the invoice line for the charge to be consolidated with other charges.

• Yes: The charge is not consolidated and appears as a separate line on a separate invoice. This option is usually selected for charges such as sales based charges.
• No: The charge is consolidated with other lines on the invoice.

The default value is from the Property Lease Management Parameters.

Displays the charge ID.

Specify the start date for the term.

The default date is from Step 1: Set up a lease.

Specify the end date for the term. Editing the end date changes the start date for the following line.

The default date is from Step 1: Set up a lease.

Select an increase option on which to base escalations:

• Greater Of: Of the escalation methods entered, uses the method that has the largest value for the escalation.
• Lesser Of: Of the escalation methods entered, uses the method that has the smallest value for the escalation.

Specify a percent value to be used as the escalation.

Specify an amount to be used as the escalation.

Select a CPI (Consumer Price Index) schedule. CPI schedules are created on the CPI Schedule window.

If CPI escalation is selected, the percentage change for the charge is based on the percentage change between the CPI index values from the lease commencement date or the previous escalation date. CPI adjustments affect the revenue amount. The following formula gives you the percent change of the revenue amount: (Current CPI / Previous CPI value) - 1

Select a rate schedule. The first increase affects the entire amount of the schedule, further increases are incremental based on the amount affected.

This area is for setting up the charge account and financial dimension values.

• Charge account

Select the main account number for the charge.

This account is used for the invoice of the charge. You can change the account when applying a charge to a lease.

• Financial dimensions

Displays the default financial dimensions for the charge for the selected line, which can be changed as needed.

• BusinessUnit
• CostCenter
• Department
• ItemGroup
• Project

Financial dimension is a standard Microsoft Dynamics 365 for Finance and Operations feature. For more information on using financial dimensions, see Financial Dimensions.

When the financial dimension values are empty, the financial dimensions are from the lowest level, customer/vendor, or charge.

Displays the item sales tax group and sales tax group for the charge. The default item sales tax group and sales tax group are from the lowest level of the property.

• If the lowest level does not have an item tax group, the default value is from the charge.
• If the lowest level does not have a sales tax group, the default value is from the customer or vendor record.

The sales tax is a standard Microsoft Dynamics 365 for Finance and Operations features. For more information, see the Microsoft Dynamics 365 for Finance and Operations documentation.

• Sales tax overview
• Set up sales tax groups and item sales tax groups