Real Estate Portfolio Management / Lease Administration

Define Cost Categories

When Lease Administrators enter recurring costs for rents, they indicate the type of recurring cost by selecting from the cost categories you enter. Cost Categories are used to generate lease financial reports by month or year (such as Lease Net Income by Month), Cash Flow, or Costs reports. Lease and Cost Administrators can generate these reports to include any of the cost categories that you define.

When you define a Cost Category, you can enter a Cost Class, Cost Category, and Cost Type for the category. You must develop Cost Classes and Cost Categories if you are planning to calculate chargeback using the Cost Chargeback & Invoicing application.

The cost type identifies a cost category with a specific type that is used for some reports. Some calculated fields depend on the Cost Type. For example, the Lease Abstract and Rent Roll reports summarize the following values for costs assigned to the lease for the Base Rent, Pct. Rent, Tax, Operating, and Other cost types.For more information about cost types, see About Cost Categories.

To define cost categories:

Select Lease Administration/Background Data/Define Cost Categories task.
The Define Cost Categories form appears.
In the Cost Categories panel, click Add New.
The Cost Category panel shows the fields to define the cost category.
Enter the following required field:
Cost Category: Enter a unique identifier for the cost category. Your cost categories might include values such as RENT- BASE RENT, RENT - DEPOSIT, RENT- SUBLEASE, SECURITY - PERSONNEL, ADMIN - PAYROLL.
Enter the following field if you want to generate reports for specific classes of cost categories, or if you are planning to calculate chargeback in the Cost Chargeback and Receivables application using ARCHIBUS for Windows:
Cost Class: Enter a unique value to identify the cost class, which is the first level of roll-up above Cost Categories. This field uniquely identifies Cost Class records.
Enter the following optional field if you want to identify certain cost categories with a specific type:
Cost Type:The Cost Type value defaults to N/A, which indicates a cost with no specialized roll-up category. Other possible values are:

BASE RENT -- Identifies costs that appear in the "Leases and Base Rents" report and that are summarized to the Amount - Base Rent field of the Leases table.
LEASEHOLD IMP. -- Identifies costs that are part of leasehold improvements.
OPERATING EXP. -- Identifies costs that are operating expenses and are summed to the Expense - Oper. Total field of the Properties table.
OTHER RENT -- Identifies rent charges that are not base rents and are not percentage rents but which you wish to include in the summary of costs documented in the Leases table's Amount - Total Rent Expense and Amount - Total Rent Income fields.
PCT. RENT -- Identifies costs that are determined from a percentage of sales or gross receipts. This cost type is typically used for costs associated with leases for retail properties. These costs get summarized to the Leases table's Amount - Pct. Rent field.
TAX -- Identifies costs to appear in tax cost summaries, tax cash flow, and tax projections. These costs get summarized to the Properties table's Expense - Tax Total field and are used in property tax rate and assessed value calculations.
UTILITY -- Identifies costs that are summed to the Expense - Utility Total field of the Properties table.

Assigned To - Rolls Up To - Prorates To - :: This field controls the roll-up and proration strategies for charging back costs to properties, leases, departments, buildings, and accounts. This information is used by the Chargeback Costs - Generate action. See the Manage Chargeback Costs task in ARCHIBUS for Windows.
Click Save.
To add additional responsibilities, repeat steps 2 through 9