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Real Estate Portfolio Management / Cost Administration / Cost Administrator

Adding a Lease Indexing Profile

To automate lease indexing, you associate a lease with a Lease indexing Profile. This profile stores the information the application needs to calculate the base rent cost adjustments, such as the specific price index to use and how often to calculate the index change.

Getting Started

Before adding a Lease Indexing Profile, you do the following:

• Add the recurring cost record for the lease's base rent using the RENT - BASE RENT cost category. The application fills in the Rent Initial field stored in the Lease Indexing Profile based on the base rent amount entered in this record. See Adding Recurring Costs.

• Define the price index the profile uses. If the Business Process Owner for cost administration has not already defined the index used by the lease, the lease cost administrator can do so when adding the Lease Indexing Profile for the lease. See Defining Indexes.

Note: Although the application enables you to apply both lease indexing and a yearly factor to the same lease, in general, using both methods is not a recommended best practice. Typically, you would apply one method or the other.

Procedure: Entering a Lease Indexing Profile and Generating Indexed Rent Records

To add a Lease Indexing Profile:

1. From the Process Navigator, select Real Estate Portfolio Management / Cost Administration / Cost Administrator / Lease Cost Profile.

   The Lease Cost Profile Details view appears.

2. Select the Lease Code from the Lease Code list, and click Show.

   Lease Code: This field shows the unique identifier for the selected lease. The General Lease Information section shows information for the lease.

3. Enter the following required information for the profile. The application cannot calculate the index adjustment if this required information is not entered:

   Index Cost? Select this check box to enable indexing for the selected lease. This check box can also be selected for a lease when entering its lease information.

   Index Code: Select the price index that will be used to calculate the base rent cost adjustment for the lease. If the index is not in the list, you can add it by clicking Add New on the bottom of the Select Value - Index Code form. See Defining Indexes.

   Indexing Frequency: Select how often you want the application to recalculate the base rent costs using the index.

4. Click Save to save the profile information.
5. Click Generate Indexed Rent to generate indexed rent transactions for the lease using the information entered in the Lease Indexing Profile.

   To see a description of the fields that are auto-populated or are optional, see Lease Indexing Profile Additional Details.