Lease Accounting
Lease Accounting (Topic 842) – The new lease accounting rules have been incorporated into SiteTools lease accounting module. The system will calculate the Right of Use Asset and Lease Liability amounts including the allowance for Initial Direct Costs and lease credits. The amortization schedule has columns for payment number, date, payment amount, interest amount, principal amount, lease cost and the running balance for the lease liability and right of use asset balances. The lease accounting balance report provides the liability and asset balances at a given point in time for all of your leases.
Alternate Rent Calculations – Alternate rent amounts may be calculated based on several different calculation methods. Alternate rents are passed to the accounts payable system in lieu of the regular rent amounts. Preformatted alternate rent letters that support the alternate rent calculation are generated and may be emailed to the payees.
Check Requests & Rent Roll Generation – Monthly rent roll generated based on the rents, costs and payees. Rents automatically pro-rate based on beginning and ending dates. Comparison report highlights all changes from previous month.
Expense Audit & Reconciliation – Each line item in the reconciliation may have a different pro-rata share ratio and similar items may be included in groups. Each group may have a separate cap amount and sales tax is calculated on each group where applicable. Prior year amounts are listed next to the current year amounts by line item to facilitate comparisons. Impounds or previous payments are displayed in a grid where they may be selected and matched against the current reconciliation. A detailed reconciliation report is generated that may act as the check request supporting document.
Expense Audit Savings – Savings are calculated in several different areas throughout the expense reconciliation including amount differences, pro-rata share differences, percent of year differences and cap amount differences. Savings are displayed on the dash board by year.
Interface with Accounting System – The rent roll and check request batch files are exported and passed to accounts payable system to generate invoices for rents and operating costs. The accounts payable check history file is received from accounts payable and is posted to SiteTools providing an easy reference within one system. The system is capable of two-way integration with client’s accounting and ERP systems.
Payees – Multiple payees may be attached to each lease. Rents and costs may be allocated and paid to multiple payees based on their percent of ownership. A complete payment history of rents and costs is maintained in the system. The payment history is displayed by cost type and in per square foot amounts for easy comparison.
Percentage Rent Calculations – Percentage rent calculations may be based on natural or un-natural breakpoints. Percentage rent calculations create invoices or check requests that may be passed to the client’s accounts payable system. Preformatted percentage rent letters may be run in batch and emailed directly to the recipients.
Rent, Cost & Payee Changes – The new and old payee and cost information is displayed on a change form. The change form contains the approvals and documentation required for audit purposes
Rents & Operating Costs – Rent and cost data including payees, amounts, account codes, beginning and ending dates are displayed on the rent and cost pages. The rent and cost information appear on the lease abstract, and they are displayed in dollars and in per square foot amounts. The payment frequency may be monthly, quarterly, annually or for specific months. Sales or Rent Tax is calculated automatically if the site resides in a ‘rent tax’ state. Payment history is available for all rents and costs that have been processed through the system.
Sales Reporting – Sales definitions may be defined for each site to meet the lease definition of reportable sales. Monthly sales are imported from client’s financial systems. Preformatted sales letters are generated in batch and may be emailed directly to multiple recipients.
Straight-line Rent – Straight-line rent calculation and corresponding amortization schedules. Ability to electronically export and import prepaid rent and deferred rent balances to and from the general ledger system.
Sublease Accounting – Invoice and track receivables due from subtenants.
Tenant Improvement Allowances (TIA) – Tenant Improvement Allowance calculation and corresponding amortization schedule including function to account for rent offsets. Ability to electronically export and import amortization balances to the general ledger system.
Standard Reports – Lease Accounting standard reports include Future Lease Obligation Report, Rent & Cost Listing, Rent Change Report, Rent per Square Foot Report, Straight-line Rent Liability Report and TI Allowance Report.