Rent Table

Lease administrators can create payment terms using the rent table. The Rent Table lists all defined rents, as well as their payment terms under them by expense category.

If desired, you can change the view of the rent table. You can view the rent table with amounts per period rather than per expense category by clicking Group by Period at the top of the rent table. Note that the monthly amount is approximate and is assumed on the basis of 30 days per month. When the rent table is grouped per period, monthly amounts are displayed per expense group.

You can also view your amounts per month rather than per year by clicking Calculate Monthly at the top of the rent table.

Note: To switch the rent table view to Group by Period, all expense categories defined in the rent table must be mapped to an expense group in the admin section.

You can create multiple rents for each expense category, with payment terms defined under them. If required, each rent can have a separate currency. Note that for each different currency under the contract, a separate contract is created in Nakisa Lease Accounting Suite.

Legacy terms are visible in the rent table, but cannot be edited or deleted. Legacy terms are marked in the Rent Table.

All information in the rent table is translated to Nakisa Lease Accounting Suite objects. Note that cost objects that are entered at the premises level, and legacy terms are not transferred to Nakisa Lease Accounting Suite.

In the case that a pre-existing lease component has been selected and associated to the contract, the rent table will automatically be filled in based on the information from Nakisa Lease Accounting Suite after the contract is activated. Note that additional terms from Nakisa Lease Accounting Suite that are not configurable in Nakisa Portfolio Management may appear in the rent table.

Note: If there are changes made in Nakisa Lease Accounting Suite that cause discrepancies between the rent table terms and the information in Nakisa Lease Accounting Suite, the application updates the contract at activation, and then once per day to reflect the changes. If a term is unexercised in Nakisa Lease Accounting Suite, it is marked as Hold when the application syncs with Nakisa Portfolio Management. Users can also click the Sync Contract With Nakisa Lease Accounting Suite button in the Actions menu to sync the contract when required. For changes made once the contract is active, the application deactivates the original contract and creates a new contract version that is automatically activated.

For more information on the workflow for IFRS 16/ASC 842 compliance, see Rent Table and Accounting (IFRS 16/ASC 842 Compliant)

To create a payment term in the rent table:

Click Main Menu > Contracts and open the required contract.
Open the Rent Table.
Click to add a rent.
In the Create Rent window, select an Expense Category Type. If the Contract Type is an Other Agreement created from an owned location, only the"Non-lease" expense category type is available.
Select an Expense Category for all the payment terms under this rent.
Note: For Free Rent / Reduction terms, the amount (entered as a negative value) reduces the base rent or extension amount, but cannot result in an overall negative value. The First Payment Date should be on or after the Contract Start Date and payment dates should match those of Base Rent terms.
Note: For Cash Incentive terms, the Amount Frequency and Payment Frequency are automatically set to "One Time", and the First Payment Date can only be prior to or equal to the Contract Start Date.
Set the Payment Frequency, which indicates how frequently payments are made.
Set the Currency for the rent.
Set the Amount Frequency to indicate how frequently the total amount is applied (e.g., daily, monthly, annually). Note that selecting "One Time" means that the even if there is a partial month (due to the Start Date and First Payment Date not being on the same day), the payment amount is always equal to the Total Amount.
Set the Payment Mode to one of the following values (unless the Amount Frequency is One Time):
- Advance: The rent amount paid on a given date will be used to cover the interest expense generated since the beginning of the previous payment date until the beginning of the current payment date.
- Arrears: The rent amount paid on a given date will be used to cover the interest expense generated since the end of the previous payment date until the end of the current payment date.
If required, select an Area Type. Note that you must have an area defined in your premises for this field to be populated.
Optionally select End of Month Payment if the First Payment Date is set to the last day of the month (e.g., February 28 or April 30). If it is checked, all subsequent payments occur on the last day of the month. If it is unchecked, all subsequent payments occur on the selected day of the month.
Optionally select Pro Rata if you would like Nakisa Portfolio Management to automatically calculate any pro-rated amounts or special payments.
- If Pro Rata is enabled, set the First Payment Date.
Under Payment Terms, click to add additional rows in the Payment Terms section.
In the Payment Terms section, set the following fields:
- Set the date range for the payment term with the Date From and Date To fields.
- Enter the Amount. If there is an Area Type selected in the rent, the application automatically calculates the Annual Rate per Area.
- Set the Term Indexation Type.
  - If "Flat Increase" is selected, indexation will not apply to this term.
  - If "Apply CPI" is selected, indexation will apply to this term.
- Optionally click the Hold switch if you would like to prevent this term from generating scheduled payments. When this switch is enabled, the term does not generate payments and is unexercised in Nakisa Lease Accounting Suite.
  Note: If a term is unexercised in Nakisa Lease Accounting Suite, the change is reflected in the scheduled payments, but the equivalent term in Nakisa Portfolio Management is not marked as held.
- The Rate field indicates the difference between the previous payment term and the current one. This field is automatically filled in after an Amount is entered, but can be modified, if necessary. Note that changes made in the Rate field are reflected in the Amount.
- The Rate Date is automatically filled in based on the date when changes were made to the Rate.
- If Nakisa Accounts Payable Automation is enabled, optionally click the Confirmed Amount checkbox to use the scheduled payment amount as the invoice amount, rather than the previous confirmed amount when generating an Accounts Payable Batch. Note that this setting must first be enabled in the Admin section.
- To enter additional information, click > Edit Payment Term. The window opens:
  - Optionally, select the checkboxes Override First Payment Amount or Override Last Payment Amount to override the first or last payment amount and enter a specific amount. For example, if the contract start date is Jan. 1 and the First Payment Date is Jan. 15 with payments in advance, you may need a special payment at the start of the contract to cover the Jan.1 -Jan. 14 period. Note that these fields are read only if Pro Rata is enabled. If Pro Rata is enabled after entering information in the following fields, the amounts calculated automatically take precedence and previously entered amounts are lost.
    - Set only the First Payment Amount or Last Payment Amount to change the amount of the scheduled first or last payment.
    - Set only the First Special Payment Date or Last Special Payment Date to add an extra pro-rated or full payment amount. Note that the First Special Payment Date must be before the Date From and within the contract start and end dates, and the Last Special Payment Date must be after the Date To and within the contract start and end dates.
    - Set both the First Payment Amount and First Special Payment Date fields, or both the Last Payment Amount and Last Special Payment Date fields to add an extra payment of a different amount on a different date.
    - If provisioning is enabled for this contract, you can also set the First Provisioning Amount and/or Last Provisioning Amount to change the spreading of the provision accrual (without changing the overall amount). For a simple example, if the provision accrual is expected to be 1000 per month for the first quarter with periodic Provision Frequency but the First Provisioning Amount is set to 500, the provision accrual for the three months becomes 500, 1250, and 1250. Note that these fields are disabled if the Payment Frequency is "One Time" for both "Straight -Line" and "Periodic" Provision Frequencies or "Monthly" for "Periodic" Provision Frequency.
  - All fields in the CPI section are set by default and cannot be modified. Note the following:
    - Base Indexation Rate: The original indexation rate used when the contract was first created.
    - Base Indexation Date: The original indexation Reference Date used when the term was first created in the Rent Table.
    - Reference Indexation Rate: The updated indexation rate used for an executed indexation plan. Note that if you are using conditional indexation, this field contains the Applicable Current Index Level.
    - Reference Indexation Date: The updated indexation Reference Date used for an executed indexation plan.
- After all the required fields are filled in, click Update.
Optionally, click > Create Occurrences to copy the payment term with dates automatically advanced by the same duration. Enter a percentage in the Rate field to adjust payment amounts for the occurrences.
In the Vendors section, set the required information:
- Select the vendors associated to this rent by selecting the Vendor Name. A vendor is the person or entity who is receiving payments linked to owned locations, or the person or entity who is making payments linked to leased locations.
- In the Percentage (%) column, enter the ownership for each vendor.
- If you wish to calculate taxes for a specific vendor, click the Calculate Taxes checkbox next to the vendor. This option is only available for vendors with configured Tax Code Determinations.
- The Tax Jurisdiction is set automatically based on the configuration in Financial Organization Structure, but can be changed if needed.
- The Tax Exemption Percentage is set automatically based on the configuration in Financial Organization Structure, but can be changed if needed.
- Click to add any additional vendors.
After all payment terms have been created and all the vendors are associated, click Save.
You can now approve your contract.

To manage the rent table:

Click > Edit Rent to modify a rent.
Click > Copy Rent to copy a rent.
Click > Delete to delete a rent.
Click to filter your rents.