Page Sections

The Variable Payment page contains information and is separated into the following sections;

Variable Payment Feature

Sage Intacct Users: Please make sure you have changed the login details to point to your Intacct Sandbox in order to test the upload feature of the Variable Payments enhancement.

Section Help

Every page with Sections offers you additional help for that Section. This help information can be accessed by clicking on the question mark in the Section header bar.

Notes

To add annotations/notes to support the information entered, click on the notepad icon shown above. A new page will be displayed where you can add personalized notes that you would like to make to help you or others in your team identify key dates/reasons, etc for the lease information entered.

Variable Payment Feature

The Variable Payments feature is used to setup and schedule monthly payments that can account for payments made by a lessee that are not a component of the Lease Liability. Specifically these are payments made by a lessee for use of an asset that vary because of changes in facts or circumstances occurring after the commencement date of the lease, other than the passage of time.

Scheduling Real Estate, Insurance, Sales Tax and Other Variable Payments

Enter in any or all Real Estate Tax, Insurance Expense, Sales Tax and/or any Other Expense payment amount that you would like to create journal entries for and report against.

Select the Payment Type that you would like to schedule. We will use Other for this example.

Enter or select from the date picker the date that you would like the payment step to start on.

Note: All dates entered must be between and inclusive of the Lease Commencement Date and the Lease Expiration Date (or the Early Termination Date if applied).

Enter or select from the date picker the date that you would like the payment step to end on.

Enter in a valid currency amount.

Select the day the payment will be made in each month. For payments made at the end of each month, scroll to the bottom of the selection list and select "Last Day". This will create a payment for the last day in each month that falls between the Start Date and End Date specified.

Select the Payee (aka Vendor) that the payment will be paid to.

Once all data have been entered, you can click the Add button to create the payments.

If there are any errors with the data entered, an error message will be displayed and the payments will not be created. Fix the error and try to Add again.

If successful, the payments will be created as defined.

You can modify any monthly payment as needed if you have any varying amounts to pay.

Viewing Real Estate, Insurance, Sales Tax and Other Variable Payments

Select "All Types" to view all variable payments that have been entered or select an individual payment type to view just those payment types.

As an example, Real Estate Tax is selected below and only Real Estate Tax payments will be displayed in the Variable Payment Detail table.

Filtering Variable Payments Detail: The payments can be filtered by entering in a date range as shown below. Click on "Filter" once the dates have been entered. To clear the filter, click on "Clear".

Export Variable Payments: Select the Export Variable Payment button to create a csv file of the monthly variable payments.

Generating Journal Entries for Variable Payments

Lease Level

Once the above information has been successfully entered, you can start generating journal entries. To include the variable payment journal entries at the lease level, go to the Accounting tab as shown below and click on the "Include Variable Payments" checkbox under the Amortization and Journal Entries section.

Without the checkbox selected, the ROU and Lease Liability journal entries will be create. We will use July 2022 as an example.

By selecting the "Include Variable Payments" checkbox, all variable payments that have been scheduled for July 2022 are included.

Portfolio Level

Similarly to the lease level, once the variable payments data has been successfully entered, you can start generating journal entries at the portfolio level or "monthly batch". To include the variable payment journal entries at the portfolio level, go to the Portfolio Accounting tab as shown below.

Click on the "Include Variable Payments" checkbox under the Amortization and Journal Entries section. As shown below, the variable payment journal entries are now included in the month end batch to be exported or uploaded.

Including Variable Payments in Monthly Payments

To include Variable Payments in the monthly Payments upload/export, click on the "Include Variable Payments" checkbox on the Portfolio Payments feature.

Below is an example of the payments after the Include Variable Payments checkbox is selected. The variable payments are shown in the highlighted boxes.

Variable Payment Reports

The inclusion of the Variable Payment details have been added to the following reports;

Lease Payment Summary Report
Lease Payments Due Report
Journal Entry Detail Export/Upload Activity Report
Portfolio Payments Upload Activity Report