Real Property / Chargeback & Invoicing

Chargeback - Proration Calculations

This topic documents the proration calculations that occur when you generate chargeback from the Chargeback Cost Wizard's Generate Chargeback tab.The calculations discussed in this topic apply to costs whose cost categories proportionately distribute (prorate) costs by specifying one of the following values for the Chargeback Definition (Assigned To /Rolls Up To/Prorates To field):

Assigned To/Rolls Up To/Prorates To Value Prorates

Buildings-Properties-Leases

Properties to Leases

Buildings-None-Leases

Buildings to Leases

Leases-None-Departments

Leases to Departments

Properties-None-Buildings

Properties to Buildings

Properties-None-Leases

Properties to Leases

In order to support cost categories that both roll up and prorate values (cost categories with the Buildings-Properties-Leases value), the Charge Back Costs action first rolls up costs and then prorates the rolled up costs. For information on how the routine rolls up costs, see Chargeback - Roll-up Calculations.

How Prorated Costs are Calculated

When proportionately distributing (prorating) costs, the Charge Back Costs action uses the following calculations.

The table describes how costs are calculated from the Real Property domain.

Proration Cost Cost Calculation
From Properties to Leases Prorated Cost for each Lease =

[Cost for property as a whole ] X Area Neg. Rentable of lease]

[Total Area Neg. Rentable of all leases on the property]

From Buildings to Leases: Prorated Cost for each Lease =

[Cost for building as a whole] X Area Neg. Rentable of lease]

[Total Area Neg. Rentable of all leases in the building]

From Properties to Buildings Prorated cost for each building=

[Cost for the property as a whole] X [Building Rentable Area]

[Total building Rentable Area for all buildings on the property]

Note: The Properties to Buildings proration method sums areas for suites, groups, or rooms, depending on your chosen Lease Area method. 

Prorating Lease Costs to Departments Prorated cost for each department =

[Lease Cost] X [group/room chargeable area for the dept. for the lease]

[Total group or room chargeable area assigned to the lease]

See About Chargeable Area.

Note: To use this chargeback method, you must select your Lease Area method to be Group or Room. When you generate chargeback, the action will update the chargeable areas for Groups or Rooms based on your chosen Lease Area Method.

About Chargeable Area

The calculations for charging back to departments use the group’s or room’s chargeable area. This is the actual area a room or group occupies plus a proportion of facility common area calculated by the chargeback. If you have designated common areas for the room using the Space domain, then these common areas are used to calculate the chargeable area. If there are no common areas prorated to the site, building, or floor that the lease is associated with, then the chargeable area is equal to the group or room area. You can view the Chargeable area by selecting Chargeback & Invoicing / Background Data / Edit Rooms - Edit Groups. See Chargeback Calculations and Space Chargeback Overview.

How the Chargeback Action Prorates Costs

The Charge Back Costs action prorates Cost records to generate Scheduled Cost records by performing these steps:

Also note that:

See Also

Chargeback - Roll-up Calculations

Chargeback Proration Diagram

Example of Charging Back to Leases

Example of Charging Back to Departments

About Cost Categories

Generate Chargeback Tab

The Nine Chargeback Definitions

Costs table