chargeback (Real Property)

A process that rolls up an entity's costs to a higher level (rollup), or that determines an entity's share of an expense or income item based on its proportionate share of area (proration).

With the Real Property features, you can roll up lease costs to buildings or properties, or building costs to properties. For example, you can roll up building maintenance costs to the property the building is associated with, so that you can budget on a property level. You can also proportionately distribute any building, property, or lease expense or income among properties, leases, buildings, accounts, or departments. For example, you can proportionately bill each tenant on the property for improvements to the parking lot, with tenants occupying the most space on the property paying the highest percentage of this cost.

To charge back lease, building, property, or account costs, you associate each cost with a cost category that defines its chargeback and proration strategy, and then use the Chargeback Cost Wizard to generate the chargeback. If the cost category definition includes proration, the lease, building, property, or account is charged a percentage of the cost based on the percentage of overall area it occupies.

Compare chargeback (Space).