Hi Nancy,

The Recoveries process uses Calculation Methods (PM Setup > Calculation Methods) to determine how to calculate the recoveries. Calculation Methods are a series of formulas to perform the calculation. You can use the default calculation methods or create custom calculation methods based on how you need the recoveries calculated.

The default calculation methods has four areas where you may select a specific square footage type for that part of the calculation:

- Unit SF type and Property SF type (on the Expense Categories tab in the Recovery Controls setup) are used to calculate the tenant's share of the property expenses as a percentage of the Unit SF to the Property SF. Or you can skip the square footage and enter a Manual Percent instead.

- Stop Amount square footage type when based on Dollars per SF (on the Calculation Controls tab in the Recovery Controls setup) to calculate the Stop Amount where only the tenant's share over and above this amount is to be considered.

- Cap Amount square footage type when based on Dollars per SF (on the Calculation Controls tab in the Recovery Controls setup) to calculate the Cap Amount where the tenant's share cannot exceed this amount.

- Square footage type to calculate the Occupancy clause (on the Occupancy Clause tab in the Recovery Controls setup) where if the property's occupancy falls below a certain percentage then the tenant's share is "grossed up".

You can find more information about the default Calculation Methods and their calculations in PM Help > Help Topics, select the Index tab and search on "default calculation methods". The Calculation Methods used for expense recoveries are:

• RE/Recov Basis and RE/Reconcile (for the Reconciliation calculation)
• RE/Escal Basis and RE/Escalation (for the Escalation calculation to adjust the recurring charge amount, if applicable)
• RE/AdmFee Basis and RE/AdmFee Chg (for the Administration Fee calculation, if applicable)

There is a Recoveries & Escalations training available on Sage University sageu.com (select Product: Sage 300 Construction and Real Estate, select Training Subject: Real Estate, search: "special topics - recoveries & escalations"). There is currently a 20% discount on some of the Sage University training: https://sagecity.na.sage.com/blog/b/sage-insights/posts/special-offer-dive-deeper-into-your-sage-solution-this-summer

April

Hi Nancy,

I realized in my previous response that I only addressed the use of square footage types in Recoveries.

For reporting, most of our default reports use either Total or Rentable square footage types and there is usually a prompt to select which SF type you want to use for the report or it may be designed to use the type selected in PM Setup > Properties > General tab > Controls subtab, Square Footage Controls. You can also have your Sage Consultant customize any report to use the square footage type you want.

Square footage types are also used in calculating a property's occupancy percentages (Setup > Properties > Square Footage tab, Track Occupancy). You can refer to PM Help > Help Topics, select the Index tab and search on "square footage" to get more information about tracking occupancy and how the percentages are calculated.

You can customize your square footage types in Custom Descriptions under PM SF Type. Refer to Sage Knowledgebase article 30654 "How do I add a new square footage type in Property Management?"

I hope that helps.

April

Thank you, April!

I have tried the help topics, but they didn't quite get at my question, but your answer did!  

Do I have this right:  For reporting purposes, all properties, units, and leases  should use the same type and there might be a benefit to load both Total and RSF types to make sure all default and custom reporting will work?  Also, that the type isn't as important as the calculation methods in recoveries.  

Thanks so much for the quick response!