In the real estate management industry, a process exists of billing tenants a prorata share of operating expenses that are related to a property or building; such as utilities, taxes, insurance, maintenance, cleaning, advertising, and promotions. These expenses are known by many terms (for example common area maintenance, expense pass-through, rebills, escalations, triple net, and building operating costs). In the JD Edwards EnterpriseOne Real Estate Management system, we use the term expense participation because the system can generate billings that result in invoices and vouchers for almost any type of expense sharing.
When setting up expense participation, you can use caps or limits, to specify the amount that the tenant is monetarily responsible for. In general, caps are assigned to expenses that are considered controllable. For example, cleaning is a controllable expense while snow removal is an uncontrollable expense.
We have created an Advisor Webcast to demonstrate the basic set up and processing for many of these situations. The webcast can be accessed using the Advisor Webcast JD Edwards EnterpriseOne Schedule and Archived Recordings (Doc ID 1450327.1).
Or we also have How to Use Cap Rules within Real Estate Expense Participation (Doc ID 1538045.1) that explains this process in a document.