Adjusting the start date of a payment schedule

IBM® TRIRIGA® Real Estate Manager users who need to make a minor change to an active lease payment schedule, such as a start date change, can adjust the schedule.

Background

Paulina is a real estate contract manager at Company ABC. She is managing a real estate lease for Lessee XYZ, with a two-year lease term, a monthly payment frequency, and a monthly payment of $1000 USD. However, due to recent changes to the contract, she must update the payment start date from January 1, 2013 to January 1, 2014. The payment end date remains on December 31, 2014.

Step 1: Revise the active real estate lease

Paulina opens the TRIRIGA Real Estate Manager application and opens the active Lessee XYZ lease with its scheduled payments and active payment line items. She clicks Contract Revise > Amendment to make the lease record editable.

Step 2: Adjust the payments

Paulina opens the Payments tab and clicks the Adjust Payments action.
  • She selects the affected payment schedule.
  • She changes the start date from January 1, 2013 to January 1, 2014.
  • She keeps the same end date as December 31, 2014.
  • She keeps the same monthly amount as $1000 USD.
  • She enters the adjustment reason.
  • She keeps the Update Action to be Update or Split Payment Schedules.

Step 3: Process the adjustment

When Paulina is finished, she clicks the Process Adjustment action. The TRIRIGA Real Estate Manager application generates the following two payment schedules:
  • First schedule from January 1, 2013 to December 31, 2013 at $1000 USD.
  • Second schedule from January 1, 2014 to December 31, 2014 at $1000 USD.
The adjusted payment line items are dissociated from the original payment schedule and associated to the new schedule. You should then remove the first, erroneous, schedule and void the payment line items.