Adjusting the start and end dates of a payment schedule

IBM® TRIRIGA® Real Estate Manager users who require a more complex change to an active lease payment schedule, such as a multiple date and payment change, can adjust the schedule. More complex date changes to the original payment schedule might generate as many as three schedules.

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 June 1, 2013, and update the payment end date from December 31, 2014 to December 31, 2013. For this new period, she must also raise the monthly payment from $1000 to $2000 USD.

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 revises the lease to make it 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 June 1, 2013.
  • She changes the end date from December 31, 2014 to December 31, 2013.
  • She changes the monthly amount from $1000 to $2000 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 three payment schedules:
  • First schedule from January 1, 2013 to May 31, 2013 at $1000 USD.
  • Second schedule from June 1, 2013 to December 31, 2013 at $2000 USD.
  • Third 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. Although Paulina is not required to keep the third schedule, she chooses to not void the schedule just in case another adjustment becomes necessary in the future.