Lease equalization reserve
There is a typical telecom requirement as given below:
The telecom operator rents a space (building terrace for ex) & puts a tower (site), with their own equipments, other third parties also put up their Base transceiver Stations (BTS) also on the same tower, in return the telecom operator charges the following:
- Fixed Amount (rent)
- Variable amount (power, electricity, depreciation for passive structure etc..)
During the period, if number of sharer (third parties putting up their BTS) increase, the billing value changes (predefined formula) for both fixed & variable rentals (Service tax / VAT / Service tax applicable).
For Rental objects, we needs to account of lease equalization reserve, for this we need automation of accounting.
Now the rentals are pre defined during the start of the contract, in this case how the change in rentals in between the periods of contracts can be handled?
Is there any functionality where such multiple variations during the contract period can be handled?