> ## Documentation Index
> Fetch the complete documentation index at: https://docs.tangoanalytics.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Glossary

> Definitions of key terms used throughout the Tango Lease platform.

## A

**Accounting Schedule**
A calculated amortization table showing the lease liability, ROU asset, and lease expense for each period, generated under a specific accounting standard (FASB 842, IFRS 16, etc.).

**Accrual Batch**
A group of accounting journal entries generated from active accounting schedules for a specific period, submitted for approval and export to the ERP.

**Allocation**
A configuration that splits a single recurring cost across multiple payees (vendor allocation) or internal cost centers (segment allocation). Total allocations must equal 100%.

**Applicable Standard**
The accounting standard applied to an accounting schedule. Options include FASB Topic 842, FASB Topic 840, IFRS 16, and IAS 17.

## B

**Base Rent**
The fixed minimum rent payment specified in the lease, typically expressed as a monthly or annual amount.

**Batch**
A grouped collection of payments (rent batch) or accounting entries (accrual batch) submitted together for approval.

**Breakpoint**
The sales threshold above which percentage rent is owed. A **natural breakpoint** is calculated as Base Rent ÷ Percentage Rate.

## C

**CAM (Common Area Maintenance)**
Recurring charges for the maintenance of shared spaces in a property. CAM charges are often reconcilable at year end.

**Classification Test**
A structured set of criteria used to determine whether a lease should be classified as an operating lease or a finance lease under FASB 842 or FASB 840.

**CPI (Consumer Price Index)**
A measure of inflation used to adjust recurring rent costs on indexed leases. Tango supports CPI-based automatic adjustments via the CPI/Indexed Rent tab.

## F

**Finance Lease**
A lease classification under FASB 842 or IFRS 16 in which the lessee recognizes both amortization expense and interest expense. Previously called a capital lease under FASB 840.

**Floor / Ceiling**
Minimum (floor) and maximum (ceiling) percentage limits on a CPI adjustment, protecting both parties from extreme index movements.

## I

**Incremental Borrowing Rate (IBR)**
The interest rate a lessee would pay to borrow funds over a similar term. Used to discount future lease payments when calculating the lease liability.

**Integration**
An automated data exchange between Tango and an external system (ERP, accounting software). Can be inbound (data flowing into Tango) or outbound (data flowing out of Tango).

## L

**Lease**
A contractual agreement granting the right to use an asset for a defined period in exchange for payment. In Tango, leases are associated with locations and can be payable (tenant) or receivable (landlord).

**Lease Liability**
The present value of future lease payments, recognized on the balance sheet under FASB 842 and IFRS 16.

## O

**Operating Lease**
A lease classification where the lessee recognizes a single straight-line lease expense. The ROU asset and lease liability are still recorded on the balance sheet under FASB 842.

**Offset**
A negative payment or billing that reduces rent. Fixed offsets deplete a total credit balance. Date-range (scheduled) offsets apply a reduction during a specified period.

**Option**
A contractual right embedded in a lease — for example, a renewal option, purchase option, or termination option. Options are tracked on the Options and Terms tab.

## P

**Percentage Rent**
Rent calculated as a percentage of a tenant's gross sales above a defined breakpoint. Requires setup of the percentage rent structure, breakpoints, and sales types.

**Pro Rata Share**
The tenant's proportional share of a space, calculated as Rentable Area ÷ Total Building Area. Used in CAM and other reconcilable expense calculations.

**Proration**
The calculation of a partial-period payment when the effective period starts or ends mid-month. Different proration methods (Days in Month, Days in Year, etc.) produce slightly different results.

## R

**Reconciliation**
The process of comparing estimated payments made throughout the year against actual expenses on a landlord statement. Produces either an additional payment or a credit.

**Recurring Cost**
A scheduled payment record defining the payment type, amount, dates, vendor, and other attributes for a regularly occurring lease expense.

**Rent Roll**
The complete schedule of rent payments generated from recurring cost records. "Generating the rent roll" refers to creating payment records for a specific period.

**ROU Asset (Right-of-Use Asset)**
An asset recognized on the balance sheet representing the lessee's right to use the leased asset for the lease term, as required under FASB 842 and IFRS 16.

## T

**Term**
A defined period of a lease. A lease may have an initial term followed by one or more option terms if renewal options are exercised.