Management fees are collected based on billing and/or
payments to eligible income codes. Minimum fee amounts or percentages
are defined at the income code level by the management company. This option automates the calculation of
those fees based on the information entered into the system. If preferred
this process can be attached to the following processes so that eSite
automatically executes the calculation of management fees when either
Begin of Day or AME
is run.
Calculate Management Fees can be run when the Preliminary check box is checked as many times as needed throughout
the month when you want to transfer a calculated management fee as set up. This tells
the system that this is a preliminary run for the month and the minimum management fees should not be
billed.
At month end, when you want to create a final month end transfer
file for the minimum Management Fee, then check End of Month Calculation. This tells the system, you are ready to create
a final month end transfer file, and want the system to create the BATCH.APS
file, and bill and apply the minimum management fee.
Examples
NOTE that what determines whether a file is created is the state of the Preliminary check box. Unchecking the check box indicates that the file is no longer preliminary, and therefore causes the minimums to be applied.
In these examples you transfer management fees weekly and also do an end of month transfer.
You have set up a management fee of 1% of rent, with a minimum of $5,000.
Example 1
Week 1: You bill $750,000, so the calculated amount is $7,500. So the first week's transfer is $7,500.
Week 2: You bill $12,000, so the calculated amount is $120. If the minimum is applied, you would be transferring $5,000, which is too much. You only want to transfer the $120.
Week 3: You bill $8,000, so the calculated amount is $80. Once again you don’t want the minimum applied.
Week 4: You bill $9,000, so the calculated amount is $90. Once again you don’t want the minimum applied.
Given the above figures, you would never apply the minimum, so you would not uncheck the box for Preliminary.
But let’s say that you lose residents and the rent goes down.
Example 2
Week 1: you bill 300,000, calculated amount is $3,000.
Week 2: You bill 12,000, calculate amount is $120.
Weeks 3 & 4: You billing nothing.
When you do the last transfer for the month, at this point you want to apply that $5,000 minimum, so you check the box and the transfer will be created for $1,880 ($5,000 less the $3,000 and $120 already transferred).
Transferring Management Fees to Accounts Payable