Required Setup for Rebilling Recoveries

Various set up options are available for commercial properties (i.e., property type set to 6-Standard Commercial). How you choose to define set up options determines how the system recaptures your operating expenses. Although many setup scenarios are possible, this section covers the basic set up tasks necessary to process rebilling recoveries. Once you understand this process, you can customize these options to best suit your individual business needs.

The Recovery Active Date for any property rebilling recoveries must be verified on the Properties Tab. This date defines the first day of your Recovery Year and plays a significant role in the way the system handles rebilling calculations.

Why would this date change?

If your management company takes over a property mid-year, you may want to change the Recovery Active Date to reflect the date of the take over, not the original date entered during property setup. Doing so tells the system to consider this date to be the first day of your Recovery Year and to consider it when calculating the rebilling recovery amounts.

Rebillings Setup—Rebilling Group Codes

Rebilling Group Codes must be set up to link a select group of tenants together for processing recoveries under the Recoveries Setup menu (Setup—Rebillings—Recoveries—Rebilling Group Codes). When selected, all tenants linked to this code will be simultaneously included in the rebilling recoveries process.

Rebillings Setup—Denominators

Denominators define the tenant’s proportionate share of expenses to be considered in the recoveries calculation and are set up under the Recoveries Setup menu (Setup—Rebillings—Recoveries—Denominators). Since the recoveries calculation considers the property’s total square footage, there may be a time when you want to exclude a particular suite. For instance, Property A may include an unusually large suite. Including that suite’s square footage in the rebilling calculation would throw off the number for the rest of the suites. In this case, two denominators would be set up to act as divisors for a more realistic result: two for the unusually large suite and one for all other suites.

Rebillings Setup—Attachments

Attachments assign names to Denominator Codes, indicate whether it is considered a primary code in the recovery calculation for a specified property and are set up under the Recoveries Setup menu (Setup—Rebillings—Recoveries—Attachments). For instance, an Attachment is used to attach a Denominator to a property and is intended for use by companies with complex business structures that include many properties. Using Attachments can simplify an otherwise complicated property set up process.

Rebillings Setup—Expense Tables

Expense Tables are used to define property expenses you are attempting to recapture by billing a proportionate share back to the tenants and are set up under the Recoveries Setup menu (Setup—Rebillings—Recoveries—Expense Tables). They can also be used to define defaults for income codes included in those rebilling calculations. Each table consists of multiple expense accounts that control the GL accounts used to transfer those expenses from the General Ledger and control the formatting of totaling amounts displayed on each tenant’s recovery statement. As part of set up process, you have the option to exclude expense accounts from the defined GL Account range.

Expense details associated with each expense account holds the actual amount of expenses to reconcile, as well as any budgeted or forecasted amounts to consider when calculating new estimated billings for recovering expenses. Expense details can be transferred from your General Ledger system based on your defined GL account range (and possibly any excluded accounts) using the Import Expense Tables utility under the Data Transfer menu (Data Transfer—Import Expense Tables) or can be done manually. Note, the utility has the ability to import expense tables, accounts and detail. You determine what imports using the utility options.

In summary, use Expense Tables to group property expenses a tenant can be rebilled for, define the defaults for income codes used in tenant recoveries, to indicate which percentage of the fee you can collect, to determine whether to display vacant suites on related expense table reports, and to view the last amount calculated using expense tables in recovery calculations.