Actual Recovery Tab

Use this tab to calculate actual recovery amounts and to print recovery statements to be mailed out to tenants.

Actual Recovery calculates and collects the difference between a tenant's proportionate share of operating expenses and what they were actually billed or paid, bills that final adjusted amount back to the tenant, updates the tenant's recurring charges and prints Statements for those tenants whose rents were affected. The primary function of running this process is to bill the final adjusted amounts back to the tenants.

Updating the tenant’s recurring charges is an optional step. You determine whether or not this occurs as part of the Actual Recovery process by selecting or clearing the Calculate Future Estimates option.

Use these options to further define the recovery calculations when the Calculate Future Estimates option is checked.

If both options are unchecked

The system processes the calculation based on the specified criteria, bills the final adjusted amounts back to the tenants and updates the recurring charges as of the next Current Accounting Period.

The following will be charged to the Tenant during the Actual Recovery process:

Final Recovery Adjustment
Overhead Fee (if applicable)
Management Fee (if applicable)

The Recurring Charges for the Tenant will be updated as followed during the Actual Recovery process:

The CAM charges for the recovery period will have an Ends Date added to the charge as of the last day of the current accounting period.
A new CAM recurring charge will be added with:

FFP = first of the next current accounting period
Charge Amount = Net Share Operating Expense / 12 (frequency # of months of the old CAM charge)
Next Due Date = first of the next current accounting period
Pro-In Date = Date the Recoveries were run

If Retroactive Billing is checked

The system process the calculation based on the specified criteria, bills the final adjusted amounts, updates the tenant's recurring charges with those amounts and retroactively bills those amounts back to the tenant if the estimate calculations are run for any period after the first period of the Recovery Year.

For instance, if the Recovery period is 01/01/2005 through 12/31/2005 and Actuals are run on 03/07/2006 the system retroactively bills those amounts back to the tenant for periods: 01/2006, 02/2006 and 03/2006. This amount is billed as one lump sum on the last day of that period, 03/31/2006. When the system bills for the next full period, 04/01/2006 it bills the estimated recurring charges for the remaining periods of that Recovery Year.

Use this option to immediately update the tenant's recurring charges and to collect all retroactive billings at once. Tenants are billed the new amounts as part of this process.

The following will be charged to the Tenant during the Actual Recovery process:

Final Recovery Adjustment
Retroactive Adjustment – (Net Share Operating Expense / 12) * Months already billed in new recovery period {note: net share operating expense is divided by the frequency number of months from the current CAM recurring charges}
Overhead Fee (if applicable)
Management Fee (if applicable)

The Recurring Charges for the Tenant will be updated as followed during the Actual Recovery process:

The CAM charges for the recovery period will have an Ends Date added to the charge as of the last day of the recovery year ending.
A new CAM recurring charge will be added with:

FFP = first of the next current accounting period
Charge Amount = Net Share Operating Expense / 12 (frequency # of months of the old CAM charge)
Next Due Date = first of the next current accounting period
Pro-In Date = first of the next current accounting period

If Calculate Estimates based on Remaining Months is checked

The system processes the calculation based on the specified criteria, bills the final adjusted amounts back to the tenant and updates the tenant's recurring charges. However, unlike the Retroactive option, it bills the final adjusted amounts back to the tenant and updates the recurring charges based on the remaining months of the Recovery Year.

Use this option to update tenant's recurring charges, recoup prior month's billings over the course of the year vs. retroactively billing one lump sum. Tenants are billed the new amounts as of the next Current Accounting Period.

The following will be charged to the Tenant during the Actual Recovery process:

Final Recovery Adjustment
Overhead Fee (if applicable)
Management Fee (if applicable)

The Recurring Charges for the Tenant will be updated as followed during the Actual Recovery process:

The CAM charges for the recovery period will have an Ends Date added to the charge as of the last day of the current accounting period.
A new CAM recurring charge will be added with:

FFP = last day of the recovery year ending + 1 day
Charge Amount = Net Share Operating Expense / Remaining months in current recovery year
Next Due Date = first of the next current accounting period
Pro-In Date = Date the Recoveries were run

Another new CAM recurring charge will be added with:

FFP = last day of the current year + 1 day
Charge Amount = Net Share Operating Expense / 12 (frequency # of months of the old CAM charge)
Next Due Date = blank or last day of the current year + 1 day
Pro-In Date = last day of the current year + 1 day

Note

An asterisk ( * ) indicates a required field.

Preliminary

This field defaults to checked, which is the recommended choice. Accept the default to run a preliminary update that allows you to review and audit actual recovery amounts and complete any edits necessary prior to running the final update. Or, uncheck to run a final update that bills actual recovery amounts and prints the associated recovery statements.

Beginning * (MM/YYYY)

This field shows two date fields. In the first field, enter the first period of the recovery year to consider when calculating actual recovery amounts using the format mm/yyyy. The second field, populates with the same date entry when it is tabbed through and cannot be edited.

For the Recovery Year Ending * (MM/YYYY)

This field shows two date fields. In the first field, enter the date the recovery year ended using the format mm/yyyy. The second field, populates with the same date entry when it is tabbed through and cannot be edited.

As of Date

This date defaults to the date entered in the previous field, For the Recovery Year Ending. Accept the default or enter another date to indicate the date the actual recoveries should be run as, using the format mm/yyyy.

Rebilling Group Code

Select the rebilling group code to include from the drop-down list. Rebilling group codes are established on the Rebilling Groups Tab.

Transaction Description

Enter a description for the recovery. When the process is run in final mode, i.e., Preliminary is not checked, the description prints in the header of the Invoice report that prints at the end of the Recovery report series; it will also become the transaction description for the charges that are created during the recovery process, shown in the Resident History Report.

Calculate Future Estimates

This field defaults to checked. Accept the default to calculate future billing amounts. Or, uncheck to indicate future billing amounts should not be calculated. If unchecked, then the next field; Retroactive Billing is not displayed.

Retroactive Billing

If no recurring charge updates occurred after the first day of the recovery year, then this field is not displayed.

This field defaults to checked. Accept the default to calculate retroactive adjustment billings for any billing period after the first day of the recovery year. When retroactive adjustment billings are calculated, the system automatically updates future charges with the newly calculated amounts. Or, uncheck to indicate retroactive adjustment billings should not be calculated.

Adjust Calculated Against

Billing is marked by default. Accept the default to subtract previous billings for actual calculated amounts. Or, mark Payments to indicate previous payments will be subtracted for actual calculated amounts.

Print Recovery Statements

This field defaults to checked. Accept the default to print recovery statements when the data is saved. Or, uncheck to indicate recovery statements should not print.

Document

Select which document to use for printing the recovery statements from the drop-down list.

Message

Open text field used for adding comments or text to print on the recovery statements.

Reset

Use the Reset button to return the fields on the tab to their default values.

Process

Select the Process button to execute the Actual Recovery function and display a report.

Cancel

Use the Cancel button to escape from a page without saving changes.