Management Fee Overview

A management fee is the amount due to a management company for management services; for example, for building or property management services. The fees are calculated using a formula.

Several policy decisions that are made when setting up the system affect management fees. When management fees are not behaving as expected, analyzing policies is one avenue of investigation that you should pursue.

Setup—Policies—Global Policies—Names Tab

The global default name must be established.

Setup—Policies—Property Policies—Interface to G/L category

The option G/L Entity interface must be selected to use entity interface options.

Setup—Policies—Property Policies—Additional Options category

The option Use Profit Centers must be selected to use profit center options.

The option Calculate Management Fees must be selected for the menu option to display.

Setup—Policies—Property Policies—Property Names category

The property default name must be established.

To successfully transfer management fees, you must complete additional setup tasks to transfer the fees to general ledger or accounts payable accounts.

Setup—Policies—Global Policies—AME/Interface Tab

If you want to transfer the fees to accounts payable or general ledger accounts, you must perform the appropriate setup under Interface to A/P and G/L.

NOTE about processing properties that post to the same vendor
When the system is set up with the global policy for Transfer to A/P format set to eFinancials Web Service, then the Management Fee invoice number for eFinancials AP transfers uses date and time, i.e., MFyyyymmddhhmmss (MF, year, month, day, hour, minute, seconds), which allows for processing properties that post to the same vendor at different times of the day, even when the property policy option (in the Invoice Numbers category) to require unique invoice numbers is turned on.

General Ledger Transfer

If you plan to transfer management fees to a general ledger, then you must define the general ledger accounts to be used for the journal entry debits and credits in eFinancials.

Accounts Payable Transfer

If you plan to transfer management fees to accounts payable, then you must define the expense Code in eFinancials for the voucher. You can define the credit account; however, that account is an information-only account.

Sales Tax Transfer: Property—Additional—Tax Rates

If sales tax is calculated on the management fees, then you must define the tax accounts.