Following the reconciliation, the system generates an entry in the Finance section which can be (depending on the result):

• A Revenue, if the tenant has paid less (you can claim the difference),
• An Expense, if the expenses were less than the amount anticipated by the tenants.

If the provisions are higher than the actual expenses, the landlord must reimburse the excess to the tenant; otherwise, they will request an additional payment.

The amount of charges recovered by the landlord must be justified.

Recoverable Expenses Included in the Calculation

Firstly, it is essential to enter the recoverable expenses in the “Finances” section. To do this, add one or more expenses of type “Recoverable Charge”.

When creating a recoverable charge, you have the option to enter the following elements:

• Recoverable Amount from the tenant,
• Period,
• Split rules (if you have set up particular split rules in your buildings)

The split rules set up for each building are used in the calculation of the charge adjustment. Common expenses associated with a building are divided and taken into account in the calculation using these rules.

Here is the list of expenses that are taken into account in the calculation:

• Utility bills
• General maintenance
• Common area maintenance
• Landscaping
• Amenities
• Security

Revenue included in the calculation

Here is the list of revenues that are taken into account in the reconciliation:

• The service charges indicated in rent-type revenue
• Tenant service charge-type revenue

How to calculate the reconciliation of service charges?

To perform a precise adjustment of charges, it is crucial to accurately enter, for each “recoverable charge” expense, the recoverable amount, the period, as well as the property or tenancy associated.

If the property is in a condominium and when you receive your annual final accounts statement, including the amount of service charges, create a new expense of type ‘Property management: final accounts: recoverable/service charges’ and indicate the recoverable amount. If you have already recorded the service charges during the year, check the ‘amount for information only’ box to avoid duplicates with these in the “Finances” section.

To perform a reconciliation of service charges:

1. Go to the “Tools” section, then select “Expense reconciliation” (in the main menu on the left), or use the actions available on the right in the “Tenancies” section.
2. Enter the period, then click on “Continue”.
3. At the next step, check the amount and details of the reconciliation, then click on the “Confirm” button.
4. The reconciliation, including the amount and a document detailing the operations, will be recorded in the database and will be displayed in the “Finances” section.

The site takes into account the service charges paid by the tenant (amount indicated in the tenancy) for the selected period, as well as the recoverable charges whose amounts were entered in the “Finances” section. It then calculates the difference and creates an income or an expense depending on the result obtained.

If you need to modify the amount in case of an error or for any other reason, simply click on the “Edit” icon in the “FINANCES” section and correct the amount.

In case of an error, you can also delete the line generated in the “Finances” part and redo the calculation.