Real Estate Portfolio Management / Cost Administration / Cost Administrator

Adding CAM Adjustments

CAM Adjustments are the cost amount issued as an invoice or as a credit by the landlord at the end of the year for CAM reconciliation purposes. This is the difference between the estimated CAM payments the tenant paid for the year, and the tenant's prorated share of the actual CAM costs that the landlord incurred for that year. Typically, the lease's share is based on the percentage of the total building or property area that a lease occupies based on its Area - Negotiated Rentable.

As the cost administrator for the landlord, you receive this CAM adjustment amount from your financial system. You then send an invoice or a credit for this amount to the tenant, depending on whether the CAM adjustment amount represents an over- or under-payment. Cost administrators for both landlords and tenants can enter this CAM adjustment into ARCHIBUS so that it is used in the CAM Reconciliation report. This report enables you to analyze CAM cost performance for your leases.See The Lease CAM Reconciliation Report.

Note: You must add CAM adjustments using the Add/Edit CAM Reconciliation Adjustment form, or these costs do not appear in the Lease CAM Reconciliation report. When you add costs using the Add/Edit CAM Adjustments form, the cost is associated with a Lease Year and is saved in the Lease CAM Reconciliation Report table. Cost entered using the Cost Wizard do not have an associated Lease Year, and will therefore not appear in the Lease CAM Reconciliation report. See the Procedure section of this topic for the correct steps to add a CAM adjustment.

CAM Adjustment when Using the ARCHIBUS Enhanced Global Feature Set

When using the ARCHIBUS Enhanced Global Feature Set, you must enter CAM adjustments in the same currency as the CAM estimates. All CAM adjustments entered for a lease must be denominated in the same currency.

You are able to use different VAT Percentages to reflect different rates for different cost categories. For example, In some countries the VAT rate may be different from one cost category to another in order to stimulate consumption.

Adding Documents to CAM Adjustments

When adding a CAM adjustment, the cost administrator can attach to each CAM cost adjustment supporting documents that are scanned and saved as PDF files, such as:

Scanned landlord Invoicing documents
Detailed CAM Reconciliation Report received from the Landlord
Up to four other supporting documents, such as an audit report, official communication and notification documents, memos regarding CAM Reconciliation, or any other documents containing communication between tenant and landlord regarding CAM costs.

Approving CAM Adjustments (Optional)

When you add a CAM cost adjustment, it is always added as a scheduled cost. It is not necessary to approve this scheduled Cam adjustment. CAM adjustments are included in CAM reconciliation reports whether or not they are approved. However, if your workflow requires you to approve this cost, you can use the Cost Wizard to do so. See Approving Scheduled Costs.

If you approve a scheduled CAM adjustment, the Cost field on the Add CAM Reconciliation Report field fills in with the Cost Code for the approved cost. If the Cost field is blank, it means that the scheduled CAM adjustment has not been approved.

Procedure

You must add CAM Adjustments using the Add/Edit CAM Adjustments form as described in the following procedure. You should not add CAM adjustments from the Cost Wizard,

To add a CAM reconciliation adjustment:

From the Process Navigator, select Lease CAM Reconciliation Report.
In the Filter console, select the lease and the years for which you want to enter an adjustment, and click Show.
The CAM Reconciliation Report pane shows the existing CAM cost data summarized for each year included in the report.
Click on the Lease Year for the year for which you want to add the adjustment.
The Review CAM Reconciliation Adjustments form for the selected lease/year shows the transactions for each CAM adjustment contributing to the Total CAM Adjustments shown in the report.
Click Add New.
The Add Scheduled Cost Transaction form appears.
Add the scheduled cost record for the CAM adjustment:
1. Enter information for the CAM adjustment, such as the Amount Expense, and Date Due. The Date Due defaults to the current date, but you can change this if needed. The Cost Category field shows only categories defined for CAM Reconciliation. If you have defined more than one cost category for reconciliation, you can select it from the list.
2. Click Save.
  After saving the new scheduled cost, on the CAM Adjustment form, the Amount Income, Amount Expense, Date Received, Date Due, and Date Paid are updated using the entries you have made for the scheduled cost record.
Add documents: Click the Check in New Document button (up arrow) next to a document field to store a document with the record. See Using the Document Management System.
Use the Document fields to add PDF documents as needed. For example, scan the following and attach as a PDF to the CAM adjustment record:
- Landlord Invoice Document: Upload the scanned billing documents received from the landlord.
- CAM Report Document: Upload the detailed CAM Costs Reconciliation Report received from the landlord for future reference.
- Support Document-1 through 4 fields. Use these document fields to add up to four additional documents regarding CAM costs reconciliation, such as an audit report, and official communication and notification documents.
Select the following data for the adjustment as needed:
Lease Year Defaults to the lease year you clicked in the CAM Reconciliation report, but you can enter a different year if needed. The lease year is the year in which the CAM costs were incurred, so the Lease Year is typically the year that is prior to the current year when the reconciliation is being done.
Cost Category This is pre-populated with the default value ‘RENT – CAM RECONCILIATION’. You can select only RENT - CAM RECONCILIATION or its alternatives values. See Entering Alternate Names for the CAM Cost Categories.
(Landlord) Invoice Number: Enter the number for the invoice received from the landlord.
Invoice Date Received: By default, this shows the current date, but you can change this as needed.
Optionally, enter a description of the adjustment, such as Lease Year 2011 adjustment received from landlord.
Click Save.
On clicking Save, ARCHIBUS generates a scheduled cost transaction with the cost category set to ‘RENT – CAM RECONCILIATION.' (or the CAN Reconciliation cost category you selected).
The application also adds a new cost record in the Lease CAM Reconciliation Report table (ls_cam_rec_report) for the lease and year. The CAM Reconciliation Report table links CAM supporting documentation to cost transactions records.
After adding the new CAM Reconciliation Adjustment the ‘TOTAL’ fields for Amount – Income and Amount – Expense are recalculated and updated.
The Total CAM Adjustment field in the Lease CAM Reconciliation report is automatically refreshed to reflect the CAM adjustment you just added.
After saving am adjustment, you can edit information for it if negotiations produce a different adjustment amount. If needed, you can also delete adjustments.