Once you enter your real property and lease costs using the Cost Wizard, you may want to roll them up to the appropriate parties for reporting, budgeting, or billing, or proportionately distribute these costs among the appropriate parties according to the amount of area they occupy; this process is known as chargeback.
For example, if you add a fitness room to your property, you may want to charge the property's tenants for the cost of this enhancement, with the tenant occupying the most space on the property paying the highest percentage of this cost.
Or, if you track costs for your buildings, but budget at the property level, you might want to roll up your building costs to properties.
With the Cost Chargeback & Invoicing application, you can proportionately distribute any property and lease cost among properties, leases, buildings, accounts, or departments. You can roll up lease costs to buildings or properties, or building costs to properties.
Prior to calculating your chargeback costs, you must develop data for your leases, buildings, properties, or accounts, and, depending on the type of chargeback you want to perform, you might need to develop measured areas, or record the Area Negotiated Rentable for your leases. See the Nine Chargeback and Proration Scenarios for the area fields used by each cost category.
The following summarizes by role the prerequisite tasks for generating chargeback.
TheBusiness Process Owner:
TheLease Administrator:
Enters data for your leases, properties, and buildings, using the Add/Edit task of the Lease Administration or Portfolio Management applications.
Note: If you are generating chargeback costs that prorate property or building costs to leases, you must enter a value for the Area - Neg. Rentable field for each lease, since it is the relative size of these areas that the program uses as the basis for prorating costs to leases.
TheCost Administrator does the following:
Your CAD specialist would develop suite, group, or room measured areas if you intend to chargeback lease costs to departments, or property costs to buildings.
Note: If you want to charge back lease costs to departments, you cannot use a suite inventory. To chargeback to departments, you must develop groups or rooms.
The process of charging back costs and managing invoices involves the following steps.
You can charge back only costs that are approved.
See Approving Scheduled Costs.
This action automatically runs the proration, lease area, and property area calculations on your approved costs, and creates Scheduled Costs for the charge back. These Scheduled Costs are tentative costs that you are able to review. See Generate Chargeback.
See View Chargeback Exceptions.
If these costs are receivables, you can now issue invoices for them.
See View Approved Chargeback Costs.
Assigns approved costs that are receivables to invoices.
For an overview of costs, see Cost Overview.
For information on the default chargeback and proration methods, see The Nine Chargeback and Proration Definitions
For more information on the proration calculations, see Chargeback - Proration Calculations.
For more information on the roll-up calculations, see Chargeback Roll-Up Calculations.
For an example of chargeback proration, see Chargeback Proration Diagram
For an example of chargeback rollup, see Chargeback Roll-Up Diagram
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