Module

CAM Reconciliation

Reconcile common area maintenance, insurance, and tax at year end, from the expenses actually posted to the pro-rata share each lease actually carries.

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What you can do

Expense pools

Group the GL accounts each recoverable cost comes out of into pools, once, and every lease reconciles against the same definition.

Pro-rata shares

By square footage, or by an explicit percentage where the lease names one. The lease decides, not the report.

Recoverable by pool, per lease

A lease recovers the pools its clauses say it recovers. Turning one off is an explicit decision, not a blank field somebody has to interpret.

Caps, base years, and floors

The terms each lease was actually signed under, applied to that lease rather than to an average.

Billed overrides

Where the year's estimates came from a prior system, enter what was billed and the reconciliation uses it, with a note saying where the figure came from and who entered it.

Warnings before you post

Missing square footage, a lease with no CAM terms, a pool with nothing in it. Told up front rather than found in the result.

Tenant statements

A statement per tenant showing the pool, the share, what was billed, and what is owed or due back.

Post the year

Posting freezes the reconciliation and generates the true-up charges. What was posted stays what was posted.

How a CAM recovery is calculated, from expense pool to the amount a tenant owes Expense pool GL accounts you name as recoverable Landscaping, security, parking lot, cleaning Pooled for the year $294,684.00 This lease's share 12.5% of the center Recoverable from this lease $36,835.50 less estimates already billed, $30,000.00 true-up due: $6,835.50 Caps, base years and floors apply per lease
Every figure traces back to a pool, a share, and the expenses that made it up — which is the answer when a tenant’s controller asks how you arrived at the number.

The arithmetic is auditable, line by line

Every recovery traces back to a pool, a share, and the expenses that made it up. When a tenant's controller asks how you arrived at a number, the answer is on the statement rather than in a spreadsheet somebody has to reconstruct.

Related

Leases General Ledger Reporting