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Expense Pools

Modules > Property lease management > Setup > Expense Pool

Use this page to set up CAM expense pools (or groups) and the accounts to which the expense amounts are applied. CAM expense pools are a set of expenses that have the same characteristics.

After the CAM expense pools are created, they can be applied to properties at the first (or highest) level. Also, CAM expense pools can be applied for specified years.

Add Expense Pool

To add an expense pool, follow these steps: 

  1. Specify the Expense pool number and Description.
  2. Select the Calculation method.
  3. Select the Pro-rata method and specify a Pro-rata percentage.
  4. Select the CAM charge and Recoverable charge.

    5. The CAM charge and the recoverable charge can be the same charge. However, if you want to use different financial dimensions for the recoverable charge, you must select a different charge for the recoverable charge.

  5. In the Accounts setup list, do the following: 
    1. Select Add line.
    2. Select the main Account, and specify a Description.
    3. Select the Caps type and specify a Caps percentage.
    4. If needed, specify the mark-up and gross-up percentages.
  6. Select Save.

Fields

This page contains the following fields: 

Field Description
Expense pool number Specify a unique CAM expense pool identifier. Required.
Description Specify a description of the CAM expense pool.
Calculation method

Select the method for calculating CAM expenses: 

  • Base year: CAM expenses are based on the first year of a lease.
  • Current year: CAM expenses are based on the actual expenses of the current year.

For more information, see Calculations.

Once a reconciliation for a CAM expense pool exists, the calculation method cannot be changed.

Pro-Rata method

Select the pro-rata share method for dividing the CAM expenses proportionately among all affected tenants.

  • Fixed percentage: CAM expenses are calculated as a percent of the actual CAM expense amount.
  • Property area: CAM expenses are calculated as follows: Actual CAM expense * (leaseable area of a unit / leaseable area of the building).
  • Tenants area:  CAM expenses are calculated as follows:  Actual CAM expense * (chargeable area of a unit / chargeable area of all units in the building).
    When Exclude CAM calculation is selected for the lowest level on the Lease Details page, the lowest level is excluded from the calculation.

For more information, see Pro-Rata Share Method.

Pro-Rata percentage

Specify the percent for the pro-rata calculation method.

Available and required when Fixed percentage is the pro-rata method used.

CAM charge

Select the charge for the CAM expense pool.

Charges that can be added to the expense pool must have a Revenue lease type and a CAM charge type. Charges are set up on the Charges page. Once a charge is added to the expense pool, it cannot be added to another expense pool.

Recoverable charge

Select the charge for recoverable amounts for the expense pool.

Charges that can be added to the expense pool must have a Revenue lease type and a CAM charge type. Charges are set up on the Charges page. Once a charge is added to the expense pool, it cannot be added to another expense pool.

Account setup list
Account Select the main account number. Required.
Description Specify a description for the expense.
Caps type

Select the capping type: 

  • Cumulative: The cap amount is calculated cumulatively starting from the base year and considering all previous years.
  • Non-cumulative: The cap amount is calculated based on the current year and is reset every year.

For more information, see Capping.

Caps percentage

Specify the cap percent.

The cap can only be used with when Calculation method is Base year.

Mark ups percentage

Specify the mark-up percent.

For more information, see Markups.

Gross-ups percentage

Specify the gross-up percent.

For more information, see Gross Ups.