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Charges

Modules > Property lease management > Setup > Charges

Use this page to create and maintain information about lease charges. You can create any charge that you want to track, including complex master charges that you can reuse. For example, charges for rent, maintenance, parking, and utilities.

Note icon. Note: Charges that are used by leases cannot be deleted.

Create a Regular Charge

To create a regular charge, follow these steps: 

  1. Select New.
  2. Specify a unique Charge number, select the Lease type and set Charge type to Regular.
  3. In the General Fast Tab, do the following: 
    1. If no item is required for the charge, specify a Name.
    2. If an item is required for the charge, select the Item number.
      The Name is updated based on the item selected. You can edit the name as needed.
      For an expense lease, the item must be a non-stock item. Also, the financial dimensions in the Charge Details FastTab are automatically updated based on the settings from the item.
    3. Select a Charge account.
    4. If you want the charge to appear as a separate line on a separate invoice, set Separate invoice to Yes.
    5. For an expense leases only, you can use the lease accounting standards (e.g., ASC 842/IFRS 16) by setting Lease component to Yes, and selecting the accounts in the Lease components FastTab.
  4. In the Charge Details FastTab change the financial dimensions (if needed) and select the Item sales tax group.
  5. Select Save.
  6. Repeat these steps to add more regular charges.

The charges are then applied to a lease on Lease terms section of the Lease Details page.

Create a Meter Charge

For meters that are created on the Meters tab of the Property Lease Management Parameters, you can create charges specifically for the meters. To create a meter charge, follow these steps: 

  1. Select New.
  2. Specify a unique Charge number, select the Lease type and set Charge type to Consumption.
  3. In the General Fast Tab, do the following: 
    1. If no item is required for the charge, specify a Name.
    2. If an item is required for the charge, select the Item number.
      The Name is updated based on the item selected. You can edit the name as needed.
      For an expense lease, the item must be a non-stock item. Also, the financial dimensions in the Charge Details FastTab are automatically updated based on the settings from the item.
    3. Select a Charge account.
    4. If you want the charge to appear as a separate line on a separate invoice, set Separate invoice to Yes.
    5. For an expense lease only, you can use the lease accounting standard (e.g., ASC 842/IFRS 16) by setting Lease component to Yes, and selecting the accounts in the Lease components section.
  4. In the Charge Details FastTab change the financial dimensions (if needed) and select the Item sales tax group.
  5. Select Save.
  6. Repeat these steps to add more meter charges.

Create a CAM Charge

Common Area Maintenance (CAM) expenses are operating expenses associated with common areas of a building. For more information about CAM charges, see CAM Expense Calculations.

To create a CAM charge, follow these steps: 

  1. Select New.
  2. Specify a unique Charge number, set Lease type to Revenue and Charge type to CAM.
  3. In the General Fast Tab, do the following: 
    1. If no item is required for the charge, specify a Name.
    2. If an item is required for the charge, select the Item number.
      The Name is updated based on the item selected. You can edit the name as needed.
      For an expense lease, the item must be a non-stock item. Also, the financial dimensions in the Charge Details FastTab are automatically updated based on the settings from the item.
    3. Select a Charge account.
    4. If you want the charge to appear as a separate line on a separate invoice, set Separate invoice to Yes.
  4. In the Charge Details FastTab change the financial dimensions (if needed) and select the Item sales tax group.
  5. Select Save.
  6. Repeat these steps to add more CAM charges.

Create a Sales Based Charge

To create an sales based charge for the sales based reconciliation feature, follow these steps: 

  1. Select New.
  2. Specify a unique Charge number, set Lease type to Revenue and Charge type to Sales based.
  3. In the General Fast Tab, do the following: 
    1. If no item is required for the charge, specify a Name.
    2. If an item is required for the charge, select the Item number.
      The Name is updated based on the item selected. You can edit the name as needed.
      For an expense lease, the item must be a non-stock item. Also, the financial dimensions in the Charge Details FastTab are automatically updated based on the settings from the item.
    3. Select a Charge account.
    4. If you want the charge to appear as a separate line on a separate invoice, set Separate invoice to Yes.
  4. In the Charge Details FastTab change the financial dimensions (if needed) and select the Item sales tax group.
  5. Select Save.
  6. Repeat these steps to add more sales based charges.

Edit a Charge

To edit a charge, follow these steps: 

  1. From the list, select a charge.
  2. Edit any of the values in the General or Lease components FastTabs.
    Header values cannot be changed after the charge is saved.

    3. If you change the Item number, the Item sales tax group is updated to use the values for the new item record. Change the values as needed.

  3. Select Save.

To remove a record, select the line that you want to delete, and select Delete.

The header contains the following fields: 

Field Description
Charge number

Specify a unique charge identifier.

Lease type

Select lease type to which the charge can be applied: Revenue or Expense.
Charge type

Select the charge type: 

  • CAM: The charge is used for common area maintenance (CAM) charges that are added to a revenue lease. For more information on CAM charges, see CAM Expense Calculations.
  • Consumption: The charge is a measured amount based on usage that is applied to a lease. For example, electricity charge.
  • Regular: The charge is a specified amount that is applied to a lease. For example, charging an amount of 200. 00.
  • Sales based: The charge is used for sales based reconciliation.

General

This FastTab contains the following fields: 

Field Description
Item number

Select the item number that is included as an additional component for the charge.

The item number is required for Vendor Invoice and Sales order invoice types. For Invoice journal or Free text invoice types the item number is optional.

For charges for an expense lease, the item selected must be a non-stock item.

Note icon. Note: An item number can be used for a revenue lease or an expense lease but not both.

After an item is selected, the financial dimensions from the item are applied to the financial dimensions of the charge in the Charge Details FastTab.
Name

Specify a descriptive name for the charge.

Charge account

Select the main account number for the charge.

This account is used for the invoice of the charge. You can change the account when applying a charge to a lease.

Lease component

Select whether the leased item uses the lease accounting standard (e.g., ASC 842/IFRS 16).

  • Yes: The leased item uses the lease accounting standard.

    When the option is selected, you must specify the main accounts you want to use for the lease components:

    • Direct Cost GL Account
    • Gain on Lease Account
    • Lease Liability Account
    • Lease Payable Clearing Account
    • Loss on Lease Account
    • Accumulative amortization account
      Required for the IFRS 16 accounting standards and for ASC 842 when Use accumulative amortization account is Yes on the Property Lease Management Parameters page.
    • ROU Asset Account
    • ROU Asset Adjustment Account
    • Tenant Incentive GL Account
    • Variable Rent Expense Account
    • Financial lease (does not apply to charges)
      • Interest Expense Account
      • Amortization Expense Account
    • Operating lease
      • Lease Expense Account
  • No: The leased item does not use the lease accounting standard.
Separate invoice

Select whether to have the invoice line for the charge to be consolidated with other charges.

  • Yes: The charge is not consolidated and appears as a separate line on a separate invoice. This option is usually selected for charges such as sales based charges.
  • No: The charge is consolidated with other lines on the invoice.
Apply fees

Select whether late fees apply to your leases: 

  • Yes: Late fees are applied to leases.
  • No: Late fees are not applied to leases.
Use default customer profile

Select to use the posting profile from the customer profile setup in Accounts receivable.

  • Yes: The customer profile from Accounts receivable is used when you create a new sales reporting record.
  • No: Select the posting profile from the drop-down under Posting profile.

When you set up a posting profile, you can set up your fee amount by creating an Interest code. For more information on setting up a fee amount and interest code, see Late Fee Amounts.

For more information on setting up customer profiles, see Customer posting profiles on the Microsoft Dynamics 365 for Finance and Operations documentation.
Posting profile

Select the posting profile to use when you create new sales reporting records. This option is not available if you use the default customer profile.
Include tax on fee calculation

Select to include the taxes of the lease invoice in the fee calculation.

  • Yes: Taxes are included in the late fee calculation.
  • No: Taxes are not included in the late fee calculation.
Fee code Displays the fee code that is connected to the posting profile.

Charge Details

This FastTab contains the following fields: 

Field Description
Financial Dimensions
Default financial dimensions

Select the default financial dimensions for the charge.

  • BusinessUnit
  • CostCenter
  • Department
  • ItemGroup
  • Project

Financial dimension is a standard Microsoft Dynamics 365 for Finance and Operations feature. For more information on using financial dimensions, see Financial Dimensions.

When the financial dimension values are empty, the financial dimensions are from the lowest level, customer/vendor, or charge.
Product
Item sales tax group

Select the item sales tax group to use for the charge. The default item sales tax group is from the item record.

The sales tax is a standard Microsoft Dynamics 365 for Finance and Operations features. For more information, see the Microsoft Dynamics 365 for Finance and Operations documentation.

Buttons

This page contains the following buttons: 

Buttons Table
Button Description
Save Saves the record
New Adds a line where you can create a record.
Delete Deletes a record.