Budget Invoices - Budget Reconciliations

Budget Invoices - Budget Reconciliations

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This article is part of the Budget Invoices section within Client Invoicing.

Find all related articles here:
Budget Invoices

Where This Step Fits in the Budgeting Process


Once your budget is set up, the budget invoices have been issued and actual charges have been processed, you're ready to run the budget reconciliation at the end of the budget period.

This step allows the system to compare what was invoiced to clients based on the budget, with the actual charges recorded during the budgeted period. If the two match, it means your clients have paid the correct amount in advance.

If actual charges are higher than budgeted, clients will owe the difference. If they are lower, the clients will have overpaid and will be due a refund.

The budget reconciliation process calculates these differences and lets you send budget reconciliation statements to your clients at the end of the budget period.


Prerequisites


Before running the budget reconciliation, make sure the following setup and processing steps have been completed:
  1. The accounting basis on the development is set to Budgeted.

  2. A suitable Charge Date Code has been set for billing budget items to clients.

  3. Appropriate Budget Headings were set up and used when creating the budget.

  4. All budget invoices have been run and issued to clients, covering the full budget period based on the selected Charge Date Code (e.g. yearly, quarterly, monthly).
    1. If your budget covers a year and you selected a yearly charge date code, you’ll generate invoices once at the start of the year.
    2. If you chose a quarterly or monthly code, you can either bill periodically or process all charges in one go at the start of the year, instead of invoicing each month or quarter.

  5. Transactions have been posted using the correct budget headings for any contractor charges related to the period and released from the hold file so they appear as charges in the clients' accounts.

  6. If any one-off charges weren’t included in the budget and needed to be billed earlier, they were invoiced via Amended Accounts.

All relevant charges and budget invoices should now be sitting in the Charge Transaction and Transaction Activity tabs for each client, ready to be included in the reconciliation.

Running a Budget Reconciliation


  1. Go to the main Clients tab > Global in the action bar:



  2. Select the Process Owners Charges for Budgeted tab.
    1. This will open the Process Budget Owners Charges screen. 
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This tab may appear in a different position within your Client Global Actions window.

  1. Select the Budget Recon radio button:



  2. Choose the correct Reconcile budget ending date to match the end of your budget period.
    1. It must match the end date of the budget to ensure accuracy.

To filter which developments to include, you can use:
  1. Property Manager – to run the reconciliation for one property manager.

  2. Office – to limit to developments for a particular office.

  3. Range of Developments – to define a range of developments using the From and To fields.
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These filters are helpful if you're reconciling budgets in smaller batches, for example, if you manage a large portfolio.

Once you’ve entered your selections:
  1. Click the Budget Reconciliation button at the bottom right to run the process:



  2. Wait for the Complete notification to appear. Click OK to close it.

  3. Make a note of the batch number that appears in the BatchNo field. You'll need it for printing or emailing reconciliation invoices/statements:



The system has now compared your budgeted and actual charges and produced the reconciliation invoice or statement.

You can view the result under the Transaction Activity tab for each client.


Sending out Budget Reconciliations


To print or email the budget reconciliations, see instructions in this and this article.

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