Recoveries - Setup & Execution

Use Recoveries to configure recoverable expense settings, pull actual expenses from the General Ledger, and reconcile tenant recovery charges in SIRE.

This guide covers the standard recovery setup and execution flow:

• Recovery Templates

• Recovery Settings on lease Recurring Charges

• Recover Expenses

• Reconcile Charges

Recovery Workflow

Recoveries use settings from each lease recurring charge.

A typical recovery workflow includes:

• Create or update a Recovery Template.

• Apply the template to a lease recurring charge under Recovery Settings.

• Confirm the recovery period, expense categories, calculation method, and GL Accounts.

• Run Recover Expenses to pull actual expenses from GL.

• Run Reconcile Charges to preview and post reconciliation charges.

Create A Recovery Template

Go to Setup > Templates > Recovery Templates.

Select Create to create a new template.

Common fields include:

• Template name

• Accounting Method

• Process Recovery Every

• Pro-rata Share Decimals

Template name is required. Pro-rata Share Decimals controls how many decimals SIRE uses for pro-rata share calculations.

Configure Reconciliation Controls

Use Reconciliation Controls to define how SIRE calculates recoverable amounts.

Enable Reconcile Charges when the template or recurring charge should be included in the Reconcile Charges process.

When Reconcile Charges is enabled, complete:

• Reconciliation Calculation Method

• Adjustment Item ID

The Adjustment Item ID is the item SIRE uses when posting the reconciliation charge.

Reconciliation Calculation Methods

RE/Reconcile

Use RE/Reconcile when the tenant should be charged their calculated share of actual recoverable expenses.

This method calculates the recovery at the expense category level.

Complete these fields:

• Reconcile Charges

• Reconciliation Calculation Method

• Adjustment Item ID

• Expense Categories

• Expense Category

• Expense Type

• Unit Sq. Ft. and Property Sq. Ft., or Manual Percentage

• GL Accounts

RE/Reconcile Base Year

Use RE/Reconcile Base Year when the lease includes a base year or base amount that should be excluded before calculating the tenant’s reconciliation charge.

This method calculates the total recoverable amount, compares it against the configured base amount, and uses the amount above the base for the reconciliation calculation.

Complete these fields:

• Reconcile Charges

• Reconciliation Calculation Method

• Adjustment Item ID

• Base year

• Base amount

• Multiplier, if applicable

• Unit Sq. Ft. and Property Sq. Ft., or Manual Percentage

• Expense Categories

• Expense Category

• Expense Type

• GL Accounts

For this method, the square footage or manual percentage values apply consistently across the recovery calculation rather than being entered separately for each expense category.

RE/Reconcile Stop

Use RE/Reconcile Stop when the lease includes a stop amount. The tenant is responsible for the calculated recoverable amount above the stop.

This method calculates the total recoverable amount, applies the configured stop, and uses the amount above the stop for the reconciliation calculation.

Complete these fields:

• Reconcile Charges

• Reconciliation Calculation Method

• Adjustment Item ID

• Stop method

• Stop amount

• Stop SF type, when Stop Method is Dollars per SF

• Multiplier, if applicable

• Unit Sq. Ft. and Property Sq. Ft., or Manual Percentage

• Expense Categories

• Expense Category

• Expense Type

• GL Accounts

For this method, the square footage or manual percentage values apply consistently across the recovery calculation rather than being entered separately for each expense category.

Configure Expense Categories

Expense Categories identify the expense groups included in the recovery calculation.

For each Expense Category, complete:

• Expense Category

• Expense Type

• GL Accounts

At least one GL Account is required for each Expense Category.

Depending on the reconciliation method, also complete either:

• Unit Sq. Ft. and Property Sq. Ft.

• Manual Percentage

Manual Percentage cannot be used with Unit Sq. Ft. and Property Sq. Ft. for the same calculation.

Actual Expense can be entered manually, imported, or populated by the Recover Expenses process.

Apply Recovery Settings To A Recurring Charge

Go to Tasks > Manage Leases > Leases.

Open the lease and go to the Recurring Charges tab.

For the recurring charge that should be recovered, open Recovery Settings.

Select a Recovery Template to pre-fill the recovery settings.

Review and complete the settings for that recurring charge, including:

• Recovery period

• Reconciliation controls

• Expense categories

• GL Accounts

• Actual expenses, if applicable

Select Done, then save the lease.

SIRE uses the Recovery Settings saved on the recurring charge when running Recover Expenses and Reconcile Charges.

Recovery Period

Recovery Settings include:

• Recovery From

• Recovery To

When Process Recovery Every and Recovery From are entered, SIRE calculates Recovery To.

A recurring charge cannot be selected for Recover Expenses or Reconcile Charges unless the recovery period is set.

Recover Expenses

Go to Tasks > Recoveries > Recover Expenses.

Use Recover Expenses to pull actual expense amounts from GL and update the recovery expense categories.

Complete the processing details:

• Property

• Transaction Date

The Item Selection table shows eligible recurring charges with Recovery Settings.

Select the charges to process, then select Preview Expenses.

SIRE processes the preview in the background and sends a notification when the report is ready.

Open the notification to review the preview. If the preview is correct, select Post Expenses.

When expenses are posted, SIRE updates the Actual Expense amounts on the selected recovery expense categories.

Reconcile Charges

Go to Tasks > Recoveries > Reconcile Charges.

Use Reconcile Charges to calculate tenant recovery charges from the recurring charge Recovery Settings.

Complete the processing details:

• Property

• Transaction Date

• GL Posting Date

Select the charges to reconcile, then select Preview Charges.

SIRE processes the preview in the background and sends a notification when the preview is ready.

Open the notification to review the Reconcile Charges preview.

If the preview is correct, select Post Charges.

What Happens After Posting Charges

When reconciliation charges are posted, SIRE:

• Creates invoices when the reconciliation or related charge amount is not zero.

• Advances the recovery period for the recurring charge.

• Clears Actual Expense for the processed expense categories.

• Stores prior expense information for future reconciliation.

• Saves reconciliation history.

• Adds reconciliation PDF attachments to the lease when invoices are generated.

• Sends a notification for generated invoices.

Frequently Asked Questions

What Is The Difference Between The Three Reconciliation Methods?

RE/Reconcile calculates the tenant’s share of actual recoverable expenses. RE/Reconcile Base Year subtracts a configured base amount before calculating the charge. RE/Reconcile Stop applies a configured stop amount before calculating the charge.

When Should I Use Base Amount?

Use Base Amount when the lease includes a base year or agreed base amount that should be excluded from the tenant’s reconciliation charge.

When Should I Use Stop Amount?

Use Stop Amount when the lease includes an expense stop and the tenant should only be charged for recoverable amounts above that stop.

Why Can’t I Select A Charge For Processing?

The recurring charge must have Recovery Settings and a recovery period. If Recovery From or Recovery To is missing, SIRE does not allow the charge to be selected.

What Is The Difference Between Recover Expenses And Reconcile Charges?

Recover Expenses pulls actual expense amounts from GL and updates recovery expense categories. Reconcile Charges calculates and posts tenant recovery charges.