Escalations - Retroactive Charges

Purpose

Retroactive Charges help Property Managers bill tenants for previously undercharged periods when an escalation is processed after one or more billing periods were already invoiced using the previous charge amount.

Use Retroactive Charges when a new escalated charge amount has an Effective Date that is earlier than the recurring charge’s Next Date. In that case, SIRE can calculate the difference between the previous charge amount and the new charge amount for the missed periods.

Example:

Retroactive Charges reduce manual calculations and help users review the impact of an escalation before generating charges.

Where Retroactive Charges Are Configured

Retroactive behavior is configured in the recovery setup used by the lease recurring charge. Users can configure it directly in the recurring charge’s Recovery Settings or maintain it in a Recovery Template and apply the template to recurring charges.

Recovery Settings

1. Go to Leases.

2. Open the lease that contains the recovery charge.

3. Open the Recurring Charges tab.

4. Locate the recurring charge / Item ID that will be escalated.

5. Open Recovery Settings for that recurring charge.

6. Go to the Escalation section.

7. Complete the normal escalation setup, including Percent Increase and Rounding Method.

8. Select the applicable Retroactive Method.

9. Save the recovery settings.

Recovery Templates

1. Go to Setup > Templates > Recovery Templates.

2. Add or edit the recovery template.

3. Go to the Escalation section.

4. Select the applicable Retroactive Method.

5. Save the template.

6. Apply the template to the relevant recurring charges.

When a Recovery Template is applied to a recurring charge, the configured Retroactive Method is copied to the recurring charge’s Recovery Settings.

Retroactive Method Options

Create a charge

Use Create a charge when SIRE should calculate retroactive charges during the Escalation Preview and generate a separate retroactive charge invoice when charges are generated.

This option is used when tenants should be billed separately for the retroactive amount.

No retroactive

Use No retroactive when SIRE should not calculate or generate retroactive charges for the escalation.

This option is used when the new escalated amount should only apply going forward.

Required Setup Details

Before running escalations with Retroactive Charges, confirm the following:

• The recurring charge has a valid Item ID.

• Recovery Settings are complete for escalation.

• Percent Increase and Rounding Method are configured.

• Retroactive Method is set correctly.

• The recurring charge has a current charge amount.

• The recurring charge has a Next Date.

• The escalation Effective Date is correct.

• The selected Budget and GL account setup support the escalation calculation.

• The property has the correct proration method when partial periods are possible.

When Retroactive Charges Are Calculated

SIRE calculates retroactive charges when both conditions are met:

• Retroactive Method is set to Create a charge.

• The escalation Effective Date is earlier than the recurring charge Next Date.

If either condition is not met, retroactive charges are not calculated.

How Retroactive Charges Are Calculated

The retroactive amount is based on the difference between the new escalated charge amount and the previous charge amount.

Retroactive Amount = New Charge Amount - Previous Charge Amount

The system calculates the retroactive amount for each billing period between:

• The escalation Effective Date.

• The recurring charge Next Date.

Example:

Retroactive periods:

The calculation supports the recurring charge frequency, including monthly, quarterly, semi-annually, annually, weekly, and bi-weekly.

Proration

If a retroactive period is partial, SIRE prorates the retroactive amount using the property’s configured proration method.

Supported proration methods include:

• 30 Day Month

• Actual Number of Days

Example:

The January retroactive amount is prorated because the retroactive period starts in the middle of the month. February is treated as a full period.

Impact in the Escalation Preview

The Escalation Preview allows users to review the new charge amount and any retroactive charge amount before generating charges.

When Retroactive Method is Create a charge, the preview displays retroactive information for the recurring charge, including:

• Current Charge Amount

• New Charge Amount

• Retroactive Charges

The Retroactive Charges amount is displayed as a single aggregated amount. It represents the sum of all period-level retroactive charges between the Effective Date and the recurring charge Next Date.

The preview does not display each retroactive period as a separate row. Period-level details are used when the invoice is generated.

Impact in PDF and Excel Exports

The Escalation PDF and Excel exports should match the Escalation Preview.

When Retroactive Method is Create a charge, the exports display the aggregated Retroactive Charges amount.

When Retroactive Method is No retroactive, the Retroactive Charges field is not displayed.

Generating Charges

After reviewing the Escalation Preview, click Post Charges to complete the escalation process.

When charges are generated:

• SIRE creates the new recurring charge amount for the escalation.

• If retroactive charges were calculated, SIRE generates a retroactive charge invoice.

• The retroactive invoice total equals the sum of all retroactive period charges.

• Each retroactive period is created as a separate invoice line item.

Example invoice structure:

The Item ID used on the retroactive invoice line items is the same Item ID associated with the recurring charge being escalated.

Invoice Dates

The retroactive invoice uses the dates entered on the Escalation screen:

• Invoice Date

• GL Posting Date

If no Invoice Date is selected, SIRE uses the date the escalation process is executed.

If no GL Posting Date is selected, SIRE uses the date the escalation process is executed.

Notifications

After the user clicks Post Charges, SIRE displays a notification with the result of the retroactive invoice generation process.

Success Notification

If retroactive invoices are created successfully, the notification confirms that the invoices were created.

The notification includes invoice details such as:

• Invoice Number / Invoice Name

• Invoice Date

• Status

• Lease

• Property

• Tenant

• Amount

• Link to view the invoice in Intacct

Error Notification

If an error occurs while creating a retroactive invoice, SIRE displays an error notification.

The notification includes the corresponding error details so the user can understand why the invoice could not be created.

Posting Considerations

Review the Escalation Preview before generating charges. Once charges are generated, SIRE uses the values calculated in the preview.

Important details:

• Retroactive Charges do not replace the new recurring charge amount.

• The escalation process still creates the new charge amount for future billing.

• Retroactive Charges are used to bill the gap between the escalation Effective Date and the recurring charge Next Date.

• One retroactive invoice is generated for the total retroactive amount.

• Each retroactive period is represented as a separate invoice line item.

• If no retroactive charges were calculated, no retroactive invoice is created.

• If Retroactive Method is No retroactive, no retroactive charges or invoices are created.

Quick Validation Checklist

Before generating escalation charges, confirm:

• The correct property, lease, tenant, unit, and Item ID appear in the preview.

• The Effective Date is correct.

• The recurring charge Next Date is correct.

• The Current Charge Amount is correct.

• The New Charge Amount is correct.

• Retroactive Method is set correctly.

• Retroactive Charges appear only when expected.

• Partial periods are prorated as expected.

• Invoice Date and GL Posting Date are correct.

• PDF and Excel exports match the on-screen preview.

Troubleshooting