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Escalations - Setup & Execution

Use Escalations to calculate updated recurring charge amounts from budget-based recovery settings, preview the results, and post new charge amounts for future billing.

Escalation setup is maintained in Recovery Templates or directly on a lease recurring charge under Recovery Settings.

Escalation Workflow

A typical escalation workflow includes:

  • Configure escalation settings in a Recovery Template or recurring charge Recovery Settings.

  • Confirm the recurring charge has recovery dates and expense categories.

  • Run Process Escalation from Tasks > Recoveries.

  • Review the escalation preview.

  • Post the new charge amounts.

  • Review notifications for processing results.

Configure Escalation Settings

Go to Setup > Templates > Recovery Templates, or open a lease and go to Recurring Charges > Recovery Settings.

In the Escalation section, review or complete:

  • Basis

  • Percent Increase

  • Basis Calculation Method

  • Calculation Method

  • Rounding Method

  • Retroactive Method

Basis is set to Budget.

Basis Calculation Method is set to Budget.

Calculation Method is set to Escalation Charge.

These fields are displayed for reference and are not editable.

Percent Increase

Percent Increase determines how much SIRE increases the budget amounts used in the escalation calculation.

For example, if the budget amount is increased by 5%, SIRE applies that increase before calculating the tenant share and new recurring charge amount.

When Percent Increase is entered, Rounding Method is required.

Rounding Method

Use Rounding Method to control how SIRE rounds the new charge amount.

Available options:

  • No Rounding

  • Nearest Dollar

  • Nearest Five Dollars

SIRE applies rounding after the escalated amount is calculated.

Retroactive Method

Use Retroactive Method to control whether SIRE calculates a separate retroactive charge when an escalation effective date is earlier than the recurring charge’s Next Date.

Available options:

  • Create a charge

  • No retroactive

Use Create a charge when tenants should be billed for the difference between the old charge amount and the new charge amount for missed billing periods.

Use No retroactive when the new escalated amount should apply only going forward.

Required Recovery Settings

A recurring charge can be selected for escalation only when the required setup is complete.

Confirm that the recurring charge has:

  • Recovery Settings

  • Recovery From

  • Recovery To

  • Process Recovery Every

  • Expense Categories

  • Escalation setup

  • Lease move-in date

If required escalation or move-in information is missing, SIRE displays the item as unavailable for selection.

Process Escalation

Go to Tasks > Recoveries > Process Escalation.

Complete the Charge Amounts Setup fields:

  • Property

  • Frequency

  • Effective Date

  • Budget

Optional field:

  • Advance Recovery Dates

Use Advance Recovery Dates when the recovery period should move forward after charges are posted.

Retroactive Charge Dates

The Retroactive Charges panel includes:

  • Invoice Date

  • GL Posting Date

These dates are used when retroactive invoices are generated.

If Invoice Date is blank, SIRE uses the date the escalation process is executed.

If GL Posting Date is blank, SIRE uses the date the escalation process is executed.

Select Items

After selecting a Property, SIRE displays eligible recurring charges in Item Selection.

The table includes:

  • Lease

  • Unit

  • Tenant

  • Item ID

  • Recovery From

  • Recovery To

Select the charges to process, then select Preview Charges.

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

Review The Escalation Preview

Open the Escalation Journal notification to review the preview.

The preview shows escalation details by lease and recurring charge.

You may see:

  • Lease

  • Move-In Date

  • Move-Out Date

  • Charge Type

  • Reconciliation Method

  • Stop Method, when applicable

  • Unit

  • Tenant

  • Percent Increase

  • Current Recovery Period

  • Current Charge Amount

  • New Charge Amount

  • Retroactive Charges, when applicable

Use the export option to download the preview as Excel or PDF.

If the preview is correct, select Post Charges.

How SIRE Calculates Escalations

SIRE calculates escalations from the selected Budget and the GL Accounts configured on the recurring charge’s expense categories.

During preview, SIRE:

  • Finds budget items for the property posting location and selected Budget.

  • Uses the next recovery period based on the recurring charge Recovery Settings.

  • Applies the configured Percent Increase to matching budget items.

  • Calculates the tenant share using the recurring charge recovery setup.

  • Applies multiplier and rounding when configured.

  • Calculates the new charge amount for the selected Frequency.

If no budget items are found for the escalation period, SIRE shows a message in the preview and does not calculate a new charge amount for that item.

How Retroactive Charges Are Calculated

SIRE calculates retroactive charges only when:

  • Retroactive Method is Create a charge.

  • The escalation Effective Date is before the recurring charge Next Date.

  • The recurring charge has existing charge amounts.

  • The recurring charge frequency is not one-time.

SIRE calculates the retroactive amount for each billing period between the Effective Date and the recurring charge Next Date.

For each retroactive period, SIRE compares:

  • The previous charge amount for the period

  • The new escalated charge amount for the period

The difference becomes the retroactive charge for that period.

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

The preview displays the total Retroactive Charges amount as an aggregated amount.

Post Charges

When you select Post Charges, SIRE processes the escalation in the background.

SIRE:

  • Creates the new recurring charge amount using the selected Effective Date and Frequency.

  • Saves escalation history.

  • Advances recovery dates when Advance Recovery Dates is selected.

  • Creates retroactive invoices when retroactive charges were calculated.

  • Sends notifications with processing results.

Retroactive invoices are created as posted invoices. Each retroactive period is added as a separate invoice line item.

Notifications

Escalations use Notifications for preview and posting results.

You may see:

  • Escalation Journal is ready

  • Escalation charges successfully added

  • Invoice notifications for retroactive charges

  • Error notifications if preview or posting fails

Open the notification to review the journal, generated charges, invoices, or error details.

Frequently Asked Questions

Where Do I Configure Escalation Settings?

Configure escalation settings in a Recovery Template or directly on the lease recurring charge under Recurring Charges > Recovery Settings.

Where Do I Run Escalations?

Go to Tasks > Recoveries > Process Escalation.

Why Can’t I Select A Recurring Charge?

The recurring charge must have complete Recovery Settings, recovery dates, process recovery frequency, expense categories, escalation setup, and a lease move-in date.

When Are Retroactive Charges Created?

Retroactive charges are created when Retroactive Method is Create a charge and the escalation Effective Date is before the recurring charge Next Date.

What Happens If Retroactive Method Is No Retroactive?

SIRE does not calculate or create retroactive charges. The new escalated charge amount applies going forward.

What Does Advance Recovery Dates Do?

When selected, SIRE advances the recovery dates after escalation charges are posted.

Can I Export The Escalation Preview?

Yes. The escalation preview can be exported to Excel or PDF before charges are posted.