Management Fees - Setup & Execution

Overview

Management Fees allow you to calculate fees for eligible property charges or payments and create the related accounts payable bills.

Depending on the configuration, SIRE can also create an accounts receivable invoice to charge the configured AR Customer for the management fee.

Configure Management Fees

Go to Setup > Properties, open a property, and select the Management Fees tab.

You can configure one or more management fees for the property.

Management Fee Details

Management Fee Name

Enter a name to identify the fee.

Manager

Select the broker or management company that receives the management fee.

Timing

Complete the applicable dates:

• Start Date: The first date on which the fee can be processed.

• End Date: The last date on which the fee can be processed.

• Last Transaction Date: The last date included in a previous calculation.

• Next Date: The next date on which the fee is eligible to run.

• Scheduled Frequency (months): The number of months between fee calculations.

The fee is eligible when its next date falls within the processing criteria.

Basis Calculation

Choose how the fee is calculated:

• Formula: Calculates the fee from eligible charges or payments.

• Flat Fee: Uses the configured base amount.

Formula

Available formulas include:

• All Subject Management Fees Charges

• All Non-Subject Management Fees Charges

• All Charges

• All Subject Management Fees Payments

• All Non-Subject Management Fees Payments

• All Payments

The subject and non-subject formulas use the property's Charge Controls configuration for Subject to Management Fees.

Other Receipts

The Other Receipts option is available only for payment-based formulas.

When enabled, eligible other receipts are included in the payment calculation.

Basis Amount

For formula-based fees, complete the applicable fields:

• Percent Of Total: The percentage of the total charges or payment amount that is subject to the management fee calculation.

• Fee Percent: The percentage applied after Percent Of Total.

• Minimum Amount: The minimum fee amount used when the calculated fee is lower than this value.

• Cap Amount: The maximum fee amount.

• Base Amount: The fixed amount added to the calculated fee. For a flat fee, this is the fee amount.

For flat fees, the fee is based on Base Amount and the formula-based fields are disabled.

Accounting

Complete the accounting information:

• Accounts Payable Vendor: The vendor paid for the management fee.

• Tax Detail: Required for Canadian companies and filtered by the selected vendor.

• AR Customer: The customer charged for the management fee when an AR invoice is created.

• AP Invoice Description: The description used on the accounts payable bill.

• AR Item ID: The item used on the optional accounts receivable invoice.

GL Accounts

Complete:

• Expense debit: The debit account used on the accounts payable bill.

• Payable credit: The credit account used on the accounts payable bill.

Both accounts are required.

Access Management Fees Processing

Go to Tasks > Manage Charges > Process Management Fees.

The page lists active properties and their configured management fees.

Select the properties to process, then enter:

• Transaction Date: Used to determine fee eligibility and set the bill date and due date.

• GL Posting Date: Used as the bill's GL posting date.

Select Process Fees to generate the preview journal.

At least one property must be selected.

Preview Management Fees

Review the preview before generating the bills.

The preview can include:

• Management fee name.

• Property and manager.

• Calculation period.

• Eligible transaction details.

• Calculated fee amount.

• GL accounts.

• Vendor information.

• Minimum and cap results.

• Optional AR invoice information.

You can export the preview to PDF or Excel.

How Eligible Transactions Are Selected

For charge-based formulas, SIRE includes eligible invoice lines posted to the property's configured location during the calculation period.

For payment-based formulas, SIRE includes eligible payments recorded during the calculation period. When Other Receipts is enabled, eligible other receipts are included as well.

Eligible invoice states include:

• Paid

• Posted

• Partially Paid

• No Value

The selected formula determines whether all items, subject items, or non-subject items are included.

Fee Calculation

Flat Fee

The fee equals the configured Base Amount.

Formula-Based Fee

SIRE:

• Calculates the total amount subject to the selected management fee formula.

• Applies Percent Of Total.

• Applies Fee Percent.

• Applies the Minimum Amount or Cap Amount when applicable.

• Adds the Base Amount when the minimum or cap does not replace the calculated result.

The preview indicates when a minimum or cap affects the result.

Post Management Fees

After reviewing the preview, select Post Fees.

Accounts Payable Bill

SIRE creates an accounts payable bill to record the management fee owed to the selected broker or management company's vendor.

The bill uses:

• The selected Accounts Payable Vendor.

• The configured Expense debit and Payable credit accounts.

• The Transaction Date as the bill date and due date.

• The GL Posting Date for general ledger posting.

• The configured AP invoice description.

• The calculated management fee amount.

This records the management fee as an expense payable to the configured vendor.

Optional Accounts Receivable Invoice

SIRE can also create an accounts receivable invoice to charge the configured AR Customer for the management fee.

An AR invoice is created when the management fee has:

• An AR Customer.

• An AR Item ID.

• A manager or broker with a configured entity.

The broker or management company's entity ID supplies the entity context for the AR invoice. It is not the customer being charged.

If the required AR configuration is not complete, SIRE creates the AP bill but does not create the optional AR invoice.

Scheduling Updates

After successful processing:

• Next Date advances based on the fee frequency.

• Last Transaction Date is updated to the processing transaction date.

Validation Rules

• The property must be active.

• Both Expense debit and Payable credit are required.

• The end date cannot be earlier than the start date.

• Canadian companies must provide a vendor tax detail.

• Other Receipts can be enabled only with a payment-based formula.

• At least one property must be selected for processing.

Frequently Asked Questions

Can I Configure More Than One Management Fee For A Property?

Yes. You can add multiple management fees and configure each one independently.

What Is The Difference Between A Formula And A Flat Fee?

A formula calculates the fee from eligible charges or payments. A flat fee uses the configured base amount.

What Does Percent Of Total Mean?

It is the percentage of the total charges or payment amount that is subject to the management fee calculation.

When Is Other Receipts Available?

The option is available only when a payment-based formula is selected.

What Does Subject To Management Fees Mean?

It identifies the property charge-control items that are included when a subject-charge formula is selected.

Why Is An AP Bill Created?

The AP bill records the management fee owed to the selected broker or management company's vendor and posts the amount to the configured expense and payable accounts.

When Is An AR Invoice Created?

An AR invoice is created to charge the configured AR Customer when the AR customer, AR item ID, and manager or broker entity are configured.

Why Can’t I Process The Management Fee?

Processing may be blocked when the property is inactive, required accounting fields are missing, the date configuration is invalid, Other Receipts is used with a non-payment formula, or no property has been selected.