Budgets are used when Operating Expenses are forecast for a period of time, usually a financial year, and on charged to each tenancy. At the conclusion of each budget period the actual costs are compared with the forecast costs and a 'wash up' is completed, invoicing the tenants for any shortfall, and issuing credits for any overpayments.
Create a new budget
To add a new budget for a property:
- Click on the Outgoings tab on the left then the Budgets tab at the top
- Click on the New Outgoings Budget button
Enter a title and dates for the budget. The budget dates can overlap dates for another budget, so you can have multiple budgets running at once e.g. an annual budget and a 10 year budget.
Enter any notes about the budget and click Save.
Note: If you have an existing budget that you want to rerun for the next period, you can roll the budget over instead of creating a new one. See Rolling Over a Budget.
The Budget will now be created in Draft mode. While the budget is in this status, you can add, edit or delete allocations as you wish.
Allocate items to the budget
To add allocations to the budget, click New Allocation.
- Select an Expense Account to assign the cost to. If an account is in use by another budget that runs over the same date range, that account will not be available for selection.
- Enter the Budgeted Cost for the item, which will be divided between the tenancies.
- All tenancies with a current term will be listed here. To exclude a tenancy from an allocation, simply allocate them 0% of the budgeted cost.
- You can specify a percentage of the budgeted cost or a set amount to allocate to each tenancy. If you enter a percentage, the system will calculate the amount of the budgeted cost and populate the amount field. If you enter an amount, the system will calculate the percentage of the budgeted cost and populate the percentage field. Note: If an Outgoings % has been set up against a Tenancy file, this will be pulled through as their default allocation in a budget and their $ share based on that percentage (See Editing the Lease Details for more information). This can be manually edited for each allocation if required.
- The total allocations may not necessarily add up to 100% of the budgeted cost, in which case this amount will be displayed as Non-Recoverable.
When you are happy with the allocations for each tenancy, click Save and Add Another to create a new allocation or Save and Finish to go back to the budget details screen.
Budget Summary and Details
When viewing the budget details, the Summary tab will show each expense type, the amount budgeted and the total % which has been allocated. Clicking on the Detail tab will show the proportion of each expense allocated to each tenancy and the total per tenant for the budget period.
- Edit Budget - Edit the title, dates or note.
- Approve Budget - Proceed to the approval process once you are happy with the budget allocations.
- Edit Tenancy Caps/Collars - Apply a cap or collar to any of the included tenancies. See Caps and Collars for more information.
- Edit Allocations - Edit all allocations at once
- New Allocation - Create a new allocation for the budget
- Archive Budget - Remove a budget in draft status.