Reconciling a Budget involves reconciling the budgeted expenses with the actual costs incurred during the budget period. It is often referred to as a wash-up or washup, depending on your location.
During the period of the budget, costs incurred can be passed onto the leaseholders as extra line items on their rent invoice, or separately on an outgoings invoice.
At the end of the budget period, the budgeted costs can be compared with the actual costs and any extra costs paid by the leaseholders (if the budget amount was exceeded) or refunded to the leaseholders (if the budgeted amount was not met).
All tenants included in the budget are included in the reconciliation for the whole budget period, regardless of term dates. Manual adjustment is required for those tenancies who have not occupied the property for the full budget period.
To start the reconciliation process, click Budget Reconciliation from the Budget Details screen.
- Each account allocation will be displayed, showing the Budgeted amount, the Actual Invoiced amount, and the total percentage allocated. Click the arrowhead icon to expand the section and view further details.
- The Actual Cost shows the total amount invoiced, based on invoice transactions loaded in Re-Leased and Xero. It will not include any cash-coded transactions. If you are unsure, you may also want to check these figures against your Xero Profit and Loss report to ensure the accuracy of your reconciliation. If you find that the Actual Cost amount is incorrect, it can be edited to reconcile based on your own figures however the adjusted amount will not be reflected in any reports.
- If a tenancy has a cap or a collar applied, their allocation details will be displayed but you will not be able to add an invoice or credit amount here as the cap or collar was applied to their total budget allocation.
- If a tenancy has no cap or collar applied, the invoice or credit amount will be calculated from the Actual Cost field. You can edit this amount here if you wish.
- Once you have completed any adjustments for all allocations and tenancies, click Mark as complete to proceed to the next stage.
Once all line items have been marked as complete, click Generate Invoices to proceed.
A balancing invoice or credit note can now be created for each tenancy.
If a cap or collar has been applied, the invoice or credit note will only include a single line item for balancing outgoings charges for the total budget.
Otherwise you can choose whether to generate a single line or a multi line invoice/credit note for the tenancy.
If multi line is selected, each budget expense allocation will be included on a separate line.
Once all invoices/credit notes are raised, there will be a Finish and Sync with Xero button for Xero users. You may also click the View Invoice link to return to the invoices.