How to Run a CAM Reconciliation Report in STRATAFOLIO

Estimated reading time: 4 min

Common Area Maintenance (CAM) reconciliation is a critical part of managing commercial real estate. STRATAFOLIO recognized the need for a platform that simplifies the process and saves valuable time. The CAM reconciliation process with STRATAFOLIO is a simple three steps and allows you to have a report ready for your tenant at a moment’s notice. 

To View the Operating Expenses/CAM

Go to the navigation bar on the left-hand side and click Operations, Leases, then select the Lease you would like to look at with the “i”.

This will get you to the Lease Abstract. Once there, click on the Op-Exp tab.

This view of the Op-Exp tab will show you the current charges being added to the invoices each month. You can expand the period by using the green + symbol to see the subcategory breakdown. You can also modify them using the pencil button if your rates change, need to change to Controllable or Non-Controllable, add caps, or change the Income Item that the charge is being posted to. 

The Op-Exp/CAM may have been set up by the Onboarding Team with many $0 Subcategories. All of the subcategories listed here are added to the CAM Reconciliation Report. If there is a $0 listed, that means that there is no amount for that subcategory on the invoice, but you need to track it as part of your Operating Expenses and CAM. More on the mapping to follow. 

Slide the button on the right of the page to Actuals. This is where you will see the expenses that are posted in your QuickBooks accounts.

STRATAFOLIO runs on a Cash Basis. The expenses listed in your account will show on the Operating Expenses pages on the date they are posted as paid. Select the Operating Expense Period that you would like to look at. Again, there is more detail for the subcategories by using the green + button to expand that Category.

All expenses posted during the time period to the Chart Of Accounts for these Categories and Subcategories in your QuickBooks will be shown. They are calculated using the square footage of the unit and the Pro Rata share of the Rentable Square Footage of the Building. In this example, it is 34.58%.

If the Pro Rata Share is not based on the Rentable Square Footage of Building as calculated by STRATAFOLIO, there is an override under the Edit Lease function for Building Square Footage as Stated in the Lease. This should only be used if the lease clearly states a different square footage of the building to calculate a different Pro Rata Share. STRATAFOLIO uses up to 15 decimal places in the calculations for the Pro Rata Share.

To Run the Operating Expense Reconciliation Report

The Reconcile button will produce an Excel report that is ready for your tenants. 

The second tab of the reconciliation report is a further breakdown of the actual expenses at the Pro Rata share and the month that they were posted on a cash basis. 

The Excel file is editable to delete or modify cells/sheets as necessary, however the information does not flow from one page to the other so you will need to modify in both if changing any of the numbers. STRATAFOLIO uses up to 15 decimal places in the calculations for the Pro Rata Share.

The Invoiced Amount is what should have been invoiced for the time period to date of the report. It is not necessarily what has been collected. Please verify the actual amounts collected in QuickBooks. 

To Check the Mapping of Operating Expenses/CAM

You can check to see what accounts in your Chart of Accounts (COA) for each QuickBooks integration are being mapped to which Category or Subcategory in your Operating Expenses. If you create a new account in your COA or need to update one of the accounts to be added to your Op-Exp, you need to get to your Integration’s Accounts.

On your Organization page, select the Integration tab, press the “i” next to proper integration that you would like to look at.

Select the Accounts tab. You can then filter by Op-Exp Subcategory to see what is being mapped in your account to which subcategory in Operating Expenses. 

This is where your Op-Exp Categories and Subcategories get mapped to connect to your COA. Any time an expense is posted to any of these accounts that are mapped to an Op-Exp/CAM Category or Subcategory in STRATAFOLIO, the expense will go to the Op-Exp expense in the Leases that you added it to. Multiple accounts can be utilized to one Subcategory, but only one Subcategory can be used per account. In our example, there are multiple Reimbursable Utilities accounts that are all going to the CAM Subcategory for the Op-Exp. 

STRATAFOLIO cannot choose specific transaction lines from an account to be part of the Op-Exp or excluded from it. Please be sure your account is used appropriately and use Reimbursable accounts and Non-Reimbursable/Operating accounts if there are any charges that may be excluded from your CAM. Here is the Chart of Accounts we created based on best practices that we have seen with commercial real estate:

To Update an Account

If there is an account that needs to be updated or changed, click the box next to the account you wish to update. Click the Map Accounts button.

This will take you to STRATAFOLIO’s condensed COA. Select the drop down and choose an expense account under the Operating Expenses category. An Operating Expense Subcategory drop down will pop up and you may choose the proper Subcategory to map it to, or Add a Subcategory as needed. Press Save & Confirm

The detail that you want on the Operating Expense/CAM Reconciliation Report will depend on the Subcategories that you choose. You can have as much detail as your accounts allow. Work with the Onboarding Team during set up to get the customization that you need.

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