Invoice Overview in the OpExp Tab
This view displays the details and amounts that will appear on the tenant’s monthly invoice. The amounts are the budgeted amounts for this lease for their N, NN, or NNN expenses. This may include Real Estate Taxes, Insurance, and CAM. All of the combined expenses are called Operating Expenses.
For more information about the CAM and Operating Expenses, please see our Foundations of Common Area Maintenance (CAM) guide in STRATAFOLIO.
To add the amounts to the invoices, first, you need to add the subcategories to the lease. You will add these based on the specific lease and what the tenant has agreed or not agreed to pay for.
Navigating to the OpExp tab in a Lease
- Use the left-hand navigation bar to go to Operations and select the Leases view
- Find the Tenant in Leases View that you are looking for and click the i to the left of the row to get more information about the lease
- This opens up the Lease Abstract. Here, you will open the OpExp tab
Adding Subcategories to a Lease
Add a Time Period
If this is a new lease, you will need to select Add an Operating Expense Period button.
For the Operating Expense Start Date, enter the Lease Commencement Date or the first day of the year you are starting with for CAM, such as 1/1/2024. For the Operating Expense End Date, Enter the Lease End Date or the last day of the year that you are entering for CAM, such as 12/31/2024.
These periods will flow into the drop-down area of the Actuals side of the OpExp tab. It is an industry standard to conduct yearly CAM reconciliations based on the calendar year. The dates entered will be used for the Invoicing as well as the CAM Reconciliation Reports, so it is best to use the calendar year.
NOTE: Please note that STRATAFOLIO runs on a cash basis. Any expense posted outside of the operating expense dates will not be included in the CAM Reconciliation Report.
Add Multiple Subcategories
The option to add multiple subcategories at one time will appear for you. (This will also be an option later when adding more subcategories if you would like to add them in bulk at one time). Update or add all the required fields for the subcategories you want to include for invoicing or on the CAM Reconciliation reports. See the screen below for an example of what the page may look like.. Then press Save.
The exact amounts do not need to be allocated for each subcategory, and you can use the CAM or NNN subcategory for the lump sum. You can add them if you need them as a separate Income Item amount on the invoices created. It may also be necessary to show the tenant the specific allotment on the CAM Reconciliation Report. However, if you need the subcategory on the CAM Reconciliation Report, then the subcategory needs to be added in a $0 amount.
The amounts listed will be posted to the selected Income Item entered here. The system will add the amounts together if you list an amount for more than one subcategory using the same Income Item. The total will appear on the invoice as one line item for the selected Income Item.
Updating Existing Periods in the OpExp Tab
Open the OpExp tab in the Lease Abstract as described above.
Open the green + sign to see the subcategories already added to that specific time period.
From here, you can add or edit the subcategories with +Add Single Subcategory and +Add Multiple Subcategory. The multiple subcategories option directions are above.
Add a Single Subcategory to the OpExp Tab
To add a single subcategory, you must update all required fields on the screen below. Then press Save.
Using the single subcategories, you will have more options like adding CAPs and changing the subcategory to Controllable vs Non-Controllable. This is the same screen that you will get when you are editing a subcategory with the pencil icon. For CAM Caps and other special circumstances, please see the Knowledge Base articles for the specific situation.
Income Items for Invoices
The Income Items must be added to the subcategories on the Invoice tab. This allows STRATAFOLIO to be able to post invoices to your QuickBooks with the correct Income Item. If you need additional assistance with this, we have a Knowledge Base article for Creating Income Items in QuickBooks Online.
Again, this depends on how much this needs to be broken down on your CAM Reconciliation Report for your tenant or on the invoices.
NOTE: To appear on the Actuals tab and create a CAM Reconcilaition Report, the subcategories must be inputted on the Invoicing portion. Any income items with a $0 amount will disappear from the invoice during creation. However, you need to include these items to ensure they appear on the CAM Reconciliation Report in STRATAFOLIO. This allows you to pull all of the expenses spent for a building without adding additional income items on the invoices for the tenants.
CAM or Operating Expense Cloning
At the end of each year, for the continuation of CAM amounts on invoices, you will need to clone over your CAM or Operating Expenses from one period to the next. Our CAM cloning function allows you to easily duplicate your CAM setup for the next year or period. The Knowledge Base for CAM Cloning will help answer any questions about the process.
