ARCHIBUS Applications: Cost Chargeback & Invoicing

This week we're excited to bring you more information about ARCHIBUS' Cost Chargeback and Invoicing application. This tool is a great way to improve the process of charging back costs, issuing invoices, and tracking receivables to reduce administrative expense.

Benefits

• Increases transparency of costs to improve real estate portfolio decision-making
• Improves operational efficiency through simplified chargeback/invoice/payment processing
• Decreases administrative errors with automated chargeback calculations and invoice/payment monitoring
• Streamlines chargeback and invoicing processes through intuitive Wizard-based interfaces
• Cost Chargeback and Inventory

View details for any invoice in one location that includes due dates, terms, contacts, associated costs, payments, and more

Increasing efficiency and reducing errors in performing chargebacks and executing invoicing/receivables processes is essential for reducing the administrative cost of managing properties. Now both goals can be achieved with the ARCHIBUS Cost Chargeback & Invoicing application. This Web-based solution’s sophisticated Wizards enable lease administrators and portfolio managers to automate all real estate-related accounting functions. The Chargeback Wizard provides users with an intuitive tool for flexible cost allocation to internal cost centers and/or external tenants, while the Invoicing/Receivables Wizard enables accurate, automated billing and payment processes for enhanced account management.


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Chargeback (Space)

Chargeback (Space) is a process that determines a department’s financial charge for the actual area it occupies plus a proportional percentage of the facility's common area.

This in done in a few steps:

1. Common area is proportionately distributed among the departments on a floor, in a building, or across the facility site according to the area's Prorate field. This determines each department's percentage of facility common area.

2. Each of the department's assigned areas and its shares of common areas are multiplied by each area's associated Cost Per Area (square foot or square meter).

3. For each department, the cost of each assigned area and the cost of the common percentage areas are totaled to determine a department’s financial charge for the total area it uses

The rationale behind proportionately dividing common areas among departments is that the larger the department, the greater number of personnel it has using common areas; thus, the greater percentage it should pay for using the common area. In addition to distributing common area in this manner, your facility manager may wish to distribute a floor's remaining area to the departments on the floor, in the building, or in the site. Distributing the cost of remaining area in this manner ensures that all space on a floor is billed for. Typically, a floor's remaining area is a much smaller amount than its common area.

Please Note, you may need to run the following:

Update Manual Areas

This is required if you manually enter values to the Room Area Manual Entry ft²(rm.area_manual) field. This moves the manually entered value into the room area (calculated) field.

Update Area totals

Always run the Update Area totals.

Run Chargeback

Obviously



Question:  Do you have any good Cargeback stories? We'd love to hear from you!

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