Approving a Budget by Area

  • Updated

The term "Budget" varies depending on the region. For our Asia-Pacific customers, it's often referred to "Budgeted Outgoings." European users will see it labelled as "Service Charge," while those in North America will find it listed as "Operating Expenses." The terminology used in the app adjusts based on your location. For additional clarity on regional vocabulary, please see our Glossary of Regional Terminology.

This article serves as your guide to approving a Budget by Area. It's an essential process for ensuring accurate billing and financial planning. We'll take you through the approval process, step-by-step, to help you manage your property finances with confidence.


Starting the Approval Process

Once you have created a budget, the next key step is to approve it. You can initiate the approval process by clicking the Approve button.

Note: Approval settings may be configured for all Tenants at once or individually per Tenant, depending on your preferences.


Allocation Type and Details

Begin by selecting one of the following allocation types for your budget:

  • Single Line Budget Allocation: A single line that covers the entire budget allocation for each tenant.
  • Multi-Line Schedule Allocation: A line is added for each tenant's allocation corresponding to each schedule within the budget.
  • Multi-Line Expense Allocation: Adds a line for each expense code used within the budget for every tenant.

Configuring the Templates

Follow these steps to set up the outgoings against the rent/outgoings templates:

  1. Choose the relevant Rent or Outgoings Template. Existing templates for the tenant will be automatically selected if available.
  2. Select the default Chart of Account. The Tax Type will automatically default to the one associated with the selected Chart of Account, but can be adjusted if necessary.
  3. The Description will populate based on the allocation type chosen.
  4. Decide whether to Add or Replace Line Items on the template.
  5. Click the Edit option against each Area to select the relevant template. This will auto-populate the Amount and Next Invoice Date once selected.
  6. Select Save All and Approve to approve the budget, save all tenant allocations, and update the templates accordingly.
  7. Alternatively, Skip and Approve will approve the budget without making template changes.


Post-Approval Actions

Following budget approval, an Approved Templates tab becomes available. This provides a snapshot of the approved budget at that moment. Note that any changes made to the budget post-approval will not be reflected in this tab.


The Owner Contribution tab will now display a button labelled Create Repeating Invoice. This facilitates the creation of recurring invoices for the Owner's expected liability based on the approved budget, with customizable frequency options. Locking the budget disables this function, so any recurring invoices should be set up prior to budget finalization.


The Repeating Invoice function automatically calculates the Owner's total liability and defaults to a monthly billing cycle. If you wish to modify this frequency, adjustments can be made manually. In cases where the Owner has a credit balance, the Create Repeating Invoice option will not be available, as invoices cannot be raised for credit amounts.


A Budget Certificate can be downloaded from the Reports tab for all tenants who occupy an area in the budget, detailing their particular contributions. Furthermore, a suite of additional reports are available once the budget is approved, offering further insights into your financial planning.

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