We are excited to share some important changes to the tenant chargeback process that will impact how we handle invoices and bill tenants. This update will provide us with better insights into the costs related to tenants and ultimately, help us improve our collections recovery rate.

Additionally, an overview of these new accounts and how to use them for coding will be covered during one of your group's respective upcoming team meetings.

Here's an outline of the updated process:

Coding invoices (ASD, Field, Seaport PM, Accounting):

When coding invoices for these types of expenses going forward, teams will either code to accounts that are recurring related or non-recurring related, based on what the expense is for. Those new are accounts are linked here.

Recoding Revenue and Expenses and Invoicing Tenants (Accounting):

Accounting will use new receivable and revenue accounts and income categories and take these steps once an invoice is coded:

For recurring reimbursable expenses:

• Accrue 100% recovery using new receivable and revenue accounts.
• Prepare an invoice for a tenant billing and charge the tenant using new income category.
• Recovered expenses will be automatically applied to the relevant income category. Unrecovered expenses should be reclassed as a vacancy expense or written off depending on whether it’s a vacancy or uncollectible (so the recovery rate remains 100%).

For non-recurring reimbursable expenses:

• RET Related: Invoice should get coded to the new receivable account to accumulate costs. Expense or net against the abatement when applicable.
• Municipal Charges: Invoice should get coded to the new receivable account and charged/invoiced to tenant using new income category.
• Temp Utilities: Invoice should get coded to the new receivable account and charged/invoiced to tenant using new income category.
• Misc. Receivables (Non-Tenant): Invoice should get coded to new receivable account, vendor reimbursement gets coded to the new receivable account.
• Misc. Receivables (Tenant): Accounting should research and reclass if net amount is not zero and displayed on financials. This should be handled the same way as temp utilities.

Update to Financial statements (Accounting):

• Income Statement: Revenue and Expense accounts will net into one account range group called 'Recurring reimbursables' and will display on the financial statements below NOI. Printing will be suppressed if net = $0.
• Balance Sheet:
• The new recurring reimbursable receivable accounts will be added to the line 'Accounts Receivable – Other'
• Selected information from the new recurring reimbursable receivable accounts will be added to a new line ‘Unbilled Recurring Reimbursables.’

Tenant Chargeback Process training page of the WS Learning Center - which includes:

• List of new accounts
• Flowchart outlining the whole process (from coding invoices to recording revenue and expenses and invoicing tenants)