Management Fee Reallocation (Owner Portion)

Overview
When a property in RexCirrus8 is set up with management fees as a variable outgoing, but some tenancies are on gross leases, the owner may need to absorb part of the fee. This process reallocates the owner’s portion from the Variable Outgoings partition to the Owner partition using an Accounts Payable Transfer Journal.
Complete this monthly, prior to month end.

When to Use

Use this process if:

• Management fees are configured as a variable outgoing.

• Some tenants do not contribute to outgoings (gross leases).

• The owner must cover a portion of the management fee.

Quick Steps

1) Calculate the Owner Portion
Determine the amount to reallocate based on:

• Management fee calculation method

• Total management fee charged

• Area/tenancies not contributing to outgoings
  Tip: Use the Tenant Activity Report or Cash Book to assist.

2) Create the Transfer Journal
Go to Accounts Payable > Transfer Journals

Header

• Supplier: Agency Company

• Transaction Date: Month-end date

Transfer Expense From (Variable Outgoings)

• Property: Relevant property

• Account: Variable Outgoings Adjustment Management Fee (e.g. 5672)

• Description: Mgmt Fee Expense Reallocation – MM/YYYY

• From/To Dates: Period being reallocated

• Gross Amount: Owner portion

• Tax Status: Owner’s tax status

Transfer Expense To (Owner)

• Property: Same property

• Account: Owner Adjustment Management Fee (e.g. 4672)

• Description: Same as above

• From/To Dates: Same as above

• Tax Status: Owner’s tax status

Important: Use Adjustment expense codes to avoid impacting the current management fee calculation.

3) Review & Process

• Verify amounts, account codes, and partitions.

• Click Process.

Outcome

• Variable Outgoings is credited (reduced tenant allocation).

• Owner partition is debited (owner’s share recorded).

• Accurate recoveries and trust compliance are maintained.

Best Practice

• Run monthly before payment processing.

• Retain calculation support for audit/reporting.

• Apply consistently across applicable properties.