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Raising an expense charge on a tenancy

Chris Horroll
Chris Horroll
  • Updated

Expense charges can be raised on a tenancy, which can range from replacement keys to maintenance jobs, or just general expenses incurred by your tenants.  

After an expense charge is added, it will appear in arrears until payment has been made.

Should the expense charge still be outstanding at the end of a tenancy, it'll show as outstanding, giving you the option to claim from deposit monies.

This article includes: 

Raising an expense charge on a tenancy

The general process for raising an expense charge on a tenancy is as follows:

  1. Click Tenancies on the main toolbar
  2. Select the relevant tenancy from Recent & Favourite Tenancies
    1.  Alternatively, find the tenancy using the Search Tenancies bar in the top right
  3. Click Actions 
  4. Within the dropdown menu, click Charge
  5. Click Add Charge
  6. The Add Charge for this Tenancy window opens on the Charge tab
    1. Charge Date - Set this accordingly for when the expense charge is due. By default, it's the current date
    2. Charge To - This determines whether the charge is to be raised against the tenancy or to a specific tenant. By default, this is set as the tenancy at the corresponding address
    3. Frequency - Edit this if your charge is reoccurring 
    4. Charge Item - This is where you set the item the expense charge relates to. (Landlord Income will make any monies received against the charge payable to the landlord; Fees are payable to your agency;  Expenses are payable to the relevant supplier) 
    5. Description - Edit this so that it represents a description of the expense charge
    6. Net Amount - Enter the amount payable
      Steps 6g - 6j are visible if the Charge Item you selected was classed under Expenses
    7. Supplier - Search for and select the supplier to whom the expense charge is payable
    8. Supplier invoice reference - Add the supplier's invoice number (if available)
    9. Link PDF - If a scanned copy of the invoice is available, click + to upload it into Alto
    10. Works Order - Link the expense charge to an existing works order, if one already exists in Alto
  7. Click the Options tab
    1. You may want to add a Payment Reference and set whether to Produce and Send Documents automatically when the charge is raised. Once done, click the Charge tab to return
  8. Click OK

 Note

Upon clicking OK, if a duplicate Supplier invoice reference number has been entered on a raised/unraised charge for the same Supplier, you'll be notified at the bottom of the window. You can also click the duplicate Invoice to view the linked .pdf if it's been attached, to verify that it was correct for that expense charge.

Raising an expense charge on a tenancy duplicate invoice.gif

To proceed, ensure a unique Supplier invoice reference is entered.

If you don't raise the expense charge immediately, it will raise automatically on the Charge Date. However, if you do want to raise the expense charge immediately:  

  1. Tick Raise Now next to the expense charge you've created
  2. Click Raise Selected

Raising an expense charge on a tenancy2.png

A record of the expense charge is made available to view in the tenancy, available from within the Timeline on the side menu. It's also recorded from within Transactions on the side menu. 

Example 1

Raising a tenancy expense charge that's payable to a supplier

An expense charge can be added to the tenancy, payable direct to a supplier.

When the tenants pay the expense charge, it will be credited to the supplier's remittance ready for payment.  

  1. Click Tenancies on the main toolbar
  2. Select the relevant tenancy from Recent & Favourite Tenancies
    1.  Alternatively, find the tenancy using the Search Tenancies bar in the top right
  3. Click Actions 
  4. Within the dropdown menu, click Charge
  5. Click Add Charge
  6. The Add Charge for this Tenancy window opens on the Charge tab
    1. Charge Date- Set this accordingly for when the expense charge is due. By default, it's the current date
    2. Charge To - This determines whether the charge is to be raised against the tenancy or to a specific tenant. By default, this is set as the tenancy at the corresponding address
    3. Frequency - Edit this if your charge is reoccurring 
    4. Charge Item - This is where you set the item the expense charge relates to. In this example, click Expenses, then tick an option from the list 
    5. Description - Edit this so that it represents a description of the expense charge
    6. Net Amount - Enter the amount payable to the supplier
    7. Supplier - Search for and select the supplier to whom the expense charge is payable
    8. Supplier Reference - Add the supplier's invoice number (if available)
    9. Link PDF - If a scanned copy of the invoice is available, click + to upload it into Alto
    10. Works Order - Link the expense charge to an existing works order, if one already exists in Alto
  7. Click the Options tab
    1. You may want to add a Payment Reference and set whether to Produce and Send Documents automatically when the charge is raised. Once done, click the Charge tab to return
  8. Click OK

Raising a tenancy expense charge that's payable to a supplier.png

If you don't raise the expense charge immediately, it will raise automatically on the Charge Date. However, if you do want to raise the expense charge immediately:  

  1. Tick Raise Now next to the expense charge you've created
  2. Click Raise Selected

Raising a tenancy expense charge that's payable to a supplier2.png

A record of the expense charge is made available to view in the tenancy, available from within the Timeline on the side menu. It's also recorded from within Transactions on the side menu. 

Example 2

Raising a tenancy expense charge that's payable to a landlord

If the landlord has carried out work on the property and requested the tenants reimburse them for the associated costs, an expense charge can be added to the tenancy that is payable to the landlord.

When the tenants pay the expense charge, it will be credited to the landlord's statement, ready for payment.  

  1. Click Tenancies on the main toolbar
  2. Select the relevant tenancy from Recent & Favourite Tenancies
    1.  Alternatively, find the tenancy using the Search Tenancies bar in the top right
  3. Click Actions 
  4. Within the dropdown menu, click Charge
  5. Click Add Charge
  6. The Add Charge for this Tenancy window opens on the Charge tab
    1. Charge Date- Set this accordingly for when the expense charge is due. By default, it's the current date
    2. Charge To - This determines whether the charge is to be raised against the tenancy or to a specific tenant. By default, this is set as the tenancy at the corresponding address
    3. Frequency - Edit this if your charge is reoccurring 
    4. Charge Item - This is where you set the item the expense charge relates to. In this example, click Landlord, then tick Sundry from the list
    5. Description - Edit this so that it represents a description of the expense charge
    6. Net Amount - Enter the amount the landlord is charging
  7. Click the Options tab
    1. You may want to add a Payment Reference and set whether to Produce and Send Documents automatically when the charge is raised. Once done, click the Charge tab to return
  8. Click OK

Raising a tenancy expense charge that's payable to a landlord.png

If you don't raise the expense charge immediately, it will raise automatically on the Charge Date. However, if you do want to raise the expense charge immediately:  

  1. Tick Raise Now next to the expense charge you've created
  2. Click Raise Selected

Raising a tenancy expense charge that's payable to a landlord2.png

A record of the expense charge is made available to view in the tenancy, available from within the Timeline on the side menu. It's also recorded from within Transactions on the side menu. 

Related articles:

Raising shared charges on a joint tenancy

Raising an expense charge to a supplier

Raising an expense charge on a property

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