Process Snapshots represent a simplified summary of a representative process for a specific accounting activity/function such as Accounts Payable, Accounts Receivable, Bank Reconciliation and Month End Closing among others. Process snapshots for Lease Abstraction, CAM Reconciliation and Loan Abstraction are also covered. The process snapshots help in understanding how a comparable/representative process would be generally executed by OHI.
Accounts Payable Process Snapshot
The Accounts Payable Process Snapshot detailed below is for a multi-family residential developer using Yardi Voyager. AP is being performed in Yardi PAYscan environment with pre-set work-flows governing the movement of invoices across operations and accounting.
Key Activities Done
Entry of invoices and utilities, allocating AP invoices to correct work-flows, clearing held/stuck invoices by coordinating with site, Check/ACH Processing, Debit Card/ CC transactions and miscellaneous activities such as vendor set-up, funding petty cash etc.
Accounts Receivable Process Snapshot
The Accounts Receivable Process Snapshot detailed below is for a Multi-family Residential developer with Section 8 Rent Tenants. Properties are being managed in Yardi Genesis. Leases are maintained in Yardi, Move-Ins and Move-Outs happen through the month and Yardi CheckScan used for receiving tenant payments.
Key Activities Done
Move-Ins (Set-up of leases), Move-outs, Security Deposit Refunds, Monthly Rent Run, Late Fees, Rent Receipting across different payment modes, Delinquency reports and tenant ledger adjustments.
Bank Reconciliation Process Snapshot
The Bank Reconciliation Process Snapshot detailed below is for firms managing single-family, multifamily residential, commercial properties, HOAs and industrial properties. The process can be followed for both accrual and cash based accounting system with bank reconciliation performed in Yardi. A similar process is followed for clients using Appfolio, MRI, RealPage, QuickBooks and Microsoft Dynamics.
Key Activities Done
Reconciling bank accounts – dealing with transactions not posted in the software, bank reconciliation discrepancies, bank reconciliation postings and reports.
Month End Closing Process Snapshot
The Month End Closing Process Snapshot detailed below is for a Multi-family Residential and Student Housing portfolio managed in Yardi Genesis. The accounting system comprises of Accrual Based Accounting with PO based AP System. A similar process is followed for clients using MRI and Appfolio.
Key Activities Done
AP Closing, AR Closing, Expense Accruals, Prepaid Amortizations, Bank and Escrow Reconciliations, Inter-Company Entries/Reconciliations, Management Fees Calculations, GL Review including Income and Expense Reclassifications, Variance Comments, Draft Financial Packages and Finalized Financials Packages.
Lease Abstraction Process
- Preliminary discussion with client to understand their abstraction requirements and preferences including the level of detail to be captured
- OHI’s team reviews representative lease agreements used by client to understand the underlying complexity of the leases
- The abstract template to be used is finalized with the client
- Understanding lease abstraction timelines and preparation of delivery schedule
CAM Reconciliation Process
- Review of the Lease Abstract and Rent Rolls
- Compute Expenses Pools
- Gross-Up Multiplier Calculation
- CAM Expense CAPS/Floors tenant wise Summary
- Applicable Period for each Tenant
- Applicable Space Calculation for each Tenant
Loan Abstraction Process
- Preliminary discussion with client to understand their abstraction requirements and preferences including the level of detail to be captured
- OHI’s team reviews representative loan agreements used by client to understand the underlying complexity of the loans
- The abstract template to be used is finalized with the client
- Understanding loan abstraction timelines and preparation of delivery schedule
