How to use Revised Billing in Yardi

We’re now at part 5 – the end of our series on Yardi’s top 5 underused & useful features. Richard Duddy explains Yardi’s Revised Billing and how it can help you to save time and remove human error when processing a reversal or correction. 

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What is the Yardi Revised Billing feature?

The Revised Billing feature in Yardi can be used to reverse and correct lease charges retroactively. This could be needed for several reasons such as a lease modification, late rent review settlement, or even a lease correction. The Revised Billing feature automates the process of reversing the incorrect charges and raising the correct charge on the tenants’ ledger.

How to use Revised Billing in Yardi?

This feature is especially used for periodic monthly or quarterly commercial billing. For example; you have a tenant with an outstanding rent review settlement that’s just been confirmed – and the new rent is effective from January 2020 up to date. 

The tenant had been paying £700 + VAT on a quarterly basis, their rent is now £1,000 + VAT on a quarterly basis effective from January 2020. You first need to reverse the charges that have been raised from January 2020 to date. Then you’ll raise the rent at the correct new rate.

Once the new rent charge has been updated on the tenant lease amendment page you can process a revised billing in retrospect.

Navigate to Charges on the menu > Invoicing > Revised billing

On the filter page you’ll need to populate the Property ID, the Tenant ID, the Revise From and Revise To date you’d like to revise charges for.  Enter the date you’d like the charges to be posted to in the Month to Post.

After you submit the search, select “Calculate” as shown below:

The system will display the list of transactions as follows: the old amount billed quarterly, and the new amount to be billed on a quarterly basis. At the end of each transaction line, there’s a check box where you can exclude any charges you don’t want to be revised.

Once you’re happy with the revised selection, select “Create Batch”. You’ll need to navigate the charge batches to find and post your batch – this is shown in the screenshot below. In this example the rent was increased from £700 to £1000, therefore there’s no need to reverse any prior charges, only raise an additional charge of £300 for all quarters simultaneously.

After you post the charge, the revised rent adjustment is displayed on the tenant’s Ledger.

In another example where there may have been a reduction in a charge, the Revised Billing feature can also be used to make this correction retrospectively.

In the example below, we’ll process a Revised Billing for a reduction of a service charge from £525 + VAT to £33.33 + VAT effective from January 2020:

This time there’s a credit amount in the net billing column to reflect a reduction in the charge.

After you post the batch, the revised credit amounts will appear on the tenants' ledger. You’ll see a credit charge to match each original charge previously raised.

Where payments have previously been applied against the charges raised, the system will process a reversal of the receipts and the charges. In this instance, the accountant needs to process a zero receipt as the final step to apply any receipt credits against the outstanding charges.

Advantages of Yardi’s Revised Billing feature

There are several reasons why charges may need to be reversed or modified in retrospect. The Revised Billing feature simplifies the entire correction process of periodic billing.

Automation speeds up an otherwise time-consuming process; as the system creates multiple charges simultaneously and even processes reversals where applicable. This makes your job much easier.

You don’t need to manually create multiple charges to process a reversal or correction. This ultimately removes the risk of human error due to the repetitive nature of the task.

Final thoughts

You’ve learned how to apply Yardi’s Revised Billing feature to your business through several worked examples. This will help you save time and minimise the chance of errors.

That’s the end of our 5 part series looking at Yardi’s most underused, efficiency-boosting features. We hope you’ve learned about a few new features you can apply. Want a refresher on any of them? 

Check out the complete series here: Yardi’s top 5 underused & useful features

We’d love to hear your thoughts. Did you learn something? Implement any changes at your business? Please reach out if you have any feedback or questions. 

With thanks to Faith Alori, TopUp alumni, for the content suggestion.

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