> ## Documentation Index
> Fetch the complete documentation index at: https://docs.tangoanalytics.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Reconciliation setup

> Configure a lease for expense reconciliations including template setup and base year caps.

Expense reconciliations let you audit landlord statements for reconcilable expenses such as CAM, insurance, and real estate taxes. Complete the following setup once per lease — future reconciliations then reuse the template.

<Steps>
  <Step title="Navigate to Reconcile Expenses">
    From the lease home, select the lease and click **Lease Financials**, then click **Reconcile Expenses**.
  </Step>

  <Step title="Create a new reconciliation record">
    Click **New**.
  </Step>

  <Step title="Fill in basic setup">
    * **Expense Template** — select the template that defines line items (for example, CAM). Create a new template if this is the first reconciliation.
    * **Status** — Active
    * **Type** — for example, OpEx Only
    * **Frequency** — how often reconciliation occurs (for example, Annually)
    * **Tax Rate** — applied to credits or payments due at the end of the reconciliation
    * **Landlord Days to Bill** and **Tenant Days to Complete**
    * **Admin Fee %** — applied to all expense line items (can be overridden per line)
    * **Included Estimates** — select the payment types to pull in as escrow payments (for example, CAM/OpEx CAM)
    * **Start / End of first reconciliation period**
  </Step>

  <Step title="Save">
    Click **Save**.
  </Step>

  <Step title="Set up base year and caps">
    Click the **Base Year and Cap Setup** tab, then **New**. For each expense group:

    * **Expense Group**, **Base Year**, **Base Year Amount**, **Base Year Prorata**
    * **Increase Over Base %** — the tenant's share of expenses above the base year
    * **Cap %** or **Cap Amount** — if a cap applies

    Click **Save**.
  </Step>

  <Step title="Define the template">
    Click the **Template Setup** tab. Use the radio options to toggle between Controllable and Non-Controllable line items. For each line item, click **New** and fill in:

    * **Expense Line** — the internal reference
    * **Line Description** — the description as it appears on the landlord statement
    * **Controllable Expense** checkbox if applicable
    * **Prorata Share** — defaults from the basic info tab; can be overridden per line
    * **Admin Fee %** — defaults from the basic info tab; can be overridden per line
    * **Expense Group**

    Use **Move Up / Move Down** to order the lines. Click **Save**.
  </Step>
</Steps>

<Note>The template setup is reused for every future reconciliation on this lease, saving significant time in subsequent years.</Note>