> ## 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.

# Recurring costs

> Understand how recurring costs, allocations, updates, and offsets work in Tango.

Recurring costs are the scheduled payment records that form the backbone of lease financials. They drive rent generation, integrations, accounting schedules, and reconciliations.

## What is a recurring cost?

A recurring cost record defines:

* **Payment type** (Base Rent, CAM, RE Taxes, etc.)
* **Frequency** (Monthly, Quarterly, etc.)
* **Effective dates** — the period during which this amount applies
* **Period amount** — the payment amount per frequency period
* **Vendor** — the payee
* **Tax rate**, **prorate method**, **adjustment method**, and other attributes

Recurring costs are found in **Lease Details → Recurring Costs**.

## Key fields

| Field | Description |
| - | - |
| Payment Category | High-level grouping (Rent, Operating Expense, etc.) |
| Payment Type | Specific type (Base Rent, CAM, Percentage Rent, etc.) |
| Frequency | How often the payment recurs |
| Effective From / To | The date range this cost schedule applies |
| Period Amount | Amount per period (monthly, quarterly, etc.) |
| Advance/Arrears | Whether payment is made before or after the period |
| Reconcilable | Whether this cost can be reconciled against a landlord statement |
| Hold Flag | When checked, payments generate but are not released to integrations |
| Adjustment Method | How the cost escalates over time (Fixed, CPI, etc.) |
| Prorate Method | How partial period amounts are calculated |

## Allocations

Allocations split a single recurring cost across multiple payees or internal cost centers.

* **Vendor allocations** — split payment to multiple vendors by percentage
* **Internal (segment) allocations** — split by cost center or accounting segment

To set up allocations, select the recurring cost and click the **Allocations** tab. Add rows with the percentage and vendor or segment fields. The percentage column shows a running total — ensure it reaches 100%.

**Default allocations:** If the same split applies to all costs on a lease, check **Default Allocation** and use **Apply Default to All** to push it to every recurring cost. Use **Set as New Default Allocation** when the default needs to change going forward.

## Updating a recurring cost

Use the **Update** function (not manual editing) when the payment amount changes:

1. Select the recurring cost and click **Update**.
2. Enter the **Change Effective Date** and the new period amount.
3. If the change is retroactive, the system calculates a catch-up payment automatically.
4. Review the details and click **Update**.

The system ends the old cost record and creates a new one at the new amount. A catch-up recurring cost record is also created if applicable (placed on hold to prevent double processing).

## Offsets and credits

Offsets automatically deduct from rent and generate negative payments or billings. Two types:

* **Fixed offset** — a total credit that depletes over time as it is applied to payments
* **Date range (scheduled) offset** — a temporary rent reduction for a defined period

To create an offset, go to **Lease Financials → Offsets/Credits** and click **New**. Set the type, vendor, amount, payment type to assign, and status. Offsets are applied during the **Generate Rent Roll** process when **Apply Offsets** is checked.

<Info>Only active offsets with a remaining balance (fixed) or a date range covering the generation month (scheduled) are applied during rent generation.</Info>