Use this process when an owner has paid a supplier directly (outside the trust account), or when an expense invoice was entered with an incorrect date and needs to be reflected in the correct budget period. The adjustment uses a matching expense credit note to shift the actual into the right period without affecting Client/Trust accounting reports.
Step 1: Record the Expense Invoice
Enter the expense invoice with the correct Issue Date and Chart of Accounts for the budget period and category you are adjusting.
Click Save & Approve.
Step 2: Create a Matching Expense Credit Note
Create a credit note with the same details as the expense invoice.
For direct owner payments, use a relevant equity code (e.g. Owner Funds Introduced). Match the property, supplier, and date to the original invoice.
For incorrectly dated invoices, change the date on the credit note to when the expense should actually be recognised — this moves the actual to the correct budget period.
Click Save & Approve.
On the allocations screen, apply the full credit amount against the expense invoice you created in Step 1.
Click Save Allocations.
Note: Because no payment is exchanged in this process, neither the expense invoice nor the credit note will appear in Client/Trust accounting reports or owner statements.
Budget by Area is referred to as Budgeted Outgoings in Asia-Pacific, Service Charge in Europe, and Operating Expenses in North America. For more information on regional terminology, see our Glossary of Regional Terminology.