Adjusting Budget Actuals for Direct Owner Payments or Incorrect Dates

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The term "Budget" varies depending on the region. For our Asia-Pacific customers, it's often referred to "Budgeted Outgoings." European users will see it labelled as "Service Charge," while those in North America will find it listed as "Operating Expenses." The terminology used in the app adjusts based on your location. For additional clarity on regional vocabulary, please see our Glossary of Regional Terminology.

This guide is intended to assist you in accurately reflecting your property budget actuals when certain adjustments are needed. This may be necessary if an owner has made direct payments to a supplier, or if an expense invoice was dated incorrectly. By following the steps outlined in this article, you'll be able to adjust expense records to ensure they correctly match the allocated property budget, without affecting your trust accounting reports.

Record the Expense Invoice

To begin, enter the expense invoice information as you normally would:

  1. Ensure that the Issue Date and Chart of Accounts align with the budget period and category you're recording the actuals for.
  2. Complete the necessary fields and click Save & Approve to finalize the entry.

Apply an Expense Credit Note

Next, you’ll want to enter an Expense Credit Note:

  1. Create a credit note with the same details as the expense invoice you just entered.
  2. If an owner directly paid a supplier, use a relevant equity code (e.g., Owner Funds Introduced) for the transaction. Ensure the Property, Supplier, and Date fields match the original expense invoice.
  3. If the issue is an incorrectly dated invoice, alter the date on the credit note to reflect when the expense should be recognized. This shifts the actual expense to the correct budget period.
  4. Click Save & Approve to finalize the entry.
  5. On the allocations screen, apply the full amount of the credit against the expense invoice you initially created.
  6. Once the correct allocations are entered, click on Save Allocations.



Please note that because no payment is being exchanged in this process, neither the expense invoice nor the credit note will appear in Client/Trust accounting reports or owner statements. This maintains the integrity of your financial reporting without reflecting these adjustments as monetary transactions.

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