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.
When you inherit the management of a property that has existing financial records from a previous agency, you might need guidance on how to accurately integrate these historical Budgeted Outgoings or Service Charge entries into Re-Leased. This article outlines the steps you should take to properly handle prior agency income and expenses, ensuring that your reconciliation reflects the necessary invoices and budget items, without resorting to manual adjustments.
Accounting for Prior Agency Income
To account for any income generated prior to your agency's management, please follow these steps:
- Create a new Income Invoice using the correct Outgoings or Service Charge Tenancy Income Account Code from the Budget.
- Set up a new Income Account Code named "Prior Agent Income" or a similar descriptor.
- Issue an Income Credit Note using the newly created account code from Step 2 and allocate it to the initial Invoice from Step 1, thereby zeroing the remaining balance.
Addressing Prior Agency Expenses
For expenses incurred by the previous agency, a parallel approach is taken:
- Issue an Expense Invoice with individual line items correlating to each Expense Code's total.
- Create an Expense Account Code titled "Prior Agent Expenses" or a similar name that clearly identifies the purpose.
- Generate an Expense Credit Note using the code from Step 2 and allocate that against the Invoice from Step 1 to nullify the balance.
These methods allow you to properly document and reconcile past transactions, providing transparency and continuity within your property budget sheets.
Adding Expenses as Actuals Against a Property Budget/Service Charge
This situation could be likened to an owner paying an expense out-of-pocket, which still needs representation in the Budget/Service Charge. The opposite or both scenarios may apply. It is crucial to add these expenses as actual figures within your Property Budget/Service Charge to maintain accurate financial records.
If you encounter any issues or require additional assistance with these procedures, please don't hesitate to reach out. Our support team is here to ensure your transition to managing new property financials within Re-Leased is seamless and efficient.