Posting Charge Adjustments
Posting Charge Adjustments
A charge adjustment may be posted to a homeowner’s account in the event a charge or fee should be removed (e.g., waiving a delinquent fee). Charge adjustments will appear as a negative number in parentheses in the Amount column of the homeowner ledger.
NOTE: If a payment was already applied to the charge, the funds must first be moved to Prepaid before an adjustment can be made.
When a charge adjustment is posted in an accrual association, then the Accounts Receivable account is credited and income account is debited, unless Create GL for Adjustments is unchecked on the Batch Posting screen. When a charge adjustment is posted in a cash association, no additional entries are made to the GL History screen
Posting Adjustments for an Individual Homeowner
NOTE: Charge adjustments do not create an entry on the bank account register.
To post adjustments for an individual homeowner:
Select Homeowners > Transaction History. If you are using universal navigation, click Residents > Residents > Transaction History.
On the Transaction History screen, search for and select the desired association and homeowner.
Select Charge Grouping from the View dropdown if not already selected.
Click New to open the Post Transaction popup.
Complete the following fields:
Assessment: Choose the assessment to be adjusted (e.g., Assessment – Homeowner).
Type: Choose the type of transaction that is being created (i.e., Charge Adjustment).
Apply To: Choose the level the adjustment should be applied to. If this adjustment is to remove a late fee, the level should be Delinquent Fee.
Keep Credit: Select if the adjustment will create a credit on the Assessment. If this option is not chosen and there is a credit that will occur, the adjustment will be assigned to Prepaids instead of the Assessment chosen.
Year: Select the (fiscal) year of the assessment to be adjusted or leave at Auto, which will set the adjustment to the current year.
Description: Enter a description identifying the reason for the adjustment that will appear in the homeowner's transaction history.
CINC strongly recommends entering a description that will help others know why the charge was removed (e.g., “Removed Late Fee per BOD”).
Date: Select the date the adjustment is to be made.
Defaults to today’s date. Use care when selecting a different date, especially if the date is in a previous month. Using a date from a closed period will cause out of balance issues.
If the association operates in Accrual Accounting Mode, it is recommended that this transaction be placed in a batch by itself or with other transactions that are dated in the same period.
Batch: Click the Plus icon to open a new batch or click the Search icon to select an existing manual batch. It is important to know the batch type for each batch that is currently open.
No adjustment or manual transaction should be saved in any batch type other than a manual batch.
The batch should be closed within the same month as the date of the transaction.
Amount: Enter the amount that the charge is to be reduced.
For example, if the homeowner’s assessment should have been $500 in lieu of $600, you would enter a $100 charge adjustment.
A warning message displays if the amount entered will create a negative balance for the assessment.
Ref. #: Used when manual payments are entered, and a check number needs to be entered. This field does not apply to adjustments or charges.
Click Save to save the pending transaction on the homeowner's account. The batch should then be posted within the same month to be permanently posted to the homeowner account.
Run and review the Batch Audit Report and post the batch from the Batch Posting screen. The Close Date should be the same date as those of the transactions in the batch.
Posting Adjustments for Multiple Homeowners at Once
The Post Adjustments screen is used to make adjustments to a group of homeowners in an association, either charge adjustments or payment adjustments, for the same amount and assessment.
To post adjustments for multiple homeowners:
Select Homeowners > Post Adjustments. If you are using universal navigation, click Accounting > Billing & Statements > Post Adjustments.
On the Post Adjustments screen, search for and select the desired association.
Click the Search icon in the Homeowner field.
In the Homeowner popup, select the checkboxes next to the homeowners who will receive the adjustment or select the checkbox in the green header to include all the homeowners.
NOTE: The selected homeowners must all be adjusted for the same amount. If the amount is different for different homeowners, then each group of homeowners with the same amount will need to be done together.
On the Post Adjustments screen, complete the following fields:
From, To: Select the date range that the charge occurred.
Assessment Type: Choose the assessment to be adjusted (e.g., Assessment – Homeowner). If the adjustment is to be made to a delinquent fee, delinquent interest, collection fee, or extra fee, choose the main assessment type from this menu.
Apply To: Choose the level the adjustment should be applied to. If this adjustment is to remove a late fee, the level should be Delinquent Fee.
Batch: Click the Plus icon to open a new batch or click the Search icon to select an existing manual batch. It is important to know the batch type for each batch that is currently open.
No adjustment or manual transaction should be saved in any batch type other than a manual batch.
The batch should be closed within the same month as the date of the transaction.
Amount: Enter the amount that the charge is to be reduced.
For example, if the homeowner’s assessment should have been $500 in lieu of $600, you would enter a $100 charge adjustment.
A warning message displays if the amount entered will create a negative balance for the assessment.
Date: Select the date the adjustment is to be made.
Defaults to today’s date. Use care when selecting a different date, especially if the date is in a previous month. Using a date from a closed period will cause out of balance issues.
If the association operates in Accrual Accounting Mode, it is recommended that this transaction be placed in a batch by itself or with other transactions that are dated in the same period.
Description: Enter a description identifying the reason for the adjustment that will appear in the homeowner's transaction history.
CINC strongly recommends entering a description that will help others know why the charge was removed (e.g., “Removed Late Fee per BOD”).
Click Refresh to populate the table on the screen.
Select the checkbox next to each homeowner who is to receive the adjustment or select the checkbox in the green header to include all homeowners listed.
Click Post.
On the Post Adjustment confirmation popup, click Post.
Run and review the Batch Audit Report and post the batch from the Batch Posting screen. The Close Date should be the same date as those of the transactions in the batch.