Setting Up Addendum Billing
Setting Up Addendum Billing
Once the management fees have been created for each association (see Setting Up Management Fees), addendum billing can be set up.
To set up addendum billing:
Select System > Drop Down Options. If you are using universal navigation, click Settings > General > Drop Down Options.
Select Addendum Billing Types in the Drop Down List field.
Click New.
Enter an Addendum Code and Description for the main addendum billing categories. Repeat this step until all Addendum Billing Types are defined.
NOTE: CINC recommends not using spaces in the codes.
For example, Admin Fees may be one of the billing types.
Codes will be used if additional billing charges are imported.
Descriptions will be used on the invoice.
Click Save.
Select Addendum Billing Sub Types in the Drop Down List field.
Click New.
Enter an Addendum Sub Code and Description for the detailed addendum billing sub-categories in relation to the main categories that were created in Step 4. Repeat this step until all Addendum Billing Sub Types are defined.
NOTE: CINC recommends not using spaces in the sub-codes.
For example, a sub-type of Admin Fees can be Postage, Color Copies, etc.
Sub codes will be used if additional billing charges are imported.
The Addendum Billing Types will be the headings for the Sub-Types. The Sub-Types are the specific products/services the associations will be billed for each month.
Click Save.
Select Management > Addendum Billing. If you are using universal navigation, click Management > Setup > Addendum Billing.
Click New.
Complete the following fields for all addendum billing items:
Addendum Type: Select Addendum Type from the dropdown menu as created in Step 4.
Addendum Sub Type: Select the Addendum Sub Type from the dropdown menu as created in Step 8.
Description: Enter a description for the addendum billing. This field will be used as the line-item description on the invoice.
Rate: Enter the rate to be charged for the specific Addendum Type. If using Bill by Assessment, leave this field blank.
Association GL Account: Select the GL account number for the expense account for the association.
Management Company GL Account: Select the GL account number for the income account for the management company.
Certified Rate/Taxable: No longer used.
Bill by Assessment: CINC Accounting can automatically track billing or payment of assessments for which the management company receives a percentage as they are either billed to or paid by the homeowner. Select an assessment type from the dropdown, e.g., Delinquent Fees, Collection Fees, Violation Fees, etc.
NOTE: If a charge or payment is adjusted after the percentage has been paid to the management company, the system will automatically post a reversal entry to addendum billing. If the charge or payment has not been paid to the management company, the entry will be removed.
For: Select Charges or Payments in relation to Bill by Assessments. If using Bill by Assessment, this field is required.
Start Date: Enter a date for the system to begin tracking Bill by Assessment charges or payments. If using Bill by Assessment, this field is required.
Percentage: If the management company will receive a percentage of the Bill by Assessment charge or payment, enter the percentage here. For example, enter 5 for 5%. If using Bill by Assessment, this field is required.
Click Save.
System-Counted Items
Once activated by Development, the following addendum billing items may be tracked automatically in CINC Accounting.
NOTE: If any additions or changes to system-counted items are needed after implementation of the module, submit a case to CINC Support.
Items include:
Accounts payable checks.
Late notice generation.
Statement generation.
Collections module letter generation.
Violations module letter generation.
Charge/fee generation. The charge must be a fixed amount, e.g., administering a special assessment.
LetterStream print jobs.
Lockbox deposit counts.
Scanned checks.
Addendum items charged monthly to associations. The charge must be a fixed amount, e.g., Record Storage.
Bill by assessment charges/payments.
NOTE: Letters and statements that are tracked automatically but not sent to the homeowner should be manually adjusted on the Management > Addendum Billing screen by clicking on Current Quantity. If you are using universal navigation, click Management > Setup > Addendum Billing.