Management Fees - Section 2: Accounting Set Up

Return to Section 1 HERE

 

 

Step 3 - Accounting

You will need to create a GL Account

Administration -> Financial -> Accounting -> GL Account -> + New GL Account

Name = Management Fee (Or CRA Deduction)

Account Type = Expense

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Next you will need to Map this GL account.

Administration -> Financial -> Accounting -> GL Account Mapping -> + New GL Account Mapping (Under Expense Tab)

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GL Account should be the Management Fee account. Scope Level should be default. Vendor Service should be Organization/Management Fees. Vendor should be the Management Fee company (Either the default 'Management Fee' or in our other example the 'CRA' - This is important for the invoice resulting from Expense)

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Once mapped it will allow the different fees that have been set up to go to separate GL accounts.

 

Step 4 - Tax Considerations

From our 2 examples, management fee is taxable and CRA deduction is not taxable. Taxes are applied by default in the PV system so no action required for our Management fee example. See below for CRA example where we would need to remove taxes. 

Administration -> Policies -> Financial -> Taxes - > Select Organization

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Under the Tax tab, you will need to add your new tax policy and input the % rate you would like to charge.

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Under the Vendor Services tab, ensure the the tax is 'Applied' and then you can click 'add' under 'Exceptions', and select CRA deduction.

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Once added. Leave taxes for specific CRA option as blank - Then 'Save as current'. This will ensure no taxes will be applied.

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Continue to Section 3 HERE

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