You may find from time to time that you need to set up a financial adjustment on your system that will reflect in the bill to your tenants and also show within your accounting system.
Adjustments can be set up for anything on the system but in this article we will focus on 'General Adjustments'. Before you begin you must know how you wish to your adjustments to reflect in your accounts. This article will use a specific example to guide you through the process.
You need to set up a one time general adjustment for a lease to create an additional charge to the tenants because they damaged a window. The agreed amount is $100 which is an account charge and ultimately a debit to your own accounts as you are receiving additional funds.
On the opposite side, you need to set up a one time general adjustment for a lease to allow the tenants a rent reduction of $100 because of near by construction noise. This would be considered an account credit as it is a credit to your accounts, i.e. a reduction.
It is very important that all general adjustments are listed as 'income' with the adjustment codes to ensure that they link to the correct account.
To begin, you will likely wish to start by creating a new AR code for your specific adjustment. For this example I am going to use Example number 2 as a credit version.
Administration --> Financial --> AR Codes --> New AR Code
You can now go back to double check your new code has appeared;
You have now created your new code but this is only on the leasing side. Now we must map it so it shows correctly in your accounting.
You must choose which GL account you wish to map this adjustment to. As previously mentioned this is an income general adjustment.
If you need to create a new GL that fits your needs please see the link below which explains how to create a new GL account.
Now we can proceed to mapping our adjustment.
You have now created, mapped and linked your adjustment
Checking your work Via the Lease
Checking your work Via the Accounting Side
Congratulations- you have successfully created, mapped and linked your Adjustment!
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