Recurring Credits Overview

Description 

Recurring credits can be used to issue credits on select chargeable codes. These credits can be assigned to multiple properties and issued in a batch using the Apply Charges function. 

Before credits can be assigned, a few steps must be taken: 

1. Creating a Recurring Credit Code 

2. Assigning a Credit to a Property

3. Issuing a Credit 

 

Creating a Recurring Credit Code 

1. Click Portfolio and select Communities.

2. Select the community that you want to add a code to.

3. Locate the Related Links section toward the bottom right of the Community page, and select Codes

4. Click Actions then Add Code 

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5. Under Cody Type select Recurring Credit 

 

Fill in the following information:  

 

6. Code Alias and Name

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Code (Alias)   The drop-down menu will have a list of all chargeable codes' aliases with a "PP" in front of it. Select the code that will receive this credit. 

Example: To create a recurring credit to my Assessment Code - Alias A1...

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I will select PP-A1

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Code Name  Code name that appears on Statements, Owner Ledgers, etc. 

Code Name Examples: Credit - Assessment 

Code Description  Use to enter a detail description of the code.  This is not a required field.

Calculation Method - Select 1 of 5 options (this option selects the calculation method only, Specific settings and explanation for each method will be explained individually at the end of the article.).

Flat Dollar Amount: Owner credit is entered as a specified, flat dollar amount, such as $100.00 or $960.50. 

Percent of Property Value:  Owner credit is calculated as a % of property value.   Note that the % is set up in the code category; the Property Value information is entered in the property record.

Square Feet X Rate:  Owner credit is calculated by multiplying the square footage of the home.   Note that the amount charged per square footage is added to the code category; the total square footage is entered into the property record.

Percent of Property Ownership: Owner credit is calculated using the percent of property ownership.  Only 1 charge category is needed as you enter the total budgeted monthly, quarterly, or annual assessment amount for all owners into one code category amount.   Note that the % of property ownership is entered into the property record.

Shares X Rate: Number of shares times the Share Dollar Amount that was assigned to the charge code.

 

 

7. Linked Accounts

The linked account section of the Code setup, defines the general ledger account posting for this transaction.

To select the general ledger account, use one of two search options: 1) enter partial account name or number to select from a list of matching accounts, or 2) select the file folder image to review/select from all accounts.

For ACCRUAL ACCOUNTING, select both the Credit (usually a prepaid liability account) and the Debit (usually an expense or income) account. 

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8. Code Category 

This will be where you enter the different credits that will be available to this code. 

Category Name  Enter a number or name for this Category

Description  Enter a Description of type of home or name of assessment category

Amount  Enter amount of Charge (500.00, 950.00, etc.)

 Once the information is entered, click Add

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Code Category Scenarios

      There are 5 different types of code category scenarios you can set Assessment codes for.

 Flat Dollar Amount (set amount)

                Owner credit is entered as a specified, flat dollar amount. 

% of the property value

                Owner credit for this assessment is calculated as a % of property value.   Note that the % is set up in the code category; the Property Value information is entered in the property record.

Square Feet X Rate Method

                Owner credit is calculated by multiplying the square footage of the home.   Note that the amount charged per square footage is added to the code category; the total square footage is entered into the property record.

% of Ownership calculation

                Owner credit is calculated using the percent of property ownership.  Only 1 charge category is needed as you enter the total budgeted monthly, quarterly, or annual assessment amount for all owners into one code category amount.   Note that the % of property ownership is entered into the property record

Shares X Rate 

Owner credit is calculated by multiplying the number of shares assigned to the property by the Share Amount  

Make sure you have the number of shares set on the property page prior to applying charges.

 

 

Assigning a Credit to a Homeowner

After a recurring credit is created, it must be assigned to properties before it can be applied. Follow the instructions below to assign the credits. 

Assigning Charge Codes to Properties

  

Issuing a Credit

- Credits can be applied in the Apply Charges in TOPS [ONE]

- To issue recurring credits, make sure to click Automate under scheduling when Applying Charges. Set up Recurring AR Charges

 

What happens when I apply a credit? 

When credits are applied, there are a series (3) of transactions that happen right when this action is processed. 

1.  Charges will be applied to the owner. 

2. The Credits will be applied as a prepaid to the designated properties. 

3. Then, the prepaids will be applied, thus charging the owner the amount minus the credit. 

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