Direct On-Charge is used to handle outgoing expenses where the costs are passed onto the tenants as they are incurred.
Expense codes are set up to trigger an on-charge, and the proportions for each tenant to repay is drawn from the Outgoings % details held on the Tenancy file.
To create a new Direct On-charge allocation
- Select a Property
- Click Outgoings
- Click into Direct On-Charge
- Click Create New
Create Direct On-Charge Templates
- Select all Account Types for this Direct On-Charge allocation, or use the Include All link, to add all relevant Account Types.
- Select the Default Account Type for Recharge Invoice (Optional) to use on the re-charge invoice, this is usually an income code.
- Enter the % of Allocation amount for each Tenancy, this will populate based on the details entered into the Tenancy file.
- The % for each tenancy can be changed if required.
- The total can add up to more or less than 100%, the Non-Recoverable % will show the proportion which will not be recovered, and will show as a negative figure if the amounts being recovered exceed 100% of the total cost.
Click Save to continue.
You may set up additional Direct On-Charge Allocation rules if some expenses are passed on in different proportions. When an Expense Invoice is then incurred against any Account type, the user will be prompted to invoice the Tenancies in the proportions set up.