This screen is where you will access and enter all the adjustments:
Ensure that you have your Settlement Date entered in Conveyancing Details. If you forgot to enter it, simply click on Edit Conveyancing Details to add it in. The Adjustment Date will then default to Settlement Date. You can enter a different adjustment date if it's not the same as the settlement date.
Common standard adjustments will display by default. You can add and modify default item in Cog Settings. To remove any adjustments, right click and select delete.
Use this button to insert additional adjustments into this matter only. Click on the wording ADD ADJUSTMENT ITEM to create an adjustment item from a blank template OR click on the arrow to see a list of your standard items.
Check or uncheck the boxes in the Default column to change the default adjustments that populate when you first open Settlement Financials.
Once you have all the required adjustments entered into the Adjustments Screen, double click on each entry to open the window to enter the information.
Settlement Adjustments Items
There are currently 6 types of layouts in adjustment items used to calculate different adjustments:
- Time Related (e.g. Council Rates, Water & Sewerage Rates, Owners Corporation Fees and Land Tax)
- Water Usage
- Rent or Licence Fee
- Registration Fee
- Penalty Interest
Use this for any adjustments that are to be based on dates, such as Council Rates, Charges & Levies.
Enter all relevant information. Adjustments will calculate automatically based on the amounts and dates entered.
The Description, which will populate onto the Statement of Adjustments, will generate automatically. To change the description, check the ‘Do not use auto text’ box and manually type your description.
Payment Details. For Council & Water Authority adjustments, the payee will automatically display as the relevant Authority ie [Council]. You do not need to override this. If you have the Authority’s details on your matter, the actual Authority’s name will replace the Authority placeholder in any payment list.
Enter the amount of the payment you require and select Save. The payment will now show in the Payments tab of the Settlement Adjustments and populate on the Statement of Adjustments and Settlement Instructions.
To remove this payment at any time, double click to open the Adjustment where it was entered and remove the amount in Payment Details.
Enter Last Reading Date and Average Daily Charge. Refer to Time Related Adjustments for information on Description and Payment Details.
Select Rent for vendor allowable rent that has been prepaid by a tenant prior to settlement. Select Occupation fees when the purchaser pays a fee for early occupation of the property. Refer to Time Related Adjustments for information on Description and Payment Details. Learn more about recording Rent adjustments.
Enter details of any document registration fees to be allowed by the vendor. Any entries with a Quantity of 0 will not appear on the Adjustments Screen. Only enter Payment Details if a payment is required to be drawn.
Use the Miscellaneous type for any adjustments that do not fall into the other categories. Enter all relevant information, including Cheque details if required.
Enter penalty interest on this screen by entering relevant dates and amounts. Refer to Time Related Adjustments for information on Description.
As viewed on a purchase matter. NB: In a Sale matter only the Payment Direction section is available.
Amount Required to Settle
Once you have entered all your adjustments, select the Payments tab.
The Amount Required to Settle section is a reconciliation of the amounts the purchaser needs to pay in order to settle. ie Amount due on Statement of Adjustments plus Stamp Duty and Your Invoice. You will need to add the amount of your invoice (if applicable).
Click on the Add Amount button to create additional entries if required.
To remove any of these amounts, hover over the relevant line and click on the red cross that appears to the right. Amount due on Settlement cannot be deleted. Stamp Duty will only appear if the duty is unpaid and not exempt.
The payments you added whilst creating the adjustments will automatically appear in the payment direction. In a sale, if the agent’s fees are greater than the deposit held, a payment will also appear here to the agent. Select who the payments are to be paid from and the Payment Type. Check the box to the right of the payment amount to mark ‘Vendor Payments’. The Council and Water Authority payments will be automatically marked as Vendor Payments. The payments that are marked Vendor Payments are the only ones to show up on your Settlement Adjustment Sheet and also on Settlement Instructions to hand to the other side.
Click on Add Payment to add additional payments required for settlement.