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, Strata Levies and Land Tax)
- Water Usage
- Default Interest
- Rent or Occupation Fee
- Registration Fee
Use this for any adjustments that are to be based on dates, such as Council rates, Strata Levies etc.
Enter water usage based on either average daily usage or last two reading dates. Add Tiers to allow for pricing increases for excess usage. Refer to Time Related Adjustments for information on Description and Payment Details.
This allows you to enter interest adjustment such as late settlement interest payment.
Select Rent for vendor allowable rent that has been pre-paid 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.
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. These generally one-off lump sum adjustment such as settlement fees. Enter all relevant information, including payment details if required.
As viewed on a Purchase matter. Note: In a Sale matter only the Payment Direction section is available.
Amounts 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. i.e. Amount due on Adjustment Sheet 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 and Stamp Duty (if applicable) 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 section. These items are grayed out and can only be modified from the adjustment you first entered them in. Note that some payees can be automated. For example you may see a payment payee as [Council]. When you generate precedents (such as Settlement Adjustment Sheet) the Council name will be automated from the Council contact name you've entered on the matter.
On a Sale matter, 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.