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 Access & Sewerage Rates, Administrative Funds and Insurance)
- Water Usage
- Penalty Interest
- Rent or Licence Fee
- Registration Fee
Use this for any adjustments that are to be based on dates, such as Council rates, Strata Levies etc. Note that the layout for Water Access & Sewerage changes to the calculation.
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 Cheque Details.
This allows you to enter interest adjustment such as late settlement interest payment.
Select Rent for seller allowable rent that has been pre-paid by a tenant prior to settlement. Select Licence fees when the buyer pays a fee for early licence of the property. Refer to Time Related Adjustments for information on Description and Cheque Details.
Enter details of any document registration fees to be allowed by the seller. Any entries with a Quantity of 0 will not appear on the Adjustments Screen. Only enter cheque details if a cheque 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 Cheque details if required.
As viewed on a purchase matter. Note: In a Sale matter only the Cheque Direction section is available.
Amounts Required to Settle
Once you have entered all your adjustments, select the Cheques tab
The Amount Required to Settle section is a reconciliation of the amounts the buyer 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 cheques you added whilst creating the adjustments will automatically appear in the cheque 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 cheque payee as [Council]. When you generate a precedents (such as Settlement Adjustment Sheet) the Council name will be automated from the Council contact name you've entered on the matter.
If the agent’s fees are greater than the deposit held, a cheque will also appear here to the agent. Select who the cheques are to be drawn by and the Cheque Type. Check the box to the right of the cheque amount to mark ‘Seller Cheques’. The Council and Water Authority Cheques will be automatically marked as Seller Cheques. The cheques that are marked Seller Cheques 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 Cheque to add additional cheques required for settlement.