[THIS TOOL IS IN OPEN BETA]
The purpose of this tool is to generate an amortisation schedule for anything you would like to spreadout over a defined period such as borrowing expenses, prepaid income or a lump some of Insurance for example. Where a cloud accounting package is connected to the applicable client within AccountKit, the applicable entries to re-assign the figures each period will automatically be brought to account to reconcile the balance each month.
The Amortisation Scheduler List Page
|Create new Amortisation Schedule||Select this to start the process of creating a brand new amortisation schedule.|
|Filter, Actions & Client Group
||This area has 3 components
|The list...||This is a snapshot of all current Amortisation Schedules running within your practice and their current status.
|Actions Column||These are the actions available to you for each amortisation schedule line. Note that some options are hidden in the "3 dot" menu which appears on mouse-over.
3 Dot Menu - appears on mouseover at the end of the row.
General Variables & Input Fields
|Client & Basic Details||This area identifies the client elements of the amortisation schedule:
|Financial Details||Here you define the details associated with the amount to be amortised and where relevant, identify the relevant income, expense, asset and liability accounts that are to be posted to.
Results – These will calculate once the build schedule button has been pushed after all of the variables have been locked in.
NOTE:Which accounts are visible here and in the schedule depends on your default settings, but can be edited under the action menu to show other accounts if you split between Current / Non-Current accounts. The headings also depend on whether the type is a expense or income based amortisation schedule.
Tracking options – If you have tracking options turned on in Xero, this will appear for you to choose from.
This shows the timing of each allocation and the applicable amount and balance at any point.
The refresh icon in the header enables you to force a refresh of the xero data in the event you've made some changes in Xero.
|Annual Summary||This shows an annual summary of the schedule balances for referring to.|
Before you Start
So you can get through the process of setting up a schedule in one efficient sitting, there are some steps you should do first before commencing the process.
- Ensure the applicable income / expense / balance sheet accounts are setup within your accounting software. This may require a refresh to pull the new accounts into AccountKit..
- If the client has an online accounting package like Xero, first ensure you’ve connected them to AccountKit by going to the associated client page. Then click on the applicable Integration icon to trigger a process to connect and download the client data into AccountKit;
- Until this process has finished, you won't be able to initiate any connected tools for that client - you will be notified once complete.
- See here for more details about connecting and disconnecting from Xero
- Ensure you have on hand the details that you're looking to amortise. Such as where the original transaction has been coded to and the time frame you're looking to amortise over.
- If it’s a pre-existing amortisation you had initiated in prior years, identify the date the account was last reconciled; AccountKit will start posting journals from this date.
Customise your default finance tool settings & custom amortisation types
Review your practice settings to ensure the default settings for the Amortisation Tool are how you like to process the various purchase and interest journals.
- Automatically post apportionment journals each period:
- As the description would imply, in the event that you don't want AccountKit to automatically post the interest journals each period, simple turn this function off here.
- This defaults to on.
- Account for current / non-current entries
- Enables you to automatically split your assets / liabilities between current and non-current; Each apportionment journal then re-assigns the next transaction within the 12 month period so that you always have the next 12 months within the current asset / liability accounts.
- Requires the following accounts
- Current asset / liability account - Next 12 months Net balance
- Current allocation journals post from this account.
- Next 12 months net balance is journaled to this account
- Non-current asset / liability account - Net balance over and beyond 12 months
- Next 12 months net balance is journaled from this account
- Current asset / liability account - Next 12 months Net balance
- This toggle defaults to off.
- Show apportionment journals on cash basis reports:
- Enables you to define whether any allocation journals posted are to show on cash basis reports or not.
|Note that the amortisation scheduler tool settings can be overwritten on a per schedule basis under the Actions -> Settings menu option.|
Custom Amortisation Types
Under Practice Settings -> Lists & Tags -> Amortisation Types you have the option to create new amortisation types further those created by default. Adding new types gives you further options for sorting, filtering and reporting on within the Amortisation Scheduler tool.
How to create an amortisation schedule
There are plenty of times where clients aren’t connected to a cloud accounting package, but where you’ll still want to create a schedule for manually preparing journals into your ledger software. In this instance, it's simply a matter of building a schedule and exporting to excel or PDF for reconciling against.
- Open the Amortisation Scheduler tool and select “Create new Amortisation Schedule” from the top.
- The new amortisation schedule will open, first of all, prompting you to choose a client.
- If you choose a client connected to Xero, you'll be given the option to "Sync with Xero". Selecting this will enable the auto-posting of entries into Xero over the duration of the schedule.
- If you select the Sync with Xero option, you'll be presented with another option "Existing Schedule". Select this if you've already built a schedule previously and you would like AccountKit to take up posting from the last date you had manually reconciled your own schedule.
- If you select this option, a date field will appear. Simply choose the date you had last reconciled your previous schedule.
- From here put a short description to enable ease of identification - eg. "2019 Borrowing Expense - HP - NAB - New Landcruiser"
- Then finally select the applicable type of schedule from the available types (noting new types can be setup as required within practice settings -> lists
- Complete the variables in the Finance Details section based on how you want the amount to be apportioned paying specific attention to whether you would like to apportion the first and last allocations and whether you would like the journals to be posted at the end of each period (see above for further explanation as to what these all mean)
- The results will then auto-populate based on the variables that you’ve entered which you can check back against the original details to ensure they’re correct.
- Now complete the “Accounts” section by selecting the applicable income / expense and balance sheet accounts from the client's chart of accounts in Xero. Select "Refresh Account List" if you can't see the required accounts in the list.
- This will then prompt a button labelled “Build Schedule.” Click on this to build the schedule and scroll down to view it.
- With the schedule now built, you can now do as follows
- Print to PDF or export to Excel
- Use the (i) icon to auto-adjust at the conversion date to force the accounts back into balance against the schedule;
- The Date of the conversion adjustment and the account can be adjusted within the adjustment journal pop-up window.
- If you scroll down and hover over one of the lines of the schedule, you will see an icon in the Action Column with the option to “Post Journal”.
- Note that you’ll only see this from the point that you identified your apportionment schedule was last reconciled in the initial steps.
- For example, if you selected that your apportionment schedule has a conversion balance (ie. last reconciled) was 30/06/2016, you won’t be given the option to post an apportionment journal until after July 2016.
- Click on the Post Journal icon in the Action column to post the apportionment journal into your accounting software.
- At this point, the repayment schedule will show a comparative balance for you to cross check against your schedule balance.
- It will be green if it’s reconciled or red if it’s not.
- You have an option then, to void the journal at any point by selecting the icon.
- You can also jump between the “Allocation Schedule” and “Annual Schedule” for a quick comparison of the current balance and end of financial year balance if required.
Points to Note:
How to fix an out of balance finance schedule.
- This can about from any number of reasons, all requiring you to enter the accounting software and reviewing the applicable asset / liability account. Three of the most common causes include.
- An entry has to accidentially entered into the accounts
- An allocation journal has been deleted or voided.
- Alternatively, you can select the cross to see a pop-up of the transactions between the allocation dates
- This may give you a clue as to what the issue may be.
- If you're not sure about a transaction, select the xero icon to go to that transaction in Xero.
- To fix the issue, it’s simply a matter of fixing the above transactional issues within the accounting software, then within AccountKit, just press the refresh button within the "Repayment Schedule" tab. to refresh the xero data and balances.
How to handle one off events.
One off events are about adjusting the look and behaviour of schedules based on a change that's occurred such as a write-off of a balance (eg. if a finance schedule has been paid out enabling the balance of the borrowing expenses to be written off).
Start by heading to anywhere on the schedule where the 3 dot menu will appear on the right
- Mouse-over and select the 3 dot context sensitive menu within the schedule.
- Choose the one off event option
Early Write-off of a Schedule
Use this event when you have a schedule that has is due to be written off. AccountKit will then process all of the applicable journals and update the schedule accordingly.
- Review the content of the proposed journal.
- If all looks to be in order, press the Post button, otherwise tweak the tax type as required.
- This will kick off the process to:
- Journal out the balances to clear all asset / liability accounts back against the expense account.
- Update the schedule to show the revised schedule as at the date of write-off.
- Mark the schedule as Written Off - no further journals will be posted.
|Where a schedule isn't set to sync with Xero, each of the above events are the same, they just miss the step of posting journals to Xero.|
Posting of Journals (manual & automated)
Bulk Posting of Journals
There is a number of ways and places to go about posting journals. Where you need to post lots of journals, it's way more effective to choose one of the bulk post options below since many journals can be posted to Xero in one API call.
- Go to the equipment schedule and press the post journal icon for its line on the schedule. Select from one of the options:
- This journal - just posts the journal for the selected line.
- To selected payment date - posts all journals since the start date / conversion date / last payment date up to the selected date.
- End of schedule - posts all journals from the start / conversion / last payment dates right through to the end of the schedule. (don't worry, these can be bulk voided). The benefit of this is that you have all journals in place ready for tax planning and other future planning.
- From the equipment finance list page, select the post journal icon button in the action column for each schedule; Select from of the options
- Current Date - This will post all journals up to and including todays date.
- Other Date - Here you can choose any other date that you'd like the schedule posted to.
Automating your journals
Within the practice settings for the equipment finance tool, you have the option to turn on auto-posting of entries throughout the year. This will post all available journals as at the end of each day.
- Go to your practice settings and turn on the automation option.
- Allocation journals only become available to post once the payment date has passed.
- If you're having problems posting journals into your accounting software, check to ensure that the period being posted into is unlocked.
- This can then be over-written on a per schedule basis by editing the applicable settings within each schedules action menu.
|Where you select multiple journals to post at once, or AccountKit auto-posts some entries overnight you will receive a notification in the notification strip identifying when the process has been completed and the associated outcomes. From there you can click through to a summary report to identify any schedules that are out of balance so you can click through to fix them. Alternatively, you can access all of the summary reports from the amortisation schedule list page within the Actions menu.|
|Menus & Shared Elements||This support article covers all the menus and shared elements used throughout AccountKit|
|Document Management System (DMS)||Learn how to connect and manage your DMS|
|Xero Connection||Head here to understand how the Xero Connection is setup and associated statuses along with troubleshooting issues such as locked periods.|