What are Adjustments?
Adjustments are essentially a way to account for funds that do not have a clear destination. This can happen for a variety of reasons, such as a deposit received without an associated property address. In these cases, the funds cannot be allocated to a specific sale or campaign, and therefore, an adjustment is created. Adjustments simply indicate that there are funds in the trust account that need to be properly categorised or allocated.
How are Adjustments Handled?
When an adjustment is created, it will appear on your bank reconciliation as a separate line item. It will have a description of the reason for the adjustment, such as "Unknown Deposit".
In the below example, $7000.00 was entered as an unknown deposit as it appeared in the sales trust account however the origin of the amount was unknown
Resolving Adjustments
The best way to handle adjustments in your trust account is to quickly allocate them to a specific sale or campaign. If the funds do not belong in your trust account at all, you can transfer them back out.
In the below example, it was determined that this amount belonged to the rental trust. In order to transfer the funds back to the rental trust, a Payment Adjustment must be created.
From the bank reconciliation page, create the payment
Prior to saving, ensure the debit amount of $7000.00 is offset against the original credit
Offset the debit against the original credit
The payment adjustment is now offset against the deposit adjustment
The payment offset will appear on todays bank reconciliation as the funds will be transferred from the sales trust to the rental trust.
Please note, adjustments cannot be uploaded as an ABA file. The transaction will be processed manually via internet banking.
Both adjustment amounts (payment & deposit) will be removed from the End of Month Reports.
The End of Month reports should only display those adjustments that require action
