Excess expenses occur when a landlord has insufficient funds to allocate against outstanding deductions.
Note: Users must complete the excess expense process for any properties that are included in the payment run to ensure that landlords do not receive income when there are expenses to be deducted.
1. Viewing properties with excess expenses
Go to Lettings properties > Property balances and include the relevant properties
From the left sidebar, select Include all expenses
This system will indicate how many full deductions have been processed and if there are any in excess of available income
To view more information on the expense, click on the balance within the Undeducted expense total column (highlighted below)
Users will be directed to a new page that lists all open deductions for the selected property
2. Prioritising expenses
Should there be multiple expenses, users can choose which expenses should be deducted from the landlord balance first.
Follow the steps in Section 1 above to access the deductions page for a specific property
Locate an expense that is to be deducted from the landlord's balance
Within the Include in ledger and statement column, click on the tick icon
Repeat these steps for each deduction (in order of priority) until there are no more funds available to cover full deductions
3. Splitting Expenses
If the income available is not sufficient to cover a full deduction, the deduction can be split to use the available funds and leave the remaining balance to deduct when additional income is available. This will allow a user to part-pay contractors if required.
Follow the steps in Section 1 above to access the deductions page for a specific property
Locate the expense to be split
Within the Include in ledger and statement column, click on the tick icon
Within the Not enough rent received pop-up, select Record balance to carry forward
Click Submit excess expense
On the Not enough rent received pop-up, there are 4 options available. Further information on each option is provided below for reference:
Cancel and close dialogue: This will cancel the action to deduct this expense, and no money will be taken from the landlord's balance. This can be used if the property is to be Excluded from the payment run until more income is available.
Record balance to carry forward: This option allocates all available funds and splits the deduction into an item that has been deducted and an outstanding item. This is the recommended option.
Invoice landlord directly: This will convert the expense from a landlord deduction to an Invoice for direct payment item.
Note: If this last option is used, the deduction will not show on the landlord's statement. This should only be used when arranging a direct transfer of funds from the landlord.
Ignore warning and tick for inclusion: This will deduct the full balance of the invoice from the landlord's account. This is typically not advisable as it will result in a negative landlord balance. We do not recommend using this option unless for specific troubleshooting purposes.