Overview
The purpose of this tool is to generate an amortisation schedule for anything you would like to spread out over a defined period such as borrowing expenses, prepaid income or a lump sum of the 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 the account to reconcile the balance each month.
The Amortisation Scheduler List Page
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Description |
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Add a new schedule |
Select this to start the process of creating a brand-new amortisation schedule. |
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Group by, |
These are part of the Shared Elements across AccountKit. Use the first three icons to:
Click on the three-dot menu (More Actions) to extract data and access reports:
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The list... |
This is a snapshot of all current Amortisation Schedules running within your practice and their current status.
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Link documents Three-dot Menu (More Actions) |
Link relevant documents from your chosen DMS (Document Management System) to each schedule. Click on the link icon a new action window will pop up, follow the prompts to add new document links. The small number on the corner of a link icon indicates how many documents (if any) are currently linked to that particular schedule. Click on it to view and action all existing documents. Three-dot Menu (More Actions) - appears on mouseover at the end of the row. Use it to Export (PDF and Excel), Archive or Delete a schedule.
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General Variables & Input Fields
Click to open a Schedule and have visibility of all details.
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Description |
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Client & |
This area identifies the client elements of the amortisation schedule:
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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 green button is pushed, after all of the variables have been locked in.
NOTE: The list of accounts visible here and in the schedule will depend on your schedule settings, which can be edited under the action menu (cog wheel, top right corner) to show other accounts if you split between current / non-current accounts. The Headings will also depend on whether the Type is an expense or income-based amortisation schedule, for instance.
Tracking options – If you have tracking options turned on in Xero, these will appear on the drop-down menu here, for you to choose from.
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Repayment Allocation Schedule |
This shows the details of each allocation and the applicable amount and balance at any point. The
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Annual Summary |
Shows an annual summary of the schedule balances for referring to. |
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Shared Tool Bar
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The Shared Tool Bar is also part of the Shared Elements across AccountKit.
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Before you Start
So you can get through the process of setting up a schedule in one efficient sitting, these are some steps you should take before commencing the process.
Prepare the entities you plan to reconcile
- Ensure the applicable income/expense/balance sheet accounts are set up within your accounting software. This may require a refresh to pull the new accounts into AccountKit.
- Per below, set up your custom amortisation types and settings.
- 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.
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- 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.
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- 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 and AccountKit will start posting journals from this date.
Practice Settings
Amortisation Types
Here you have the option to create new amortisation types further to those created by default.
Adding new types gives you further options for sorting, filtering and reporting within the Amortisation Scheduler tool.
Most importantly, setting the Type simply changes the direction of the journals when posting to Xero.
Set your Defaults
Review your Practice Settings to ensure the default settings for the Amortisation Tool are how you like to process and build your schedules and post the associated entries.
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Automatically post apportionment journals each period:
- As the description implies, in the event that you don't want AccountKit to automatically post the interest journals each period, simple turn this function off.
- This toggle defaults to on.
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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
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- 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
- This toggle defaults to off
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- Enables you to automatically split your assets/liabilities between current and non-current.
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Account for unexpired amortisation entries
- This simply enables you to separate the amortisation entries to a different account, meaning you end up with two accounts per schedule: one for the full balance, the other for the amount allocated to date.
- This toggle defaults to off.
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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.
- Enables you to define whether any allocation journals posted are to show on cash basis reports or not.
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Utilise account default tax codes for allocation journals
- As the description suggests, this setting turns on the ability to use the tax codes attached to the relevant accounts from Xero.
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Note that the Amortisation Scheduler tool settings can be overwritten on a per schedule basis, under Actions -> Settings menu option. |
How to create an Amortisation Schedule
If a client is not connected to a cloud accounting package, but you still want to create a schedule for manually preparing journals into your ledger software, you can build a schedule and export it to excel or PDF for reconciling against.
- Open the Amortisation Scheduler tool and click on the
sign to “Add a new Schedule”.
- The New Amortisation Entry will open, prompting you to select a Client Name from the drop-down.
- 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 for you to choose the date you had last reconciled your previous schedule.
- Add a short description to enable easy identification - i.e. "2019 Borrowing Expense - HP - NAB - New Landcruiser"
- Select the applicable Type of schedule from the available Types (noting new types can be set up as required within Practice Settings -> Lists
- Complete the variables in the Finance Details section, based on how you want the amount to be apportioned and 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 are correct.
- 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. - With the Finance Details completed, click on “Build Schedule” and scroll down to view it.
Once built, the repayment schedule will show a comparative balance for you to cross-check against your schedule balance.
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- 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.
How to fix an out-of-balance finance schedule
- This can be for a number of reasons, all requiring you to enter the accounting software and review the applicable asset/liability account. Some of the most common causes include:
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- An entry has been entered accidentally into the accounts.
- An allocation journal has been deleted or voided.
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- Alternatively, you can select the red cross to see a pop-up of the transactions between the allocation dates:
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- 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 the details of that transaction in Xero.
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- To fix it, it’s simply a matter of fixing the above transactional issues within the accounting software, then go back to AccountKit and click on the refresh icon
within the "Repayment Schedule" tab and this will refresh the Xero data and balances.
- 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 amended within the adjustment journal pop-up window.
Posting of Journals (manual & automated)
Posting of Journals
There is a number of ways and places to Post journals in AccountKit. Where you need to post lots of journals, you can also choose one of the bulk post options below.
On the Allocation Schedule:
- Mouseover and look for the
Post journals icon within the schedule
- 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 30/06/2024, you won’t be given the option to post an apportionment journal until after July 2024.
- Click on it to select one of the three options.
- This journal - just posts the journal for the selected line.
- To select the payment date - post all journals from the start / conversion / last payment dates up to the selected date.
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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 if chosen by mistake).
The benefit of this is that you have all journals in place ready for tax and other future planning.
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Points to Note:
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Automating your journals
Within Practice Settings -> Tool Settings, look for the Amortisation Scheduler under Compliance, where there will be the option to turn on the auto-posting of entries throughout the year. This will post all available journals at the end of each day.
- Click on your name (bottom-left corner) -> Practice Settings
- Under Tool Settings, choose yes for the automation option.
Please note...
- 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 is unlocked.
- This can then be over-written on a per-schedule basis by editing the applicable settings within each schedule's action menu.
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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 and click through to fix them. Alternatively, you can access all of the Summary Reports from the Amortisation Schedule list page within the Actions menu. |
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 (i.e. if a finance schedule has been paid out, enabling the balance of the borrowing expenses to be written off).
On the Allocation Schedule:
- Mouseover and click on the three-dot 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 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, click on Post, 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.
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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. |
Related Links
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 with AccountKit |
Xero Connection | Understand how the Xero Connection is set up and associated statuses, along with troubleshooting issues such as locked periods |
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