INCOME STATEMENT REPORT
MONTH END CLOSE WORKFLOW | JOB AID
Embedded Files
This job aid provides information on the Income Statement.
The Income Statement report is a financial report that will allow you to review your termination income. It is important to review termination income for cases where a resident has broken their lease and decided to remain rent responsible.
In these cases, deposit accounting should be completed to charge out the full remaining term of the lease (coded to TERMFEE) in order to generate the move out statement for your resident. Immediately after, you should revise deposit accounting to reflect only the current month’s rent responsibility charges (coded to TERMFEE) in order to avoid inflating your financial statements. In the first week of each following month, add the month’s charge for rent responsibility until the unit is reoccupied.
Note: if deposit accounting initiates a refund after the first month’s charge is added, create a charge for the second month to ensure a balance is due and refund is not sent automatically to your AP.
This report will help you to catch any units that may have a lump sum charge of the remaining term of the lease that needs to be adjusted to only reflect the current month charges.
The Income Statement report will also allow you to review charges such as invoices received for preparation of legal documents that need to passed along to applicable resident ledgers. These charges can be viewed in the Unit Possession Costs - Legal line item.
STEP 1: GENERATE THE REPORT
STEP 1: GENERATE THE REPORT
To generate this report:
From the menu, select Reports, Analytics, then Financial Analytics.
On the Financial Reports screen, complete the following:
Property - enter your property
Book - enter Accrual
Account Tree - enter prop.comppl
Report Type - select Income Statement
Period - enter the current period in the date range (i.e. 8/1/2023 - 8/31/2023)
Select Display to run the report.
TERMINATION INCOME
TERMINATION INCOME
Find Termination Income and select the hyperlink.
Select the hyperlink value once more to locate individual charges.
UNIT POSSESSION COSTS - LEGAL
UNIT POSSESSION COSTS - LEGAL
Find Unit Possession Costs - Legal, and select the hyperlink.
Select the hyperlink value once more to locate individual charges.
STEP 2: WHAT TO LOOK FOR
STEP 2: WHAT TO LOOK FOR
FOR CM/ACMs & PAs
FOR CM/ACMs & PAs
A) Termination Income Amount - Ensure termination charges in the Amount column are not inflated to represent more than the current month’s charges for rent responsibility except for cases where deposit accounting initiates a refund and a charge for the second month is necessary to ensure a balance is due and a refund is not automatically sent to AP.
If the amount is inflated for rent responsibility, ensure that you reverse the incorrect charge and re-enter a new charge that reflects the proper amount coded to TERMFEE.
B) Unit Possession Costs - Legal - Ensure that charges listed in this section are passed along to the applicable resident ledgers.
Locate the resident's ledger and determine if the charges are on the ledger. If the charges listed on the Unit Possession Costs - Legal section of the Income Statement report are not listed on the ledger, you will have to create a charge to add to the ledger, in order to match the amounts on the income statement.
FREQUENCY ON RUNNING REPORT
FREQUENCY ON RUNNING REPORT
CM/ACMs should run during pre-close.
INCOME STATEMENT VIDEOS
INCOME STATEMENT VIDEOS
Income Statement: Termination Video
Income Statement: Termination Video
View this video to learn about what to review on the Income Statement Report and what actions needs to be taken when auditing the Termination Income.
Income Statement: Legal Video
Income Statement: Legal Video
View this video to learn about what to review on the Income Statement Report and what actions needs to be taken when auditing Unit Possession Costs - Legal income.
See other job aids:
Page updated
Report abuse