Understanding analysis codes, How they work and the basics of setting up custom ones
Analysis Codes are transactions that behave in certain ways on a statement. They describe the details of your transactions on a ledger. Arthur provides you with a set of default codes that tell a transaction how to behave.
Two of the most common ones used are
These are codes that relate to rent. Direct rent is used by self managing landlords while Rent charge is used by agencies where the rent is owned by an owner
Default Analysis codes provided include:
Contract Fee Charge – Generic code for a admin fee to prepare a contract
Deposit Transfer to Rent Account – This code is used when transferring a deposit from the tenancy deposit account to the tenant rent account.
Direct Rent – Code used when self managing a tenancy. i.e there is no property owner statement. This is linked to charging rent to a tenancy
Rent Charge – Code used when managing on behalf of someone else. i.e there a property owner statement. This is linked to charging rent to a tenancy
Disbursement Charge(Recharge) – This is used when charging a tenant/owner for a bill you paid to a third party (should always be two transactions created, one receivable and one expenditure for your business)
Disbursement Charge against a Float Statement – Allows you to hold charges against your float in a separate property owner ledger so you can separate them from the main owner account. All transactions that use this code can only be viewed on ‘property owner float statement’.
Head Agent Commission – This is used where you have a agent that collects your rent and then pays you less their commissions.
Letting Commission Charge – This is used by an agent when setting up charges to be paid by the property owner. T
Management Fee Charge – This is used by an agent when setting up charges to be paid by the property owner. T
Reference Fee Charge – This is often used to charge a tenant for a reference
Service Charge – Charge will usually cover maintenance and repair work in communal areas.
Sundry Charge – This is used for any generic charge to a tenant/owner; the money you receive is revenue for you company (e.g. tenant find fees/admin fees)
Tax Deduction – In cases where withholding tax is made against an overseas property owner, you can use this code to analyse the amount of tax deducted.
Tenant Opening Balance – This transaction has been created for Xero users, who when they set up their opening balances may want it to appear on a different section of the balance sheet rather than the same account their rents go into. This can be remapped, but please speak to a member of the team before using this transaction type.
Payment made to Property Owner – This is used by the property manager, when the property owner asks for a sum of money to be sent immediately (outside of a remittance). This will then be deducted from the amount to be paid to the owner when you process their Property Owner Remittance.
Property Owner Float Receipt – This is used by the property managers when the property owner pays a sum of money direct to hold for a float.
Property Owner Receipt – This is used by the property manager when the Property Owner makes a direct payment to the manager. For example, if the owner pays £1000 to a property manager, for future charges at the end of a tenancy, such as cleaning. .
Registered Deposit Receipt – This code is used when receiving the registered deposit. This code enters the funds directly into the tenant deposit account.
Tenancy Receipt – This is used when a tenant has paid a sum of money. This can also be used when presenting a scenario of receiving local authority rent credits.
How do these transactions behave
Transaction above fall under two main categories:
Debit the statement (charge the tenancy or owner)
Credit the statement (credit the tenancy or owner- negative charge)
Credit the statement (receive money)
Debit the statement (pay money out of the statement)
Below shows how these are displayed on a statement:
Create your own custom codes
Arthur allows you to create bespoke custom codes which can be mapped directly to your accounting software’s (Xero/QuickBooks) chart of accounts. To create a code go to Financials>Analysis Codes:
Three types of analysis codes you can create:
Charge – Debit (Invoice) [must always have an opposite type]
Charge – Credit (Credit notes) [must never have an opposite type]
Receipt – Credit (Receipts/Payments) [does not need an opposite]
In this example we are adding a charge to the tenant for a check-in fee.
Paid to/by: refers to who the transaction relates to.
Statements: The transactions will be visible and will relate to the following: Tenancy Statement – Tenant; Tenant Deposit Statement – Tenant; Property Owner Statement – Property Owner; Contractor Statement – Contractor
Select the Account Type that you want this transaction type to fall into.
To add your new transaction type go to: Tenancy>Statement>Add Transaction:
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