Management Fee Refund Chart of Account

Cirrus8 uses management fee adjustment codes to ensure accurate management fee calculations. These codes should be used for any manual adjustments to charge additional management fees or refund a portion of management fees for the month. 

NOTE: Management Fee Adjustment Codes may vary from database to database. Check your databases chart of accounts to confirm the management fee adjustment codes by going to Configuration > Manage Chart of Accounts.

An example of the management fee adjustment codes are as follows:

Using standard management fee codes (e.g., 4671, 5671, 6671) for adjustments can cause Cirrus8 to recalculate fees incorrectly, especially if fees are based on percentage of receipts or accounts.

Example 1:

• The property management fee setup is using account code 5671 - Management Fees
• A management fee has been missed. To rectify, a manual agent invoice should be raised using account code 5672 - Management Fees - Adjustment to avoid recalculation of the management fee.

Example 2:

• The property fixed management fee setup is using account code 6671 - Management Fees at $1,000 per month
• A manual invoice is raised for $500 using 6671 → Cirrus8 recalculates the monthly fixed management fee to $500 as it is registering that the management fee needs to be a total $1,000 per month, and there is already a manual management fee invoice for the month for $500.
• Correct approach: Use account code 6672 - Management Fees - Adjustment to avoid altering the system's calculation.