Levy Management | New

The instructions in this article relate to Levy Management. The icon may be located on your StrataMax Desktop or found using the StrataMax Search.

Levy Management streamlines the process of creating, approving, and issuing levies - either manually or based on the budget. You can also edit or reverse levies, update due dates, and manage the full levy process from start to finish. Once levies are approved, it’s easy to generate transactions, create notices, and distribute them using your building and contact preferences.

Levy Management Options 

The Options menu provides access to configuration settings and Levy Management tools.

1. Search or select Levy Management.
2. Click Options to access the following:

Configure

• Levy Income on Discount Date: If set, this will apply income on the Discount Date instead of the Due Date if it is after the due date for newly created levies. This is a Global setting and will impact all users.
• Show Generated Levies on Balance Sheet:  an existing configuration that will show generated levies on the balance Sheet for GST registered buildings, if set. This is a Global setting and will impact all users.
• Show Generated Levies on Balance sheet for buildings not registered for GST – an existing configuration that will show generated levies on the balance sheet for buildings not registered for GST, if set. This is a Global setting and will impact all users.
• Show Generated Levies on Balance Sheet override disable for this building: if set, this will override showing Generated Levies on Balance sheet for the selected building.  This is a Global setting and will impact all users.
• Update Levy Due Date on Generation if closer than the minimum days from Generation Date: If set this will automatically set the due date as the correct number of days from generation date based on the state legislative requirements for the building. This is a Global setting and will impact all users.
• Minimum days from Generation Date to Due Date (Uses legislation value if larger): This setting becomes enabled when option 5 is set and allows configuration of the number of days from Generation Date to Due Date. If the number of days set here is below the legislative requirement for the state, the state legislation value will be used. 
• Set Levy Tag Conditions: Start Day (Enter 0 for the day of processing) - to set the start day for tagging levies for generation
• Set Levy Tag Conditions: Days to include (Enter the number of days from the start day.): to set the levies to be tagged for generation based on the number of days from start day.
• Show Summary Totals: If set will show the budget totals for each fund next to the fund name.
• Auto Distribute after Create Transactions/Notice: If set levy notices will automatically be distributed once transactions have been created.
• Close: Closes the Configuration screen.

Merged Notice Setup

Merge Levy Notice Setup is for selecting lot owners within a selected building to be grouped together on the one levy notice as well as correspondence to be merged to one contact using Report Distribution. Refer to our Merged Levy Notice Setup article.

Split Levy Setup

A levy notice can be split by Levy Invoice Code and sent to another address. For example this could be used when Admin Fund levies are paid by a third party. This will result in Levy Invoice Code 01 – Admin Fund being shown, with arrears, on a separate Levy Notice.

1. Search or select Levy Management.
2. Click Options and select Split Levy Setup.
3. Click Add to create a new Split Levy Notice Setup or click the pencil icon to edit or the red cross to delete.
4. In the Add Levy Split Setup screen, click the Account Selector to select the Lot Account to be split.
5. Click OK.
6. In the next screen, select the fund code for the levy that will be sent to the new contact. For example, if the notice for the Insurance fund levy is to be sent to a different contact, select the Invoice Code for the Insurance fund.
7. Click Select Contact to select the recipient contact or to create a new contact.
8. Click Save.

Custom Entitlement Schedules

Custom Entitlement Schedules can be created as local schedules. Typically, custom levies are used when only some lots need to pay for a certain expense in a building, or if certain lots have different charge units. For example, lift maintenance for a commercial lift, or a pool that is used by only 3 out of 10 lots in the building.

1. Search or select Levy Management. 
2. Click Options and select Custom Entitlement Schedules.
3. Click Add in the Custom Entitlement Schedule screen.
4. Add a title for the schedule – this field is mandatory and will be validated. Enter the Charge Units as required to each applicable Account No. 
5. Click Save to update the schedule.

Copy From Existing Schedule

To create a schedule from an existing schedule, click the Copy From button. This will present options to select existing schedules which can be saved as custom and modified if necessary. 

Interest Charge List

The Interest Charge List allows lots and funds (Balance Fields) to not to calculate or post overdue interest. By default, all lots and are automatically tagged in Interest Charge List to calculate and post interest, and all Balance Fields (Invoice Codes) will calculate overdue interest.

An example for use of the Interest Charge List would be for lots owned by the developer which is not to be charged any overdue interest.

1. Search or select Levy Management. 
2. Click Options and select Interest Charge List.
3. Tag any lots that are not to be charged interest and click Save.

Set Current Levies

Levies selected as current will display on the Levy Management screen by default. For example this can control if any historical levies were required to be displayed.

1. Search or select Levy Management. 
2. Click Options and select Set Current Levies.
3. Tag levy periods to be included in the main Levy Management screen and click OK.

Levy Management Overview

The options in Levy Management allow you to create levies for a variety of purposes, including budget-based levies using the Budget Next Year figure from Budget Update (If there is no next year budget, the current year budget is used), prior manager levies for transferred buildings, and interim levies for the next financial year.
You can also create custom entitlement schedules if needed. There are options to reverse or edit levies, View Lot Charges including lot paid dates, and apply configuration settings. 
Once levies are added and approved, transactions and notices can be created, and notices distributed using Report Distribution, which supports contact preferences and additional attachments or reports. For Net GST-style buildings, GST will be automatically applied during Levy Year rollover. There are also a number of configuration options available to assist with setting preferences. 

Add - Manual

If you are not automatically creating levies based on the budget, or if you are creating a custom or one-off special levy, they can be added in manually. The create levy screen will open and will be prepopulated with data based on the last levy periods for the fund. This can be edited as required. 

1. Search or select Levy Management.
2. Click Add and select Manual.
   • Invoice Code Fund: Click the drop-down selector to set the fund by Invoice code. (Sort Order is used for the default)
   • Levy Type: Click the drop-down selector to set the levy type. (If loading levies from another manager who has issued the levies, select Prior Manager).
   • Entitlement Schedule:  Click the drop-down selector to set the Entitlement Schedule
   • Custom Schedule Setup: Click the ‘Edit’ icon to setup a new Custom Schedule
   • Levy Period:  Use the drop-down selectors to open the calendar and set levy period dates
   • Set the Due Date for the notice: The number of days from creation to due date will be indicated in orange.
   • Gross amount per U/E:  Add the Gross amount per U/E in this field. If more than eight decimal points are added these will be truncated back to eight in this screen.  The gross total amount will be calculated based on this amount * Lot entitlements.
   • Gross Total Amount: Add the Gross Total Amount. The Gross amount per U/E will be calculated based on this amount * Lot entitlements.
   • Rate – displays the rate of entitlements * number of entitlements calculation.
   • Discount Rate (%) – Set the discount rate in this field.
     Note: This field will not be displayed unless a Discount Rate is added. If a Discount Rate is applied, the Discount Due Date will default based on state specific legislation.
   • View: Click View to see the lot charges based on the new levy setup.
3. Click Save to save the new levy. The new levy will be displayed in the Levy Management screen with no Approved or Generated date.

   
   

   

Add - By Budget

Use the Add By Budget screen to automatically create levies based on the budget (Next Years Budget column in Budget Update or Current Year column if no Next Year) for the upcoming financial year or for any remaining levy periods in the current levy year. The system calculates the annual rate per unit of entitlement (U/E) and distributes it evenly across four quarters, or according to the number of instalments defined for the levy code in Levy Invoice Code Setup. The levies will be created for the Levy Year, so the Levy Year should reflect the levies being proposed at the AGM.  

When adding by budget, if the Levy Year includes three quarters based on this years financial year and one quarter for next year and there is a Next Year Budget, the remaining quarter will be based on the next year budget. So all four quarters will not always be the same.

Rate = (Next Year Budget - Outstanding Levy Income / Entitlements / Remaining Instalments)

1. Search or select Levy Management.
2. Click Add and select By Budget.
   • Review the Determination Date: generally the date of AGM.
   • Levy Year: Tick this option to roll the Levy Year forward. Review or enter the start and end dates for the new Levy Year.
   • Calculation: Next Year Budget Approved. Enables levy creation based on the next year's approved budget. If the budget is not yet approved, interim levies will be created instead, and can be amended. Tick if the Next Year Budget has been Approved to set the first levy as approved.
   • Review Levies /untag Levies: Levies can be untagged in this screen if they should not be included in the current process.
   • Hover over a levy to view its calculation details.
3. Click Save to store the levies for later approval and generation or click Cancel to close the screen without saving any changes.

Example screen shot below of Budget Next Year at -15000.00.

Screen shot of using Add by - Budget;

• 3 instalments created using Budget This Year at $10,000.00 Plus $1,000 GST less Income / Entitlements / 1 remaining Instalments. 
• Next Financial Year at $15,000.00 Plus $1,500 GST less Income / Entitlements / 4 remaining Instalments.

 

Note: GST is automatically applied to budget amounts for Net GST style buildings when the levy year is rolled over.

Levy Year Rollover

When using the Add - By Budget option, if the Levy Year requires adjusting so that interim levies can be created, tick the Levy Year Rollover button and adjust the Levy Year using the calendar or enter the new dates for the levy period creation. If levy year matches financial year, Interim levies may be required to be entered manually after. The financial year is often different to the levy year, the levy year is what Levies are being proposed at the AGM. Watch our short video explaining how to Aligning the Levy Year with Financial Year.

Approve

Once levies have been created manually or by budget, they need to be Approved (previously known as Struck).

1. Search or select Levy Management.
2. Click the Approve button to open the Approval screen. 
3. Review the Approved Date: This will be Today's date, set the date you'd like to record as the approval date.
4. Untag any levies that are not ready for approval.
5. Click Approve to finalise and approve the selected levies.
6. Click Close to close the screen.

Create Transactions & Notice

After levies are approved, you can generate the related transactions and notices by selecting Create Transactions and Notices. Levies will be tagged for generation based on the Levy Tag Conditions set in your Configuration. This is also where you can review buildings for generation. 

1. Search or select Levy Management.
2. Click Create Transactions & Notice. 
3. Set the date of Generation – defaults to today’s date.
4. Set the Adjustment date for Due Date. Can be set manually or will use default days set in configuration or number of days required by legislation if more than the set default number of days.
5. Filter levies by due date
6. Select one or more buildings (For Global Levy Generation).
7. Tag levies to be created.
8. Tick Include Not Approved to create transactions and notices for levies that have not yet been Approved.
9. Click Start to create transactions and notices for tagged levies. The status column will show a green tick when generated successfully and display any relevant warnings or validation messages.
10. Click Close.
11. Once notices and transactions have been created, the Distribute button will be enabled. Click Distribute to open the Report Distribution screen and distribute notices using available preferences and additional reports if required. 
12. Click Close to close the screen.

Global Levy Generation and Distribution

Levy notices that have been generated can be distributed or re-distributed by using the ‘Distribute’ option.  The default Levy Notice email template will be used when Report Distribution is opened from Levy Management. If levy notices need to be issued at a later date for multiple buildings, use Levy Notice/ Reports.

Transactions and Notices can be created globally by tagging all or multiple buildings in the Create Transactions and Notice screen.

1. Search or select Levy Management.
2. Click Create Transactions & Notice.
3. Review the Generation Date.
4. Review Adjust Due Date if before.
5. Click the Buildings selection and tag buildings as required.
6. Click Select. The buildings will be set for global generation. Levies that fall into the tag conditions period will be pre-tagged. Check the Status column for any warnings.
7. Click Start to create transactions and notices for tagged levies. The status column will show a green tick when generated successfully and display any relevant warnings or validation messages. 
8. Once notices and transactions have been created, they will be distributed if the Auto Distribute after Create Transaction/Notice Setting is configured or click Distribute to open the Report Distribution screen and distribute notices using available preferences and additional reports if required. 
   
   
   
9. Review Report Distribution options and Proceed.

Reports

The Reports menu provides access to Report Distribution to Distribute Levy Notices, run the Levy Register Report and Levy Generation Schedule.

Levy Register

The Levy Register Report option opens the Levy Register Report in Report Distribution and provides the ability to generate the default (Current) Levy Register,  report for Proposed Levies and report for Account Groups. 

1. Search or select Levy Management.
2. Click Reports. 
3. Select Levy Register.
4. Click the template cog to see report settings and templates. (For example, Proposed Levies)
5. Click Proceed.

Levy Register - Quarterly Report

The Levy Register - Quarterly Report, shows levies by each lot and quarterly period. This report can be produced in Report Distribution and provides the ability to generate the default Levy Register (Quarterly), there is an option to produce this report for Proposed Levies Only. 

1. Search or select Levy Management.
2. Click Reports. 
3. Select Levy Register - Quarterly. 
4. Click the template cog to see report settings and templates. (For example, Proposed Levies Only).
5. Click Proceed.

Example of Levy Register - Quarterly Report:

Levy Generation Schedule

Selecting the Levy Generation Schedule will open the Levy Generation Schedule Report in Report Distribution and will default to Internal Recipients, the Selected Buildings will need to be selected from the Configuration cog.

The Levy Generation Schedule produces a report on levies that have been entered into StrataMax. This can be used to report on levies which have not been generated within a specific period. In this report, if a building has no next year, levies noted, and a Levy Year End Roll Over has not been completed, the first levy of the year will be reported in grey with an asterisk. Levy Generation Schedule will print one consolidated report of the information for the buildings selected in the configuration cog, and is available in an Excel Export.

1. Search or select Levy Management.
2. Click Reports. 
3. Select Levy Generation Schedule. 
4. Click the template cog to see report settings and templates.
   • Click the Style drop down selector to set what data should be on the report.
   • Click the ... Selected Buildings and tag the required buildings. Click Close.
5. Review Report Distribution options click Excel Export to open in Excel. 
6. Click Proceed.

Edit Levy

Sometimes it's required to edit an existing levy. This can be done for levies that have or haven't been approved, and levies that have or haven't been generated. When editing a levy, interest and discounts will not change, in order to reverse interest or discounts the levy will need to be reversed or Debtor Adjustments can be used. When editing a levy to zero, a reversal will be completed, creating a credit levy of the original levy with a new number.

1. Search or select Levy Management.
2. Highlight the levy period to be adjusted.
3. Click Edit button.
4. Adjust levy period details as required.
5. Click Save.

Reverse Levy

There may be times when a levy is required to be reversed for a complete replacement of a levy period, date and discount. Firstly check if the levy has a discount as this will affect how you proceed. Edit Levy should be used in most instances. When reversing a levy, a reversal will be completed, creating a credit levy of the original levy with a new number. Add Levy - Manual can be used to enter a replacement levy if required. 

1. Search or select Levy Management.
2. Highlight the levy period to be reversed.
3. If the levy period has a Discount Rate a prompt to reverse the discount will display, select Yes or No.
4. A credit levy will be created in Levy Management for the reversal. 

Yes = Any receipts to lots with a discount for the levy period will be reversed (Recommended).

No = Discount will remain on the lot. If later decided that the discount should be reversed, this will need to be removed using Debtor Adjustments. 

View Lot Charges

A Levy Charge Schedule report can be viewed listing each Lot Account, Charge Unit, Gross Amount, Net Amount/Discount and the Date Paid. 

1. Search or select Levy Management.
2. Highlight the levy period to be viewed.
3. Click View Lot Charges to view the Levy Detail of each Lot Account, including the Date Paid for the Lot.. 
4. Click Report to produce a Levy Charge Schedule report for the selected levy period.