Income Groups

Functions > Setup > Income Groups

Income groups are a way of grouping together similar income transactions.  An example of an income group would be Rent.

The taxable option allows you to specify if the transactions in this group get charged tax on your year end tax return.  This can affect some year end reports.

You can choose to ignore some transaction types from cash flow analysis such as transferring money from one bank account to another.  This can affect some reports.

You can choose to exclude some transactions from profit and loss reporting such as cash deposits.  This can affect some reports.

You can choose to exclude from transactions from disbursement calculations.  This means these transactions will not have any management fees charges against the owner.  An example would be bond/deposit income received from the tenant.  Optionally the money can be paid to the owner.  An example would be money received from the tenant and pass through to the owner without any fees being charges.

If the income group is used to pay rent, the Used to pay back rent option should be ticked.  There would normally only be one income group used for this purpose, but there would be multiple if required.

If the income group is used to pay back extra charges, the Used to pay back extra charges option should be ticked.  Multiple income groups could be used for paying back different types of extra charges, which will make analysis easier later.  See also Extra Charges

A single income group can be set up to pay back rent and also pay back extra charges if the money is received from the tenant as a single amount.  In this case the money will be used to pay back rent first, and any surplus will be allocated to extra charges.

A transaction tax rate can be set for each income group.  This is used for GST or VAT type taxes.  Tax amounts are then automatically calculated during transaction entry.