Table of Contents
Purpose
The Over/Under Adjustment gives you the ability to manually adjust the Over/Under to $0. This adjustment is to equal the amount that your company has earned vs the invoiced amounts.
If this feature has not already been added to your Aspire system, please reach out to AspireCare and request the feature flag to create over/under adjustment records be added to your system.
🧠Aspire also offers Over/Under training classes, to see the full list of classes to attend, please read this article.
Requirements
✅ In order to create Over/Under Adjustments, you must have Create Over Under Adjustment Records added to your User Role.
Important Actions To Take Before Making Over/Under Adjustments
If there is an Over/Under balance, it is best practice to understand why the balance is not $0. You’d want to correct or make any changes to the estimate or work tickets before making the Over/Under adjustment.
Do not make any large Over/Under adjustments without researching the reason!
⚠️Make sure the opportunity has been 100% invoiced before making any Over/Under adjustment. For Fixed Payment Contracts, do not make any Over/Under adjustments until after the month has been closed for the end date of that contract.
⚠️The over/under balance on Fixed Payment Contracts should move to Revenue Variance after the month is closed and the over/under should be reflected as $0.
⚠️Do not create an Over/Under adjustment before the month is closed as it can create a balance in Over/Under. If there is a balance after the month is closed, this is when adjustments will have to be made in the next open month.
⚠️An Over/Under adjustment can only be made on Opportunities that have a Status of Complete or Canceled.
⚠️An Over/Under adjustment date cannot be made in a closed month.
Creating Adjustment List Views for EOM Reports
To add Over/Under Adjustments, navigate to the Reporting module.
Select Standard Reports ▶️ End of Month.
Select the Revenue tab and change the date range to All Time.
Scroll to the bottom of the report and locate the All Branches section. Drill into the Over/Under $ Amount.
The Revenue Over Under Report is displayed.
For each list, you will complete the steps listed below:
Select Display.
Add Job Status, Start Date and End Date.
Add Adjust Over Under.
Add Over Under Amount, Add Sum in the Total column.
Click Apply.
Select the Sort icon.
Add the Opportunity Number.
Click Apply.
Select the Group icon.
Add Job Status.
For list A16 only: Add End Date in Order #2.
Click Apply.
Save the list for future use.
Use the list set up above and save for the following lists.
📌 Note: The adjustment timeline for each list varies, they are outlined below:
A13- Over/Under Work Orders Excluding $0
These adjustments can be made before the month is closed.
A14 – Over/Under Contracts excluding $0
These adjustments can be made before the month is closed.
A16 – Over/Under Revenue Variance
These adjustments should only be made for any Fixed Payment Invoice Type contracts that have an end date of the most current month closed or earlier.
For example: if March 31, 2021 is closed, only make adjustments for Fixed Payment Invoice Type contracts that have an end date of March 31, 2021 and earlier.
Making an Over/Under Adjustment
You will see the Over/Under Adjustment 3 dot menu in the last column of lists A13, and 14 next to the Over/Under Amount.
If the Over/Under Amount balance displayed is positive, the adjustment would be negative.
If the Over/Under Amount balance displayed is negative, the adjustment would be positive.
Write down the Over/Under balance to be adjusted on each line item.
Click on the Over/Under adjustment icon. Choose Adjust Over Under.
The Adjust Over/Under Amount window will appear:
Choose the Adjustment Date.
This date cannot be in a closed month.
Fill in the Adjustment Amount box with the Over/Under Amount balance to be adjusted.
Save.
The Over/Under Amount Balance should now show as $0 next to the Opportunity you applied the adjustment to.
That line will no longer show on any list that is filtered to show Over/Under – does not equal - $0.
The adjustment amount will show in the Over/Under Adjustment column when added to this report:
Over/Under Adjustments on the End of Month Report
On the EOM Report ▶️ Revenue ▶️ Over/Under Adjustment you can review the total amount of Over/Under Adjustments made for your system.
This amount will now be part of the journal entry only if Earned Revenue is being entered as revenue in your accounting system.
Things to Know About Making Over/Under Adjustments
If you need Division specific adjustment numbers, you can drill into the $ amount and group by Division.
If Invoiced Revenue is being entered into your accounting system, the Over/Under adjustment will not be part of the journal entry.
Be sure to understand how the Over/Under Adjustment affects revenue before entering that portion of the journal entry into your accounting system.
In most cases, the Over/Under Adjustment $ amount will be adjusted to Revenue.
Listed below are some examples when Over/Under Adjustments are not adjusted to Revenue.
Journal Entries with Adjustments For Canceled Work Orders
When Earned Revenue is being entered into your accounting system as revenue, you will need to do an Over/Under adjustment on canceled work orders.
If a Work Order Opportunity is invoiced, and then canceled, there will be an Over/Under balance of Invoiced greater than Earned.
Read about common scenarios to help explain what you should do in your accounting system:
Scenario 1
If the property has an Accounts Receivable balance for an Invoice, follow these steps:
Create an account on the chart of accounts in the accounting system called ‘Refund Customer’. This will be a liability account.
Code the refund check to the ‘Refund Customer’ account.
Create a Payment Category in Aspire called ‘Refund Customer’.
Create a Credit Memo for that invoice. Choose ‘Credit as Expense box’. On the Expense drop down menu, choose ‘ Refund Customer’.
When entering the EOM Revenue tab journal entry:
Journal entry the Credit Memo-Refund customer to the new ‘Refund Customer’ account.
Journal entry that Over/Under adjustment to the new ‘Refund Customer’ account.
📑For more information on creating Credit Memos in Aspire, please read this article.
Scenario 2
If the property does not have an Accounts Receivable balance for that Invoice and they are requesting a refund (and you do not need the history in Aspire), follow these steps:
Create an account on the chart of accounts in the accounting system called ‘Refund Customer’. This will be a liability account.
Code the refund check to the ‘Refund Customer’ account.
When entering the EOM Revenue tab journal entry, Journal entry that Over/Under adjustment to the ‘Refund Customer’ account.
📑For more information about refunds to customers, please read this article.
Scenario 3
If the property does not have an Accounts Receivable balance for that Invoice and they are requesting a refund (and you need the history in Aspire) follow these steps:
Create an account on the chart of accounts in the accounting system called ‘Refund Customer’. This will be a liability account.
Create a Payment Category in Aspire called ‘Refund Customer’.
Create a Misc Invoice and choose ‘Refund Customer’ in the drop down menu.
Create a Credit Memo for that invoice.
Choose ‘Credit as Expense box’. On the Expense drop down menu, choose ‘Refund Customer’.
When entering the EOM Revenue tab journal entry:
Journal entry the Credit Memo
Refund the customer to the new Refund Customer account.
Journal entry the Misc Invoice refund customer portion to the new Refund Customer account.
Journal entry the Over/Under adjustment to the Refund Customer account.
📑For more information on how to create miscellaneous invoices, please read this article.
Scenario 4
If the property does not have an Accounts Receivable balance for that invoice and they are requesting a credit on their account for future use, follow these steps:
Create an account on the chart of accounts in the accounting system called Aspire-Credit Adjustments. This will be a liability account.
Create a Payment Category in Aspire called Aspire-Credit Adjustments.
Create a Credit Memo for the invoice dollar amount.
Choose Credit as Expense. On the Expense drop down menu, choose Aspire Credit Adjustments.
When entering the EOM Revenue journal entry:
For the journal entry of the Credit Memo, refund the customer with the category of Aspire Credit Adjustments.
Journal entry the Over/Under Adjustment to the Aspire Credit Adjustments account.
Journal Entries for Canceled and Completed Fixed Payment Contracts
When a month is closed for a contract with an end date of that month, any Over/Under balance should show as $0. The balance should move to Revenue Variance.
If there is still a balance in Over/Under, research the reason it is still there.
If there is a need to do an Over/Under adjustment, that Over/Under adjustment $ amount will be coded to revenue.