Levy Management

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

The main purpose and most common use for Levy Management is to create, edit, strike and generate levies. It's also where levies are reversed and deleted.

Levy Management | Configuration

The options in File > Configure should be reviewed prior to generation of levies.  Some of these settings may be global and require assistance from an administrator to set or confirm the most appropriate settings.

Always show list of all levies
If this setting is selected, the full list of levies will show when you open levy maintenance rather than selecting each fund individually to see entered levies.

Allow Period Date Override
Levies will normally be entered to follow on from the prior entered levy period.  A warning will prompt if levies are entered and not consecutive by period.  Allowing for Period Date Override, will stop the checking of levies being entered to be consecutive and is also a global setting.  It is recommended that this should NOT be ticked unless advised by the Support Team. 

Add GST to Budget Amounts at Year End Rollover
If tagged, when a Levy Year End Rollover is conducted for a GST registered building, it will calculate the GST portion on the Levy Income in Budget Update.

Suppress Rationalisation for current building
Rationalisation automatically occurs when levies are generated. This process will generate levies and also apply amounts that may already be in credit on a lot to ensure allocated to the new amount due, based on Levy Invoice Code Setup and also applying discount if applicable.  

This setting will prevent rationalisation on the selected building and will need to be set in each individual building if required.

Restricted options

The following settings are further restricted and may require the User's password to access the configuration.  It is recommend that only an administrator makes changes in this area. 

This can be accessed via the File menu and then 'Enable Show Generated Levies'. 

Show Generated Levies on Balance Sheet (Global Setting)
When levies are generated. for GST Registered building, GST must be accounted for on the day of generation and included in the current BAS reporting period.  Use of this setting will record the income for the 'not yet due' levies on the balance sheet, with the use of several accounts used to account for GST.

• Levies Billed Not Yet Due (Asset and Liability accounts)
• Prepayments (Asset and Liability accounts)

The liability account must have the tax code set to 'GST - 00' to allow GST to be then accounted for in the GST Clearing Account.

Show Generated Levies on Balance Sheet for buildings not registered for GST (Global Setting)
The above setting is only recommended to be selected for buildings that are registered for GST.  A non-registered building, with the use of this setting will report the amounts on the assets / liabilities but will not have GST so the amounts will be the same and possibly confusing for explanation. By selecting this box, the setting below will untick automatically.

Don't Show Generated Levies on Balance Sheet for <Building Name> (Global Setting)
If a GST Registered building is to not account for GST at generation, this setting will only calculate GST on the due date of the levies, possibly affecting which reporting period the amounts are reported in. By selecting this box, the setting above will untick automatically.

Levy Management | Tabs

1. Maintenance: Where levies are entered, edited and deleted
2. Strike: Where entered levies are confirmed. Striking allows the levies to appear on reports and on strata certificates.
3. Generate: Where levies are generated for one or more buildings and has the facility to automatically print or distribute the notices.
4. Resubdivision: This is used as part of the resubdivision process. More information can be found in our Resubdivision article.

Levy Management | Maintenance Tab

Levies can be billed as reoccurring levies or one off levies such as a Special Admin Fund or Special Sinking Fund (Capital Works, Reserve or Maintenance Fund). This can be based on Contribution Entitlements, Interest Entitlements or a Custom Entitlement Schedule if the charge proportion is different to the Contributions and Interest entitlements.

The below instructions will show you how to manage levies in StrataMax. Instructions on how to generate and distribute levies on a global basis can be found in the Global Levy Generation article. 

1. Period (these two periods should match)
   Financial Year: These are the dates that are entered into Building Information.
   Levy Year: The 12 months that contains the levy periods for the building.
2. Total for Current Levy Year
   Number of Instalments (display only field): This is the number of levy periods that are in the Levy Year. This figure updates when you add or delete levies.
   Gross: The sum of the Gross amount per unit of entitlement for all periods in the levy year.
   Net: The sum of the Net amount per unit of entitlement (after discounts) for all periods in the levy year.
3. Entitlements
   Contribution: The total or aggregate number of contribution entitlements. This figure is entered into Building Information.
   Interest: The total or aggregate number of interest entitlements. This figure is entered into Building Information.
4. Levy Funds
   This small table lists the current Levy Invoice Codes and corresponding Levy Fund. These can be added, edited, or deleted in Levy Invoice Code Setup. Clicking a row will display its levies in the table to the right.
5. Buttons
   • Edit: Opens the currently selected levy so it can be edited.
   • New: Opens the levy editing window to create a levy. 
   • Delete: This will delete the levy.
   • Show All: Displays every levy for every fund in the list.
   • View: Opens the Schedule Report window, which contains the charge schedule for all the lots in the building for the selected levy.

Creating a New Levy

This section covers how to enter a new levy period in StrataMax. Before entering a new levy, you must check in the top left of the Levy Management screen, under the Period to make sure that the building's Levy Year is not older than the Financial Year. If it is, then you'll need to complete a Levy Year End Rollover; follow the Levy Year End Rollover instructions.  

1. Search or select Levy Management. 
2. Click the Maintenance tab.
3. Select the levy fund from the small table on the left (the headers are 'Invoice Code', 'Levy Name',  etc.) then click the New button in the bottom left.
4. You may be prompted to select the Levy Type 'Regular' or 'Special';
   • Regular is for reoccurring levies for a period, whilst Special is a one off levy.

4. Enter all of the necessary information:
   • Determination Date: The date of the meeting to which the levy was determined.
   • Period Start & Period Finish: Special levies will not require a period end date. These are for each levy period, not for the entire year.
   • Due Date: This is the due date for the levy period.
   • Discount Rate: This is the percent value of discount to be applied to this levy period, and is used to calculate the Net Amount for U/E field. 
   • Discount Date: The date that owners need to pay the levy by in order to receive the discount. For Queensland, this must be the same as the Due Date.  For New South Wales it may be one day earlier. 
   • Gross amount per U/E: The value that each owner will pay for each unit of entitlement if they do not pay the levy before the discount due date. This can be a credit amount if the building has raised surplus funds and they have decided to credit all the lots. Simply add a 'minus' in front of the figure, for example -100.00. 
     • A credit levy must be entered as a credit when first added, it cannot be edited to a negative amount - delete and re-enter can be used to correct.
   • Net Amount per U/E: This populates automatically, and is calculated by subtracting the Discount Rate percent from Gross Amount per U/E.
   • Entitlement Schedule: Chose between Contribution, Interest or Custom. For levies with Custom Schedule jump to these instructions.
5. Click OK to close this window.
6. Repeat steps 3 - 5 for any further levy periods required.
7. Once all periods have been entered, you should proceed to Strike the levies. See the Strike Tab section below.

Levies with Custom Entitlements

Adding a custom entitlement schedule can only be done while creating a new levy. 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.

This section covers adding a new custom levy. If you are adding a custom levy based on a previously stored schedule, proceed to the section for Editing a levy using stored custom entitlement schedule.

Creating a Levy with a new Custom Entitlement Schedule

1. Follow the instructions for Creating a New Levy up to last point in step 4.
2. When selecting the Entitlement Schedule, select Custom from the list and click OK.
3. Then click OK and the Select Base Schedule window will appear.
   
   
4. Select either the 'Contribution' or 'Interest' schedule and click OK.
5. In the Tag lots as Required window, tag the lots needed for this custom entitlement schedule.
   
   
6. If necessary, change the number of Charge Units by highlighting the lot and clicking the Edit button. In the small Charge Units window, type the amount needed and click OK.
   
   
7. Once all lots are tagged and Charge Units are set, click the Store button.
8. In the new, small window, type in the Schedule Name, and click OK. This will store the schedule for future use.

With the custom levy now created, you should check that the levy is correct by clicking the View button in the Maintenance tab, which will display the Schedule Report window.

If the schedule looks correct, you can either proceed to create more levies, using the next section immediately below, or you can proceed to strike the levies.

Creating a new levy with an existing Custom Schedule

As mentioned previously, a stored Custom Schedule can be used to either create new levies, or be applied to existing levies by editing them.

1. Follow the instructions for Creating a New Levy up to last point in step 4.
2. When selecting the Entitlement Schedule, select Custom from the list and click OK.
3. In the Select Base Schedule window, click the saved custom schedule. Usually the one with a file name 'SCHDBSE.00#''.
   
   
   
   
   • Click the View Schedule button to display the schedule for checking. 
   • Click the Delete button to delete the highlighted custom schedule.
   • Click OK to use the schedule, then click Close to use the custom schedule.
4. Repeat for any other levies as required, and once completed your levy is now set up, proceed to Strike Levies.

Edit a Levy

Sometimes it's required to edit an existing levy. This can be done for levies that have or haven't been struck, and levies that have or haven't been generated.

Please consider the below important notes before proceeding to edit a levy:

• When editing a generated levy, the posted overdue interest calculations and/or levy discounts will not change. In order to reverse interest or discounts, the levy will need to be reversed (see the next section), or Debtor Adjustment can be used.
• Once a levy has been edited to 0.00 it cannot be edited again to another amount. A new levy for the same period/fund will be required.
• Editing the period (dates) of a generated levy will not reflect this period change on ledger cards.

1. Search or select Levy Management.
2. In the Maintenance tab, click the Show All button to display all levies listed for this building.
3. Highlight the levy and click the Edit button.
   • If the levy has been struck a message appears saying 'This levy has been struck. Are you sure you want to change it?', click Yes.
   • If the levy has been generated a message appears saying 'This levy has been generated. Are you sure you want to change it?', click Yes.
4. Make the changes as required, and click OK > Save.
   • If the levy was already generated, pay attention to any NOTES in the blue boxes at the top of the window.
   • If the levy was previously struck, then it will need to be struck again.

Reverse a Levy

There are a few instances when it is appropriate to reverse a generated levy:

• If it was generated too early by mistake and thus charged the lots too early.
• The discount or interest needs to be reversed. 

At any given point, only the building's most recently generated levy can be reversed. You can tell which levy to reverse first by looking at the Generation Date column. When several levies are generated on the same day, you should look at the Number column to determine which is the most recent. In the below image, the Admin Fund levies have been struck before the Sinking Fund levies. 

Notice how the Admin Fund levies are 00001 - 00004, whilst the Sinking Fund levies are 00005 - 00008. This means that the Sinking Fund levies were struck and therefore generated after the Admin Fund levies. So for example, in order to be reverse Admin Fund levy 00002, you must reverse the generated Sinking Fund levies 00005 and 00006 first.

Because lot accounts are debited when levies are generated, reversing a levy will reverse that debit from lot accounts and will hide the transactions so they do not appear on the ledger card. All accounts will be adjusted accordingly when a levy is reversed, and all payments made after the levy was generated will remain on the account as an advance payment.

When generating an amended levy, consider adjusting the generation date so that the regenerated levy retains the same date as it was originally generated.

1. In the Levy Management screen, click Goto > Reverse Levy.
   • The following warning may appear, if the levy was generated too early, or if it needs to be deleted, then you should click 'Yes'.
   • If you just need to edit the levy, then click 'No'. and simply edit the levy.
     
2. In the 'Levy Reverse' window, select the most recently generated levy.
   
   
3. Tick the Don't Reverse Discounts box if you want to retain the discount transactions for this levy.
4. Click Proceed. If this notification appears, then you need to go back and select the most recently generated levy.
   
   
5. Check the details of the levy and click Confirm.
6. The 'Levy Reverse'  window will refresh and the list of generated will be available to reverse more levies.
7. When finished, click Close.

Delete a Levy

If a levy has been entered incorrectly and the levy has not yet been generated this can be deleted and re-entered if required. If the levy has been generated, this can be edited to 0.00, thus removing the charge the owner's ledgers.

1. Search or select Levy Management.
2. Click the Maintenance tab, click the Show All button to show all levies then highlight the levy that needs to be deleted. (Any levies that have not been struck will have a 'P' prefix in the Levy Number column). 
3. Highlight the un-generated levy, then click the Delete button. You can only delete the last levy of its type. A notification will appear, preventing the deletion.
4. If the levy has not been struck, the details for this levy will be shown in red for you to check the details. Click OK to delete it.
5. When prompted 'Delete this record?' click Yes.
6. If the levy was struck, tick the Tag column of the levy and click Proceed.

Levy Management | Strike Tab

Once all levies have been entered, they must be struck in order for system to include them in certificates, reports, and to allow the levies to be generated.

Any levies that that are listed for the old year will also appear on certificates and reports. Follow the Levy Year End Rollover instructions to move old year levies off the list of levies.

1. Search or select Levy Management.
2. Click the Strike tab, and all levies will be displayed in the table with any levies without a Strike Date being automatically tagged and a 'P' prefix in the Number column.
3. Click Proceed and then Confirm Strike. The levies will now be allocated a Number back in the Maintenance tab, will be included in any levy reports, and are available for generation.

Levy Management | Generate Tab

Generate Levies for a Single Building

This section guides you through generating levies for a single building. For instructions on how to perform the global levy generation, have a look at the Global Levy Generation article.

1. Search or select Levy Management.
2. Click the Generate tab.
3. Click the Generate button.
4. A pop-up will appear saying 'Levy Balance Control must be printed before generation. Are you sure you want to proceed?' click Yes, if you have already printed your 'Levy Balance Control Report'.
5. Prior to generating the levies, there are a few options available:
   1. Generation Date: The date that the Levy will be set as generated. This can be changed if a different generation date is required. For example if an incorrect Levy was reversed and requires the original date that it was first generate.
   2. Auto Print Levy notices after Generation: If this is ticked, after as levy has been generated, it will print/email the notices based on the settings in Levy Notice/Report. Check this first, prior to generating levies with this setting ticked.
   3. Use current active global message: If ticked, this will be used in conjunction with the above setting and will generate the levy notice based on the current active global message. This can be checked in Message Maker prior to generating.

5. Click Confirm Generation.

The program will now generate the levy notices for the building and print them if Auto Print Levy Notices after Generation was ticked, otherwise open the Levy Notice/Reports to print and/or e-mail the levy notices.

Levy Management | Goto Menu

The Goto menu contains shortcuts to various areas of StrataMax that relate to levies and arrears.

Levy Balance Control Report

For information on this report, check out the Levy Balance Control Report section in our Levy and Arrears Reports article.

Levy Notice

Clicking this will open the Levy Notice/Reports screen.

Levy Register

For information on this report, check out the Levy Register section in our Levy and Arrears Reports article.

Ledger Card

Clicking this will open the Ledger Card screen.

Aged Balance List

For information on this report, check out the Aged Balance List section in our Levy and Arrears Reports article.

Set Levy Notice Dates

Set Levy Notice Dates is the function you should use to tell the system that the levy has already been generated, and it shouldn't raise the income for it. It also does two other things: 

1. It allows a specific levy period to be skipped during the levy generation process.
2. It sets the 'paid to' dates, which the system will use to calculate arrears.

1. Search or select Levy Management, and click Goto > Set Levy Notice Dates.
2. If you are prompted, enter your password if set (if you haven't set it, you can reset it in Security Setup).
3. The Set Notice Date radio button should be selected by default, so click Proceed.
4. A 'Set Tags as Required'  window will appear where you must only tag the levy periods that have already been billed/generated.  
5. Click OK, and the Set/Clear Levy Notice Dates window appears again, which you can close.
6. Now the levy period will a date in the Generation Date column, which will be the date of the beginning of its period.

Clear Notice Date

Clear Notice Date will clear the set date for any levy period that has had it's levy date set using the above process. 

1. Click Goto  > Set Levy Notice Dates.
2. Enter your Password if set and prompted.
3. Select the Clear Notice Date radio button, and click Proceed.
4. In the list of levies, tag the levy periods that need the notice date cleared.
5. Click OK.

Levy Year End Rollover

A levy year end rollover is designed to be completed when levies have been determined and approved at a general meeting. The levy year end rollover is separate to the financial year end rollover actioned at the beginning of each month. If the Levy Year was set incorrectly (typo, or rolled too far into the future and needs to be reversed), another levy year rollover can be completed with an older date range.

1. Search or select Levy Management.
2. Click Goto > Levy Year End Rollover.
3. Enter the determination date which is the date of the meeting where the levies were determined, then click OK.
4. The system will automatically populate the Year Start Date and Year End Date fields with the next year after the current Levy Year.
   
5. The following screen is a way that StrataMax can calculate your Annual Rate per U/E based on This Year's or Next Year's Budget in Budget Update, or the Last Levy which is last year's levies.

5. Highlight the fund and click Delete, then click OK in the next screen and Yes to the message to 'Delete this record?'.
6. Repeat for each fund. Once all funds have been deleted, click OK.
7. You will now receive the following message for each Levy Fund. Click Yes to each message.
   
   
   
   
8. Another prompt will appear asking to include any old levies in the new list. Click Yes.
   • Note that if you click No, the levy year end rollover will remove any old year levies from Certificates and various reports.
     
     
9. If you clicked Yes above, then the list with all the old levies appears, tag any levies that forms part of the new Levy Year. This will most likely be pre-issued levy periods, but any old levies you would like to include in the new list can be tagged. Just remember that this list will appear on Certificates and Reports.
   
   

Levy Year Rolled Too Far (Edit Levy Year Dates)

If the Levy Year was set incorrectly due to a typo or rolled too far into the future and needs to be reversed, another Levy Year End Rollover can be completed setting the older date range (dates must be consecutively entered). Firstly delete any newly created levies for the next year that are not yet required.

1. Search or select Levy Management.
2. Highlight any future (not generated) levies and click Delete. (If required).
3. Click Goto > Levy Year End Rollover.
4. Enter the determination date which is the date of the meeting where the levies were determined, then click OK.
5. The system will automatically populate the Year Start Date and Year End Date fields with the next year after the current Levy Year. Edit the date back to the previous year required > Ok.
   

   
   

Set Levy Tag Conditions

This setting will set the auto tagging on the levies for control reports, notices and global levy generation in the Levy Notice/Reports screen, in the Select Levies tab. This is important for the Global Levy Generation as it will be used as the basis to determine if the levy due date is within this range.

1. Search or select Levy Management.
2. Click the Goto > Set Levy Tag Conditions.
3. Enter a number in the Start Day field. Entering a '0' will calculate from the day you run the report or notice, and we recommend that.
4. Enter a number in the Days to Include field. This will depend on your state's legislation and how many notice days you're required to provide. The most common is 45 or approximately 6 weeks.
5. Click OK.

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 Goto > Interest Charge List.
3. Click Lot Account or Balance Fields;
   • Lot Accounts - Any lots that have a tag will be charged interest.
   • For Balance Fields - Any funds that have a tag will not calculated or charge interest.
4. Click OK.

Data Storage

See our Data Storage article for more info.

View All Entitlement Schedules

Displays a list of all entitlement schedules, including historical ones. Removing any tags from any lots in the window does not save upon exit. To change a custom schedule, follow the Custom Schedule instructions.

Levy Generation Log

Displays the Log Viewer, immediately filtered to the 'LEVYGEN.LOG' Log Area.

Change Levy Code

This menu is only used by the StrataMax support team.