Overview

This document explains how Owner Reports and the General Ledger (GL) operate within cirrus8, particularly when preparing reports on a cash basis and an accruals basis. It also outlines how to manage take-on balances when a property is taken under management partway through a financial year.

1. Owner Reports

Methodology and Explanation

Owner reports in cirrus8 are generated independently of the General Ledger module. This means that owner reports can be produced whether or not the General Ledger module is being used.

Most owner reports are prepared on a cash accounting basis, meaning they only reflect transactions when cash is received or paid.

The exception is the Accruals Owner Report, which provides additional reporting options and incorporates adjustments for accrual accounting.

Sub-Reports Available in the Accruals Owner Report

The accruals report includes the following supporting reports:

• Aged Debtors

• Unpaid Creditors

• Profit & Loss (Accruals Basis)

• Trial Balance (Accruals Basis)

• Prepayment Journal Details

• Accrued Expenditure Journal Details

Adjustments in Accrual Reporting

When preparing accrual-based reports, adjustments are required for items such as:

• Future period costs (Prepayments)

• Accrued expenses

• Accrued income

These adjustments ensure that income and expenses are recorded in the period they relate to, rather than when the cash movement occurs.

More information about these adjustments can be found in the General Ledger Month End process.

2. General Ledger

Methodology and Explanation

Every financial transaction in cirrus8 generates a set of debit and credit entries that are recorded in the General Ledger (GL).

These entries are summarised into the Trial Balance, which reflects the financial position of the property or portfolio.

The system maintains:

• Cash-based ledger transactions

• Accrual-based ledger transactions

• Trial balances for both accounting methods

Important Consideration

Adjustments for prepayments and accruals are not created automatically. Users must process these adjustments manually or through the month-end process.

General Ledger Month-End Process

During the GL month-end process, the system identifies:

• Charges in advance

• Future period costs (Prepayments)

Once processed, the system generates journals that:

• Post to the General Ledger

• Update the Trial Balance

This process adjusts transactions that have already been entered into the system.

However, if additional accruals are required (such as unrecorded income or expenses), these must be entered manually as journals in the General Ledger.

3. Managing Take-On Balances

When a property is taken under management midway through a financial year, owners may require Year-To-Date (YTD) reporting that includes financial activity from the start of the financial year.

The process differs depending on whether reports are prepared on a cash basis or accrual basis.

4. Cash Basis Reporting

When using cash-based owner reports, YTD figures can be entered directly into the system.

Step-by-Step: Entering YTD Balances

1. Open the Manage Property form in cirrus8.

2. Navigate to the Opening Balances section.

3. Enter the Year-To-Date cash balances for the relevant accounts.

4. Save the changes.

These balances will then be reflected in owner reports.

Monthly Trial Balance Requirements

In some situations, a monthly trial balance history may be required.

Since the system only records actual transactions, the only way to reflect historical balances is to enter transactions for those periods.

Step-by-Step: Enter Monthly Historical Data

1. Determine the required monthly balances.

2. Enter receipts and payments for each relevant month.

3. Ensure the entries result in the correct account balances for each month.

4. Verify balances using the Trial Balance report.

Important Note

If the General Ledger will also be used to report cash balances including YTD figures, you must enter the balances using one of the following:

• A journal entry with the Cash option selected

• Conversion balances

This ensures the General Ledger balances align with owner reports.

5. Accruals Basis Reporting

For accrual-based owner reports, additional data is required to ensure accurate Year-To-Date figures.

Simply entering opening balances is not sufficient.

The system must reflect:

• Cash receipts and payments

• Outstanding balances (e.g., arrears)

Example

Accrual income is calculated as:

Cash Receipts + Outstanding Arrears = Income on Accrual Basis

Step-by-Step: Preparing Accrual-Based Take-On Balances

1. Enter cash receipts and payments that occurred during the financial year.

2. Enter opening balances for arrears or outstanding amounts.

3. Confirm the combined balances reflect the correct accrual income and expenses.

4. Generate the Accruals Owner Report to verify the figures.

6. Ensuring Alignment with the General Ledger

When the above methodology is followed:

• Owner reports

• General Ledger reports

should agree on an accrual basis.

The only exceptions may be:

• Charges in advance

• Future period costs (prepayments)

If these exist, you must either:

• Run the General Ledger Month-End Process, or

• Post a manual journal adjustment

to ensure the General Ledger reflects the correct accrual position.

✅ Summary

• Owner reports can be generated independently of the General Ledger.

• Most owner reports are cash-based, except the Accruals Owner Report.

• Accrual adjustments must be processed manually or via GL month-end.

• When taking on a property mid-year, cash and accrual methods require different setup procedures.

• Proper setup ensures owner reports and general ledger reports reconcile correctly.