Setting an Classification on every transaction can have the following purposes:
- Group transactions by classification. For example, by setting all condo cleaning related expenses transactions, in every journal, as "cleaning" category it will be much simpler to get the total amount spend width cleaning on the whole year. If using the spreadsheet provided, an advanced filter function can easily get these amount of each journal sheet.This kind of analyze in necessary to produce Income Statement document.
- By writing operations classification on the journal make it possible to validate if the total amount for each category, present in Income Statement, was calculated correctly.
- The same principle can be used also in Quota payment transactions. The Bank descriptions are not precise. Requires interpretation and sometimes Bank descriptions are not enough. By classifying all Quota payment of faction D as "Fraction D" category, for example, it makes possible to easily check witch payments of that fraction were considered. If the homeowner claims, its easy to gather all his payments and see what is missing. Auditing is also possible using this method.
- If classification is set for all transaction, Quota Payment that are impossible to related to the homeowner just pop-up. Those Quota payments need to be publish with Quotas Map so the homeowner can notice that is payment was not successful related to him.
Transaction Classification Example
Expense transactions can be classified into the following categories:
- Water supply
- Electricity supply
- Infra-infrastructure Insurance
- Workers insurance
- Fraction A.
- Fraction B.
- Extraordinary transactions.
More ore less categories is arbitrary. Depends on how much segregation is wanted when presenting the expenses.
Extraordinary Transactions are transactions that do not occur every Year, are sporadic transactions and are not expected to repeat next Year (ex painting the build) or not (ex: broken door). It can be Quota payments corrections from last Year, anticipated Quota Payments for next Year, or some special maintenance like pump fix.
Some examples of Extraordinary Transactions are:
- Quota payment from last Year.
- Anticipated Quota Payment of Next Year.
- Expense from last Year operation.
- Building repainting.
- Fix of the broken door.