Gateway provides a method of grouping income and expenses according to a set of defined labels. These labels are called Dissections and fall into two categories;
A number of income and expense Dissections (including an expense Dissection for your own management fees) are used to reflect the transactions you make on behalf of Owners.
Income Dissections are labels for the various sources of income an Owner may have for a particular Property; for example income from a property used for residential purposes may come only from residential rents, while the income from a commercial or industrial property may be derived from many other sources such as car park rent, marketing fees, outgoings etc.
The income and expense categories can be further broken down into more meaningful groups (Dissections).
Dissections allow you to control the way an expense (invoice) or income (rent) is viewed in the Owner’s End of Financial Year Statement.
The dissection is then shown as a heading on the statement under which different expenses and incomes are accumulated. For example:
- Rental income
- Other income
- Plumbing expenses
- Management fees
- Pest control expenses
- Carpet cleaning expenses (and so on)
While this is by no means a comprehensive list, it shows how income and expenses can be categorised to provide an owner with a breakdown of income and expenditure for the financial year.
The following points need to be considered when using dissections:
- Dissections are applicable to all transactions that debit or credit an owner’s account.
- Gateway will not complete any such transactions until you select a dissection.
- Dissections cannot be created during a transaction, they must be created prior to entering the transaction. It is a good idea to create an extensive list of dissections when you first install the software so they are available immediately. This list can be added to, and updated, at any time.
- Assigning an expense dissection as income, or vice versa, will cause the amount to be subtracted from the dissection’s total rather than added. This may be desirable when using one dissection as a contra account for income and expenses, e.g. using a plumbing dissection to record income receipted to offset expenses for plumbing.
Caution: If you intend providing your owner’s with valid end of year financial statements, you must ensure that dissections are used correctly.