Levy Interest Rate Update Version 12.0.4 - WA Customers
As part of the upgrade to version 12.0.4, Strata Master now has the ability to adjust historical interest rates at designated dates.
Western Australia customers will require specific instructions to ensure the upgrade correctly applies lot owner historical interest balances. Please follow the below steps to ensure compliance, which will differ depending on what procedures were followed as at 1 May 2020 when the maximum interest rate legislation was put in place.
If you implemented the 'Owner Invoice' solution as at 1 May (found here - https://kb.rockend.com/help/legislation-update), please continue to follow these instructions. If you have not implemented this solution, please skip to the relevant steps at the bottom of the page):
The Owner Invoices generated will have accounted for the difference between the 15% and 11% interest. There are no further actions for you to take. Some lots with substantial arrears may have resulted in negative interest amounts. If this is the case, please see Option 2 below.
For those Owners with substantial arrears that have resulted in a negative interest amount, please follow these steps:
1) Ensure the Strata Plan has an Interest Rate of 15% prior to upgrading to Version 12.0.4 - Adjust in the Corporation Screen, or use the Bulk Interest Rate Update function found in Configure > Association types if required to update multiple plans.
2) Cancel all Owner Invoices generated previously. This can be done for each lot by navigating to Accounting > Adjustments > Levy Journal, selecting the invoices, and clicking the cancel button.
3) Upgrade to Version 12.0.4
4) Use the Bulk Interest Rate Update function to set all interest rates to 11% as at 1 May (For further instructions on this step, please see https://kb.rockend.com/help/levy-interest-rate-guide.)
If you have NOT implemented the Owner Invoice solution above, please follow the below steps:
1) Ensure all plans have an Interest Rate of 15% prior to upgrading to Version 12.0.4 - Use the Bulk Interest Rate Update function found in Configure > Association types if required.
2) Upgrade to Version 12.0.4
3) Use the Bulk Interest Rate Update function to set all interest rates to 11% as at 1 May (For further instructions on this step, please see https://kb.rockend.com/help/levy-interest-rate-guide.
If you are unsure about any of the above actions/steps, please contact our support team.