If you need to record a One-off Payment against your Agreement after it's commenced, you can do this through a Variation Event. In this guide we'll walk you through the steps of how to record this.
How to Add a One-off Payment to your Agreement
To add a One-off Payment to your Agreement:
- On the relevant Agreement, click Action > Create / Edit Events
- This will take you to the Events page of the Agreement Wizard where you can scroll to the Variation section and click Edit
- Using the calendar tool or text field, enter a Variation Event for the date you agreed to to the terms of the One-off Payment. Remember to click Add
Please don't edit any Agreement data or information while inside the Agreement Wizard. Any changes made here will be altering your information and data known at the Commencement of your Agreement and will thus result in a change to your Opening Balance if you're reporting under IFRS 16 for this Agreement.
- Click Done at the top or bottom of the page to return to the Agreement Timeline
- You'll now see a new icon on the Agreement Timeline representing the Variation Event. At Step 1, click Start Event
While you can add Events on a date that is within a locked period, you cannot complete these Events on the Agreement Event Timeline. If your Variation Event is within a locked period, you'll need to ask a user with the Administrator permission in your Organisation to edit the Lock Date before you can complete the Event. Check out this article for more information.
- At Step 2, select 'Yes, there are variations to the agreement' then click + Add variation
- Navigate to the Rent & Payment page of the Agreement Wizard
- Scroll down to the One-off Payments section and click Add a new one-off payment
- Add the details of the One-off Payment, including:
- A Description of the One-off Payment
- The Effective Date of the Payment (the date of any remeasurement in the Journal report)
- The Date of the One-off Payment
- The Amount paid
- The Taxation treatment for the Payment
If your Payment Effective Date within a locked period? You'll need to ask a user with the Administrator permission in your Organisation to edit the Lock Date before you add the payment. Check out this article for more information.
- Make sure you click Add to save your One-off Payment against your Agreement
Please note that the Effective Date of the One-off Payment must be before the Payment Date, otherwise, you'll be unable to save the payment line.
- Click Done at the top or bottom of the page to return to the Agreement Timeline
- On the Timeline, click Next at step 2 of the Variation Event
Please note that adding an IFRS 16 Component Payment such as an One-off Payment won't produce a Display Note summarising the change made in the Variation Event. You may like to add your own Custom Event Note to record details of the One-off Payment that was added through the Variation Event.
- Upload any supporting Documentation, or select No Documentation and click Next
- Confirm the Data Change Date of the Event (this should be the same as the Event Date). If these don't match, click Edit to open the calendar tool to adjust the Data Change Date before clicking Complete
You'll then get a Certification to say the Event has been completed, and the Variation Event icon on the Timeline will turn green!
Validating your One-off Payment was Added Correctly
If you use Nomos One for IFRS 16 Reporting, you can validate your One-off Payment was added correctly using the Journal Report. If you run the Journal Report over the Effective Date of the One-off Payment you'll see a Remeasurement for this. If you run the Report across the Payment Date of the One-off Payment you'll see the journal lines for the payment itself.
You can also validate the One-off Payment was added correctly by running the Payments by Period Report. If you run the Payments by Period Report over the Payment Date of the One-off Payment, you'll see a line in the report for the Agreement showing the payment.
Nomos One does not provide or purport to provide any accounting, financial, tax, legal or any professional advice, nor does Nomos One purport to offer a financial product or service. Nomos One is not responsible or liable for any claim, loss, damage, costs or expenses resulting from your use of or reliance on these resource materials. It is your responsibility to obtain accounting, financial, legal and taxation advice to ensure your use of the Nomos One system meets your individual requirements.