Overview - If you manage property for others, at the end of the month, you should
disperse any income to Owners. This can be done through the
'Pay Owners' button or the Automatic Posting menu. Owner
payments must be posted to either the individual rental Unit
Ledger, the Property ledger, or the Owner Ledger. Which ever
one you post to depends on your particular situation. Here
are the options…
Post Owner payments to Unit Ledgers: Owner payments
are treated like any other Unit Expense (such as repairs)
and will 'zero out' any credits existing in each Unit
account.
Post Owner payments to Property Ledgers: Owner
payments are posted at the 'Property level'. For example, if
the Property was a fourplex, and the 'combined' income for
all four units was $2,000, a single posting of $2,000 would
be made into the single Property Ledger of the four units.
Each individual unit would still show a running debit or
credit in their Unit Ledger, however, the overall credit of
$2,000 would be offset by a $2,000 debit (Owner payment) in
this Property Ledger.
Post Owner Payments to Owner Ledgers (PREFERRED): Owner Payments are made at the 'Owner level'. All credits
and debits for all Units and Properties under each Owner are
totaled, and a single amount is posted into each Owner
Ledger where an overall credit is found.
Checklist:
- Does the Owner prefer to have one
check sent for all Properties and Units? You probably should post Owner
payments to the Owner Ledger.
- Does the Owner prefer to have one
check sent for each Property owned? This provides more detailed
accounting and you should post Owner payments to the
Property Ledger.
- Do you want to 'zero out' each Unit
credit each month? Post to the Unit Ledger.
PROCEDURE - Making Owner Payments.
Best method: Click the 'Pay Owners'
button. Follow the on-screen instructions.
Pay Owners using the 'Automatic
Posting' screen.
1. From the 'Activities' Menu, select
'Posting' and then 'Automatic Posting'.
2. In the box labeled 'Posting Options',
select 'Post Owner Payments'.
3. Click the button labeled 'Select
Account to Use'. Select 'Show Expenses' at the bottom of
your screen. From your Expense Accounts, select 'Paid to
Owner' (or the similar appropriate Account Code).
4. Enter a Date to use for all postings.
5. Enter a Remark to use for all
postings.
6. If you wish to issue a check
automatically for each Owner Payment, click 'Issue
Checks'. Single checks can be issued for multiple
postings to one Owner only if the transactions are to be
posted in the Unit Ledgers. Transactions that are to be
automatically posted to the Owner Ledgers or the
Property Ledgers will issue multiple checks for each
Owner or Property Ledger posting. (Postings will not
occur at this time, only when the checks are printed.)
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