End of Month Processing
A typical month of processing involves doing the following functions, in somewhat the following order. Click here to see the PDF How to document 202.
Basic monthly functions:
Charge the tenants rent
Use <<AR, Scheduled Receivables, Rent>>
The rent amount is initially established in the unit profile but charged based on the amount in the tenant profile. The schedule is set in the TENANT PROFILE, Lease Tab, Rent Summary information.
Charge the tenants recurring charges
Use <<AR, Scheduled Receivables, Recurring Charges>>
Recurring charges are established in the TENANT PROFILE, Recurring Charges tab
Receive the tenant payments
Use <<AR, Tenant Receipt>>. (During this process management fees based on tenant payment are expensed to the owner and credited to the management group ledger.)
Record the bank deposits
Use <<GL, Deposit Receipts>>
Take management fees - fees not based on collected rent (if appropriate)
Use <<AR, Scheduled Receivables, Management Fees>>
Write checks for mortgages and HOA payments
They are established in the Unit, Owner or Property profile, Recurring Checks tab.
Use <<AP, Scheduled Payables, Recurring Checks>>
Write checks to vendors for invoices
Enter invoices using <<AP, Invoices>> as they are received.
Write the checks using <<AP, Scheduled Payables, Invoices>>
Post any scheduled journal entries
Use <<GL, Scheduled Journal Entries>>
Recurring Journal Entries or Recurring Transfers or Tax Collection
Transfer property surplus from property to owners (if applicable)
Use <<AP, Scheduled Payables, Transfer Property Surplus>>
Prepare ACH distribution to owners
Use <<AP, Scheduled Payables, ACH Distribution Batch>>
Write distribution checks to owners
Use <<AP, Scheduled Payables, Distribution Checks>>
Print owner statements, Upload statements to PROMAS Central or Email statements.
Create the owner statement profiles in <<Setup, Owner Statements>>
Assign each owner or property a statement style in the profile
Use <<Mailings, Owner Statements>> to print or <<Internet Publishing>> to upload to PROMAS Central or email.
Write a check for management fees to the company
Use <<AP, Single Check>>. Identify the amount by running the Income Summary or Income Details report under Reports, Management reports.
Other monthly functions include:
Charge late fees
Use <<AR, Scheduled Receivables, Late Fees>>
Moving in a tenant
See Moving in a tenant in Help, Procedures
Refunding security deposit
Use <<AR,Tenant Moveout>>
Reconciling the bank account
Use <<GL, Bank Reconciliation>>
Sending Late Notices
Use <<Mailings, Notices>>
Letters are created in <<Mailings, Edit Letters>>
Notice Profile created in Setup, assigned to Tenant Profile
End of Month Processing
PROMAS uses open book accounting so there is no month end close. However, to be sure all your accounts are in order, there are some reports you can run. See the Audit procedure for details.
End of Year Processing
Transactions
The end of year is no different than the end of any month from the viewpoint of posting transactions. You can post tenant payments for January rent in December. If you do not want the payment to be included in this year’s 1099, simply set the posting date on the receipt screen to a January date. Deposit the payments as you normally would.
Reports
Run the same reports that you run at the end of each month.
Backup
After you have posted all transactions for this year, do a backup. Mark it “Archive – YYYY – Do not erase” where YYYY is the year. Store it in a secure location for a minimum of two years.
Statements
The end of year statement to owners is typically one with a Body Style of Owner Income Summary. This provides the totals for each account code (rent, management fees, plumbing, etc.) when the date range is set for the full year. For multi-unit owners you may want to use a body style of Unit Account Summary with a summary style of Owner Income Summary.
For end of year statements you will want to include inactive owners who had activity during the tax year. The default owner and ledger filters (on the Mailings, Owner Statement screen) are active. Change both to all.
An alternative is the ledger report Income Summary.
If you want to give the owner a report showing all transactions for the year (which we do not recommend) do an owner statement with a body style of Owner Balance Details (Unit Balance Details for multi-unit owners), with a Running Balance of every month. For more detail you could include memos and include payees.
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