pay management
See the How to PDF document #391 on Charge Codes and Bill Codes.
The Charge Code is used primarily in the Receivables function. Whenever a tenant is charged for something, a Charge Code (descriptive reason for the charge) is associated with it. The Charge Code description is associated with an account in the Chart of Accounts but does not have to have the same ID and Description. For example, an Application fee charge to the tenant may post to the owner’s ledger as Miscellaneous Income. Similarly, specific charges to a tenant might be consolidated as Tenant Reimbursement on an owner ledger. You may define multiple charge codes that all point to the same account.
The Charge Code definition includes an ID and Description, the associated account, a payoff priority, and check boxes that are used to define how the charge should be treated for reporting and processing purposes.
Active
Unmark this checkbox if you do NOT want the code to show on the Find List. Once on the find list you can mark the "Show Inactives" checkbox to display inactive codes.
Account
This refers to the account code that will be affected when the charge is paid off by the tenant. This is usually an income account but can be a liability account type if you are holding the deposit.
Warning: If you change this field after posting transactions, all those previously posted will continue to point to the old account until you rebuild.
Priority
There are several levels of payoff priority. When a tenant payment is entered in the Tenant Receipt function, the amount of the payment is distributed against the unpaid charges in priority sequence. If two charges have the same priority, the oldest charge is paid first. If they have the same date, they are paid based on the Record ID sort order. You have the option to manually distribute the payment if you want to do it differently than the priority scheme dictates.
Check Boxes
Subject to Late Charges
The Charge Late Fees function considers only those Charge ID’s that are checked when determining the amount to use when calculating a late fee. These might include, for example, rent and recurring charges.
Subject to Management Fees
If this box is checked, a management fee based on the management fee profile will be taken on any charge posted with this charge code.
Taxable
Charges marked taxable will use the Rate Table assigned in the Tenant Profile to generate a tax charge.
Use to Track Deposits
Charges that are marked are considered deposits that are refundable to the tenant. Payments of these charges are reported on the Security Deposits report under Tenant Reports and released in Tenant Move Out. The associated account is usually an liability account, but could be income if the security deposit is being held by the owner.
Earns Interest as a Deposit
Payments for these charges are subject to the Rate Table interest formulae when security deposit reports are run and when security deposits are released in Tenant Move Out or Release Security Deposits.
Pay Management
When this checkbox is marked, all charges to the tenant will automatically go to management instead of owner.
TIP: We recommend consulting your accountant for assistance in setting up your charge codes.
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