Changing a Unit's Ledger from an Owner to a Property

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See How to PDF document #266 for more information.

 

This only applies when you want to move ALL history and transactions from the owner ledger to the property ledger. Changing the ownership of a unit is easy. The tricky part is to handle transactions that were posted to the owner but must be redirected to the property.

 

1.

Set up a property profile if you haven't already done so.

2.

Do a backup of your data.

3.

Go to <<Profiles, Unit>> and <Edit> the unit that will point to the property. Click on the <Change Ledger> button. When the warning appears, click <OK>. The ledger field is no longer protected and you can select the property as ledger. Do this for every unit that will be assigned to the property.

4.

Go to <<File, Database Utilities>>. Select <Restructure Accounts Receivable>>. In the [Limit to Tenant] field, select the tenant who lives in the unit.

NOTE: If no tenant is selected, then the restructure will restructure the entire database, not just the owner/property ledger you are working with. So any other ledgers whose units have changed ownership will be affected.

Double click in the blank area below the [Fix Errors in Void Information] checkbox. Click in the 4th checkbox for [Update Unit and Owner Information to Match Current Tenant and Unit Profiles].

5.

Click <Post>.

6.

A warning screen will appear telling you to do a backup. Click <Yes> as you have already done one. Click <OK> to the warning to Rebuild the General Ledger.

7.

Do step 3, 4 and 5 for each unit and tenant (including past tenants).

8.

Click on <Restructure Accounts Payable>. In the [Limit to Ledger] field, select the owner's name. Double click in the blank area below the [Fix Errors in Void Information] checkbox. Click in the 4th checkbox for [Update Payer Information from Tenant and Unit Profiles].

9.

Click <Post>.

10.

A warning screen will appear telling you to do a backup. Click <Yes> as you have already done one. Click <OK> to the warning to Rebuild the General Ledger.

11.

In <<File, Database Utilities>> click on [Rebuild General Ledger] and click <Run Database Utilities>.

12.

Run a financial statement (Cash Flow) for the owner and the property. Determine the amounts for each account that need to be moved from the owner to the property.

13.

Any items that were posted to the owner ledger through a journal entry, plus any transactions not posted to a unit, i.e. cash contributions, cash distributions, payments that had the owner as the [Bill To] will still be in the owner ledger. To handle these do a journal transfer from the owner to the property.

 

Note: After changing the unit’s ledger from an owner to a property, review the owner statement and cash distribution setup for the property. Surplus funds for the property can be handled in several ways:

*Sent to the [Distribution Check Override Address] in the Property Profile when <<AP, Distribution Checks>> are run

*Sent to each owner per the shares when <<AP, Distribution Checks>> are run

*Transferred to the owner's ledger in <<AP, Scheduled Payables>>, when Transfer Property Surplus is run