Rent Received in Advance

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See Help PDF document #218 Rent Received in Advance

 

When rent is received in advance there are two options available. The first -- Advance Payment -- causes the entire amount paid to be credited immediately to the owner’s ledger. The second -- Open Credits -- retains the money in the tenant’s account and gives it to the owner as charges are posted.

 

Advance Payment

1.

Go to <<AR, Tenant Receipt>>

2.

Select the [Tenant]

3.

Enter the payment [Amount]

4.

Click on the New Charges tab

5.

Select the [Charge] (e.g. Rent) from the drop down list

6.

Enter the [Amount] being applied to the charge

7.

Click on the [Advance Payment] checkbox so it is marked

8.

Review the entries for accuracy

9.

Click <New> or <Post>

As each rent charge is posted the amount of the advance payments will decrease.

 

Open Credits

Open credits are available funds that have not been designated toward charges. They are given to the owner as charges are posted when the charge is less than or equal to the credit amount (unless the automatic payoff is disabled in Setup, Processing Defaults, Database tab). Payments received (or parts thereof) that you do not want to give to the owner immediately can be held back as open credits.

 

1.

Go to <<AR, Tenant Receipt>>

2.

Select the [Tenant]

3.

Enter the payment [Amount]

4.

Allocate the payment amount as appropriate. Whatever amount is left unallocated will be applied to open credits

5.

Review the entries for accuracy

6.

Click <New> or <Post>

7.

Whenever open credits are increased or decreased in the receipt function an Information screen will display indicating the use of open credit funds. Click <OK>.