Overview of Accounting Month End - of Accounting Month End ... A final tie-out should be submitted before close of business on Saturday or Sunday, ... Yardi Portal users only ...

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<ul><li><p>Overview of Accounting Month End AME is a two-step process. The basic part is for the property accountants to create journal entries and then advance the properties A/R (accounts receivable) period to the next month. The journal entries establish your potential, vacancy loss, etc. on that months financial statement. Advancing the A/R month sets the accounting period where new A/R transactions (charges and receipts) will be posted. </p><p> The other part of AME is an extensive review to ensure accurate information. First the personnel at the property review the data and submit a tie-out report to accounting. Then a property accountant will review financial data. If the information is correct, they will post the journal entries and advance the month. If they find mistakes, they will contact the property and wait for corrections before further review. </p><p> The property level review is extensive but should not take too much time. The review can be done earlier in the month to catch mistakes but must be completed as of the scheduled AME date. All move-ins before the Accounting review must either be moved in or rescheduled. All reports must be reviewed and corrections completed. </p><p> On the scheduled AME date by close of business: </p><p> Any final receipts must be posted All open charge and receipt batches must be posted or deleted The Tie-Out report must be reviewed and then submitted to accounting </p><p>From this point, the property should only be doing light duty in Voyager work orders, notices, guest cards and payables. No resident charge or payment transactions should be posted. (Invoices Registers are OK.) There is an exception to close of business on the day of AME. If your AME falls on a Friday, and the accounting review is not until Monday, then you may continue working within Voyager until close of business Sunday. This will allow properties that are open on the weekend to properly record traffic specifically move-ins and outs. However, the tie-out should be reviewed on Friday and no further receipts should be entered in the system. A final tie-out should be submitted before close of business on Saturday or Sunday, after all activity is complete. </p><p> Accounting reviews properties on a first in first out basis. After the review is complete, journal entries are posted and the month is advanced. Site personnel are advised by email that AME is complete and normal work may be done in all areas of Voyager. </p></li><li><p>AME Review completed before the scheduled AME date 1. Shred scanned personal checks received during the prior months accounting period. </p><p>Shred checks for the prior period not the current period that you are closing. For example, if you are doing AME for June, then you should shred Mays checks. Note that money orders, cashiers checks and bill-pay checks are not shredded monthly but are retained for at least one year. </p><p> 2. Review the Purchase Order Dashboard for POs that need to be closed or voided. Search for overdue invoices. </p><p>Use the PO Dashboard to review for Partially Paid POs and then Unpaid POs. Close POs that are complete or will not be used. Contact vendors for unpaid POs with no invoices that are excessively old. </p><p> 3. Enter any charges, receipts or reversals applicable to the current month period for any resident. </p><p> Charges Post all charges for residents. Receipts - Drucker and Falk policy prohibits holding any receipts other than security deposits for </p><p>pending applications. All other receipts should be deposited. Reversals these would include incorrect charges and payments. </p><p> 4. All open charge and receipt batches must be posted and zero batches deleted. </p><p>You cannot go AME with open charge or receipt batches. Finalize and post any batches in progress. You should delete any batches with a zero balance. Search for batches using the side menu functions. </p><p> Charges &gt; Edit/Post Charge Batch filter for the batch type Open Only and look for batches associated with your property in the description field </p><p> Receivables &gt; Edit/Post Receipt batch filter for the batch type Open Only and look for batches associated with your property in the description field </p><p> 5. Yardi Portal users only - Review the Collect Dashboard for Failed Receipts, NSF Receipts, and Other Returned Items for the period from the date of the last AME to the current AME. Ensure that all Failed Receipts and Other Returned Items have been reversed and all NSF Receipts have been processed as NSF. </p><p>Communities with Yardi Portal must ensure that all returned and process failed items are properly accounted for within Yardi Voyager: </p><p> Failed Receipts these must be reversed because the payment never reached the bank even though they posted into Yardi Voyager. </p><p> Other Returned Items did go to the bank but were returned for a reason other than NSF. These payments must be reversed. </p><p> Check for Failed Receipts and Other Returned Items on the Collect Dashboard. The only method of verifying reversal is to drill down on the payment. If there is no [Reverse] button, then it was reversed. </p><p> NSF Receipts must be processed as NSF. Once they are processed, they will drop from the Collect Dashboard. If you filter on the correct date range, and no results are shown, then you have no unprocessed NSF receipts. </p></li><li><p>6. Review the Aged Receivable analytic to ensure that: a) Guest apartments have been credited properly to concessions. Artificial residents are created for guest apartments. They are billed rent monthly. Actual residents may rent guest apartments and pay a daily rate. The receipts are applied to the guest apartment resident. Before AME, outstanding delinquency should be charged off to a concession account. For example, if the unit has a $300.00 balance then a -300.00 charge should be posted for one of the concession accounts. The unit should not have a delinquent balance. </p><p> Delinquent balance = account not charged a concession. Post a concession equal to the delinquent amount. </p><p> Prepaid balance = Prepaid balances are OK if you collected more than a months rent from residents, however you should review carefully to ensure that the concession credit was not entered incorrectly (too much credit). </p><p>b) Balances for PAST residents have been written off per collection guidelines balances are usually written off: </p><p> Immediately if the resident skipped or was evicted After approximately 30 days if they have a balance due (following the Balance 1 letter, the </p><p>Balance 2 letter after 15 days, and the Balance 3 letter after 10 additional days.) 7. Review the Daily Activity Report and balance the following sections: </p><p>a) Review Resident Exceptions. Fix exceptions that can be corrected such as past due move-outs or move-ins. Some items cannot be corrected such as Lease Term less than minimum on employee leases or other approved short term leases. </p><p>b) Review on-notice. Ensure all move-outs have been completed or any date changes have been entered. </p><p>If a resident is on notice and their move-out date has past, you need to determine why. If they have turned in their keys, then move-out the resident. If their move-out date has changed then adjust dates. </p><p>c) Move-ins. Ensure all Move-ins have been completed. If a future resident's move-in date has passed, then you need to determine why they have not been moved into the system. Move-ins should be completed by close of business on AME. If the resident cannot move-in then their date must be adjusted. If you do not change the date or move-in the resident, then the unit will show zero potential. This is not allowed. Please note that if you change a move-in date then you either need to change it back after AME is complete, or print and execute a new lease. The lease beginning date must match the move-in date. </p><p>d) Ensure all appropriate Deposit Accountings have been performed. If a past resident's liability has ended, their apartment inspected, all damages assessed and estimated, then deposit accounting should be performed. If you are waiting for damage estimates or will have additional liability, then wait to do the deposit accounting. NOTE Deposit Accountings will not list for affordable properties. Review residents listed on the Dashboard link for Deposit Accounting. </p></li><li><p>8. Review a Receipt Register for the current period for account 41032. Any receipts from past residents will need to be reapplied to 41033 Recovery of Bad Debts. </p><p> Receipts from past residents should be posted to the charge code recbdebt (Recovery of Bad Debts). If you make a mistake and post to baddebt then the receipt must be reapplied correctly before AME. </p><p> Review the Receipt Register analytic to identify receipts posted incorrectly. This is on the AME role. The filter settings are: </p><p> Tran Type = Receipt Property Account = 41032 Period = current account period (from and to) </p><p>The Receipt Register will list all receipts to account 41032 Bad Debts. The system automatically transfers money when you write off bad debts. Do NOT reapply these receipts. </p><p> The receipts that need to be reapplied have check numbers. These are actual payments that you posted but applied to baddebt by mistake. Non-Resident Receipts </p><p>o Drill down on the Control# to enter the receipt screen o Click the [Reapply] button o Click [OK] to confirm that you want to reapply this receipt o Enter the Non-Person Payer name and [Tab] or click out of the field. o Enter the correct charge code recbdebt into the body on the line with the amount o Click [Save] o The system will automatically reverse the incorrect receipt to baddebt and create a new receipt to </p><p>recbdebt Resident Receipts </p><p>o Drill down on the Control# to enter the receipt screen o Click the [Reverse] button o Enter the appropriate filter settings including a Note Should be posted to recbdebt and [Save] o Repost the payment as a single manual receipt </p></li><li><p>#9. Review the Security Deposit Activity analytic for past due and prepaid balances. Review PAST and CANCELED residents to ensure that you didnt miss deposit accounting. </p><p> The Security Deposit Activity analytic needs to be carefully reviewed with these filter settings: Property = your property # Month/Year = current accounting period for both fields Report Type = Security Deposit Activity Summarize by = Resident </p><p> The (Prpd)/Delng Deposits column needs to be reviewed: Delinquencies review all positive amounts in the (Prpd)/Delnq column using these guidelines: </p><p>o Charges to applicants before the lease is executed should be paid in full. Delinquent deposits without a signed lease should be corrected. </p><p>o Charges that have been paid but the payment was returned (NSF) are OK. You should be actively collecting the past due balance. </p><p>o If the lease has been executed (signed) then the delinquency is OK as long as the payment is in processing. Payment plans are not allowed - the full amount of the deposit is due upon move-in. We will honor any existing promissory notes so those balances would be OK but future </p><p>applicants need to pay the full security deposit by the move-in date. o Corrections to delinquent deposits: </p><p> Reverse the payment receipt for the charge Reverse the security deposit charge Post a security deposit charge in the amount that you have actually collected Repost the receipt that was reversed </p><p> Prepaids review all negative amounts in the (Prpd)/Delnq column. These represent open negative charges that should be applied to another account or to prepaids. If you identify one, print a Receivable Detail by Charge Code report for that specific resident. Review their account to determine why the credit was issued. In most cases, a Zero Cash Batch needs to be done to complete the correction and apply the credit to either an outstanding charge or to prepaids. </p><p> Examples of (Prpd)/Delng Deposits </p><p> The $61.50 delinquency needs to be reviewed. This is a current resident so you should check the lease to see if it was executed and if it is for $875.00 which is the total billed. </p><p> Why does this account have a -99.00 credit? The credit needs to be applied to an open charge or prepaids. </p><p> You must also review your Resident status to look for CANCELED residents with Deposits on Hand. It is OK if a PAST resident is waiting for deposit accounting. </p><p> However, if you mistakenly use the [Clear Applicant] button (it should never be used) then a canceled applicant may have outstanding deposits that need to be adjusted. Use Adjust Deposit Accounting from the Leasing Step Application Status Credit the security deposit in the amount of deposit listed as on-hand on the Security Deposit analytic. Enter any offsetting charges (such as forfeit or damages) and post </p></li><li><p>10. Review the Unpaid Charges report for unpaid charges with negative balances. These may need to be applied to existing charges using a Zero Cash Receipt. Concessions which exceed the current months rent charge must be adjusted and scheduled as a one-time lease charge. </p><p> Therearethreeprimarytypesofopenchargeswithnegativebalances:</p><p>1. Chargeadjustmentscreatedbecausetheoriginalchargewasforanincorrectamountandcouldnotbereversed2. Concessionsthatwerenotfullyappliedtoopenrentcharges3. Subsidyoverpayments</p><p>Chargeadjustmentsarenecessarywhenyoupostachargewithan incorrectamountbut theoriginalchargecannotbereversed.Iftheadjustmentisanegativecharge,thesystemwillattempttoapplyittootheropenpositivecharges.</p><p> Thenegativechargewillbeunpaidifthereisnothingtoapplyittowards Itwillbepartiallypaidiftherearenotenoughopenchargestofullyconsumethetotalnegativeamount</p><p>Eitherscenariowillresultinanopenchargewithanegativebalance.Theseshouldbereviewedtoensurethattheoriginaladjustmentwascorrectandthatthebalancecannotbeappliedtootheropencharges.Ifyouhaveopenpositivechargeswithbalancesthatexceedtheamountofthenegativebalance,manuallyrunazerodollarreceipttofullypaythechargewithanegativebalance.Examples:</p><p> Youhaveanopenchargewitha25.00balance.Theresidentalsohasopencharge(s)withbalance(s)thatequalorexceed25.00.Inthiscaseyoucancreateamanualzerodollarreceipttofullypaythenegativecharge.</p><p> Youhaveanopenchargewitha125.00balance.Theresidenthaspositiveopenchargebalancesthattotal60.00.Inthiscase,thereisnothingyoucandobecausethe125.00cannotbefullyconsumed.</p><p>Therearetwoscenarioswhereaconcessioncanresultinanopennegativebalance.Thefirstscenariomustbecorrected.</p><p>1. Theconcessionexceedstheamountofthecurrentmonthrentcharge.o Createareversingcharge</p><p> Thechargecodeisthesameastheoriginalconcession Theamount shouldbeequal to theconcessionsunpaidbalanceon theUnpaidCharges report.</p><p>However,theamountwillbepositiveinsteadofnegative.o Createazerodollarreceipttofullypayboththeoutstandingconcessionandtheadjustmento Theconcessionamounttobeappliedtonextmonthsrentshouldbeenteredasaonetimeleasecharge</p><p>forthenextmonth. Thebegindatewouldbethefirstdayofnextmonthandtheenddatewouldbethe lastdayof</p><p>nextmonth. Theamountwouldbeequaltotheamountyouadjusted,butitwouldbeanegativecharge.</p><p>2. Rents were charged, payments applied, and then the concession was posted. This is not the best workflowbecause it results inanopennegativebalance...</p></li></ul>


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