The Transaction Categories template lists all charges, credits, payments and deposits transactions used. This template also helps you tie each transaction category to a GL account, specify their settings and facilitate proper accounting practices.
As a reference, the template is attached at the end of the article and further explanation in included below. During the implementation process, revisions or changes can not be made after the list is submitted. This will ensure that all accounting transactions are correct.
The sample template is attached at the end of the article. Fields in red are required.
Name: Unique name for the category.
Abbreviation: Unique abbreviation for the category.
Description: There is a maximum of 200 characters.
Type: Choose one: Deposit, Charge, Credit, Payment.
GL Account: Must match an existing GL Account Number.
Is It a Rent Charge?: (This setting applies to "Charge" categories only) Choose Yes or No.
- Yes if category is a rent charge that will apply to the market rent, otherwise No.
- Rent charges posted to a resident's ledger will determine the gain and loss to lease for a particular month. If market rent for a unit is defined as $1,000.00 and there is a charge defined as a rent charge posted to a resident's ledger for $800.00 in a given month, there will be a calculated $200.00 in loss to lease.
Late Fee Assessable: (This setting applies to "Charge" categories only) Choose Yes or No.
- Yes if transactions of this category should be included when assessing late fees, otherwise No.
- Charges defined as late fee assessable will be included when determining late balances.
Late Fee Revocable: Choose Yes or No. This field is for credits whether or not they are reversed if the resident is late.
Applies to Category: (This setting applies to "Charge" & "Credit" categories only) Please enter the abbreviation of transaction category which the money would be first applied to.
- For credit categories: Example: Concession - Rent should be applied to the Rent category first. Defines the default charge to which this type of credit should be applied.
For example, if defining a carport concession, you should select the carport charge here so it will first be applied to any outstanding carport charges. Note that all credits that are set to be applied to a charge that is considered Rent Charge will be used when calculating Economic Occupancy.
- For charge categories: Example: Carport charge - Should charge $25 for a carport but if the user changes the amount from $25 to $20 and the Carport charge category has Concession - Carport specified for its Applies to Category, the user will be prompted if they want to charge the full $25 carport charge and add a $5 Concession - Carport recurring charge.
Order by: (This setting applies to "Charge" categories only) Enter number. This allows you to specify the order in which payments are credits should be applied to categories. Example: Given Rent and Carport charge categories with Order By 1 and 2 respectively; if a payment is posted to an account with both a Rent and Carport charge, it will be applied first to Rent and then if there is anything left over to the Carport.
- If you would like payments to be applied to charges first and then by date, please complete this section of the spreadsheet. If not, ResMan will apply Payments to Outstanding Charges based on oldest charge first.
Write off at MOR (Move Out Reconciliation): (This setting applies to "Charge" categories only) Choose Yes or No.
- Select Yes if you want this charge automatically written off to a Bad Debt account during Move Out Reconciliation. The Bad Debt account is the defined write off category under Admin > Settings > Transaction Categories.
- Select No or Leave Blank and the charge will be reversed against the same charge type.
Write off Category: (This setting applies to "Charge" categories only) Please enter abbreviation of transaction category. This applies to "Charge" categories for which you have indicated a "Yes" in the Write off at MOR column.
Recurring Monthly Rent Concession: (This setting applies to only "Credit" categories that are setup as a Recurring Charges) Choose Yes or No.
Bad Debt Recovery: The charge category to use when posting a collection charge back to to a resident's ledger. For rent charges, this should be some bad debt recovery charge; for any other charge it most likely will just be the same category.