For our Asia-Pacific customers, the term "Trust Account" is used, while European customers refer to it as "Client Account". It's important to mention that the Client/Trust Accounting functionality does not apply to customers in North America. For further information on regional terms, check out our Glossary of Regional Terminology.
This guide serves to assist users who wish to retain Outgoings funds within their Client/Trust Account, rather than disbursing all collected funds to the property owner. We will detail a practical way to manage these funds without the need to create separate owner contacts, offering a streamlined approach that works effectively with your existing software setup.
Understanding Disbursement Profiles
Unlike a landlord ledger that is usually fully disbursed, an Outgoings ledger can be set to withhold funds from being transferred to the property owner.
[Add a screenshot showing how to adjust disbursement settings]
Setting up Additional Ledgers for Retention of Funds
Creating an additional ledger in your Client/Trust Account is the key to holding Outgoings funds:
- Navigate to the property in question and select the Ledger tab.
- Click on Add/Remove Ledgers.
- Add a new ledger that will be used to retain Outgoings funds.
Note: Only ledgers not already tied to a property can be added through this function.
Directing Fees and Invoices to the Outgoings Ledger
To ensure that 'Property' and 'Tenancy' fees are deducted from the Outgoings funds:
- Set the Outgoings ledger as the default on the Property Ledger page if fees should be applied against it.
- Adjust the Accounts settings associated with the property's Outgoings ledger to direct fees accordingly.
It's essential to note that only one ledger can serve as the default for each property.
Budget Reconciliation and Fund Allocation
For budget verses actual reporting, the software will reference:
- The default ledger connected to the property.
- Any additional ledgers set up with specific Accounts for Outgoings.
This ensures accurate reflection of actual expenses against the projected budget for each property.
See these related articles for further assistance:
- Article 1
- Article 2