In Asia-Pacific and Europe, the terms "Arrears" and "Tenants" are prevalent. However, in North America, these are typically known as "Delinquency" and "Leases." Also, the concept of a "Trust Accounting" in Asia-Pacific equates to a "Client Accounting" in Europe. It's important to mention that the Client/Trust Accounting functionality does not apply to customers in North America. For further details on terminology differences, please reference our Glossary of Regional Terminology.
This guide will assist you in setting up an opening balance for leases/tenants with ongoing rent agreements that started in the past, for which no payments have been recorded against any invoices. By creating an opening balance, you establish a clear starting point for a lease/tenant's financial records in the system.
Understanding the Rent Opening Balance Function
The rent opening balance feature is crucial for accurately recording lease/tenancy transactions when your lease/tenant has been residing under a rent agreement before you started tracking payments through the system. It allows you to input historical rent payment details, ensuring that the financial records reflect the true status of rent paid to a specified date.
Setting the Opening Balance
Accessing the Lease/Tenant's Rent Details
- Navigate to the specific Lease/Tenancy and select the Rent & Outgoings option to view rent details.
- Click on Set Opening Balance to enter the opening balance details.
Entering the Opening Balance Information
- In the Rent paid to date field, input the date up to which the lease/tenant has paid the rent. The available options will depend on the start date set in the rent template. If the dates shown are incorrect, you may need to update the rent template before proceeding.
- For the payment date, enter the date when the lease/tenant last made a rent payment.
- If the lease/tenant has made partial payments for the period following the last paid rent date, include this information as well. These partial payments will be reflected as credits on the opening balance invoice for the earliest period relevant.
The system will then generate invoices from the day after the 'Rent paid to' date up to the current rent period, allowing you to maintain accurate and up-to-date records of your lease/tenant's rent history.
Finalizing the Opening Balance
After entering the necessary information, verify all the details and save the opening balance. You will now have a complete and accurate starting point, from which future rent payments and invoices will be calculated.