This article will show you how to record a tenants payment and have it shown as a prepayment balance
- In Rentvine, the prepayment balance is automatically calculated for you and your tenants. The system will automatically take into account any funds that are not applied to any lease charges and will increase the prepayment balance on this specific lease.
- In this example, we see there is a $200 Balance left on this lease, and we are recording a $500 Tenant Receipt. This leaves a $300 prepayment balance.
On the Tenant Receipt page, it will inform you of the leftover amount, and it will increase the Prepayment Chart of Account by $300.
If you scroll down on this same screen, it will have a dropdown labeled "Automatically apply Prepaid Rent to".
This dropdown allows you to choose the exact Chart of Account you would want the apply those extra funds towards next time a charge is created.
By default, the system will allow the prepayment amount to be applied to any future lease charge.
If you adjust this, it will only go towards one type of chart of account within the lease, and in the grey font, it will inform you as well.
For example, adjusting this prepayment dropdown from Any to 4160: AC Filter will only have this $300 go towards charges that have the specific Chart of Account
- Once you record the tenant prepayment receipt, you will see it reflect correctly on the lease details
- On the portfolio ledger, you will see the prepayment balance also increase by the exact same amount.
Please Note: If you have multiple leases with a prepayment balance, the portfolio prepayment balance will be the sum total of all prepayments.
Please also be aware that your Operating Balance and Cash Balance will be off by the Prepayment Balance. The reason for this is that since these prepayment amounts are not applied to any lease charges yet, they will not be added to the operating balance until they are.
The Operating Balance is to be used to pay bills and distribute to owners. The
Operating Balance = Cash Balance - Security Deposits not covered by escrow balance - Prepayments - Liabilities