This article addresses scenarios where a property is transferred into Rentvine, and over time, a negative receivables balance appears. This typically occurs due to discrepancies during the property transfer process.
Below, you’ll find a step-by-step guide to help you identify the cause and correct both positive and negative receivables balances resulting from the transfer using examples.
Positive Receivables Balance
- In this scenario, the portfolio listed below reflects a positive receivables balance of $2,344.00, which signifies that there are unpaid charges tied to one or more leases associated with this portfolio. This typically occurs when a property is transferred and not all outstanding charges are addressed during the transition. It’s important to identify the lease or leases contributing to the balance, review their ledgers, and determine whether the charges are still valid or require adjustment. Once the appropriate actions are taken, such as voiding duplicate charges or reallocating payments, the receivables balance should update accordingly.
- After selecting the Leases tab, it’s apparent that there are no active leases under this portfolio. This typically indicates that the property was transferred to a different portfolio. To determine the cause of the receivables balance, the next step is to locate the property in its new portfolio and review its lease ledger. This will help identify any charges that were not cleared during the transfer and are now contributing to the outstanding receivables balance.
Identifying The Property That Was Transferred
You can view the portfolio ledger to review any transactions associated with the property, then cross-reference that same property within the Properties tab to confirm its current location.
- If you return to the portfolio ledger, you’ll notice that the property located at 4971 Bonita Bay Boulevard, Bonita Springs, FL, is no longer listed under the Properties tab, and the lease previously connected to it is also no longer associated with the Linton Portfolio. This indicates that the property was transferred to a different portfolio.
- You can also select the property hyperlink from the portfolio ledger, which will take you directly to that property’s profile for further review.
- From there, you can scroll down to the Portfolio Details section. Under the green “Change Portfolio” button, you’ll see a “Past Portfolio” listed, which indicates that this property was transferred from a previous portfolio.
- You can select the “Past Portfolio” option to view the portfolio the property was originally associated with. In the example below, the current portfolio is listed as “Dave 11,” while the past portfolio is shown as “Linton.” This indicates that the property originally belonged to the Linton portfolio and was later transferred to the Dave 11 portfolio while there were still unpaid charges associated with it.
Negative Receivables Balance
- If you select the Dave 11 portfolio, you will notice a negative receivables balance. This indicates that the property had unpaid charges associated with the past portfolio, which were subsequently paid on the new portfolio.
How to Resolve Positive and Negative Receivables Balances
- You will need to select the lease that’s connected to the property.
- Next, select the Transactions tab to view the charges that were added to that lease.
- From there, start by selecting a charge to view its audit log. This helps identify which charges were created on the previous portfolio before the transfer. Sometimes, you can quickly spot the charge if the amounts match. If the amounts differ or are spread across multiple units, you’ll need to review the audit log for each charge to determine which were created in the old portfolio for each unit or lease.
- Next, select the green action button, then choose Audit Log.
- Now that you are in the audit log for the charge, scroll down to the Accrual Transaction Entries section. This will display the ledger where the charge was created.
- By reviewing the Accrual Transaction Entries, you’ll notice that the charge was created on the Linton portfolio, while the property is currently assigned to the Dave 11 portfolio.
- Since this is a charge and not a payment, we can simply void the charge to zero out the receivables balance for both portfolios.
Next, we can select the payment and reapply the funds from the charge so it shows as unpaid.
You can go back to the allocated payment and select the payments allocated to that charge.
- Now that we are in the payment, we can select “Reapply” to zero out the funds from the charge. Once zeroed out, select “Reapply” again to save the changes.
- Go back to the charge that is now showing as unpaid, select the green action button, and then choose “Void” to remove the charge.
- Once voided, you will notice that both the new and past portfolios now have a zero receivables balance.
New Portfolio:
Past Portfolio:
- If you still have a receivables balance due to current leases with unpaid charges, you can run a Lease Charges Report:
-
Run a Lease Charges Report.
-
Filter the report by “Unpaid Only” to show leases with unpaid charges.
-
Cross-reference the balances in the report with the receivables balance on the portfolio.
-
Verify that the balances match and reflect current unpaid charges.
-
Optionally, filter the report by portfolio to view the total receivables balance for that portfolio.
-
- The final step is to recreate the charge on the lease, ensuring it is properly connected to the Dave 11 (new) portfolio. To do this, select the green action button on the lease and choose the “Add Charge” option. Enter the exact same details as the original charge that was voided. Once all information is accurately entered, click “Save” to finalize and apply the charge to the new portfolio. This ensures the financial records remain accurate and reflect the current portfolio structure.
