When managing properties for 3rd party owners, another level of reconciliation is required concerning each owner's balance. This document outlines the steps to follow when discrepancies might exist.


TABLE OF CONTENTS


Deposits and Bills

Based on the accounting period that is being reconciled:

  • Verify there are no open deposits
    • Quick View: Open Deposits Box Score on the PropertyBoss Today Navigator
    • Click Create Deposit on the Navigator, 
  • Verify there are no pending bills to be paid
    • Click General Ledger > Pay Bills, 
    • Run the O210 Held Bills report
  • All deposits should be closed, and all bills should be paid


Journal Entries

Run the Unbalanced Journals Report for tg FileClick Edit Accounting File > General Ledger tab > Balancing Aids > UnBalanced Journals ListSelect Run the Unbalanced Journals Report for the Accounting File associated with the owner for the appropriate date range. Selecting a longer date range will require more time to get the results. 

  • Click General Ledger and select the appropriate Accounting File
  • Click Edit Accounting File > General Ledger tab > Balancing Aids > UnBalanced Journals List
  • Select from the drop-down list the appropriate date range:
  • Correct any unbalanced journal entries.


Owner Balances v. Owner Liabilities

If the owner balances do not reconcile to the General Ledger Due to the Owner account, use the following to help research the discrepancy.

  • Click General Ledger and select the appropriate Accounting File
  • Click Edit Accounting File > General Ledger tab > Balancing Aids > Owners Balances vs Owner Liabilities
  • Run this report one month at a time. It will provide a daily breakdown of the discrepancies which makes locating and correcting each discrepancy easier.


A569 Activity Reconciliation - Owner Balances 

  • Click Viewing Reports on the Navigator
  • Locate the A569 Activity Reconciliation - Owner Balances report and double click to run
  • Run the Summaryversion first. Use this to compare to the Due to Owner account in the General Ledger.
  • Click General Ledgeron the Navigator and select the appropriate Accounting File
  • Locate the Due to Owner account in the window and double-click to open
  • Select from the drop-down list the appropriate date range for the period being balanced.
  • Click the Subtotal by Transaction Namecheckbox at the bottom of the window
  • Compare the A569 report to the entries in the Due to Owneraccount
  • Correct any errors found


Typical items that can cause discrepancies might be:

  • Bill payments that were voided in a past period and a new bill payment is in the current period
  • Bill payments were voided in the current period but the transaction was reversed in a past period



General Ledger Balance Sheet

The reconciliation of the bank account to the bank statement should be completed prior to reconciling to PropertyBoss.

  • Click General Ledger > Reports > Balance Sheet
  • Select from the drop-down list the Accounting File
  • Select the Run Report As Of date, and run the Balance Sheet for the period ending that is being reconciled.
  • Click to Show Net Income Accountsif applicable
  • Select the appropriate Report Basis Layout - Accrual or Cash


A565 Trust Account Balance Report

The bank account balance should equal the combined total of the Due to Owner, Prepayments, and Unpaid Management Fees accounts. If Security Deposits are NOT kept in a separate bank account, then the Security Deposits should be included in the combined total.

  • Click Viewing Reports on the Navigator
  • Locate the A565report and double click to run
  • Select the Run Report as ofdate, run for the period ending that is being reconciled.
  • Select either Summaryor Detail
  • Select to Show Deposits, Show Prepaids, Show Held Bills, andShow Owner %as is applicable
  • Click Select Properties and Unitsor select from the drop down list the Accounting File
  • Click Accrual or Cashas is applicable


Compare balances between the General Ledger accounts and the balances on the A565 report:


Numbers that should correspond between the A565 Trust Account Balances Report and the Balance Sheet:

  • The Total Balance should equal the Total Current Assets total on the Balance Sheet
  • Deposits in Trust Account total should equal the Security Deposit Account total on the Balance Sheet
  • Prepayments total should equal the Prepayments Account total on the Balance Sheet
  • Owner Balance total less the Broker Balancetotal should equal the Due to Owner Account total on the Balance Sheet
  • Broker Balance total should equal the Total Equity total on the Balance Sheet



Out of Balance with the Bank

If the owner balances from the A565 report and the Due to Owner account reconcile, but they do not balance to the bank:

  • If Security Deposits are held in a separate bank account, it is necessary to transfer from this account to the Owner Trust account any security deposit money that has been returned but is applied to charges that have been transferred to the owner register or is income to the management company.
  • Look for transactions that were entered in the period but reversed in a later period
  • Look for manual entries in the checking account such as bank fees or journal entries that may be dated incorrectly