Accounting Tab Deposits Tab Tasks Add Interest on Deposit
This task is used to add interest to a Security Deposit On Hand, if your company policy or state requires that interest to the tenant be accrued on deposits being held by the management company.
The task gives you the option to calculate the interest by setting the accrual start and end date and the interest rate (entered as a percentage). Interest is computed based on the interest rate by the average of the deposit balance for the period specified. Or you can compute the interest manually and enter the result in this task.
The task displays the interest history and deposit history to aid you in setting up the calculation. If there are no previous Add Deposit Interest events for the household, the accrual start date will default to the date of the first interest-earning deposit.
There must be a deposit on hand (paid).
The Accrue Interest Indicator needs to be set on all Deposit Charge Types that you wish to accrue interest on. Set this indicator at System Administration > Accounting Setup > Charge Type Setup and customize it for each community/funding program group at Accounting Detail > Account Maintenance.
Household Detail Accounting Tab Deposits Tab Tasks Add Interest on Deposit
Community: The system will pre-fill this field with the household's current community.
Apt. Nbr: The system will pre-fill this field with the household's current apartment number.
Enter the following information:
Accrual Start Date: Enter the start date for the period of time that interest is to be accrued for. The system will pre-fill this field with the day after the last accrual period or the date of the first interest-earning deposit.
Accrual End Date: Enter the ending date for the period of time that interest is to be accrued for. This will also be the effective date of the event that is created from this task.
Method: Select whether to "Compute interest based on interest rate and average deposit" or "Manually add interest".
If Method is to Compute: Enter the Interest Rate as a Percentage.
The Average Deposit balance is displayed with a field to enter the Interest Rate.
After entering the Interest Rate and tabbing out of the Interest Rate field, the calculated interest will be displayed.
Enter Zero (0) for the Interest Rate to accrue no interest for the specified period of time and mark the accrual period as evaluated (accrual period won’t be considered again when the next period is accrued for).
You will receive the popup message "Do you want to proceed and record no interest for this period?", click Yes to continue.
If Method is set to Enter Manually: Enter the amount of interest you want to credit the tenant. The calculation of the amount will need to be done outside the Property Manager system.
Note: You may enter a note of explanation. This field is optional.
When Property Manager calculates the interest for you, select to append the individual interest calculation detail to the note. In this way, a user can look at an event in Event History and see how the interest was calculated.
Click the Save and Add Another link to add more interest on deposit(s).
This gives you the ability to add interest for one accrual period at one Interest Rate, and then add another for interest calculated at a different Interest Rate.
Click Finished.
An Overall Status window will pop up with a Passed or Failed message and display any GL entries that were created.
If it failed you may need to make a correction or contact Bostonpost Client Support at myMRI or contact a Client Support Analyst directly at (877) 579-8896 for assistance.
If it passed click Close.
An Add Deposit Interest event will appear in Event History and a new line item for Interest will appear in the Deposits On Hand section if there was no interest added previously. The effective date of the event will be the accrual end date entered from the task. If there had been interest added previously the total On Hand will now appear.
Q. My state requires that we refund any interest to the tenant. How do I reflect that after I have added the interest?
A. Highlight the Interest On Hand balance and select the Prepare Deposit Refund task, this will transfer the Interest On Hand to the Receivables tab as a credit in Open Items, where you can use the Refund Selected Receivable task to clear the credit from the household's ledger. You would then need to write a check to the tenant from your accounting software.
