Accounting Tab Receivables Tab Tasks Transfer Receivable(s) to Promissory Note
This task is used to move a tenant balance due from Accounts Receivable to Notes Receivable and setup a payment schedule according to the Repayment Agreement you have with the household. It will create a journal entry changing the receivable account (if Notes Receivable points to a different account) and it will remove these amounts from the AR report. During the process you will have the opportunity to enter the agreed upon payment terms and only the portion of the note that has been billed but not yet paid will show as an open item on the Promissory Notes Tab.
Each of the receivable reports has a parameter to display either the Notes Receivable Due, the Notes Receivable Remaining Balance or neither.
The only General Ledger Account change will be between Accounts Receivable and Notes Receivable if they are different accounts. The rest of this process creates no entries but changes the reporting of the amounts that are currently due and allows the management agent to track tenant payments of the agreed upon amounts.
Household Detail Accounting Tab Receivables Tab Tasks Transfer Receivable(s) to Promissory Note
Select Receivables
Check the items you wish to reclassify to a Note Receivable.
Click Next.
Add Promissory Note
The schedule you set up will determine the rate at which this note will be repaid - the billed amount will appear as an Open Item on the Receivables tab.
Type: Select Note - Receivable Due from the drop-down box.
Note Receivable Charge Types are added at System Administration > Accounting Setup - Charge Type Setup using the Note Receivable Internal Type.
Frequency: Choose a billing frequency from the drop-down box. Your choice here will determine the next time the system will generate a bill for the specified portion.
Regular Frequencies - Once, Monthly, Yearly or Quarterly
Special - Create an Irregular Repayment Schedule. You will need to set the date and amount of each payment to be made.
Payment Start Date: Enter the first date the amount will be billed (returned to a current amount due) by the system. This date must be the 1st of a month, and cannot be prior to the effective date of any of the receivables you are transferring. You do have the opportunity to manually bill any amount on any subsequent date from the Promissory Notes tab.
When the Frequency is set to Special, the Payment Start Date will be set to the 1st of the next month and cannot be changed. You will, however be able to set the date of Payment Number 1 to that date or any date after.
Payment Amount: Enter the amount you have agreed with the tenant to receive each billing period.
This field will not be available when the Frequency has been set to Special
Total Due: The Expiration Method on a Promissory Note is always the Total Due.
Bill At Moveout: Select the "Bill At Moveout" parameter if you want any remaining unbilled balance on the schedule to be billed out on move-out of the household.
The remaining unbilled balance on a promissory note will not be billed with the move-out, but will be billed on the next schedule due date on the next regular billing cycle.
Note: Enter a description to be included in the Event created from this task. This field is optional.
Note Effective Date: Enter the day you want to remove the full amount from the Tenant Receivable Account and report it as a Promissory Note Receivable. This date must be equal to or earlier than the payment start date.
Repayment Schedule: This data window is only available when the Frequency has been set to Special.
Payment Numbers - Enter the date and amount for each Payment. This date cannot be before the Payment Start Date displayed above, but can be any date there after allowing you to set the payment dates exactly as spelled out in your Repayment Agreement with the household.
After entering each Payment Amount, hit the [Enter] or [Tab] key to add the next Payment Row. You can also use the Add link to add additional payment rows. Use the Delete link to remove any payment rows added in error.
You will need to keep creating Payment Rows until the Remaining Balance is zero and the Total Payments amount equals the Total Due above.
Once you have completed these fields, you can click Calculate to display the number of payments, the unbilled balance, and the number of payments remaining.
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.
The note will appear on the Promissory Notes Tab under the Household Accounting Tab and the open items will be removed from the Receivables Tab.
I received a Failed message when I clicked Finished on the Add Promissory Note tab of this task.