What is a Prepayment? A Prepayment represents money received that is not yet applied toward lease charges on the tenant ledger. Anytime you record a tenant payment that you have not applied toward a lease charge, or that you have applied but which exceeds the amount owed, the unapplied monies result in a Prepayment. Prepayments display as a dollar sum total in the summary box at the top of the tenant ledger.

 

Creating Prepayments. Prepayments are recorded on a tenant ledger like any other payment. The only difference is that a Prepayment will not be fully applied, or applied at all, to any unpaid charges on the tenant ledger.

 

To create a Prepayment:

  1. Using Search or the Lease Navigator, locate the lease.

 

 

  1. To view the Tenant Ledger, click the Tenant Ledger button on the sub-navigation bar.

 

 

  1. Click the Record Payment button above the Tenant Ledger table.

 

 

  1. The Record Payment Received box will appear on screen:

 

 

Within this box, enter the following information:

  1. From the drop down menu, select the appropriate Payment Type

  2. Enter the Date the payment was received.

  3. Enter a Reference Number for the payment received (i.e., check number or money order number).

  4. Select an open bank deposit from the dropdown menu. If you are not sure which Open Bank Deposit to choose, you may deposit the prepayment to Undeposited. You can go back to this deposit later and add it to an open bank deposit from the Payments To Deposit section in Money In.

  5. Enter any Comments to describe the payment, if applicable.

  6. If you want to apply part of the payment to any Unpaid Charges, enter the amount in the Current Payment window for the charge. You can only enter an amount up to the amount due in this field

 

Note: If you entered erroneous information, click the Clear Payment button at the bottom left corner of the window to clear the displayed payment information.

 

  1. Enter the total payment amount into the Amount Received field. If this amount is greater than the total of all Current Payments, then a Prepayment may be created. The Prepayment will then appear in the Payment Summary section in red, indicating that the recorded payment will result in a prepayment.

 

  1.  To create the Prepayment, click the Save button. A window will appear asking you to confirm the Prepayment on the tenant ledger.

  1. If you entered erroneous information, click the Clear Payment button at the bottom left corner of the window to clear the displayed payment information.

  2. Click the Ok button and your newly recorded tenant payment will then appear on the lease's tenant ledger as an Undeposited Payment. Note that there will also be a corresponding paid charge on the tenant ledger, since, as of our 3.1 release, Prepayments are reflected as a charge to the PREPAY liability account.

 

 

The Undeposited Payment status will change to a Deposited Payment status when the Bank Deposit that includes the payment is closed. To view the details of a recorded tenant payment, including Payment Type, Payment Date, Reference #, Closed Bank Deposit, and Covered Charges, click the View link that appears within the Undeposited Payment line item.

 

Note: A Prepayment in Propertyware does notaffect the balance on the tenant ledger; for example, on the above tenant ledger, there is a $475 Prepayment on the account, but the Balance remains at $0.

 

Applying Prepayments. Similar to a credit, a Prepayment is a payment that remains unapplied toward a lease charge.

To apply a Prepayment towards an unpaid charge:

  1. Using Search or the Lease Navigator, locate the lease.

 

  1. To view the Tenant Ledger, click the Tenant Ledger button on the sub-navigation bar.

 

 

  1. Prepayments display as a dollar sum total in the summary box located at the top right corner of the tenant ledger.

  1. To apply the Prepayment to an unpaid charge on the tenant ledger, click the Apply button.

  1. The Apply Prepayments box appears onscreen:

 

 

Within this box, enter the following information:

  1. Date. Enter the date the Prepayment is to be applied toward the Unpaid Charge below.

  2. Applied Credit. Enter the amount of the Prepayment to be applied toward the displayed Unpaid Charge(s). If you wish to apply the Prepayment in full, simply check off the "Apply in full?" column next to the appropriate Unpaid Charge. If you do not wish to apply the Prepayment in full, enter a lesser amount in the Applied Credit field next to the appropriate Unpaid Charge(s).

 

Note: If a Prepayment is applied in full, but it does not fully cover one or more Unpaid Charges, these charges will remain unpaid on the tenant ledger.

 

  1. Click Save when you are finished. The Prepayment and its corresponding charge will appear on the tenant ledger. Note that, when you apply a Prepayment to a charge in Propertyware, as of our 3.1 Release, prepayments are now reflected as a charge to the PREPAY liability account from the Chart of Accounts.

 

 

Note: As of our 3.1 release, Prepayments are reflected as a charge to the PREPAY liability account within the Chart of Accounts.  When you record a Prepayment, an additional line item is created on the tenant ledger. By paying this line item, you are creating a credit to the PREPAY liability account, increasing that account. When you apply the prepayment, the system will generate a "Credit Memo", which debits the liability account (decreasing it) and crediting the account to which you apply it. In the above example, applying the Prepayment to the Rent charge credits the Rent account to which the rent charge applies.

 

See Also

Recording Tenant Payments One at a Time

Recording Multiple Tenant Payments at Once

 

FAQs

More FAQs >>