Property management software usually has a built-in management fee generator. Often times this automatic generator is limited and not transparent. We decided to make a more flexible solution wherein you can have any invoices generated based on the contents of a receipt, not just invoices for a property manager. For example, lets say your city has a rent tax based on rent paid. You can create a Receipt Payable for your city that generates an invoice payable to the city based on rent collected.

The most common use of Receipt Payables is management, application and late fees charged on the basis of rent collected. For example a management fee of 10% of rent collected.

By default, Receipt Payables are not automatically created but you can turn on that feature in your Organization Settings.

To setup a Receipt Payable, navigate to a given Property. On the view screen, you'll see a section called "Receipt Payables":

In this example, the Property Manager has the following settings:

  1. When we make a receipt for this property for "Rent", create a payable invoice for "Payee" (usually the Manager) for 10% of that collected Rent for GL Account of "Management" with a Due Date for 5 days from the time the receipt was created. For example, $1,000 in Rent was receipted on 1/1 for this property, so a payable invoice to this manager is created on 1/1 for $100 (10%) and is due on 1/6. (The due date matters in the Payment Workflow).

  2. When we make a receipt for this property for "Application Fee" or "Late Fee" create a payable invoice for "Payee" for 100% of those collected fees with the respective due date delays. In this instance, 100% means that Payee gets 100% of Application and Late Fees.

  3. When we make a receipt for this property for "Rent", create a payable invoice for "City of Phoenix" for 2% of that collected Rent for GL Account of "Property Tax" with a Due Date of today and put "Acct XXXXX22" on the check . For example, $1,000 in Rent was receipted on 1/1 for this property, so a payable invoice to the City of Phoenix is created on 1/1 for $20 (2%) and is payable immediately. (The due date matters in the Payment Workflow).

The Due Date Delay is important because sometimes receipts get reversed. If a receipt is reversed, all unpaid Receipt Payables will also be reversed. However, if some have already been paid, they cannot be reversed. In those cases, you must refund those fees via a Property Receipt (or a Journal Entry if you have a dummy property with a transferable balance - for advanced users).

To add, edit or delete a Receipt Payable click on the blue pencil button in the top right corner of the above picture. You'll see the following:

Once you've made your changes, click "Save."

Automatic Receipt Payable Create

When you create a receipt for this property, depending on your Organization settings, Receipt Payables may be created automatically. If they are, you have the option to skip their creation. For example, you're making a replacement receipt.

If you don't check the box, Receipt Payables will be made and linked to the receipt:

Again, if the receipt is reversed, so to are the Receipt Payables unless they've been paid.

Manual Receipt Payables Create

If you do not have Receipt Payables set to automatically create, you can generate them from an action on the Receipt Payables report. It protects against duplicates and transparently shows how they are calculated.

Any Receipt Payables that have not yet been generated will have a checkbox next to them:

If you check one of the boxes, the action menu becomes available to you:

When you click on "Invoice Fees", this modal will pop up:

You can adjust the settings as you want and click "Create." Those invoices will be generated according to the settings you set in the modal.

Paying Receipt Payables (and all other Invoices)

When you navigate to Invoices > Pay Invoices or Shortcuts > Pay Invoices, you'll see the following Payment Workflow:

Currently, Receipt Payables are not automatically approved. If that's useful to you, let us know. We call your attention to the Payment Workflow because this is where the Due Date Delay matters. We typically set a 5 day delay on Receipt Payables payable to the property manager to allow time for payment bounces to limit refunds.

We will continue to improve this feature and would love to hear your ideas on how to handle reversals. One idea is to do it all through Journal Entries and a designated dummy property.

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