If you have Portfolios turned on in coManage -- if you don't, send us a message and we'll turn it on -- you can manage ownership percentages and payout percentages and rules. Ownership percentages matter for tax time, like 1099s. For example, Portfolio A is owned 50% by James Brady and 50% by Jennifer Brady, brother and sister, and collected $24,000 in rent this year. $12,000 should go on Jame's 1099 and $12,000 on Jennifer's.

Now, we can get even more complicated -- if we need to -- by defining payout percentages that differ from ownership percentages. Let's say James and Jennifer are 50/50 owners but want 100% of net income to go to Bank Account 1, where they keep it to spend on improvements. All of this complexity can be defined in Portfolios.

Prerequisites

Before you can create a Portfolio, you must first create the Properties that the Portfolio owns and the Owner Contact(s) that own the Portfolio.

1. Creating a Property

To quickly create a Property, navigate to the shortcuts menu and select Create Property. Then, all you need is an address, a name, use type, and single or multi-unit:

Creating an Owner Contact

To quickly create an Owner Contact, navigate to the shortcuts menu and select Create Contact, then click the Owner button. Then, all you need is a name and an address:

Adding a Financial Account to an Owner Contact

You can go a step further and add the Financial Accounts to the Owner Contacts. By default, if you have not setup a Financial Account for an Owner, it will default to a mailed check to the address that you've set on the Owner Contact. To add a Financial Account to an Owner Contact, you must first enter in their W9 information by clicking "Add Tax Information":

You will be taken to a screen where you can add their details:

Once you've done that, you will now see the option to Add Financial Account in the same spot:

You will be taken to a screen where you can add an ACH Financial Account:

And it will not show up under her Owner Contact:

Setting up a Portfolio

1. To set up a Portfolio, go to the navbar and find the Portfolios index under Properties. Then click Create Portfolio.

2. Then name your Portfolio. You can add a reserve later or on Properties.

3. Now that you've created your Portfolio, you can add your Property Owners:

NOTE: Start and End Date do not currently affect anything in the system and are merely for record keeping purposes.

4. Now let's add our Properties:

NOTE: Start and End Date do not currently affect anything in the system and are merely for record keeping purposes.

5. Now let's setup how these Owners want to be paid:

Your choice will be limited the already added Owner Contacts:

We're selecting Jennifer because that's where we put the Financial Account:

But we could select that Jennifer's account gets 90% and 10% gets paid out by a check to James Brady:

That are an infinite number of way to configure Portfolios so long as everything resolves to 100%.

6. Here is our end result, which can edited any time:

Creating Portfolio Invoices or Paying Owners

Unlike Vendor Invoices, Portfolio Invoices can account for various rules, like Unpaid Invoices, Property Reserves, Work Orders, etc.

To create Portfolio Invoices, use the navbar to navigate to Portfolios under the properties tab and then click Create Portfolio Invoice in the top right.

Here you can select Batch or Manual. Batch means you want to pay one or more Owners at once accounting for their rules. Manual means you know exactly how much you want to pay to a single Owner.

Batch Portfolio Invoices

1. Select the Cash Account from which you want to pay the Owner. Then, optionally, use the other fields to filter down the results.

2. In this example there are hundreds of Owners to pay and the Payout Amount is already calculated based on your rules:

3. You can see how each Payout Amount was calculated by checking its box. It will also show you the Financial Account that the Payout will be made to:

You can edit the Payout Amount if you need it to be more or less than what was calculated.

4. Once you're satisfied with all of your selections, you can scroll to the bottom and select the GL Account that you wish to use (this is most often "Owner Draw") and a Description then click Create:

5. You will be taken to the Invoices index with the index pre-filtered for the Invoices that you just created. From here you can batch approve and make or account for payments, just like you would any other Invoice. See here for details on approving (or not) and making or recording payments.

Manual Portfolio Invoices

Manual Portfolio Invoices are like any other Invoice except you can only select Property Owners that belong to the selected Property and the Payout Account you wish to use.

1. See above on how to navigate to the Manual Portfolio Invoice form. Once you've done so, you'll see this form:

Select the Property, the Payout Method and fill in the requisite details then click Create.

2. Instead of being taken to the Invoice index, you'll be taken to your newly create Portfolio Invoice.

It's ready to be approved (if you do that) and paid or recorded as paid.

All of this activity will be reflect on Owner Statements.

Reach out with any and all questions.

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