The Insider

ENTECH TIPS AND TRICKS - August 2008

What to do when an owner rents another owner’s property and wants the payment deducted from his/her Owner’s Account

Sometimes due to unavailability of their unit, the owner (owner 1) of a unit must stay in another unit (owner 2). In order to pay the owner (owner 2) for the reservation, rental charges must be charged to the owner staying with you (owner 1). If the owner staying as a guest has a credit balance on their account, you can use this money to pay for a reservation.

Before entering any payment transactions, you should check the owner’s (1) account balance. Go to Accounting, Owners, Statements and Print/ Preview Statement. Verify that there is enough money to cover the total cost of the reservation, including any fees that are not being waived.

1. Make sure you book the reservation showing all charges that apply to the owner (1) staying in the property, and check him in as you normally would any other guest.

Notice that the reservation type is “guest” so that the rental charges generate for this reservation. If you are using trip insurance, ask your owner (1) if they would like to purchase trip insurance. If not, be sure to deny it before checking in the reservation.

2. On the guest ledger for the owner (1) staying in the unit, enter an account 41 (paid on account) for the amount owed, e.g. if he/ she owes $1205.00 show a payment of $1205.00.

3. Under Accounting, Owners, Owner Charges, enter the property code of the owner (1) renting the property. Enter the same date as the account 41 you entered in step 2. Enter account 19 (paid on account). In the description field, enter something like “Owner rent PD.” so that the owner (1) will know what this is pertaining to. For the amount, enter in the amount paid on the guest ledger as a negative number, e.g. you entered a 41 for $1205.00, so enter an account 19 for –$1205.00 here. Then enter your initials. Click the save button to save the entry.

4. Post the negative account 19 to the owner’s (1) account on the Edit or Post Owner Transaction Tab.

Before posting, verify that the correct unit has been selected (owner 1’s unit) and the amount is negative. You may want to verify that the owner (1) has enough money on their account before posting this transaction. If so, Click Post.

5. Go to Accounting, Escrow and bank Deposits. Compute the Bank Deposits for checks on the transaction date. Be sure to “X” off the account 41 and the negative account 19 for deposit. They will zero each other out.

Notice that the total being deposited is zero. There is no money to be collected, you are simply transferring money from the owners account to a reservation balance. These items can be deposited together with other transactions or can be deposited together in a separate deposit.

You will have the deposit record to show that the money has been transferred from the owner account to the reservation.

If you have any questions about this article, please contact the Entech Client Care Department for assistance. Questions can also be emailed to entechsupport@instantsoftware.com.

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