PROPERTYPLUS – YEAR-END PROCEDURES

 Just like when you are preparing to close out the month you will also do the same to close out the year. 

Closing out December will close out the year. 

We suggest that you do all of your normal month-end procedures right up to the point where you run the month/year-end routine.   Any corrections that need to be made to an owner or vendor account will have to be made prior to closing out the month of December.

Any Balances left on the Owner Statements at the Year End will be carried over as Balance Forwards to the January Statement for the upcoming year.

No Longer Live Properties:
If a Property is set to "No Longer Live", an Annual Statements and 1099's will be produced if there have been any transactions that occurred in that year.

Printing Statements:
You have various options for printing out “year-end” statements for your owners.

Using the December Statement as a Year-End Statement:
If you do not wish to re-print all of the year’s transactions again, you may use the December Statement as a Year-End Statement by adding the Year to Date Transaction Summary to the December Statement. You can do this by setting the System Parameter for Statement Settings to "Print Turnover Figures.”

Select the Quick Launch for the File Setups - System Setups Maintenance - System Parameters, then click on the "Statement Settings" button and check the box marked "Print Turnover Figures.”  Your Statements will now contain the Year to Date Summary information at the bottom.

Printing the Year to Date Summary on its own:
As above you must turn on the "Print Turnover Figures" option. The Year-End Transaction Summary is available as a separate report. You can print it by running a set of Standard Owner Statements for Period 13 Year 2008 in the Month End Date 12/31/08. This will produce a set of Statements without Transactions but just the summary.

Printing an Annual Statement:
An Annual Owner Statement will print the transaction details for all transactions throughout the year select the Quick Launch - Accounts – Reports - Owner Reports - Annual Statements.

If you want the Year to Date Transaction Summary, turn on the "Print Turnover Figures" option.

SETTING UP FOR 1099'S:
The production of 1099's is available for Vendors and Owners, listed below are the methods and options for producing them.

What is included in the 1099 Figure:
The System Parameters contain a page relating to 1099's. Select the Quick Launch for the File Setups - System Setups Maintenance - System Parameters, then click on the "1099 /Tax Parameters" button. The following fields on the screen relate to 1099's:

Including Bookings Extras:
For companies that use Off the Top Booking Paid Extras, and show them on the Statements, you will want to check the Box - Booking Extras.

Including Commissions:
Most of you, except those who do not disclose commissions on statements, will want to check the Commissions Box. This will keep the statements and 1099's consistent with each other.

Including Pass Through Extra Charges:
A Pass Through Extra Charge is one where the Client or Tour Operator pays for the extra charge and a percentage of the money is passed through to the owner. This is achieved by setting the "Percent to Owner" field on the "Goods Code" set up. Examples of pass through extras might be "Pool Heating or Utility and Telephone Charges". If these are to be added to the Income Figure for 1099's then check this box.

Including Negative Owner Extras:
A Negative Owner Extra is an extra charge on the reservation, payable by the Owner that has a negative value. Some companies use this to compensate the owner for shortfalls in revenue for certain reservations. If you use this function and wish to have the Income included in the 1099 then check this box.

Including Negative Standing Charges:
A Negative Standing Charge is a monthly credit to the Homeowner, usually in place of Rental Income, and when the Management Company guaranteed that the owner will receive a certain amount of Revenue each month irrespective of reservations. The commission for these properties are usually set to 100% therefore the Owner receives nothing other than this credit.

The setup file for Standing Charges has a field which asks "Include In 1099" if you have used this then you should check this box.

Including Security Deposit Retention's to the Owner:
If you have retained money to the Owner from a Guests Security Deposit and wish the income from these retention's to be added to the 1099 Income Figure, then check this box.

The 1099 Vendor Threshold:
The next field relates to the IRS Threshold for reporting payments to Vendors, last year’s level was $600 and this is the default, if this threshold increases, alter this figure.

Individual 1099's for Each Property:
This question only relates to Owners that have multiple properties, depending on your preferences and local Real Estate rules, you may elect to produce a consolidated 1099 for each owner rather than separately for each Property.

Please consult your local rules, as most States require a separate 1099 for each Property.

Making sure a Vendor receives a 1099:
There is a field on the Vendor File Set Up that indicates if the vendor is to get a 1099, if this is true check this box and complete the "Tax Number" field with their Social Security or Tax Id #.

Why don’t all Vendors receive 1099's even if the Flag is set? :
If the Vendor is set to receive a 1099 but the level of payments they have received is below the threshold, a 1099 will NOT be produced.

Owner Information for 1099's:
The Owner File has two fields that relate to the 1099's, the 1099 Name and the Tax Number. If the "Owner Name" is not the correct one for the 1099 or relates to a Husband and Wife etc, then use the 1099 Name field.

What about Owners that don't have Tax ID or Social Security Numbers: 
If this is the case and they should not receive a 1099 then enter the Number 1 in the 1042 Exemption Code field on the Revenue Tab of the Owner Set Up screen.

What about Multiple or Syndicate Owners:
If you have properties that are owned by more than one owner, you will have to use a Syndicate to set this up.  On the Syndicate Tab of the Owner file, there is a field called 1042, this is also shared by the 1099's. See the help files to determine how this field splits the income for 1099 purposes.

Company Details:
You must also set up the information for your company; this is stored in your Company Details. Select the Quick Launch for the File Setups - Actions - System Setup Maintenance's - Company Details.

Setting the Company Information:

The relevant fields are:

·         Tax Name - for your Companies Legal Tax Name.

·         Address - printed on the 1099's.

·         TI Number - is the Company Tax Id Number - printed on the 1099's.

Setting Additional Information for Electronic Submission:
If you are required to transmit 1099's electronically, you will receive a TCC Code from the IRS; insert this number into the TCC Code field in the Company Details.

Setting the Income Code for 1042's:
If you have a large number of overseas owners you may elect to use PropertyPlus to produce 1042's, these require a special "Income Code" which can be maintained in the Name and Address file.

Preparing the 1099's:
The procedure is the same for both Vendors and Owners: Select the Quick Launch - Accounts - Actions - Month and Year End, followed by either Owner or Vendor 1099's. The routines are separate but the procedure stays the same.

COMPILING THE DATA

Scanning the files to compile the Data
Enter the Year for which you are producing 1099's and click the Process button on the Prepare Tab. The system will scan the files and compare them to your parameters and prepare 1099 data for Owners and Vendors.

Modifying the Data:
Once prepared you can modify the data by using the Modify Tab, this can be used to alter figures and amounts or add data for Owners or Vendors that are not handled through PropertyPlus. You may also use this routine to remove records from the 1099 files.

Re-Preparing the 1099 Data:
If you have to re-prepare the data please note that any modifications you had manually made or additional people that you inserted will have to be re entered. Also the information may have to be reprinted.

Reviewing the Data:
You may print out the data that has been prepared for review. Select the Quick Launch to Accounts - Actions - Month and Year End then select either Owners or Vendors 1099 Report. This will produce a report containing the information that has been compiled.

Printing 1099's:
To print the 1099's you go back to the Owners or Vendors 1099 screens. The last tab is Print, which allows you to print either copy A, B or C independently. PropertyPlus is configured to print on Laser 1099 forms available from most Office Retailers or Stationers.

Setting Up Your Printer :
You must perform a test print, use copy A and click Print.

At the Print Setup screen click Cancel. The 1099's will be presented on the screen.

Aligning the 1099's using Margins:
Select the Margins Tab from the Page Setup. Ensure that the paper size is set to Letter and then using the Margins, increase and reprint until the data appears in the right parts of the form.

Once you have the Margin information – write it down because you will need to adjust it for subsequent copies.

Printing the 1099's:
Once you have the Alignment and Margins correct, you can start Printing out the 1099's. Print Copy A, then B and finally C. Remember to reset the Page Settings and Margins before printing each set of copies.

Printing more than three copies:
Some states require you to print extra copies for them, simply print more than one set of the Copy A records for each additional copy required.

Re-Printing because of Printer Error:
If you have to re-print because of a Printer or Alignment Error you may start the print at a certain page number by selecting the Print From page number at the Print Setup Screen.

Electronic 1099 Submissions:
If you have to submit 1099 data electronically, you must prepare the information and Print Copy A records for your homeowners.

At the appropriate time, select the Menu Option 1099 File Export enter the filename - usually a:\irstax 2008. Insert a “Blank”, formatted 3.5" floppy disk into you’re a drive, then click Process. Once complete, repeat the process to keep a copy of the disk for you records.

Note: If you are submitting for more than one company (i.e. Short and Long Term), you must use separate disks.

Closing the Year:
The process for closing the year is the same as a regular Month end, you select the Accounts - Actions - Month / Year End option from the Quick Launch bar and the "Month End / Start".

The System will display the Next Year and Period and you run the normal Month End Routines.

Recommended Reports:
Print any reports that you may wish to keep and file them as Year End Reports.

We recommend the following:

·         Copy of Annual Statements

·         Owners Balance Report

·         Audit Summary for the Year

·         Goods Disbursed Analysis for the Year

·         Monies Received Not Disbursed

·         Security Deposits on Hand Report

·         General Ledger Transaction Report for the Year

Congratulations!  Year-end is complete!