Balancing TAR to GL at a Glance

Below are basic actions within the Tenant Accounts Receivable program and how they affect General Ledger.

Charging a Tenant for Rent

1. Increase (debit) the accounts receivable amount in the appropriate account.
2. Increase (credit) income as outlined in the setup of accounts.

Payment on Account

1. Decrease (credit) accounts receivable.
2. Increase (debit) cash on hand.

Reconcile the Cash Drawer & Deposit the Money

1. Decrease (credit) cash on hand.
2. Increase (debit) cash in bank.

Enter a Credit Memo on Account

This action removes the charge so it is a reversal of the original charge process.

1. Decrease (credit) accounts receivable.
2. Decrease (debit) the income account.

Record an NSF Check

1. Increase (debit) accounts receivable for the amount of the check and any fees added.
2. Decrease (credit) cash in bank for the amount of the check and any fees charged by the bank.
3. Increase (debit) fees charged expense for the amount of the fee the bank charged.
4. Increase (credit) fees income for any amount of fees the HA charges the tenant.

EPF File Import

This action is an automated payment process. That is, a file received from the bank is imported and records a payment on multiple accounts simultaneously. This action creates a series of transactions with the same affect as paying on the account, reconciling the cash drawer, and making a deposit.

Direct Debit

This is a series of actions from a charge through a payment to a deposit, all completed automatically and simultaneously. During the monthly process of generating charges, two sets of transactions are generated. One is a charge and the other is the payment record. The payment record may or may not be created at this exact point, but is generated either now or while generating an ACH file. These two transactions are processed using the following actions: charging a tenant, payment on the account, reconciling the cash drawer, and making a deposit.

Transfer from TAR to Repayment Agreement Account

Transfers between accounts are a slightly different set of transactions, but are still standardized to a single definition.

1. Decrease (credit) to the TAR account.
2. Increase (debit) to the repayment agreement account.

The GL accounts used are the account's posting accounts identified when setting up developments. Since all transfers between accounts are treated exactly the same, the transaction created is:

1. Decrease (credit) to the originating account.
2. Increase (debit) to the receiving account.

Hint: If you are charging off a tenant, this is a transfer from the initial account, where there is an amount due, to the charge off account. The charge off account, however, has a different type of posting account. It will either be the allowance for doubtful accounts or bad debt expense, depending on how the HA tracks its charge offs.

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