Charging Off Tenants

You can add tenants (who are also customers) to your collection loss accounts to determine how many clients have not paid your agency. Charging off a tenant involves 4 main steps:

Add collection loss accounts to appropriate customers.
Transfer security deposit balances to tenants' accounts receivable accounts.
Transfer tenants' AR account balances to new collection loss accounts.
Inactivate tenants' security deposit and AR accounts.

From the Main Menu screen, click RECEIVABLES. The Browse Customers screen appears with all active customers displayed in a table.

Select how you want to order the customer table from the ordered by drop-down list, enter the search criteria in the search for field and click GO. The first customer to match the criteria is highlighted in the table.

Click

on the toolbar. The Account Summary tab of the Maintain Customer Information screen opens.

Add Collection Loss Accounts to Appropriate Customers

Click

on the toolbar. The Add Customer Account Wizard is initiated.

Select "collection loss" as the type of account from the drop-down list.

This is your agency-defined list of account types, which you maintain in the Setup area of the program. See "Setting Up Account Types"

If necessary, select the lease to which the account is associated.

If necessary, select the development to which the account belongs.

This is your agency-defined list of developments, which you maintain in the Setup area of the program. See "Setting Up Developments"

If necessary, enter the account numberand click START to continue.

Review and confirm the account information you set up and click FINISH to add the account. The Account Summary tab appears again.

Transfer Security Deposit Balances to AR Accounts

10.

Click

on the toolbar and select “Account Transfer” from the menu that appears. The Create Account Transfer Wizard is initiated.

11.

Select the customer’s security deposit account in the transfer from drop-down list and verify that the amount to transfer is correct.

12.

Select the customer’s AR account from the transfer to drop-down list and click START to continue.

13.

Review the transfer account details and click NEXT.

14.

Confirm the transfer information you have set up and click FINISH to complete the transfer. The Account Summary tab displays again.

Transfer AR Account Balance to Collection Loss Account

15.

Click

to access the Create Account Transfer Wizard again.

16.

Select the customer’s TAR account in the transfer from drop-down list and verify that the amount to transfer is correct.

17.

Select the customer’s collection loss account you previously added from the transfer to drop-down list and click START to continue.

18.

Review the transfer account details and click NEXT.

19.

Confirm the transfer information you have set up and click FINISH to complete the transfer. The Account Summary tab displays again.

Inactivate Security Deposit and AR Accounts

It's usually a good idea to inactivate unnecessary, zero balance accounts.

20.

Select the customer’s security deposit account, now with a balance of $0.00, and click

on the toolbar.

21.

Click YES and OK through the confirmation messages to delete/inactivate the account.

22.

Select the customer's AR account, now with a balance of $0.00, and click

on the toolbar.

23.

Click YES and OK through the confirmation messages to delete/inactivate the account. You have successfully charged off a tenant!

24.

Repeat these steps for all tenants whom you want to charge off.