This article describes how to account for existing tenant security deposits when you start using Breeze.
You create charges and receipts so that the security deposits appear on the tenant records, but then you create a journal entry that sets the cash account back to zero (0), so that you can enter the beginning balance.
All the transactions should be done before you start operating in Breeze (i.e. before you 'go live'). In the example shown below, we enter the transactions in June prior to a start date of 7/01/2022.
To enter existing security deposits for a property
1. Go to Accounting > Accounts Receivable > Batch Charge.
Complete the top part of the screen. The following fields require explanation:
Amount | Enter "1.00." Even though you will enter amounts manually for each tenant, you still need to put something in this field. |
Distribution Method | Select None. This will allow you to enter the amounts manually. |
Charge Code | Select Deposit. |
Charge Date | Enter a date prior to the "go live" date. |
Post Month | Select a month prior to the "go live" date. |
2. Click Calculate. Breeze lists the tenants in the lower half of the screen.
3. Enter the amounts, tenant by tenant.
4. Click Post. Breeze creates an unposted batch of charges. Review and post the batch.
5. Go to Accounting > Accounts Receivable > Batch Receipt.
6. Complete the screen to create receipts for the tenants at the property. In the Cash Account field, select 1120 Escrow Cash if you hold security deposits separately from operating cash.
7. Click Get Outstanding Charges. Breeze displays the tenants with outstanding charges in the lower half of the screen.
7. Review the data and click Create Receipts. Breeze creates the receipts and deposits them.
If you look at a Tenant screen, you can see that there is a record of the security deposit.
Resetting the Cash Account
In this example, we reset the cash account in March 2018 prior to a start date of April 1, 2018.
1. Go to Reporting > Financial Reports and run a trial balance for the property.
2. Create a journal entry that backs out the security deposits and sets the cash account back to zero (0). An example is shown below.
3. Run the trial balance again and verify that the accounts show zero (0) amounts.
Note(s) on Deposits and Bank Reconciliation: When you post the receipt batch, Breeze creates a deposit record automatically. You should reconcile it and the journal entry in the Bank Reconciliation screen (Accounting > Banking > Bank Reconciliation). If you don't reconcile these items, they will appear as unreconciled transactions every time you try to do a reconciliation.
If you created the receipts manually (without using the Batch Receipt feature shown above), you will have to deposit them manually. Go to Accounting > Accounts Receivable > Bank Deposits.