Distributions are typically made at the end of the month, after the rent is received and the bills have been paid. Breeze calculates the amount available for owner payments from the current balance in the cash accounts, less any reserves defined on the Property screen. You can choose to pay over deposits or not.
Note: You should pay outstanding payables and management fees before you make owner distributions.
To make an owner distribution
Go to Accounting > Accounts Payable > Pay Owner.
Select one or more owners. You can select a property, or leave the field blank to run the function for all properties linked to the selected owners. You can also select a property list, for example, all the residential properties linked to a specific owner.
In the Draw Type field, there are three options:
Hold Deposit -- Security deposits are not paid to the owner
Pay Deposit -- Security deposits are included in the owner distribution. Note: If you use this draw type once for an owner, you must continue using it for them. See below for further details.
Flat Amount -- The amount of the distribution is not calculated by Breeze; instead you enter the amount in the Draw Amount field. If there are multiple owners, the flat amount is divided among them according to ownership percent.
The Draw Account defaults to the Owner Draw account which is used to track owner distributions. This account is defined on the Company Settings screen, on the Account Settings tab.
By default, Breeze selects all the cash accounts. If you select cash accounts manually, and you keep deposits in a separate account, be sure to include it in the selection.
In the Pay Out Account field, select the cash account for the payable to the owner.
Click Display. Breeze displays a report.
The report shows a line for each property. The calculation in this case is Cash Balance minus Deposit minus Cash Reserve = Balance Due. In this example we are not paying over the deposits.
Click Post. Breeze creates an unposted payable batch.
Click the link to the batch to open it and post it.
Note: If the calculation results in a negative number, no payables are created.
Unpaid Payables For the Property
We recommend that you make owner distributions after you have paid all the outstanding payables. (If you make the owner distribution before you have paid all the payables, you might give the owners too much and then not have enough left for the payables.)
If there are unpaid payables for the property, a warning message appears when you click Display.
This is a "soft" warning: If you click OK, you can proceed with the distribution.
Draw Type: Pay Deposit
In the Draw Type field, once you select Pay Deposit for one or more owners, you must use it consistently for every distribution. If you select Hold Deposit, the system won't be able to calculate accurate owner draws because the funds for the deposit balances will need to be refilled at the property level. There is one exception: you can use the Flat Amount type after using Pay Deposit.
Multiple Owners per Property
If a property has more than one owner, the Pay Owner screen displays the percentage owned by each owner.
In the example shown above, Lee Radford owns 30% of the property and Tony Atwood owns 70%.
The numbers on the report represent the ownership percentage times the total amount for the property.