Deposit Management: Deposit Required vs Deposit cashbooks vs Deposit Investments
The deposit that will appear on the tenant statement will depend on the manner that deposits are managed on PropWorx.
Option 1: Deposits are held in the rental bank account
- When you choose to keep deposits in the same bank account as the rental income, these deposits will be reflected in the account balance. To maintain accurate records, you must log them in the deposit holding account using trust journal entries (see JOURNALS).
- The tenant statement will display figures that correspond to the amounts entered under the 'deposit requirement' in the lease tab. To ensure that the deposit information on the tenant statement remains up to date, the user should periodically update the 'deposit required' field on the lease tab to reflect the correct deposit amount (see Manage Lease Details).
Option 2: Deposit are held in a separate trust account (Recommended for interest incurred to PPRA)
- If you opt to maintain deposits in a different bank account from the rental income, the deposits will be initially received in the rental trust account and subsequently transferred to the deposit trust account (see PAYMENTS (SUBMIT, AUTHORISE & GENERATE PAYMENTS))
- The deposit trust account is populated through a bank import process. The figures presented on the tenant statement will align with the amounts in the deposit ledger for that account (see Banking: Import Bank Statement).
- The values entered under the 'deposit requirement' in the lease tab can be considered as the guideline for what should be held (see Manage Lease Details).
- Interest will be lump-sum allocated to a deposit interest ledger (e.g., DIN001). The user will need to manually calculate the interest and execute a deposit journal to transfer the interest portion to the customer file (see JOURNALS).
- Ensure the “Use Deposit cashbook” under the Accounting Settings is enabled.
Option 3: Deposit is held in own investment account (Recommended for interest incurred to tenants)
- When deposits are maintained within an investment subaccount, they will initially be received in the rental trust account and subsequently transferred to the investment subaccount (see PAYMENTS (SUBMIT, AUTHORISE & GENERATE PAYMENTS)).
- The investment account data is imported through the investment bank import process. The figures presented on the tenant statement will reflect the amounts in the investment subaccount, showing the previous month's amounts (see Investment: Import Investment Account).
- The values entered under the 'deposit requirement' in the lease tab can be considered as the guideline for what should be held (see Manage Lease Details).
- Interest will be automatically allocated by the investment account.
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