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You are here: Frequently Asked Questions > Checks and Cash Received > Receivables - I would like to deposit payments received without passing through receivables first. Is it possible? |
Receivables - I would like to deposit payments received without passing through receivables first. Is it possible? |
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No, it is not possible.
Condo Manager is not a "cash basis accounting system", it is a true "accrual accounting system".
The Sequence Is :
| • | You bill your owners (debit) (Transactions>Regular Assessment or special or Association's invoices or any other charges) and the system credits the revenue account |
| • | Then, with the checks (or cash) you have in hands, you collect them (menu : Transactions>Collection by Checks or Cash) |
| • | You may proceed with several collection sessions without having to produce your deposit slip each time |
| • | When you decide to go to the bank, you print your deposit which is already completed by Condo Manager |
You have nothing to do except to print the deposit slip and go the bank.
This way, you always know who owes money to the association because your receivables are managed normally and not on a cash basis.
You don't have to maintain a list of owners having paid or not. You surely understand that it is not because somebody did not pay that the amount is not due.
The list of receivables or their account statement shows everything, not only the amount they owe, but all transactions having affected their accounts. Statements are produced by default from the beginning of the year to the date of the day, but you can change these dates.
Also, with an accrual accounting, revenues are gained when the assessment is processed and amounts are immediately due by receivables.
If it is not paid, the amounts due by owners will stay as receivables as long as they are not paid.
And, even if you can't ever collect the money, it will not affect the revenues. You would make a write-off of the receivable and put the amount in the expenses as "bad debt"; you will never affect the revenues.