Trainer:
David Michael
Title:
Accounting Trainer
Phone:
877-359-5492
Ext: 1225
Email:
dmichael@tenmast.
com
 Overview of
Integration – what modules post to
the Ledger
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Tenant Accounts Receivable
Section 8 Tenant & Landlord
Accounts Payable
Payroll
Consumable Inventory
Fixed Assets
 TAR
Integration Mapping – some basic rules of
what NOT to do.
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Cash Drawer Mapping
Separate GL Accounts for TAR and Repayment
Agreements
Security Deposit
Data Flow for Transactions
 TAR How
to trace back a Ledger Journal Entry to
the originating action that created it.

Search for a specific transaction and finding why
 Payroll

Department Profiles and Compensation Distributions
 Accounts Payable
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
Direct Charge to a single account or
Allocation Table – Percentage Distribution
 Section

8 T&L
Tracking Different Voucher Types total HAP Cost
 Consumable Inventory

Central Inventory vs. Multiple Warehouses
 Ancillary programs
– How does Purchase Orders
or Work Orders create General Ledger Journals
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Follow the flow of a Purchase Order to General Ledger
How does Work Order Transactions affect the General
Ledger.
 Fixed
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
Assets
Tracking Depreciation
Disposal of an Asset
Transferring an Asset

First, let’s talk about the Basic Setup for Account Management. Within
TAR, there are four different Types of Accounts.
Accounts Receivable Account. This is the master account that all customers
will have. This type of account records charges and payments. Each charge on
the account is due in full as of the date of the charge. Periodic payments are
allowed, but any charge not paid or credited off is past due as soon as the
charge date is passed.
 Escrow Account. An escrow account is a Security Deposit, Pet Deposit, FSS
Escrow account, or other account where the value on the account accumulates
or increases as payments are made into the account. There are no charges,
thus no transactions associated with this type of account. The user may setup
a Receivable (not a charge – see 6.a.i and 6.a.ii above), to show how much the
tenant should be paying, but receivables are not associated with any ledger
account number thus this does not create a journal transaction. The Payment,
however, does create a transaction, Crediting the Account and Debiting the
Cash Drawer. The balance of the escrow account continues to accumulate as a
negative balance to show that the Agency Owes the Tenant the amount
reflected on this account.
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

Revolving Credit Account. This is a Repayment
Agreement type account. Amounts Charged on the
primary Accounts Receivable Account are Transferred
to this account. This transfers the balance due. Then,
recurring Receivable amounts are defined for the
monthly payment amounts that should be paid to
reduce the overall balance due. Unlike the Accounts
Receivable Account, while the whole amount is due,
but the current payment amount is only part that is
Due Now. Again, there are no Transactions on this
account as all Charge Items have already been
recorded on the AR Account and transferred.
Mortgage Accounts. These are similar to the above
Revolving Credit Accounts in setup and actions.
 There
are two different terms on showing a tenant
owning money to the agency.
Charge – This is where you record the income at the time of
the charge. A charge is usually used when an amount due
from the tenant for services rendered is not already on their
account. I.e. Rent, Work Order Charges, Utilities.
 Receivable – This is where the increase on the tenant’s
account (or decrease depending on the type of account) is
done when the tenant actually pays on the account. I.e.
Security Deposit payments, FSS Escrow Payments, etc. A
Receivable is added to an account to show an amount due
without actually affecting the account balance.

 There
are three types of Actions you can take on a
tenant account.
Transaction – This is a type of Charge or Credit Memo. This
action directly results in an adjustment within the Ledger to
reflect this action.
 Transfers – These would be internal transfers between
accounts or transfer to another program such as Accounts
Payable for a refund request. This action also results in an
adjustment within the Ledger.
 Receivable – Showing the amount due, but not changing
any balances until collected or paid. This action only
references a future action, that when entered will create an
adjustment to the Ledger. This action by itself does not
affect the Ledger balances.

 Charging
a tenant for Rent, Services, late fees, or
basically anything. This will create an entry to
Increase (Credit) an Income account and Increase
(Debit) the Receivable Account associated with the
type of charge and the tenant’s development.
 The Tenant makes a Payment. This will create an
entry to Decrease (Credit) the amount the tenant
owes on the associated Receivable Account and
Increase (Debit) the amount of money held in the
cash drawer (physical drawer or desk or box or
where ever they put the money until the deposit is
made).
A
Deposit is made. This will Decrease (Credit)
the cash drawer account and Increase (Debit)
the Cash in Bank account.

Note that Items C and D require different GL Account
numbers to account for this data to flow correctly.
Failure to use different account numbers for Cash in
Bank and Cash Drawer will result in incorrect dated
entries in the Ledger Cash in Bank account and no cash
data flow integrity.

Special Note on Direct Debit Functions.
There are two ways to process a Direct Debit. One is to debit the
tenant’s bank account for the full amount the tenant owes. This
would include the normal monthly rent amount and any additional
charges or credits that have been applied to the tenants account. The
second method is a fixed monthly payment amount; usually this is the
amount of the monthly rent.
 These are treated differently within the system for GL Account
posting. The first method is treated just like a normal payment, the
amount is received into a cash drawer and then the cash drawer is
deposited.
 The second method skips the cash drawer function and the GL
Account posting is directly into the bank account. However, this last
function still requires the Cash Drawer to be setup, just the base GL
Account Number selected for the cash drawer is the Cash in Bank
account, not the normal cash drawer account.

The tenant’s check was returned by the bank as an NSF
check. This will record a series of transactions,
Decreasing (Credit) Cash in Bank, Increasing (Debit) the
appropriate Accounts Receivable account, and also
creating an additional Cost for the charge the bank
charges the client, Increasing (Debit) Bank Charge
Expense and an additional Decrease (Credit) of the
amount of Cash in Bank. There could also be a Tenant
Charge for the Returned Check Fee which will Increase
(Debit) the appropriate Accounts Receivable account and
Increasing (Credit) an Income account.
 Credit Memo to remove a previous charge will also
create entries in the Ledger. This will be the reverse of
the original charge function.
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
Transfer of Balances from one Account to another. As an account is a
detail listing of transactions that add up to the balance in the Ledger,
any transfer of the transactions or balance in the account to another
account also requires corresponding transactions in the Ledger to
reflect this transfer.
The tenant owes on an Escrow Account. Here you use a Receivable
action to show the amount due, but not to change the balance on
this account until the payment is actually made.
Requesting a Refund. This action does not, by itself, create any
journal transactions in the Ledger. It does, however, transfer the
amounts and appropriate ledger account numbers to Accounts
payable to generate a check to affect the refund. This check then
creates the Journal entry to record this action taken.

Then, there are the really fun specialty transactions. A Public
Housing Tenant signs up for the FSS program. When they qualify for
a transfer of Rent Paid into the FSS Escrow Account, there are specific
transactions and actions that are use to record this function. The
first three steps are done at the beginning of each month. The
fourth or Payment is done when it happens.
First, you record the normal Rent Charge.
 Next, there is a Credit Memo to reduce the amount due to the regular TAR
Account for the amount that will be paid into the FSS Escrow Account. See
item 6.g. This may be recorded in a different GL Account Number so that Total
Rent Charge is tracked and the Reduction of Rental Income due to FSS Escrow
Actions may also be tracked.
 Next, add a Receivable in the FSS Escrow Account for the amount of Rent
Payment that is to be transferred to this account. See item 6.i.
 Finally, the tenant pays.


Interest Earned or Charged on an account. Escrow accounts would
increase the balance due to the tenant when interest is added.

First, let’s talk about the Basic Setup for Account Management. Within TAR, there are four
different Types of Accounts.
Accounts Receivable Account. This is the master account that all customers will have. This type
of account records charges and payments. Each charge on the account is due in full as of the
date of the charge. Periodic payments are allowed, but any charge not paid or credited off is
past due as soon as the charge date is passed.
 Escrow Account. An escrow account is a Security Deposit, Pet Deposit, FSS Escrow account, or
other account where the value on the account accumulates or increases as payments are made
into the account. There are no charges, thus no transactions associated with this type of
account. The user may setup a Receivable (not a charge – see 6.a.i and 6.a.ii above), to show
how much the tenant should be paying, but receivables are not associated with any ledger
account number thus this does not create a journal transaction. The Payment, however, does
create a transaction, Crediting the Account and Debiting the Cash Drawer. The balance of the
escrow account continues to accumulate as a negative balance to show that the Agency Owes
the Tenant the amount reflected on this account.
 Revolving Credit Account. This is a Repayment Agreement type account. Amounts Charged on
the primary Accounts Receivable Account are Transferred to this account. This transfers the
balance due. Then, recurring Receivable amounts are defined for the monthly payment amounts
that should be paid to reduce the overall balance due. Unlike the Accounts Receivable Account,
while the whole amount is due, but the current payment amount is only part that is Due Now.
Again, there are no Transactions on this account as all Charge Items have already been recorded
on the AR Account and transferred.
 Mortgage Accounts. These are similar to the above Revolving Credit Accounts in setup and
actions.

This is the Accounts Receivable Ledger
Account Number.
This is used to define Which Cash Drawer any
payment on this account for this
development will be held in. This can be left
blank and select the Cash Drawer at the time
the payment is received.
For each Charge Type, Select the
Account mapping button
Select the Appropriate Income Account to
record the income derived from charging the
tenant. This example shows the Rental
Income account where the Transaction Type
description is Rent.
For each Cash Drawer available, Enter the Ledger Account
Number for the Cash on Hand account. This is NOT to use
the Cash in Bank account.
This is the associated account for
Cash in Bank.
So, when you Charge a Tenant, you will be Increasing
(Debit) the Customer Account Development Posting
Account and Increasing (Credit) the appropriate
Income Account.
 When the family pays you money, you will be
Decreasing (Credit) the Customer Account
Development Posting Account and Increasing (Debit)
the Cash Drawer Account
 When you deposit the money, you will be Decreasing
(Credit) the Cash Drawer Account and Increasing
(Debit) the GL Account Number associated with the
Bank Account.

Select the Ledger Account to track
Landlord HAP Payment Amounts.
Select the Ledger Account to
track Tenant URP Payment
Amounts.
Select the Ledger Account to track any payment
made for an Outgoing Portable Tenant where the
Landlord is the Receiving Housing Authority. Also,
select the account to track the Administrative Fee
that is paid over to the receiving Housing
Authority.
Which HAP – FSS Account do you want to
track the Cost of FSS Transfers? This could
be the regular HAP Account above, or a SubHAP Account to track separately. NOTE:
This is Not the Liability Account if you have
TAR.

The process of writing and posting Section 8 Checks
will create the Leger Journals accounting for the cost
of Housing Assistance Payments.

Thus, printing and posting Section 8 Landlord checks will
Decrease (Credit) Cash for the account linked to the Bank
Account the checks are written from and Increase (Debit)
the Cost of HAP paid, or the Landlord HAP account noted
above. If the payment is for an Outgoing Portable Tenant,
then the account selected by posting checks is the account
number defined for the Landlord Portable Voucher Payment
account and the Administrative Fee will be accounted in the
Portable Administrative Fee account. These accounts are
for the Outgoing Portable transactions only.

The FSS Escrow account will be the Expense or Cost of
transferring any money into an Escrow fund for the tenants.
The full transaction for a transfer to the FSS Escrow is:
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
An Increase (Debit) to the FSS Escrow Investment Account
A Decrease (Credit) to the General Fund where the check is
written.
An Increase (Credit) to the Tenant Payable – FSS Liability
account
An Increase (Debit) to the HAP Expense to record the cost of
transferring money.
The second and forth items above are processed and
posted from the Section 8 Tenant & Landlord Check writing
system and items 1 and 3 are posted by TAR to record the
cash received and deposited.

Consumable Inventory, (CI) tracks the items the
housing authority purchases and stores to be used,
primarily, for maintaining the property. That is,
maintenance materials, parts and supplies. It could
track office supplies, but this is not the normal or
customary process used by our clients. Any change to
the Inventory Account must have an equal and
opposite action on another account, but never the
same account as the inventory account itself. Using
the same account nullifies the action in the ledger and
thus the Ledger Balance will never match the Detail
Listing from Consumable Inventory.

Material Received Actions
A Purchase Order is issued to buy inventory items that are low or
new.
 The Purchase Order is received and the material is put on the
shelves in the maintenance warehouse and recorded on the
inventory log.
 A Receiving ticket is signed and sent to the accounting office to
match up with the invoice for the materials.
 Accounting gets this invoice, and on approval enters it into the
Accounts Payable system for payment.



If Accrual Method of accounting is used, this is where the Ledger is updated
for the cost of material ordered.
A check is written to pay the vendor for the material purchased.

If Cash Basis Method of accounting is used, this is where the Ledger is
updated for the cost of material ordered.
 Material
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Material is taken out from the warehouse and either
held in the maintenance staff’s truck or used in a unit.
If held in the truck, eventually the material is either
returned or used in a unit.
At the point used, the cost of the material is recorded
as an expense at the program level or AMP that owns
the unit where the material was used.
 Material

Used Actions
Transfers
Transferring material from one warehouse to another
warehouse.
 So,
since the Warehouse staff has a bit more to
worry about than what Accounting is up to, the
program is designed to allow Accounting to set
the GL Account Numbers to be used when actions
occur.
 There are two area’s where GL Account Numbers
are defined


In the Warehouse settings
And in the Development Cost settings.
First, Select Setup
Select Warehouse
For each Warehouse, Enter the
GL Account Numbers for each
type of Transaction.
The Warehouse Account is the Balance
Sheet Account where the total value of
all Inventory is maintained.
Dispose Account and Adjustment
Accounts are General Expense
Accounts that record changes in
Inventory not associated with
Using the material.
Select the
Development option
For each Development, enter the Cost of
Material Used account to be used for any
Usage of Material at a Development