Presenter: David Broxson February 17, 2009, 12:00 PM EST Please remember to call in to this webinar at: (712) 338-7030,

1. Presenter: David Broxson February 17, 2009, 12:00 PM EST Please remember to call in to this webinar at: (712) 338-7030, Access Code 535-964-531 Stand by, as we will begin in just a few moments… General Ledger Accounting

2. Using Webinar Technology Question & Answer This box appears on the right hand side of the screen and will allow you to submit questions to be answered. Any Questions that we don’t get to in the time of this Webinar will collected and addressed by close of day, Tuesday, February 17th.

3. General Ledger Accounting Today's Session • Account Numbers and Functions • Guest Ledger Basics • Security Deposits • Long Term Reservations

4. General Ledger Accounting We will begin today’s session my looking at the different account numbers used by Entech when working with guest ledgers, as well as how to set them up properly. Owner accounts will not be covered in today’s session, since we are only going to be dealing with those that affect the guest ledger.

5. General Ledger Accounting To begin with, we will take a look at setting up your accounts properly and what the function of each one is. To access the account setup section, you will go to Maintain/Company and then select the Accounting tab. This should bring you to a list of sub tabs, which you would then click on the one labeled Chart of Accounts if not there by default.

6. General Ledger Accounting The Chart of Accounts is divided into two sections. The section on the left is where you can modify your main account numbers, while the section on the right is used to modify sub-accounts.

7. General Ledger Accounting When working with guest ledgers, you will only be using account numbers 20-50. The accounts numbered 1-19 are reserved specifically for owner accounting. Guest accounts are divided into a few groups.

8. General Ledger Accounting Account number 20 is used to designate how much of a security deposit you will be charging the guest. This is used to determine how much of a security deposit to charge a guest. Account numbers 21-28 are guest charges that pay directly to an owner. These are used anytime you want the owner to receive money from a guest.

9. General Ledger Accounting The account numbers 30-39 are all guest charges that pay to a vendor. The vendor they pay to is determined by the property AP setting on each property. This allows for the same account numbers to be used to pay different vendors depending on which property the charge is being placed on.

10. General Ledger Accounting Account numbers 40 and 41 are guest payment accounts. These are used any time a guest makes a payment for anything other than a security deposit. Account 41 can only be used after a guest has checked in or cancelled, while account 40 can be used prior to check in or after. It is important to only use an account 40 before the guest has checked in when recording payments. The reason for this is because the account 41 does not update the front desk to show any form of prepayment.

11. General Ledger Accounting Account 42 is used any time a guest is making a payment to be applied towards a security deposit and can be used before or after check in. Account numbers 43, 44, and 50 should not be manually entered on a guest ledger. They are used by the system for specific functions. Account 45 is used to apply a portion or all of a guest security deposit towards charges on a ledger. It can also be used to transfer a credit balance into security deposit for refund.

12. General Ledger Accounting Sub-Accounts can be assigned to any account number in the 30’s excluding account number 38. These allow for multiple variations on accounts or for if you need more than nine. Sub-Accounts also can be assigned to pay to different vendors. Sub-Account 0 is the main account number, and does not need a vendor assigned as it uses the property AP setup to determine who to pay.

13. General Ledger Accounting Before continuing to the next section, we will pause here for a moment for any questions.

14. General Ledger Accounting In the next section, we will cover some basics of the guest ledger, such as adding charges and credits as well as removing them. We will also cover how to make changes to existing charges as well as the layout of the ledger screen.

15. General Ledger Accounting Above is an example of a standard ledger for a guest who has already checked out. We will start this section by going over some of the information on the ledger screen. We’ll also cover the buttons and what there functions are.

16. General Ledger Accounting The upper portion of the ledger screen displays useful information pertaining to the reservation in yellow. Information such as the guest name, the current balance of the ledger, and the scheduled dates of the reservation. You can also see the status of the reservation, the unit the reservation is for, and the reservation number.

17. General Ledger Accounting Below the reservation screen is a series of buttons used whenever changes are being made to the ledger. The print button allows you to print a copy of the ledger. The new button is used to add new charges or credits to the guest. The edit button allows you to make changes to some charge or credits. The delete button is used to remove certain charges or credit from the ledger. We will go into more detail for some of these buttons shortly.

18. General Ledger Accounting The main part of the guest ledger displays a separate line for each charge or credit and shows various information about it. The various columns are: Date, Account Number, Description, Pay Type, By, Status, Credit, Debit, and Balance.

19. General Ledger Accounting The account column displays which account being used for each line and has a different affect depending on the number. The By column displays the initials of the user who entered in the account number. The Status column shows if the account number has been posted, represented by a P, or escrowed, represented by an E, or both.

20. General Ledger Accounting The credit and debit columns show the amount of each credit or debit depending on the account number used. The balance column is a running balance showing how much the guest either owes or is owed.

21. General Ledger Accounting Clicking the new button on the ledger will bring up a new box. This box is how you add new charges and credits to the ledger by selecting the account number to use, the amount of the charge, a description, and the payment type if recording a guest payment.

22. General Ledger Accounting An important thing to remember about the Edit and Delete buttons is that if a transaction has any kind of status, they will not be available and will show as being grayed out like above. This is because items with a status have already been distributed and removing them could affect your balance sheet.

23. General Ledger Accounting Now that we’ve covered the basic layout of the guest ledger, we will look at some different examples of some guest ledgers and examine how each account number affects them.

24. General Ledger Accounting The below ledger is a basic example with a few charges and a single payment to bring it to a zero balance. The account 23 charges the guest and increases the balance due. This charge will pay to the owner. The account 38 and 32 are examples of guest charges that will pay to a vendor and increase the balance due as well. The account 40 is the guest payment by check for the full balance of the ledger. The 23 not only pays to the owner, but it is also what the management commission is based on. The account 38 is special in that it actually will be divided amongst different vendors depending on how your taxes are setup.

25. General Ledger Accounting The above ledger is an example of a canceled reservation where the guest was charged a cancellation fee and then refunded the rest of the prepayment to a credit card. The first account 40 is the guest original payment when booking the unit and credited the balance due. The account 31 is a cancellation fee that will pay to the management company. The last account 40 is where the remaining credit balance was then refunded back to the guest credit card.

26. General Ledger Accounting The next ledger is an example of a situation where the guest arrived at the unit and it had not yet been cleaned so the management company gave them a $50.00 credit. The first four lines are the normal charges and the guest payment for the unit with a check. The second account 40 shows that the guest was given back $50.00 in cash, which raised the balance due. The account 39 is a charge done for a negative $50.00 in order to reduce what the guest owes by the same amount and to zero the ledger out.

27. General Ledger Accounting Before we move on to some more examples using security deposits, we will pause for a moment for a few questions.

28. General Ledger Accounting The above ledger is an example of one that required a $200 security deposit and the guest paid for the full reservation with a single check. Even though a single check was used, two entries are required to show the payment properly. The account 20 is the charge for the security deposit itself. The account 42 is the portion of the check allocated to pay for the security deposit and the account 40 is the remainder of the check used to cover the other charges associated with the reservation.

29. General Ledger Accounting The reason for two separate payments recorded on the guest ledger even though a single check was given is due to the security deposit. In order for the security deposit and the other charges to show as being paid properly, an account 42 must be used to allocate that portion of the money to the security deposit then the account 40 for the remainder of the non-security deposit charges. Both payments can still be deposited together as a single check when doing bank deposits.

30. General Ledger Accounting Below is the same reservation, but after the guest had cause some damage in the unit. The account 30 is a charge to the guest for a broken lamp that will pay to the management company. The account 45 is used to take $100.00 from the security deposit in order to cover the cost of the broken lamp. An account 45 can be used in order to take money from a guest security deposit to pay for any extra charges they may have instead of requesting more money.

31. General Ledger Accounting A few notes when using an account 45. If you have separate bank accounts for rent payments and security deposits, you may be unable to use an account 45 and should contact support before doing so to determine if any issue could arise from doing so. Another important note is that once a 45 is added, it automatically receives an E status and cannot be edited or deleted. If a 45 is added by mistake, you will then need to do a second 45 for the opposite amount to correct it.

32. General Ledger Accounting The above reservation is the one from earlier where the guest received a credit for arriving to a dirty unit. In this instance, instead of giving the guest a cash refund, we can use an account 45 for a negative amount to transfer the $50.00 credit into the guest security deposit. The reason for doing this is so you can then print a check out for the guest instead of giving them cash or refunding the money to a credit card.

33. General Ledger Accounting Any time you want to give a guest a refund check, you will first need to transfer the money into security deposit first. The reason for this is because the only way to print a check out to a guest from Entech is through security deposit refunds.

34. General Ledger Accounting Above is the same reservation, but after a refund check has been issued. The account 50 is recorded by Entech anytime a deposit refund check is posted for a guest. The 50 will be recorded automatically with the check number issued. There is no need to have to manually enter an account 50 under normal circumstances.

35. General Ledger Accounting Finally, we will look at an example of a long term reservation and explain how to handle monthly payments from the guest.

36. General Ledger Accounting Above ledger is an example of a long term reservation that has been checked in. Currently it is only showing the first month’s rent and tax. There is also a new button available called Long Term. Pressing this button will then give you the option of generating the remaining charges for the up coming months and brings up this pop up box. This box allows you to revue the charges before placing them on the guest ledger.

37. General Ledger Accounting Above is what the ledger would look like if you allow Entech to place the monthly charges on the ledger. The main thing is to notice each set of charges is dated for the appropriate month that they apply for. This will allow the guest to pay on a monthly basis and allow you to distribute money to the owner monthly without having future months paid for. Next we will look at out to record the guest payments so that each month is at a zero balance.

38. General Ledger Accounting Above shows what the ledger should look like once the guest has paid the first month’s charges. Notice how the month of February is now at a zero balance while the remaining months still have a balance due. This will allow you to pay the owner for the month of February, but not any future months. Next we will look at how to record a full payment for the entire reservation from the guest.

39. General Ledger Accounting Finally, we look at the ledger after receiving a single check for the last two months. Even though it was a single check, we can still record it as two payments. The important thing is to place enough money in each month to zero it out. When doing bank deposits, the two entries can be deposited together as a single check. By recording the payment in this fashion, the guest has paid in full, but it allows you to only pay the owner once a month instead of every month at once.

40. General Ledger Accounting In summary, we looked at: • Account Code Setups and Functions • Ledger Layout and Basic Entries • Security Deposit Entries • Long Term Reservations

41. General Ledger Accounting Thank you for joining our General Ledger Session. Entech Client Care Team Contact Information. 866-746-6347 option 1, ext 1. OR entechsupport@instantsoftware.com We will be emailing you a copy of this presentation shortly.