Tenants will occasionally pay rent ahead of schedule or submit funds before an invoice has been created. In these cases, the payment should be recorded as a credit on the tenant’s account so it can be applied to future rent charges.
Recording a prepayment as a credit ensures:
The tenant’s balance is accurate
The funds are available to apply to future rent invoices
The deposit appears correctly on the Property Receivables Report
When Should You Use a Payee Credit?
A payee credit is typically used when payment is received before it can be applied to an invoice, such as:
A tenant prepays next month’s rent early and the funds are in the Rent Trust account
If the tenant has delivered the funds to you but you have not deposited the funds into the bank yet then you can create an In-Person payment instead.
Record a Deposit Credit (Not Yet Applied to an Invoice)
If you’ve received a prepayment that has not been applied to an invoice yet, follow these steps:
Step 1: Go to the Receivables Page
Navigate to the Receivables section from your main menu.
Step 2: Click Post (Without Selecting Any Invoice)
Do not select an invoice first.
Instead, click Post directly to create a deposit credit.
Step 3: Enter Deposit Information
Fill in the required fields to create the credit:
Deposit account
Date
Property
Owner
Payee (tenant)
Amount (keep the amount +)
This will record the payment as a credit on the tenant’s account.
Step 5: Click Post
Once all deposits have been entered, click Post to save.
The tenant’s account will now show the payment as a credit to be applied later.
After posting, the credit (CR) will show on the Receivables page ready to be applied to a future outstanding invoice. Review this article on how to Apply the Credit
