The Business Master (4th Edition)

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PropMan Residential Property Management Software User Guide PropMan User Guide (c) Copyright 1991, 1993 by G. Curtis Feger PropMan Software (c) Copyright 1992, 1993 by G. Curtis Feger (c) Copyright 1986, 1988 by G. Curtis Feger / Jeffrey G. Gobel Copyright PropMan software is copyrighted. This User Guide is copyrighted. Unauthorized copying of either is a violation of both criminal and civil law. PropMan software is furnished under a license agreement and may be used and copied only in accordance with that agreement. No part of this manual may be reproduced or transmitted in any form or by any means, for any purpose, without the express written permission of the author. (c) 1991, 1993 G. Curtis Feger, All rights reserved. Copy Protection PropMan software is not "copy protected". We do not copy protect our software for the simple reason that such schemes give only minor protection against illegal copying but cause major inconvenience to legitimate users. PropMan software does have "copy detection" to detect illegal copying. Authorized users may make backup and archive copies with no restrictions. Illegal copying will cause PropMan to give erroneous results, to run erratically or not run at all. Evaluation Copies Fully functioning evaluation copies of PropMan are available. These include documentation, sample reports, a self running demo and an evaluation only, unlicensed, copy of PropMan software. Call or write PropMan at the address below. PropMan Property Management Systems 309 S. Ynez Ave. Monterey Park, CA 91754-3203 (818) 570-1071 PropMan User Guide Contents Part 1 Getting Started Section 1.1 Read Me First 2 Terminology 3 Installation and Update 4 Starting PropMan 5 Shutting Down PropMan 6 Help 7 New System Setup 8 Check Forms 9 Function Key Type 10 Chart of Accounts 11 Entering Vendors 12 New Building Startup 13 Building Changes 14 Building Information - General Screen 15 Building Information - Owner Screen 16 Building Information - Mortgage Screen 17 Building Information - Unit IDs 18 Entering Tenants for New Buildings 19 Activating a New Building Part 2 Ongoing Operations Section 2.1 Monthly Checklist (Checkwriter off) 2 Monthly Checklist (Checkwriter on) 3 Tenant Financial Activity 4 Miscellaneous Receipts 5 Bank Deposits 6 Paying Bills 7 Entering Invoices 8 Changing Invoices 9 Check Writing 10 New Tenants 11 Moving Out Tenants PropMan User Guide Contents Part 3 Month End Section 3.1 Backing Up PropMan 2 Checkbook Reconciliation 3 Bank Reconciliation 4 Month End Close Part 4 When Needed Section 4.1 Rent Changes 2 Accounting Corrections 3 Deleting Vendors 4 Purge Files 5 Building to Building $ Transfers 6 Reserve Account Activity 7 Impound Accounts 8 Mortgages, New, Payoffs / Re-financing 9 Out of Pocket Expenses Index Combined Index for User Guide and Reference Manual NOTE About this shareware User Guide. The printed User Guide and Reference Manual use multiple fonts, italics, bold print and the like to improve their appearance and readability. The printed manuals are included with the purchase of any of the Registered or larger PropMan systems. This copy of the PropMan User Guide is bundled with the Shareware version of PropMan software. It has all of the same sections and topics as the printed User Guide. In essence it is identical to the printed manual, but in order to maintain compatibility with all printers we have eliminated font, style and other non-universal control codes. It is in open ASCII text using only Carrige Return and Form Feed, recognised by all printers. PropMan User Guide Read Me First 1.1 Section (This section, titled "Read Me First", is Section 1.1 in the PropMan User Guide and Chapter 1 in the PropMan Reference Manual.) PropMan residential property management software was designed specifically for property owners and managers. It provides an accounting system to handle financial information and tenant records in a consistent manner for all properties under their control. Yet it keeps the information separate for each property for individual reporting and income and expense analysis. PropMan has a context sensitive Help function built in (see User Guide section 1.6 Help; or Help in Using PropMan, Chapter 3 of the Reference Manual). Anytime PropMan is in use, one or two keystrokes will bring information to the screen. In addition there are two printed manuals; a step by step User Guide and a Reference Manual. Installation PropMan installation and update is covered in Section 1.3 of the User Guide. More information can be found in Appendix A of the Reference Manual. Reference The Reference Manual gives detailed information on how the Manual PropMan system works. First, there is an overview of the system and the organization of the accounting data. Following this, the major part of the book is a detailed description of the format of each display screen and the use of each field. The Reference Manual also contains the system error messages and some computer operation considerations. User Guide The PropMan User Guide is a tutorial to help you get started with PropMan. It is designed to lead the user through specific operations, such as entering a property, moving in a tenant or entering an invoice, one step at a time. The instructions in the User Guide do not address every field on every screen. They are task oriented, often keystroke by keystroke, instructions for a particular operation. In an afternoon you can begin using PropMan. The User Guide will teach you how to use features as you need them. Printing There are printing conventions used in the two manuals to Conventions help you understand and locate things quickly. See NOTE When reference is made to another section in the same book, on previous the section title is printed in bold and underlined: page Title Example PropMan User Guide 1.1 Read Me First Section References to sections in the other book are stated explicitly: Title Example in the "other book". In the explanations of the operation of PropMan and the descriptions of the screens, there are references to specific words or phrases that are used on the screens. These are in italic type. Words in italic type actually appear on some PropMan screen. They may be on the screen being described or some other screen and they may be abbreviated. These could be field names, menu selections, prompts, error messages and so on. Many of these terms will also be in the Index. Field Title Example Different versions of PropMan have different capabilities. Also, PropMan's operation varies somewhat depending on which features are being used. One step, several paragraphs, or whole sections may pertain only to a specific version or optional feature. In this case the pertinent part of the text is identified by bold type naming the feature or version it describes: PROFESSIONAL VERSION ONLY: Example Any time you are requested to use a specific key on the keyboard, that key representation will be enclosed in angle brackets: <Enter> When you are told to make a specific entry, the characters will be shown in quotes. Type all of the characters between the quotes, including any punctuation, but do not type the quotes: "PROPMAN" Organization The Reference Manual has the details of PropMan operation of Reference Chapter 1 - Read Me First. This introduction. Manual Chapter 2 - General Information. This covers the accounting and record keeping done by PropMan. It will introduce you to the terms and concepts involved and also explain the over- all organization of PropMan. PropMan User Guide Read Me First 1.1 Section Chapter 3 - Using PropMan. This explains starting and stopping PropMan. It also covers the built-in Help and how the menus and function keys are used to control PropMan's actions. Chapter 4 - Menus and Screens. Here are the detailed descriptions of each field on each display. Chapter 5 - Errors. This describes the types of error indications used by PropMan. Appendices. Appendix A - Installing PropMan explains how to install the system in your computer. Appendix B - Archiving and Backups discusses what these operations are, why and how often they should be done. Appendix C - List of Figures is a list of the screen displays reproduced in the manual. Appendix D - Free Form Letters and Notices explains how to write custom notices or mass mailings. Appendix E - On Screen Calculator explains the operation of the built in calculator. Appendix F - Error Messages is an alphabetical list of the error messages. Appendix G - License Agreement is a copy of the agreement under which you use PropMan. Index. The same index is in both the Reference Manual and the User Guide. It refers you to the appropriate sections in both books. Organization The individual sections in the User Guide are independent of but are grouped roughly according to when or how often the User Guide operations are needed. For many operations, a series of steps is listed in detail. Other times the steps given are more general. This is done when an operation may be performed differently in different situations, or when you are directed to operations covered in other sections. Part 1 - Getting Started. These sections cover installing PropMan, entering start up data and entering buildings into the system. Part 2 - Ongoing Operations. The operations here are done on a continuing or even daily basis. Part 3 - Month End. These activities are normally done monthly or at month end close. Part 4 - When Needed. Less common activities with no particular schedule are here. Their use will vary widely from person to person. Index. The same index is in both the Reference Manual and the User Guide. It refers you to the appropriate sections in both books. PropMan User Guide 1.1 Read Me First Section A Part 1, Getting Started, Sections 1.1 through 1.19 in the reasonable User Guide will lead you through the installation of start PropMan, and start up of your first building. If PropMan is already installed on your computer and you are computer literate, you might scan sections 1.1 through 1.11. Then follow 1.12 through 1.19 to get your first building in and operating. Quick This is for those of you who want to jump right in and run start the program. Here is the minimum of what you need to know to get started. <Esc>, the Escape key is the normal exit for all PropMan operations. Each press is a step out. The last step is back to DOS. <F1> is help, always. Press it anytime. The help is specific to the screen and the particular field where the cursor is located. First a graphic of the function keys is displayed, press F1 again and you get the on-line help text. The help text has information about: where you are, what choices are available, what the data is used for, what it is related to, what is required for a valid entry and your options. The other function keys are used to: change the screen display, change the data displayed, step through lists of choices and other operations. Their uses vary from field to field. Press <F1> to see. Sometimes there is a small up- arrow displayed with the key label. The up-arrow means that for this action, hold the shift key while pressing the function key. You will sometimes see (Screen x of x) in the screen title. There is more information than will fit on one screen. Use the function keys to see the other screens. Press <F1> to see which function key calls up which screen. After using <F1> for help, press <Esc> once to remove the help display, then press the desired function key or continue PropMan operation. The last line on the screen is a prompt. It always lets you know what is expected or allowed for input at the current cursor location. When (Prev/Next) is displayed as part of the prompt it means that there is a list of allowable entries available. Use the function keys to step through the list. There are different function key displays for 10 function key and 12 function key keyboards. From the MAIN MENU select SYSTEM MAINTENANCE and then SYSTEM PARAMETERS. Move the cursor to Function Key Type and press <F1> for help. PropMan User Guide Read Me First 1.1 Section Entering PropMan operates with a single Processing Month. It is the data same for all buildings in the system. The Initial Processing Month and year are entirely up to you. You may change the initial processing month until you make the first building ACTIVE (read on). When the first building is made ACTIVE, PropMan starts normal monthly processing. For monthly processing, all business, rents, mortgages, operating expenses, etc. for the current Processing Month should be entered. After all business for the month for all buildings has been entered, close the month. The Month End Close is simple but required. It tells PropMan that one month's business activity has ended and the next month's has started. To close a month, select MONTH END OPERATIONS, then select MONTH END CLOSE. PropMan will step to the next Processing Month. All business will now be recorded in this new month until it is closed. Starting There are three steps (the next three paragraphs) required a to set up a building in the PropMan system. Remember, when building entering data for a month in the past, enter the information as of the beginning of the month, before any of the month's business had taken place. As soon as the building is ACTIVE, you will want to enter the month's business. Enter building information by selecting SYSTEM MAINTENANCE, then NEW BUILDING STARTUP. Here you assign a number (three full digits, 100 and above) to the building. Then enter data about the building on multiple screens (use the function keys to move between the screens). The building number, the number of units and their IDs cannot be changed later (but you can re-start the building and enter different data). Anything else about the building can be changed if necessary. After completing all three screens, use <Esc> to set up the building and return to the menu. Select DAILY OPERATIONS then TENANT ACTIVITY. Enter information about all tenants who occupied the building at the time you are starting it. For tenants who were already there on the start up date, Date In (estimate if necessary), Paid To and Due Day must be entered. ACTIVE-ate the building by selecting SYSTEM MAINTENANCE, then BUILDING CHANGES. Move the cursor to Building Status and change it to ACTIVE. Press <F1> if you need help. If this is the first building you have made ACTIVE, monthly operations as explained above will now begin. If you are adding this building to the system, you may now enter its activities starting with this month. PropMan User Guide 1.2 Terminology Section The following is a list of definitions explaining the terms and expressions that are used throughout the PropMan User Guide text. Please take a moment to insure that you are familiar with them. Archive - accounting information preserved from previous processing months and years. Arrow Keys - four keys, usually grouped together on the right side of the keyboard and/or on the numeric keypad, that have an arrow on them pointing either up, down, left or right. The up arrow key functions the same as the <Back Tab>. The down arrow key functions the same as the <Enter> key. The left and right arrows are used to move your cursor left and right within a field. <Back Tab> - a back tab is performed by holding down the <Shift> key and pressing the <Tab> key. This moves the cursor back one field. Cursor - a movable flashing spot of light on the screen. It indicates where the next character is to be entered or replaced, or which item in a list or menu will be selected. Data - information that is input by the user or calculated by PropMan. <Enter> - the Enter or Return key. This key is usually located on the right side of the typewriter section of the keyboard. In some cases it may only be marked with a bent arrow or the letters CR. It is used to end an entry. It instructs PropMan to move on to the next field or to act on the data or item selected. <Esc> - the Escape key. Usually found on the upper left or upper right of the typewriter portion of the keyboard. Used to exit whatever operation is being performed at the time. It is also the only way to exit from PropMan. Field - any one thing of interest. For example, a building number is a field. The building name is a field. Each line in an address is a field, as are phone numbers, tenant names, and so on. PropMan User Guide Terminology 1.2 Section Function Keys - labeled F1 through F10 and located down the left side of the keyboard or labeled F1 through F12 and located across the top of the keyboard. (see HELP). Input - any data that the user enters into the computer. Menu - a list of items that the user selects from. Prompt - a cue or reminder of what input is expected from the user. PropMan always displays a prompt as the last line on each screen. Screen - the TV-like computer display. Screen can also mean a particular group of data being displayed, such as Tenant Financial screen, or Invoice screen. <Shift> - signifies either of two keys found on the left and right extremes of the typewriter section of the keyboard, usually marked with an up arrow. These keys are used primarily to change the case of the alphabetic keys. They are also used in conjunction with some of the function keys as outlined in HELP . <Tab> - key usually found in the upper left hand portion of the keyboard, and is sometimes marked with arrows pointing left and right. When you press this key it will move the cursor to the next entry field. PropMan User Guide 1.3 Installation and Update Section PropMan is self-installing. The same installation program is used both to install new systems and to update existing systems. PropMan is delivered on 1, 2 or 3 disks, depending on the PropMan version and the capacity of the disks. Always start the installation with disk 1. If the install program needs the other disks it will request them. When you run the installation program, it will ask for the location of the source disks (in which drive is the PropMan installation disk), the serial number (printed on the installation disks labels, include all letters, dashes and digits) and for your name (the person or company who owns this copy of PropMan). The installation program does the rest. It will also allow you to specify custom installation, see Appendix A of the Reference Manual. If you are installing a new PropMan system, select Install when the install program asks for the operation. This will install a new, empty PropMan system. If you re-install PropMan over an existing system, the old data will be lost. The program will warn you before it removes the old system. If you are currently running a PropMan system and wish to update the system while retaining your current data, select Update when asked for the operation. To install 1 Turn on your computer in the normal manner. or update PropMan 2 Shut down Windows or any other shell or menuing program if you are using one and get to the DOS prompt. 3 Mount the first PropMan disk in any drive. 4 Enter the command: "A:PMINSTAL" if the PropMan disk is in the A drive, or "B:PMINSTAL" if the disk is in the B drive. 5 The installation program will ask questions about the installation and then install PropMan. 6 When completed, a message will display stating that the installation is done. 7 Press <Esc> to return to DOS. Remove the installations disks and put them in a safe place. 8 If the installation program made changes to your CONFIG.SYS file, you must reboot your computer before running PropMan. Press the computer reset button or press and hold the <Ctrl> and <Alt> keys, then press the <Del> key. Your computer will reboot. PropMan User Guide Starting PropMan 1.4 Section If PropMan has not been installed on your system refer to Installation and Update for instructions. The installation program offers to set up a batch file to run PropMan. If you allowed it to create this file, the following will start PropMan. If you did not create the batch file during installation, you may add it. Re-run the installation program and Update your system. When it offers to create the start up batch file answer <Y> for Yes. Use the PropMan makes extensive use of the current date to schedule correct date tenant actions, to determine if rents and bills are due and and time so on. Always run PropMan with the correct current date or you may get unexpected results. PropMan does not use the time of day, but does display it on the screen while running. If you are using a menuing system to call up your programs, you may include PropMan on your menu. Follow the instructions for your menuing system to include PropMan on the menu. To run the 1 Start up your computer in your normal way. PropMan batch file 2 At the DOS prompt type "PROPMAN" and press <Enter>. PropMan User Guide 1.5 Shutting Down PropMan Section Every operation in the PropMan program is exited in the same manner. The <Esc> key terminates or exits the current operation and takes you one step out of the program. To exit PropMan press the <Esc> key until you have returned to the DOS prompt or to your menu system. DO NOT turn off the machine while PropMan is running! You can tell that PropMan is no longer running when there are no PropMan menus or screens on your display. PropMan User Guide Help 1.6 Section The Help function is a reference manual that is always available. For Help, Press <F1>. You first see a graphic display of the function keys. Function keys are used to call up different data or displays and control certain operations. Different function keys are active at different times. The keys that are labeled are active for the current screen and cursor position. More Help The F1 key is always labeled MORE. For more help, press <F1> again. The key display is removed and a window opens up with a description of the data at the cursor location. The word MORE on the last line means that there is more information than would fit into one window. Press <F1> again to see the next window full of text. Press <Esc> to exit Help before continuing operations. Using Help In this User Guide you will be directed to use the Help function key display to find the proper function key for various operations. For example: 1 Press <F1>. Find the key labeled Next Vendor. 2 Press <Esc>. 3 Press the Next Vendor function key. When you press <F1> you will see the graphic function key display. Find the key labeled Next Vendor and note its number. Press <Esc> to exit help, then press the function key that was labeled Next Vendor. 10 function PropMan has displays for both 10 function key and 12 keys function keyboards. See Function Key Type to select the and display that matches your keyboard. 12 function keys PropMan User Guide 1.7 New System Setup Section There are two data items that must be specified when a new PropMan system is started. Once PropMan has begun normal monthly operations these items may not be changed. These are the initial processing month, that is, the first month for which data is to be collected, and the fiscal year. These are both entered on the New System Setup screen. Each time you run a new PropMan system that is not yet managing properties, this screen is shown. You may change the month or fiscal year. When you make your first building ACTIVE, PropMan begins its ongoing operations. The system is then no longer in the process of being setup, it is operating. The New System Setup screen will no longer be shown. The current Processing Month is set to the initial processing month and year. The year end close is set for the month specified by your fiscal year selection. Initial PropMan groups financial data by business month called the Processing Processing Month (and Year). This determines the month and Month and year for which financial activity is currently being year processed. It does not necessarily have to match the current date. There is only one processing month for all buildings in the system. You must enter all data for all buildings for a given month before closing the month. The choice of an initial processing month is entirely up to you. A new PropMan system can start recording financial information beginning with any date; the current month, the beginning of the fiscal year (or even a previous year), the date when you purchased your property or any other date that is significant to you. If a month in the past is selected, each month's business must be entered and the month closed, in sequence, to bring the system up to the current date. When you make your first building ACTIVE, the Processing Month is set to the initial processing month and year. PropMan is now recording activity for this month's business. From now on the processing month will change only when you perform a Month End Close. Each time a close is performed the Processing Month will advance one month. If you have several buildings to put into PropMan; startup, activate and enter the month's activity for all of them, before closing the month. If you acquire buildings in months after the initial month, merely startup and activate them in the appropriate month. PropMan User Guide New System Setup 1.7 Section Fiscal year PropMan keeps year-to-date data, year-end archives and performs year-end closes for any fiscal year you choose. There is only one fiscal year for all buildings in the system and it may not be changed after the system is in use. On the New System Setup screen you specify the last month of the fiscal year. PropMan will schedule the year-end operations to be performed as part of the month end close for that month. PropMan User Guide 1.8 Check Forms Section OWNER AND PROFESSIONAL VERSIONS ONLY Formats The PropMan checkwriter will print checks in four different formats. Normally one of these will be available from your bank. If they are not, call PropMan, we can direct you to a supplier. To see a sample of the check format, follow the steps in Check Writing. Select 'No' for all of the check types and then enter 'Yes' for Cut Checks. From the Cut Checks screen enter 'Yes' for Print Test Form. This will print a void check in the current check format. Repeat this with each format. You may then take these forms to your bank or other supplier to see which of their forms match. OWNER VERSION: If you choose any of the formats, the checkwriter is turned on. There is an additional selection, No Checkwriter. If you choose this, the checkwriter is turned off. Checkwriter operations will not appear on the menus and PropMan operates without the checkwriter. Form type PropMan prints both pin-feed, continuous form checks and single sheet checks designed for laser printers. Continuous form checks are printed with no break between checks. Single sheet checks are printed with an additional check stub and the page is ejected after each check. To select 1 From the Main Menu select System Maintenance. Check Forms 2 From the System Maintenance Menu select System Parameters. 3 Press enter until the cursor is on the first line under Check Forms. Function keys are used to step through the available forms. Press <F1>. Find the key labeled Next Check Format. The up arrow means that the shift key will be used. Press <Esc>. Hold the <shift> key and press the Next Check Format key. The next check format will be displayed. When you reach the form you want, press <Enter>. 4 Press enter until the cursor is on the second line under Check Forms. Function keys are used to select the form type. Press <F1>. Find the key labeled Next Form Type (the same as the Next Check Format key in step 3 above). The up arrow means that the shift key will be used. Press <Esc>. Hold the <shift> key and press the Next Form Type key. The check form will switch between continuous and single sheet forms. When the desired type is displayed, press <Enter>. PropMan User Guide Check Forms 1.8 Section 5 Press <Esc> to return to the System Maintenance Menu. 6 Press <Esc> on System Maintenance Menu to return to the Main Menu. PropMan User Guide 1.9 Function Key Type Section Many of the operations of PropMan are controlled by the function keys. Pressing function key <F1> displays a graphic of the function keys showing their current uses (see Help). The two common keyboard layouts either have function keys labeled F1 through F12 at the top of the keyboard or keys F1 through F10 on the left side of the keyboard. PropMan has a graphic for each of these layouts. All functions are available from either keyboard, but the key assignments are different to make their use more convenient. Set the 1 From the Main Menu select System Maintenance. Function Key Type to 2 From the System Maintenance Menu select System Parameters. match your keyboard 3 Press enter until the cursor is on Function Key Type. Function keys are used to select the display type. Press <F1>. Find the key labeled Next Key Type. The up arrow means that the shift key will be used. Press <Esc>. Hold the <shift> key and press the Next Key Type key. The key type will switch between 10 key and 12 key. When the desired type is displayed, press <Enter>. 4 Press <Esc> to return to the System Maintenance Menu. 5 Press <Esc> on System Maintenance Menu to return to the Main Menu. PropMan User Guide Chart of Accounts 1.10 Section Each building has completely separate financial information but they all share a Common Chart of Accounts for account names. For example, if account 1410 is plumbing expenses; each building will have its own account number 1410, and each of those is for plumbing expenses for that particular building. The PropMan Chart of Accounts is made up of several categories or summary accounts. Summary accounts are the major headings such as Utilities, Fixed Expenses, Replacements, etc. Most Summary accounts contain nine Detail accounts. Certain accounts with special uses contain fewer than nine. The Detail accounts are the specific categories where income is recorded and expenses are charged. For Example, under the summary account Utilities you might have the detail accounts Electricity, Water, and Gas. The summary account titles are fixed, meaning they may not be changed. PropMan is delivered with many of the more common detail account names set up. Most of these may be changed if you wish. However, a few of the detail names are permanently assigned. Financial data is tracked by account number. When you change the name of an account, financial activity already recorded for that account number is unaffected. Individual PROFESSIONAL VERSION ONLY: There is also an Individual Chart Chart of of Accounts for each building. This is a separate set of Accounts account names available only to that building. Each building may use either the common or the individual chart of accounts and may switch between them as desired. See Building Information -General Screen. To change 1 From the Main Menu select System Maintenance. account names 2 From the System Maintenance Menu select Chart of Accounts. 3 The Chart of Accounts, Summary accounts screen comes up displaying the summary account categories. The cursor is on Display Detail Accounts for Summary Account:. Type in a summary account number and press <Enter>. 4 The detail accounts for the summary account you selected will be displayed. Your cursor will be on one of the detail account names. You may change detail account names by typing in the new name over the existing one and pressing <Enter>. Use the <Enter> key to move from one detail account to the next. PropMan User Guide 1.10 Chart of Accounts Section 5 After the last account name the cursor moves to Building. PROFESSIONAL This is initially set to COM. You are reviewing and changing VERSION ONLY the Common Chart of Accounts. To edit the Individual Chart Step 5 of Accounts for a specific building, enter the building allows you number. You may edit an Individual Chart of Accounts only if to change the building is currently using its Individual Chart of between the Accounts (see Building Information - General Screen). Common and Individual Chart of. Accounts. 6 To return to the Summary accounts screen, press <F1>. Find the key labeled Summry Screen. Press <Esc>. Press the Summry Screen function key. Return to step 3 to select another detail account display. 7 To step to the next set of detail accounts in sequence, press <F1>. Find the Next Detail function key. Press <Esc>. Then press the Next Detail function key. Return to step 4 to modify these account names. 8 Press <Esc> to return to the System Maintenance Menu. 9 Press <Esc> on System Maintenance Menu to return to the Main Menu. PropMan User Guide Entering Vendors 1.11 Section Vendors are anyone to whom you pay money for a product or service. It is not necessary to enter vendors that you will only use a single time or very few times, but you may. Plumbers, gardeners, electricians, mortgage lenders and utility companies are all examples of vendors. Enter the vendors in any order. PropMan will assign each vendor a unique number. When you refer to vendors later, you may use their name or the number. PropMan maintains the vendor list both numerically and alphabetically. Vendors are not specific to particular buildings. Any building may have an invoice from any vendor. However, if you want to keep the vendors segregated by building you may. You may even enter the same vendor multiple times. PropMan will assign distinct numbers even if two vendors have the same name. Enter There will be times when you spend your personal money for yourself property expenses. This could be out of pocket money, a as a Vendor check from a personal account or charging a property expense to your personal credit card. It is easy to track these and reimburse yourself if you enter yourself in the system as a vendor. See Out of Pocket Expenses. 1 From the Main Menu select System Maintenance. 2 From the System Maintenance Menu select Vendor list. 3 Your cursor is on Vendor Number. To add a new vendor, enter a zero. PropMan will assign the next vendor number in sequence. To view or change an existing vendor, enter the number. 4 On Name type in the name of this vendor and press <Enter>. For proper alphabetization, enter person's names as Last, comma, First; and enter business names without commas. 5 The cursor skips Status, while vendors are being entered they always have a status of NEW. 6 The cursor is on the first Phone number line. Type in the phone number for this vendor and press <Enter>. Repeat for the second Phone, if there is one, and press <Enter>. 7 The cursor is on Tax ID. Enter the Social Security Number or other tax reporting number. OWNER AND PROFESSIONAL VERSIONS: When PropMan prints Vendor 1099's, it skips vendors without Tax IDs. PropMan User Guide 1.11 Entering Vendors Section 8 On Service type in a description of the service this vendor provides and press <Enter>. 9 On Contact type in the name of the person you normally contact for this vendor and press <Enter>. 10 On Reference you may type in any note you may wish to keep about this vendor's products or services. Press <Enter>. 11 Your cursor is now on the first of four Address lines. Type in the Vendor's billing address, pressing <Enter> after you type each line. 12 Your cursor is on Default account. Enter the expense account that will usually be charged for invoices from this vendor. Press <Enter>. The name of the account is displayed. This default is an aide to speed up invoice entry. Invoices from this vendor will be charged to this account unless you specify otherwise when the invoice is entered (See Entering Invoices). As an example, when entering a plumber, use plumbing expenses as the Default account. 13 You can step through the accounts in sequence. Press <F1>. find the function key labeled Next Acct #. The up arrow means to use the shift key. Press <Esc>. Hold the <Shift> key and press the Next Acct # function key. PropMan will step through the accounts. When you find the desired account, press <Enter>. 14 Your cursor is now under Notes. There are four lines provided here for any notes you may have on this vendor. Press <Enter> after you type in each line. 15 Press <Esc> to return to the System Maintenance Menu. 16 Press <Esc> on System Maintenance Menu to return to the Main Menu. PropMan User Guide New Building Startup 1.12 Section In PropMan, a building is any entity for which you wish to keep separate financial records. A building could be an apartment complex, duplex, a single family dwelling or a group of buildings at a single site. A building is a specific, independent investment for which individual decisions can be made. For example: two houses on a single lot should be entered as a two unit building; however, two condominium units owned in the same condominium complex would be two, one unit buildings, because they are independent financially and can be individually kept, sold, refinanced, upgraded and so on. Several steps are required to start a building in PropMan. During the start up process buildings have a Status of NEW. Background information about the building can be entered. Mortgage, reserve and deposit balances can be entered directly, as well as information about the tenants already residing in the building. All of this tells PropMan the background of the building, so it knows where to start. No financial activity is allowed while the building is NEW, only existing balances in accounts where the money is already collected or owed. For example, you may not enter rent payments while the building is NEW but you may enter the amount of money you are already holding as security deposits. The last step is to activate the building. Once the building Status is ACTIVE, you have an operating building. Rents can be collected and bills can be paid. All financial transactions and reports are allowed. Before you ACTIVate your first building be sure to review the section New System Setup regarding the initial processing month and the fiscal year. To startup 1 If the building has mortgage payments enter the lender as a a NEW vendor according to Entering Vendors. building 2 From the Main Menu select System Maintenance. 3 From the System Maintenance Menu select New Building Start- up. 4 Your cursor is on Building. Assign a number between 100 and 999 to identify this building. If you select a number that is part of the building address, it will be easier to remember. PropMan User Guide 1.12 New Building Startup Section 5 The cursor is on Startup building. PropMan displays a message saying that the building number is either unused or in use already. If the number is unused, you will be creating a completely new set of building records. If the number is already in use, it will be reassigned to the new building being entered. You may re-use a building number, however all accounting, unit, tenant and history information for the building previously using this number will be lost. If you have made an error and wish to use a different number, press <N> for No, press <Enter>, and return to step 4. If you wish to continue, press <Y> for Yes and press <Enter>. 6 If you are reusing a building number, PropMan will display a second question. You may retain the background information for the building, such as it's name and address, mortgage information, apartment numbers. The unit, tenant, and accounting information are always erased. Your cursor is on Clear data. Press <N> for No to retain the background information, or <Y> for Yes to clear all of the old building data. Press <Enter>. Perform steps 7-10 7 Enter the building data according to Building Information - without General Screen. exiting New Building 8 PROFESSIONAL VERSION ONLY: Enter owner data according to Startup. Building Information - Owner Screen. You may repeat any 9 Enter mortgage data according to Building Information - of the Mortgage Screen. steps. Use function 10 Enter Unit IDs according to Building Information - Unit IDs. keys to return to the desired screen. 11 Enter data about the tenants currently in the building according to Entering Tenants for New Buildings. 12 Activate the building according to Activating a New Building. PropMan User Guide Building Changes 1.13 Section Building Changes uses the same screens, and allows most, but not all of the same data entry as New Building Startup. During Building Changes the Unit Identification screen is for review only. Unit IDs must be entered during New Building Startup. Except for Unit IDs, the building Status determines which data may be changed. If the building Status is NEW any data may be changed. If the building Status is ACTIVE, non-financial data and financial data that affects future operations may be changed, but not account balances. If the building Status is DELETED all data is review only and none may changed. The individual Building Information -sections covering each screen describe in detail what data may or may not be changed. You may access the screens in any order. Each time you transfer from screen to screen, any changed data is saved. To change 1 From the Main Menu select System Maintenance. or review building 2 From the System Maintenance Menu select Building Changes. information 3 Review or change building data according to Building Information - General Screen. 4 PROFESSIONAL VERSION ONLY: Review or change owner data according to Building Information - Owner Screen. 5 Review or change mortgage data according to Building Information - Mortgage Screen. 6 Review Unit IDs according to Building Information - Units Screen. PropMan User Guide 1.14 Building Information - General Screen Section This is the first screen displayed when building information is entered or changed. There are several screens used for building information. This one records general descriptive and financial information. Building information screens are accessed through either the New Building Startup, or the Building Changes operations. Function keys are then used to step forward and backward through the various building information screens. On the help display the key labels change to show the next screen in each stepping sequence. However, the same two keys are always used. To call up the desired screen, press F1. Two of the keys will be labeled with two of the following: General, Owner, Mortgage or Unit ID. If the name of the screen you want was shown, note that key. If not note either of the two keys. The up arrow means that the shift key will be used. Press <Esc> to remove the key display. Press the selected key. Continue pressing the same key to step through the screens until the desired screen appears. To enter 1 If you are performing Building Changes the cursor is on or change Building. Enter the building number. general information 2 The cursor is on Name. Type in the name for this building and press <Enter>. If the building is not named, its street name is a convenient way to refer to it. 3 During New Building Startup the Status is NEW and may not be changed. If you are performing Building Changes the cursor moves to Status. Enter <A> to make the building ACTIVE and begin financial operations (first see Activating a New Building). Enter <D> to mark the building DELETED, no further financial activity will be allowed. 4 Your cursor is on the first line of the building Address. Enter up to four lines as required. Steps 5-9 5 The cursor is on Chart of Accounts. Enter <C> to select the refer to Common chart of accounts for the building. Enter to items in the specify that the building is to use its Individual chart of PROFESSIONAL accounts. VERSION ONLY. 6 The cursor is on Minimum. If there is minimum management fee to be charged to this building, enter the dollar amount. Press <Enter>. PropMan User Guide Building Information - General Screen 1.14 Section Steps 5-9 7 Your cursor is on Maximum. If there is a maximum fee to be refer to charged to this building, enter the dollar amount. Press items in the <Enter>. PROFESSIONAL VERSION ONLY. 8 Your cursor is on Base. If there is a base fee to be used in the fee calculations, enter the dollar amount. Press <Enter>. 9 Your cursor is on Percent. If the management fee includes a percentage of the collections, enter the percentage. Press <Enter>. 10 Your cursor is in the Monthly column under Reserve Accounts. Enter the amount you wish to reserve monthly for each of the reserve categories listed to the left. Press <Enter> after typing in each amount. For example: If your real estate taxes are $1,200 annually, you might put $100 aside each month. Enter 100 under the Taxes reserve account. Each month, PropMan will hold back $100 of the building's income and add it to the tax reserve account. Step 11 11 After the last Monthly reserve amount field, the cursor will refers to move to the Balance column. Enter the current cash balance Buildings for each of the reserve categories. The total of these with a reserve balances should match your checkbook balance. status of NEW only. After the building is ACTIVE Prop- Man maintains the balances. 12 After the last reserve account, your cursor will be under Notes. Enter any notes you wish. PropMan makes no use of this information. PropMan User Guide 1.14 Building Information - General Screen Section 13 For New Building Startup, continue with the next step. If you have completed all building information screens, press <Esc>. PropMan will set up the building. This may take a minute or two. When finished PropMan will return to the System Maintenance Menu. For Building Changes, if you need to change information on other screens, use the function keys to access those screens. Each time you leave a screen PropMan will save the changes made on that screen. When all changes are complete, press <Esc> to return to the System Maintenance Menu. PropMan User Guide Building Information - Owner Screen 1.15 Section PROFESSIONAL VERSION ONLY There are several screens used for building information. This one records information about the owners of the building. You may record information for up to five owners for each building. Building information screens are accessed through either the New Building Startup, or the Building Changes operations. Function keys are then used to step forward and backward through the various building information screens. On the help display the key labels change to show the next screen in each stepping sequence. However, the same two keys are always used. To call up the desired screen, press F1. Two of the keys will be labeled with two of the following: General, Owner, Mortgage or Unit ID. If the name of the screen you want was shown, note that key. If not note either of the two keys. The up arrow means that the shift key will be used. Press <Esc> to remove the key display. Press the selected key. Continue pressing the same key to step through the screens until the desired screen appears. To enter 1 Your cursor is on Owner Number. Enter a number between 1 or change and 5. owner information 2 Your cursor is on Name. Names are entered: last, comma, first. 3 Your cursor is on the first of two Phone number fields. Type one or two phone numbers for this owner. Press <Enter> after each. Enter just the numbers, no punctuation. 4 Your cursor is on Percent. Enter this owner's portion of ownership. PropMan will use this to determine how to distribute the earnings when Owner Checks are written. The total of the Percents for all owners must be 100%. If not, PropMan will set all Percents to zero. 5 Your cursor is on SSN. Enter the social security number. 6 Your cursor is on Tax ID. Enter the social security number or other tax reporting number. When PropMan prints Owner 1099's, it skips owners without a Tax ID. 7 Your cursor is on the first of four Address lines. Type the address for this owner. Press <Enter> after each line. PropMan will use this address for Owner Checks and Letters and Notices. PropMan User Guide 1.15 Building Information - Owner Screen Section 8 To enter information about another owner for this building, press <Enter> until your cursor is on Number and return to step 1. 9 For New Building Startup, continue with the next step. If you have completed all building information screens, press <Esc>. PropMan will set up the building. This may take a minute or two. When finished PropMan will return to the System Maintenance Menu. For Building Changes, if you need to change information on other screens, use the function keys to access those screens. Each time you leave a screen PropMan will save the changes made on that screen. When all changes are complete, press <Esc> to return to the System Maintenance Menu. PropMan User Guide Building Information - Mortgage Screen 1.16 Section There are several screens used for building information. This one records information about the building's mortgages. You may record information for five mortgages for each building. Building information screens are accessed through either the New Building Startup, or the Building Changes operations. Function keys are then used to step forward and backward through the various building information screens. On the help display the key labels change to show the next screen in each stepping sequence. However, the same two keys are always used. To call up the desired screen, press F1. Two of the keys will be labeled with two of the following: General, Owner, Mortgage or Unit ID. If the name of the screen you want was shown, note that key. If not note either of the two keys. The up arrow means that the shift key will be used. Press <Esc> to remove the key display. Press the selected key. Continue pressing the same key to step through the screens until the desired screen appears. Automatic PropMan will track your mortgage balance for you. In mortgage addition it will generate monthly mortgage payment invoices, invoices if you wish. You must enter a mortgage balance, an interest rate and a payment amount for each mortgage. Each time the month-end-close is run, an invoice for each mortgage is prepared for the upcoming month. On the mortgage invoices PropMan distributes the payment to principal, interest and impound and updates the mortgage balance accordingly. If you leave out any of the required information, PropMan will not generate the invoices for you. You are not required to use, or restricted to just the automatic mortgage invoices. If you enter at least the mortgage balance and then enter your own monthly invoices PropMan will still track the mortgage balance. If you enter extra payments in addition to regular monthly payments, PropMan will include those also. To enter 1 The cursor is on Mortgage Number. Enter a number from 1 to or change 5. There is no need for number 1 to correspond with a first mortgage mortgage or 2 to a second mortgage but they may if you wish. information PropMan User Guide 1.16 Building Information - Mortgage Screen Section 2 Your cursor is now on Vendor. Enter the vendor number of the lender for this mortgage. The lender's name, address, and phone numbers will be displayed. If you don't remember the number, press <Enter> to move to the Name field. Enter the vendor's name. If PropMan can't find the name, it will find the closest match. From these fields you may also use function keys to step through the vendors numerically or alphabetically. Press <F1>, look for the Next/Prev Vendor keys. Remember that the up arrow means to use the shift with the function key. 3 The cursor is on Loan No. Enter the loan number for this mortgage. PropMan will include it on generated invoices. 4 The cursor is on Terms. You may enter the length and type of the loan. PropMan makes no use of this information. 5 On Due day, enter the day of the month that the loan payment falls due. Generated invoices will be due on this day. Step 6 6 The cursor is on Loan Balance. Enter in the balance for this refers to trust deed at the beginning of the month in which the buildings building is being started. with a status of NEW only. 7 On Interest rate enter the interest rate as a percent; After the ie. 8.5%, not as .085 building is made 8 On Principal & Interest enter in the monthly principal and ACTIVE interest payment for the loan. Impounds are not included PropMan here. See the next field. maintains the loan 9 On Impound enter the amount of any monthly impound or escrow balance. account payments. 10 This completes the setup for this mortgage. To enter another mortgage for this building, press <Enter> until the cursor is on Mortgage Number and return to step 1. PropMan User Guide Building Information - Mortgage Screen 1.16 Section 11 For New Building Startup, continue with the next step. If you have completed all building information screens, press <Esc>. PropMan will set up the building. This may take a minute or two. When finished PropMan will return to the System Maintenance Menu. For Building Changes, if you need to change information on other screens, use the function keys to access those screens. Each time you leave a screen PropMan will save the changes made on that screen. When all changes are complete, press <Esc> to return to the System Maintenance Menu. PropMan User Guide 1.17 Building Information - Unit IDs Section There are several screens used for building information. This one records the apartment numbers or other identifiers that are used as Unit IDs. Building information screens are accessed through either the New Building Startup, or the Building Changes operations. Function keys are then used to step forward and backward through the various building information screens. On the help display the key labels change to show the next screen in each stepping sequence. However, the same two keys are always used. To call up the desired screen, press F1. Two of the keys will be labeled with two of the following: General, Owner, Mortgage or Unit ID. If the name of the screen you want was shown, note that key. If not note either of the two keys. The up arrow means that the shift key will be used. Press <Esc> to remove the key display. Press the selected key. Continue pressing the same key to step through the screens until the desired screen appears. Unit IDs During New Building Startup it is important that the list of cannot be unit IDs is complete and correct as they cannot be changed changed after the building is in operation. If one tenant is renting more than one unit, enter both units individually and enter the tenant twice or leave one unit vacant. If the IDs are entered incorrectly, you may re-run the startup using the same building number. When using the Building Changes operation this screen is accessible but is for review only. No data entry is allowed. OWNER AND PROFESSIONAL VERSIONS: you may see the units in blocks of 50 as described in steps 5 and 6. To enter 1 The cursor is on the first unit ID. All buildings must have or review at least one unit. When PropMan starts a building, it puts a Unit IDs single unit in the building. The ID is the same as the building number. If this is a single unit building there is nothing you need to do on this screen. Continue at step 7. If this is a multiple unit building, type the first unit ID over the ID set up by PropMan. PropMan will erase the ID it set up and use the one you enter. Press <Enter>. 2 A new blank field appears. Type in the rest of the IDs pressing <Enter> after each one. As you enter each ID, PropMan counts it and provides a space for the next. 3 If you make a mistake you can use the tab key or the shift and tab to move around the screen. Move to the incorrect ID and type the correct ID. PropMan User Guide Building Information - Unit IDs 1.17 Section 4 To delete an ID, move the cursor to the ID, type over it with blanks using the space bar, and press <Enter>. OWNER AND 5 When you fill the last space for this block of 50, press PROFESSIONAL <F1>. Find the function key number labeled Next 50Units. VERSIONS Press <Esc>, press the Next 50Units function key. A new, allow you empty screen will be displayed. Continue entering unit IDs. access 50 unit blocks 6 To return to a previously entered block of fifty units, as shown in press <F1>. Find the function key number labeled Prev steps 5 & 6 50Unts. Press <Esc>, press the Prev 50Units function key. up to a max of 200 per building. 7 For New Building Startup, continue with the next step. If you have completed all building information screens, press <Esc>. PropMan will set up the building. This may take a minute or two. When finished PropMan will return to the System Maintenance Menu. For Building Changes, if you need to change information on other screens, use the function keys to access those screens. Each time you leave a screen PropMan will save the changes made on that screen. When all changes are complete, press <Esc> to return to the System Maintenance Menu. PropMan User Guide 1.18 Entering Tenants for New Buildings Section When entering a NEW building into the PropMan system, you must enter information about the current tenants. In order to start tracking a building PropMan needs to know the building's current situation, who lives in each unit, what the rent is, when they moved in, are they paid up to date, how much deposit are you holding. Remember when entering this information to enter it as it was at the start (before any business for the month was transacted) of the Processing Month shown in the upper left corner of the display. For example: if you start a building in January the tenants would have Paid to dates of 12/31 of the previous year. After making the building ACTIVE, you begin January's processing and enter the January rent payments. This section is for entering tenant information for NEW buildings only. The steps below do not work if the building has any other status. For tenant activities in ACTIVE, operating buildings see Tenant Financial Activity, Moving Out Tenants, Moving In Tenants and Rent Changes. Some of the information entered on this screen is required for PropMan to properly set up the tenant's records. These fields are indicated as required. To enter 1 From the Main Menu select Daily Operations. tenants in NEW 2 From the Daily Operations Menu select Tenant activity. buildiings 3 Your cursor is on Building. Enter the number. The name of the building will appear at the top of the screen. 4 The cursor is on Unit. Enter a unit ID. Or, use the function keys to step through the units sequentially, press <F1>. Find the function key number labeled Next Unit. Press <Esc>, press the Next Unit function key. When you see the unit you want, press <Enter>. 5 Your cursor is on Tenant. Enter the name of the tenant. Names are entered last name, comma, first name. If there is more than one tenant responsible for this unit pick only one to enter here. The other tenants may be entered on the Tenant Personal information screen, see steps 16 - 20. 6 On Sched rent (required) enter the amount of the normal monthly rent. 7 On Due day (required) enter the day of the month that the rent comes due. PropMan User Guide Entering Tenants for New Buildings 1.18 Section 8 On Paid to (required, unless the tenant has not yet moved in or has not yet paid a full months rent) enter the last date for which the rent has been paid in full. The tenant may or may not be paid up to the current date but this must always be the day before a rent Due day. 9 On Other due enter any money owed by this tenant for late fees, damage or other charges. NOTE: Tenants who have paid a partial month's rent may be entered as follows. Enter the Paid to date as if that entire month's rent had been paid. Then enter an Other due amount for the money still owed to pay up to the date entered as Paid to. The date used need not bring the tenant up to the current date, only to the end of the month for which the partial payment was made. As the over-due rent is collected from the tenant, enter the receipts as Other Payments until the Other due amount is paid off. From then on the tenant's financial activities are handled like any other tenant. 10 There are a pair of fields labeled Last under Rent changes. For the first, enter the amount of the most recent previous Sched rent for this tenant. This is the rent before the last rent change. For the second, enter the effective date of this last rent change. 11 There are a pair of fields labeled Next under Rent changes. If there is a rent change pending for this tenant, it is entered here. For the first field, enter the amount of the new rent. For the second, enter the effective date of the upcoming change. 12 On Date in (required, unless the tenant has not yet moved in) enter the date this tenant moved in. 13 On Lease exp enter the date that the tenant's lease expires. 14 The cursor is on Pay / Quit. If a 3-Day-Notice has been served on this tenant, enter the date. 15 The cursor is under Deposit Balances (required if deposits have already been collected from the tenant). There are five deposit categories. The cursor will move to each. Enter the deposit being held for this tenant in each category. PropMan User Guide 1.18 Entering Tenants for New Buildings Section NOTE: This completes the financial information for the tenant. You may continue now with the personal information for this tenant or come back and add the personal information later. To enter personal information, continue with step 16. To enter financial information about another tenant, return to step 4. Otherwise continue at step 22. 16 The Tenant Personal screen is accessed by using function keys. Press <F1>. Find the key labeled Personal screen. Press <Esc> to remove the function key display. Press the Personal screen function key. 17 Press <Enter> until the cursor is on the first Phone number. Enter one or both phone numbers. PropMan will include these in the phone listings it prints. 18 Enter information as desired for the other fields up to and including the employer's phone. PropMan makes no use of these. 19 Press <Enter> until the cursor is on Other occupants. There are five lines to enter additional occupants of the unit. If entries are made here they are available for inclusion in Tenant Letters and 3-Day Notices, see the keyword ==OTHEROCCUPANTS in Free Form Letters and Notices, Appendix D in the Reference Manual. 20 Enter information as desired for the other fields on the screen. 21 To enter information about another tenant in this building: Use the function keys to return to the Tenant Financial screen. Press <F1>. Find the key labeled Financial screen. Press <Esc> to remove the key display. Press the Financial screen function key. Press <Enter> until the cursor is on Unit. Return to step 4. 22 Press <Esc> to return to the Daily Operations Menu. 23 Press <Esc> again from the Daily Operations Menu to return to the Main Menu. PropMan User Guide Activating a New Building 1.19 Section After all background information has been entered and you wish to begin normal monthly processing, the building status must be changed to ACTIVE. Some information is difficult or impossible to change after the building is made ACTIVE. Before activating the building, be sure that you have completed all of the steps outlined under New Building Start Up also review New System Setup. After entering information about all your buildings and tenants and before activating the first building would be a good time to make a backup of your system (see Backing Up PropMan). To make a 1 From the Main Menu select System Maintenance. building ACTIVE 2 From the System Maintenance Menu select Building Changes. 3 Your cursor is on Building. Enter the number. 4 Press <Enter> until your cursor is on Status. The current status of the building will be flashing; for the purposes of this section the status should be NEW. Press <A> for ACTIVE and press <Enter>. 5 To activate another building, press <Enter> until your cursor is again on Building and then return to step 3. 6 Press <Esc> to return to the System Maintenance Menu. 7 Press <Esc> from the System Maintenance Menu to return to the Main Menu. PropMan User Guide Monthly Checklist 2.1 Section CHECKWRITER TURNED OFF Some of PropMan's activities vary depending on whether or not the checkwriter is turned on. Following is a checklist for use with PropMan systems not using the checkwriter. This is a checklist for normal operations. We have tried to include all of the predictable activities, but there is no way to cover every possible event. The items need not be done in the sequence shown here. Some of these items may be done more than once in a given month. Some need not be done every month. But each of them needs to be considered for each building. Operations 1 Update the Vendor List. If you used a vendor for the first without time this month, you may want to add them to your vendor Checkwriter list. It's easier if you add new vendors before entering invoices from them. See Entering Vendors. 2 Enter Invoices. You may enter bills as you receive them, as you pay them or in batches at certain times of the month. When you pay the invoice, enter the Paid date. See Entering Invoices. 3 Add any new tenants to the system. Enter deposit collections. See New Tenants. 4 Enter rents and/or deposits. Record money received from the tenants. See Tenant Financial Activity. 5 Enter Miscellaneous Receipts. Record any non-unit income, laundry, parking, telephone commissions, etc. See Miscellaneous Receipts. 6 When you make a bank deposit, compare your deposit to the Bank Deposit totals and close the PropMan bank deposit. See Bank Deposits. 7 Record tenant move-ins. Any move-ins in this Processing Month will take place automatically when the Date in is reached. See New Tenants. 8 Record move-outs. Enter any tenant move-outs and deposits refunded. The move-outs, once scheduled, will take place automatically when the Date out goes by. (See Moving Out Tenants). 9 Check overdue rents. Add Other Assessments for late charges. Print 3 Day Notices. PropMan User Guide 2.1 Monthly Checklist Section 10 Enter planned rent changes. Enter rent changes well in advance so you can notify tenants in time to meet your local legal requirements. See Scheduling Rent Changes. 11 Print Rent Change Notices. Obtain a pending Rent changes list and then print Rent change notices as desired. 12 Adjust reserve activity. After all of the months business has been entered, check to see that the amounts retained for, or spent from, reserves are correct. See Reserve Account Activity. 13 Print month end statements. Print the statements you find useful. 14 Make a backup. We recommend that you backup at least monthly, just before running the month end close, more often if your system has a large volume of activity. See Backing up PropMan. 15 Close the month. After all business for the month is entered, close the month. No further transactions are allowed for a month after it is closed. See Closing out the Month. PropMan User Guide Monthly Checklist 2.2 Section CHECKWRITER TURNED ON Some of PropMan's activities vary depending on whether or not the checkwriter is turned on. Following is a checklist for use with PropMan systems using the checkwriter. This is a checklist for normal operations. We have tried to include all of the predictable activities, but there is no way to cover every possible event. The items need not be done in the sequence shown here. Some of these items may be done more than once in a given month. Some need not be done every month. But each of them needs to be considered for each building. Operations 1 Update the Vendor List. If you used a vendor for the first with time this month, you may want to add them to your vendor Checkwriter list. New vendors need to be added before you can cut checks for them. See Entering Vendors. 2 Enter Invoices. You may enter bills as you receive them, or in batches just before a check run. See Entering Invoices. 3 Add any new tenants to the system. Enter deposit collections. See New Tenants. 4 Enter rents and/or deposits. Record money received from the tenants. See Tenant Financial Activity. 5 Enter Miscellaneous Receipts. Record any non-unit income: laundry, parking, telephone commissions, etc. See Miscellaneous Receipts. 6 When you make a bank deposit, compare your deposit to the Bank Deposit totals and close the PropMan bank deposit. See Bank Deposits. 7 Record tenant move-ins. Any move-in dates in this Processing Month will take place automatically when the Date in is reached. See New Tenants. 8 Record move-outs. Enter any tenant move-outs. Enter amounts for deposit refund checks. The move-outs, once scheduled, will take place automatically when the Date out goes by. See Moving Out Tenants. 9 Print 3 Day Notices. Examine the Over-due-rent list and print 3 Day Notices to Pay or Quit as desired. PropMan User Guide 2.2 Monthly Checklist Section 10 Enter rent changes. Enter planned rent changes well in advance. PropMan will print the change notices and you can deliver them to meet your local legal requirements. (See Scheduling Rent Changes). 11 Print change of terms notices. Obtain a pending Rent changes list and print Rent change Notices as desired. 12 Cut Vendor Checks. Print checks for invoices not yet paid. See Check Writing. 13 Cut Refund Checks. Print checks for deposit and rent refunds entered on the Tenant Financial screens. See Check Writing. 14 Adjust reserve activity. After all of the month's business has been entered, check to see that the amounts retained for, or spent from, reserves are correct. See Reserve Account Activity 15 Cut owner's checks. If you don't cut owner's checks, any cash on hand will be added to the general reserve account. See Check Writing. 16 PROFESSIONAL VERSION: Cut Management Fee checks. See Check Writing. 17 Print month end statements. Print the statements you find useful. See Month End Statements. 18 Make a backup. We recommend that you backup at least monthly, more often if your system has a large volume of activity. See Backing up PropMan. 19 Close the month. After all business for the month is entered, close the month. No further transactions are allowed for a month after it is closed. See Closing out the Month. PropMan User Guide Tenant Financial Activity 2.3 Section Tenant financial activities require three pieces of information, a date, the dollar amount involved and the type of transaction. You may also add an optional comment. Activity is entered on the Tenant Financial screen. Activities may be entered for Current, Previous or New tenants. Activities are included in the current open Bank Deposit and recorded as business in the current Processing month independent of the date entered for the activity. Current month's activity is shown on the Tenant Financial screen until the month is closed. When the Month End Close is run, the activity is moved to the Payment History and the financial screen is cleared, ready for the new month's entries. Entering Following, first, are the steps needed to enter a financial tenant activity. Then a description of the use of the various activities activity types. 1 From the Main Menu select Daily Operations. 2 From the Daily Operations Menu select Tenant activity. 3 Your cursor is on Building. Enter the building number. 4 The cursor is on Unit. Enter the unit ID. To step through the units sequentially. Press <F1>. Find the function key labeled Next Unit. Press <Esc> and then press the Next Unit function key. When you reach the desired unit, press <Enter>. The 5 The cursor is on "Post full rent paid?". Enter <Y> or <N>. A question <Y>, Yes, enters a Rent Payment activity with the current in step 5 date for the full scheduled rent. If this completes this is displayed tenants actions continue at step 11. only if this tenant has had no activity this month. PropMan User Guide 2.3 Tenant Financial Activity Section 6 The cursor is on Tenant. When a unit is called up, information is displayed about the most recent tenant to live in the unit. Normally this is the proper tenant, continue with step 7. To call up information about other tenants who have occupied this unit, press <F1>. There are function keys labeled Next Tenant Name and Previous Tenant Name. The up arrow means to use the shift key with the function key. Press <Esc>. Press the next or previous function key. When you have the correct tenant, press <Enter>. Repeat 7 Press <Enter> until the cursor is on Date under Activity. steps 7-10 The Date is set to the current date. Enter a different date as necessary if you wish. to record this 8 The cursor is on Amount under Activity. Enter the dollar tenant's amount of the transaction. activity for the 9 The cursor is on Type under Activity. The transaction type month. is initially set up as a Rent Payment. Function keys are used to select the correct activity. Press <F1>. Find the function key labeled Next Type. The up arrow means to use the shift key with the function key. Press <Esc>. Press the Next Type function key. When you find the desired activity, press <Enter>. 10 The cursor is on Description under Activity. Enter any description you wish. 11 To enter activity for other tenants, press <Enter> until your cursor is on Building. Return to step 3. 12 Press <Esc> to return to the Daily Operations Menu. 13 Press <Esc> from Daily Operations Menu to return to the Main Menu. Rent Rent payment entry is simple and fast. Answer Yes to the payments full rent question in step 5, or answer No and enter the activity yourself. PropMan always applies rent collections to the oldest rent owed and advances the Paid to date each time a full month's rent is collected or accumulated. PropMan User Guide Tenant Financial Activity 2.3 Section Other When a tenant owes money that is not rent, such as late fees charges or damage charges two entries are used. First enter an Other Assessment to record the charge. Then, as the tenant pays the charges enter Other Payments. PropMan maintains a balance of assessments and payments in Other Due. If you change your mind about an assessment, use Repeal Assessment to remove the charge. Deposits There are three transactions for deposits; "deposit" Payment, for collections, "deposit" Refund, for refunds and "deposit" NSF , for returned checks. There is a set of these "deposit" actions for each deposit type, Security, Pet and so on. When you use these activities, PropMan adjusts the deposit balances shown on the screen. CHECKWRITER TURNED OFF: Enter refunds to record deposits you have refunded. CHECKWRITER TURNED ON: Enter the amount to be refunded. Then use the Checkwriter to print the refund check and post the refund paid. Last- Last-Months-Rent is a deposit held specifically for use as months-rent payment for a tenant's final month of tenancy. In addition to the other deposit activities above, there is a L-M-R Used. This deducts the specified amount from the deposit and applies it toward rent. Returned There is a "xxx" NSF activity, where "xxx" is replaced by checks the activity type, for every activity that relates to collecting payments. Using the NSF activity backs out the payments and readjusts the tenant's records. Refunds There is a "xxx" Refund activity, where "xxx" is replaced by the activity type, for every activity that relates to collecting payments. Using the refund activity backs out the payments and readjusts the tenants records. CHECKWRITER TURNED OFF: Enter refunds to record money you have refunded. CHECKWRITER TURNED ON: Enter the amount to be refunded. Then use the Checkwriter to print the refund check and post the refund paid. Credits Use Rent Credit for things like move in bonuses or rent and forgiveness. No money has been collected but you want to Allowances credit the tenant's account. OWNER AND PROFESSIONAL VERSIONS: Use Apartment Allowance for managers, maintenance people and such who receive reduced rent as part of their wages. No money has been collected but the tenant's account is credited. PropMan User Guide 2.4 Miscellaneous Receipts Section Miscellaneous receipts are for recording income generated by the building but not associated with or collected from a particular unit. This may include telephone or cigarette commissions, laundry income, bank account interest etc. This also includes cash input by the owner to cover losses. This income is restricted to certain accounts. Fixed account 2550, Other income, and user named accounts 2560 - 2590 should be used for income earned by the building. Cash from an owner should be entered in account 2810 in the REGISTERED AND OWNER VERSIONS or the appropriate owner account 2810- 2850 in the PROFESSIONAL VERSION. To enter 1 From the Main Menu select Daily Operations. Miscellaneous Receipts 2 From the Daily Operations Menu select Miscellaneous receipts. 3 The cursor is on Building. Enter the building number. The name will be displayed. 4 The cursor is on Receipt number. To enter a new receipt, enter a zero. PropMan will assign the next number in sequence. To view or change an existing receipt, enter its number. 5 The cursor is on Acct. Enter the income account for the receipt. To step through the allowable accounts, press <F1>. Find the function key labeled Next Acct #. The up arrow means to use the shift key. Press <Esc>, then press the Next Acct # function key. When the correct account is displayed, press <Enter>. 6 On Amount enter the amount of the receipt. 7 On Description, enter any description desired. 8 Press <Esc> to return to the Daily Operations Menu. 9 Press <Esc> from the Daily Operations Menu to return to the Main Menu. PropMan User Guide Bank Deposits 2.5 Section The bank deposit feature is a cross-check to verify that collections were properly entered into the system. All income entered as Tenant Financial activity or as Miscellaneous Receipts is included in batched bank deposits. Before making a deposit, you may check the batch totals and print a detail of the entries included in the batch. Each month PropMan starts with bank deposit 1. All collections are included in the current deposit, until you close it. Further collections then go into the next deposit until it is closed, and so on. As long as a deposit remains open, you may return to the Tenant Financial screen or the Miscellaneous Receipts screen and change entries from the current deposit. When you close a deposit, the entries in it are fixed and may no longer be changed. A deposit may contain money from one building or many buildings. To make individual deposits for each building, enter the receipts for one building, check the deposit totals, close the deposit, make entries for the next building and so on. If you have NSF entries to make for a tenant or tenants, enter the NSFs in a deposit by themselves without any other collections. Batch On one day or over a period of days, you receive various checking rent payments and other income. These are posted to tenant's accounts or other receipts accounts. You are now ready to deposit the funds. Use Bank Deposits to verify that the deposit matches the entries you have made into PropMan. Fill out your bank deposit slip. Compare it to the Bank Deposit data. If the totals do not match, print the deposit. Then compare the deposit slip with the list of entries from PropMan. Don't forget to check your addition. Once you have determined that they match, make the bank deposit and close the deposit in PropMan. Subsequent entries will now go into the next deposit. To review, 1 From the Main Menu select Daily Operations. print, and close 2 From the Daily Operations Menu select Bank Deposits. Bank Deposits 3 Your cursor is on Building. Enter the building number. 4 The Bank Deposits screen initially displays information for the current, open bank deposit for the building you have selected. 5 The cursor is on Display Bank Deposit. The deposit number is initially set to the current, still open deposit. To see information from a different deposit, enter the deposit number. PropMan User Guide 2.5 Bank Deposits Section 6 The cursor is on Print Deposit. The deposit to be printed is the same as the one being displayed. Enter to print or <S> to view the deposit on the screen. Press <Enter>. The screen displays information one building at a time. The printed reports include all buildings with money in the deposit. 7 The cursor is on Print All Deposits. Enter to print or <S> to preview on screen. 8 The cursor is on Close Current Deposit. After verifying that the deposit is correct, enter <Y> for Yes to close the deposit. 9 Press <Esc> to return to the Daily Operations Menu. 10 Press <Esc> again from the Daily Operations Menu to return to the Main Menu. PropMan User Guide Paying Bills 2.6 Section Below are the three major steps that must be addressed when paying bills in PropMan. 1 Update Your Vendor List. If any of the bills for this month are from a new vendor, see Entering Vendors to add these vendors to the system. 2 Enter Invoices. Each bill must be entered as an invoice into PropMan. Follow the steps outlined in Entering Invoices. 3 Cut Checks. If you are using the PropMan checkwriter, follow the steps outlined under Check Writing. PropMan User Guide 2.7 Entering Invoices Section Expenses are recorded by entering invoices. Most invoices only require the entry of a vendor and an invoice amount. PropMan supplies other needed information from the Vendor List. There is a slight difference in expense processing depending on whether or not the checkwriter is turned on. CHECKWRITER TURNED OFF: You may enter invoices as you receive them or as you pay them. When an invoice is paid, enter the Paid date. PropMan will not close a month if there are unpaid invoices for any building. CHECKWRITER TURNED ON: When using the checkwriter to write checks, enter the invoices without the Paid date. PropMan will fill in the date as part of the Post Paid operation. Even with the checkwriter on, if you hand write a check, you may enter the invoice and its Paid date as explained above with the checkwriter turned off. To enter 1 From the Main Menu select Daily Operations. Invoices 2 From the Daily Operations Menu select Invoices. 3 The cursor is on Building. Enter the building number. The name of the building will be displayed. 4 The cursor is on Invoice. Enter the number 0. PropMan will assign this invoice the next number in sequence. 5 The cursor is on Desc. Enter any description you wish. This is not used by PropMan. 6 The cursor is on Amount. Enter the total amount of the invoice. 7 The cursor is on Number under Vendor. Enter the number of the vendor the invoice is from. The name is displayed. Or, press <Enter> to move to the Name field. Enter several characters of the name. PropMan will find the closest match. From these fields you may also use function keys to step through the vendors numerically or alphabetically. Press <F1>, look for the Next/Prev Vendor keys. Remember that the up arrow means to use the shift with the function key. PropMan User Guide Entering Invoices 2.7 Section 8 The cursor is on Invoice number under Vendor. Enter the vendor's reference number. This is not used by PropMan. 9 The cursor is on Invoice date under Vendor. Enter the vendors billing date. This is not used by PropMan. Repeat 10 The cursor is on Amount under Distribution. Enter the amount steps 10 to be charged to the corresponding account. and 11 to distribute 11 The cursor is on Account under Distribution. Enter the an invoice account for the corresponding amount. To step through the to accounts, use function keys. Press <F1>. Find the function multiple key labeled Next Account #. The up arrow means to use the accounts. shift key. Press <Esc>. Press the function key until you reach the desired account. Press <Enter>. 12 The cursor is on Due date. Enter the due date for the invoice. CHECKWRITER TURNED ON: This invoice will be selected for payment if its Due date is on or before the Checkwriter Due Thru date. See Check Writing. 13 Your cursor is on Paid date. If you have already paid this invoice, enter the date. Do not enter the date if you may need to make changes to the invoice. No changes are allowed to PAID invoices. CHECKWRITER TURNED ON: Do not enter the date if you want PropMan to write the check. The PropMan Checkwriter will only write checks for Un-Paid invoices. When the Checkwriter posts the check as paid it fills in this Paid Date. See Check Writing. 14 To enter another invoice press <Enter> until your cursor is on Building and return to step 3. 15 Press <Esc> to return to the Daily Operations Menu. 16 Press <Esc> from Daily Operations Menu to return to the Main Menu. PropMan User Guide 2.8 Changing invoices Section Invoices can be changed anytime until they are given a Paid date. After they are Paid, they are fixed. Paid invoices can be backed out by entering a reversing or negative invoice. Editing Any Un-paid invoice can be modified in any way. Call up the an Invoice screen just as when entering new invoices. When the Invoice cursor is on the Invoice number field, enter the number of the invoice to be changed. Make any desired changes. PropMan will save them and update the financial records. Invoices Sometimes an invoice is correct but it is not going to be on HOLD paid until a later month. These invoices can be placed on Hold. PropMan will back the invoice out of this month's business. Each time the Month End Close is run, PropMan will carry these forward to the next month. When they are released from Hold, they will be included in that month's business. An invoice Status is changed to Hold, in the same way as other invoice editing. Call the invoice to the screen. Move the cursor to the Status field and press <H>, as in hold. To release an invoice from Hold, repeat the process and press , as in payable. Reversing After an invoice is marked Paid there is no way to remove it Invoices directly. However, reversing invoices can be entered to back out data. Enter a reversing invoice just as you would enter any other. Use the same vendor and distribution accounts as the original. Enter all dollar amounts identical to the original invoice, but negative. Press the minus sign, then enter the amount. The minus is not displayed until you enter the first digit of the amount. Pressing the minus a second time removes it. After entering and checking the reversing invoice, give it a Paid date. Don't forget to go back and enter the correct invoice. PropMan User Guide Check Writing 2.9 Section CHECKWRITER TURNED ON If the checkwriter is turned on the selection Checkwriter appears on the Daily Operations Menu. See Check Forms. Several operations must performed in sequence to write checks. First, select the type of checks to be printed. Next, examine a review list to verify that the checks are correct. Then, print the checks. Finally, post the checks as paid. The check writing process is not complete until the checks are posted as paid. There are different categories of checks. They may be written separately or in any combination in any check run. The Checkwriter allows you to specify which checks to print and then prepares them based on information entered elsewhere in the system. Except for Management Fee checks, you may include the different types of checks in as many or as few check runs as you wish. Vendor Vendor checks are written to pay invoices. Unpaid invoices are selected for payment if the invoice Due date is on or before the Checkwriter Due thru date, and the invoice Vendor and Building match the Vendor and Building criteria specified on the Checkwriter screen. Refund Tenant refund checks are generated for tenants in the specified Building(s) if they have unpaid refund Activity on the Tenant Financial screen. Owner Owner checks are generated for the specified Building(s) for the amount shown as Cash On Hand on the Income / Expense Recap screen. Management PROFESSIONAL VERSION ONLY: Management fee checks are Fee generated for the specified Building(s). The amount is determined by the fee calculation entered on the building General information screen. You may print the fee checks in check runs with any combinations of buildings and check types. However, the design of PropMan requires that, for normal operation, fee checks only be run one time each month for a building. This should be done at or near the end of the month after all collections. If you run fee checks for a building a second time, PropMan does not combine the checks. It will generate a new check for the full monthly fee and mark it "Replacement". You must then void the original check. If a collection is entered after fee checks are written, you must print the "Replacement" check in order to receive your fee on the late collection. PropMan User Guide 2.9 Check Writing Section The steps 1 From the Main Menu select Daily Operations. in a check 2 From the Daily Operations Menu select Checkwriter. writing cycle 3 The cursor is on Due thru under Invoices. If you include Vendor checks in this check run, checks will be written for invoices that are Un-Paid and have a Due date on or before this date. Type in the date and press <Enter>. 4 The cursor is on Num under Vendor. Enter "all" to generate Vendor checks for all vendors. Enter the number or name for checks for one specific vendor. If you enter a number, the name is displayed. Or, press <Enter> to move to the Name field. Enter several characters of the name. PropMan will find the closest match. From these fields you may also use function keys to step through the vendors numerically or alphabetically. Press <F1>, look for the Next/Prev Vendor keys. Remember that the up arrow means to use the shift with the function key. 5 The cursor is on Num under Buildings. Enter "all" to write checks for all buildings, or enter up to five specific building numbers. From these fields you may also use function keys to step through the buildings. Press <F1>, look for the Next/Prev Building keys. Remember that the up arrow means to use the shift with the function key. Steps 6-9 6 The cursor is on Vendors under Process checks for. Enter <Y> specify or <N>. Yes will select invoices and generate vendor checks the types to pay them. of checks to be 7 The cursor is on Tenant Refunds under Process checks for. processed. Enter <Y> or <N>. Yes will include tenant refund checks in No action this check run. is taken until step 8 The cursor is on Owner under Process checks for. Enter <Y> 10 or 11. or <N>. Yes will include checks to the building owner(s). Owners checks are written for the amount shown as Cash on hand on the Income / Expense Recap screen. 9 PROFESSIONAL VERSION ONLY: The cursor is on Management Fee under Process checks for. Enter <Y> or <N>. Yes will include checks for the property management fees in this run. PropMan User Guide Check Writing 2.9 Section 10 The cursor is on Print Review list under Operation. Enter , <S> or <N>. Use P or S to send the review list to the printer or screen as desired. The list shows the checks that will be printed; payee, invoices or refunds included and amount. Printing the review is not required. A "Y"es 11 The cursor is on Cut Checks. To begin printing checks, enter answer in <Y> for Yes. If you do not wish to cut checks at this time, step 11 enter <N>, and continue at step 17. call the Cut Checks screen. 12 The cursor is on Next Check Numb. If you have not already Steps 12- done so, mount your check forms on the printer. Find the 16 refer number of the next check to be printed on your check stock. to this Enter that number here. screen. 13 The cursor is on Print Test Form. Enter <Y> or <N> as desired. Yes will print a voided check with all positions filled for check forms alignment. You may return to this field and re-print the test as needed to line up the forms. 14 The cursor is on Print Checks. Enter <Y> or <N>. Yes starts the actual check printing. As each check is printed the payee, the amount of the check, and the check number are displayed on the screen. When PropMan is finished printing checks No More Checks will be displayed. Press <S> to stop the printing before all checks are completed. 15 If you have printer problems you can re-print checks, whether you stopped the print or even if PropMan finished printing. Use the Back-skip and Foward-skip fields to locate the place to re-start printing. Move the cursor to the appropriate field and enter <Y> to move one check forward or backward. PropMan moves the check file and displays the check it is ready to print. When you find the check where you wish to re-start, press <Enter> until your cursor is on Next Check Number and return to step 12. 16 When finished printing checks, press <Esc> to return to the Checkwriter screen. PropMan User Guide 2.9 Check Writing Section When you 17 The cursor is on Post as paid. Enter <Y> or <N>. This last press <Esc> step is required to complete the check writing process. A in step 16 Yes means the check run is satisfactory. PropMan will mark you return the items paid and move the check information to the Check to the Register. A No stops this check run. The items are not Checkwriter posted paid, PropMan ignores this entire check run. All of screen. the items remain unpaid and will be included in future check runs. 18 The cursor is on Print register. Enter <Y> or <N>. A Yes prints the register of all checks printed by PropMan this month. You may print a check register at anytime, independent of check printing. 19 To start another check run, press <Enter> until your cursor is on Due thru and return to step 3. 20 Press <Esc> to return to the Daily Operations Menu. 21 Press <Esc> on the Daily Operations Menu to return to the Main Menu. PropMan User Guide New Tenants 2.10 Section This section covers entering a new tenant into an already ACTIVE building. Refer to Entering Tenants for New Buildings for help when entering tenant information during the PropMan New building start up process. A new, empty set of records is created for the new tenant. Data about past tenants is retained until you purge it. This section only covers the entry of the information PropMan needs to properly maintain the tenant's financial records. Enter as much or as little information as you wish on the Tenant Personal screen. NEW tenant You may begin entering personal information and deposit or data rent collections for the new tenant at any time. It is not necessary to wait until they have moved in. Normally, you will make collections from the tenant before they move in. PropMan will record the income and credit the tenant's account. It holds the tenant in a NEW status, meaning that they have not yet moved in, until you enter a Date in and the date goes by. When you enter information about a tenant, PropMan does not act on it until you leave the tenant screen. PropMan will not move in a tenant until you enter the tenant's Date in, leave the screen and then return. Entering 1 From the Main Menu select Daily Operations. a NEW tenant 2 From the Daily Operations Menu select Tenant activity. 3 The cursor is on Building. Enter the building number. The name will be displayed. 4 The cursor is on Unit. Enter the Unit ID. 5 The cursor is on Tenant. When a unit is called up, information is displayed about the most recent tenant to live in the unit. If the status is NEW, there has never been a tenant moved into this unit, continue with step 7. PropMan User Guide 2.10 New Tenants Section 6 If the status is CURRENT or PREVIOUS, the screen shows the most recent tenant to occupy the unit. Function keys are used to call the new tenant's records to the screen. With the cursor still on Tenant, press <F1>. Find the function key labeled Next Tenant Name. The up arrow means to use the shift key with the function key. Press <Esc>. Press the next tenant function key. If you have previously entered information about this new tenant, it will be displayed. Otherwise an empty set of records will be created and displayed. This tenant will have a status of NEW until they move into the unit. 7 Enter the new tenants name. Use Last, comma, First for proper alphabetization. If there is more than one tenant responsible for this unit, enter one here. The other tenants can be entered under Other Occupants on the Tenant Personal screen. 8 The cursor is on Sched rent. Enter the amount of the normal monthly rent. 9 The cursor is on Due day. Enter the day of the month that the rent will be due. Steps 10- 10 The cursor is on Date under Activity. The transaction Date 13 record is set to the current date. Change it if you wish. Press rent and <Enter>. deposit collections. 11 The cursor is on Amount under Activity. Enter the amount of Repeat them the transaction. for each collection 12 The cursor is on Type under Activity. PropMan has a list of or skip allowable tenant transactions. It is initially set as a Rent them if Payment received. If this is not correct, use function keys no to step through the list to find the correct transaction. collections Press <F1>. Find the function key labeled Next Type. The up were made. arrow means to use the shift key. Press <Esc>. Press the next type function key. The Type field will step through the different transactions. When you reach the correct one, press <Enter>. See Tenant Financial Activity for a description of the Activity Types. 13 The cursor is on Description. Enter check number, receipt number or other comments as desired. PropMan User Guide New Tenants 2.10 Section You may 14 Press <Enter> until the cursor is on Date in. Enter the date enter the that this tenant's rent is to start. As soon as this date is Date In entered, PropMan will calculate and display the 2nd month after the rent prorate. On the Date in PropMan will move the tenant in tenant and change their status to CURRENT. moves in, but the date may not be 15 The cursor in on Lease exp. If there is a lease, enter its before the expiration date. 1 st of the 16 Press <Esc> to return to the Daily Operations Menu. preceeding month. 17 Press <Esc> on Daily Operations Menu to return to the Main Menu. PropMan User Guide 2.11 Moving Out Tenants Section The To move a tenant out, all that is required is to specify Date Out the date that the tenant's rent is to stop. Call up the tenant's Tenant Financial screen and enter the Date out. The last month's rent prorate will be calculated and displayed. After this date no more rent will come due for this tenant. Once a move out has taken place there is no convenient way to reverse the process. The tenant must be re-entered as a new tenant following the steps outlined under Moving in Tenants. You may wish to wait until the tenant has actually moved to enter the move out date, Date Out. Refunds When a tenant moves out there are often cleaning and damage and charges, and also rent and deposit refunds. See Tenant charges Financial Activity for help with Assessments and Refunds. Closing After a tenant moves out, for a while you may still collect the monies owed or pay refunds. There comes a time, however, account when no more activity will take place and this account can be closed. Call up the tenant's Tenant Financial screen and at the Close field enter <Y> for Yes.. As part of the next Month End Close, PropMan will close this tenants account. Rent owed will no longer be counted as overdue. Unrefunded deposits will be deducted from the building's deposit liability balance. CHECKWRITER ON: If you mark Close: Yes and then write a refund check for this tenant, PropMan will close the tenant's account as part of the Post Paid operation When the account is closed PropMan will change the Close field to read Closed. No more activity will be allowed for the tenant. The tenant's records may then be purged whenever desired. PropMan User Guide Backing Up PropMan 3.1 Section We recommend that you backup PropMan at least monthly. The best time is as a last step just before the Month End close is run. Backups are your responsibility and are not part of the PropMan system. As an aid to PropMan users, we have included backup and restore procedures. These will work for most users. Depending on how your machine is set up, they may or may not work for you. See Appendix B, Backups and Archives in the PropMan Reference Manual for more information about backups. The installation program offers to set up batch files to backup and restore PropMan. If you did not create these files during installation, you may add them. Re-run the installation program and Update your system. When it offers to create the backup and restore batch files, answer <Y> for Yes. Making a When you perform a backup you will need several blank, backup formatted disks. As you perform backups on your system, you will see how many are required for your data. When using 360k, 5 1/4", double sided, double density floppy disks, four disks plus one disk for each two buildings should be sufficient. In the steps below, upper or lower case does not matter, remember do not type the quotes. 1 From a DOS prompt, enter the command: "C:" 2 Enter then command: "CD \" 3 Enter then command: "PMBACKUP" 4 The DOS backup program will begin the backup. Follow the instructions and change disks when told. 5 As you change disks, write the date and sequence number on the disk labels. 6 When you return to the DOS prompt the backup is complete. PropMan User Guide 3.2 Checkbook Reconciliation Section CHECKWRITER OFF Monthly you should reconcile PropMan to your property checkbook(s). They should have the same figures because the property income and expenses are entered in both. PropMan's invoices are the checkbook's checks. PropMan's collections are the checkbook's bank deposits. This reconciliation is different, and easier, than your bank reconciliation. Just before the Month End close is the most convenient time to do this. But, you can reconcile PropMan and the checkbook at anytime as long as all invoices have been paid and all collections have been entered as deposits. If you use a separate checking account for each building, reconcile each building individually to its checkbook.. If you have a single account for all buildings, reconcile the common checkbook to consolidated PropMan reports.. For consolidated data use "CON" as the building number when printing the reports. PropMan will give you totals for all buildings combined. Print Each month begins with money carried forward from the Recap previous month in the reserve accounts. This is your checkbook's beginning balance. Throughout the month PropMan processes the collections, refunds, invoices and so on to track the cash on hand or shortage for this month's business. These figures are shown on the Income / Expense Recap screens and reports. 1 From the Main Menu select Month end Operations 2 From the Month end Operations Menu select Print Month End Statements. 3 The cursor is on Number under Building. Enter "CON", for Consolidated, if you have a single checkbook for all buildings. If you have separate checkbooks for each building, enter "All" to print reports for all buildings or enter up to 5 specific building numbers. 4 Press <Enter> until the cursor is on Recap under Print Month-to-date. Enter <Y> to print the recaps. Reconciliation The recap has three main sections: Building Operation, Source and Use of Funds, and Account Balances. Remember, setting money aside in reserve, or using money from reserves changes the money available for use. Because of this, reserve activities are included in the Source and Use of Funds for this month's business even though they are not actually income or expenses. PropMan User Guide Checkbook Reconciliation 3.2 Section Source and Use of Funds shows the cash flow for the month. The last line printed in this section varies depending on this month's financial activities. It is one of three forms: 1 "General reserves were used for a cash shortage of xxx." This month the property used xxx dollars more than it had available. In this report the xxx dollars have already been subtracted from the General reserve account. Your checkbook balance should match the total shown for Reserves in the Account Balances section. 2 "Cash to owner includes cash on hand of xxx." This month the property had xxx dollars more than used. In this report, the xxx dollars is being shown as already paid to the owner. After you write yourself a check for a draw of xxx dollars, your checkbook balance should match the total shown for Reserves in the Account Balances section. 3 Neither message is printed. There is neither a shortage nor cash on hand. Your checkbook balance should match the total shown for Reserves in the Account Balances section. Out of If the reserves total does not match your checkbook, there balance is an entry in either your checkbook or PropMan that is not in the other. Verify collections. Do the rent and other collections match the bank deposits? Have all deposits been entered in the checkbook? Did you add money of your own? Was there interest earned on the account? Check expenses. Have all invoices have been paid? Were some invoices paid from a different account or out of pocket? Have all checks have been entered as invoices? Were any reversing invoices entered? Where there bank charges? Check account corrections. Account corrections can set PropMan data to any values you wish. Be sure corresponding adjustments are in your checkbook. PropMan User Guide 3.3 Bank Reconciliation Section CHECKWRITER ON Reconciling PropMan to your bank statement is done in the same manner as a manual checkbook reconciliation. Monthly, after all checks are written, just before the Month End close is the most convenient time to reconcile PropMan to your bank statement. You can reconcile at anytime, but there are extra steps required. Through the month PropMan reports show the month-to-date financial position of a property. Income includes all collections entered, whether or not the bank deposit has been made. Expenses include all invoices and refunds (PROFESSIONAL VERSION: and management fees) whether or not the checks have been written. Only at month end, when all deposits have been made and all checks written, does this financial position also match the bank's account. If you use a separate checking account for each building, reconcile each building individually to its checkbook.. If you have a single account for all buildings, reconcile the common checkbook to consolidated PropMan reports. For consolidated data use "CON" as the building number when printing the reports. PropMan will give you totals for all buildings combined. Print Each month begins with money carried forward from the Recap previous month in the reserve accounts. This is your checkbook's beginning balance. Throughout the month PropMan processes the collections, refunds, invoices and so on to track the cash on hand or shortage for this month's business. These figures are shown on the Income / Expense Recap screens and reports. 1 From the Main Menu select Month end Operations. 2 From the Month end Operations Menu select Print Month End Statements. 3 Your cursor is on Number under Building. Enter "CON", for Consolidated, if you have a single checkbook for all buildings. If you have separate checkbooks for each building, enter "All" to print reports for all buildings or enter up to 5 specific building numbers. 4 Press <Enter> until the cursor is on Recap under Print Month-to-date. Enter <Y> to print the recaps. PropMan User Guide Bank Reconciliation 3.3 Section Print 1 From the Main Menu select Daily Operations. Check Register 2 From the Daily Operations Menu select Checkwriter. 3 Press <Enter> until the cursor is on Print register. Enter <Y> to print the register. Print 1 From the Main Menu select Daily Operations. Bank Deposits 2 From the Daily Operations Menu select Bank deposits. 3 The cursor is on Building:. Enter any valid building number. 4 Press <Enter> until the cursor is on Print All Deposits. Enter <Y> to print the list of bank deposits. The recap has three main sections, Building Operation, Source and Use of Funds and Account Balances. Remember, setting money aside in reserve, or using money from reserves changes the money available for use. Because of this, reserve activities are included in the Source and Use of Funds for this month's business even though they are not actually income or expenses. In the Account Balances section the Reserves total is the checking account balance. If any buildings had cash on hand that was not paid to the owner or had a shortage from this month's operations, these amounts are added to or taken from the General reserve. The balances printed include these transfers. If the Month End Close were run now, these are the amounts that would be carried forward as next months beginning balance. Reconciliation Using the check register and the bank deposits, reconcile the reserve total to your bank statement just as you would any other checking account. Compare the bank statement to the check register and the deposit list. Note which checks have not cleared and which deposits are not on the statement. Start with the reserve total. Add back any uncleared checks. Then subtract any unrecorded deposits. The result should match your bank statement. PropMan User Guide 3.3 Bank Reconciliation Section Out of If these totals do not match, there is an entry in either balance your bank statement or PropMan that is not in the other. Verify collections. Do the rent and other collections match the bank deposits? Have all deposits been entered in the checkbook? Did you add money of your own? Was there interest earned on the account? Check expenses. Have all invoices have been paid? Have tenant refunds (PROFESSIONAL VERSION: and management fees) been paid? Were some invoices paid from a different account or out of pocket? Did you hand write any checks? Have all checks have been entered as invoices? Were any reversing invoices entered? Are there any bank charges? Check account corrections. Account corrections can set PropMan data to any values you wish. Be sure corresponding adjustments are in your bank statement. PropMan User Guide Month End Close 3.4 Section PropMan has a single, system-wide Processing Month. All activity is recorded as business in the current Processing Month. You must close one month, before you can enter information for the next. The close is simple. All you do is request it; PropMan does all the work and closes all buildings simultaneously. You will not be able to enter any more activity for the month once it has been closed. Before you close, be sure you have entered all income, entered and paid all invoices, recorded tenant refunds and made any accounting corrections necessary. Just before you close is a good time to reconcile PropMan to your checkbook or bank statement and make backups. When a month is closed PropMan will resolve any difference between income and expenses for the month. To see how PropMan will allocate this remaining Cash on Hand or Shortage print the Income / Expense Recap. How PropMan will not close a month if there are any unfinished PropMan transactions. All invoices must have been paid or put on closes hold. CHECKWRITER ON: All tenant refund checks must be written. PROFESSIONAL VERSION: Management fee checks must be written. The close starts with an examination of the month's data. An Invoice Recap (CHECKWRITER ON: Invoice / Refund Recap )is displayed on screen as each building is examined. Simultaneously a closing report is printed. After all buildings are examined, the actual close may begin. The report includes a summary of the invoices, and a note indicating the disposition of any cash on hand or shortage. In addition, if there are any open items as explained above, they will be listed. The report ends with a note stating that the close either was, or was not performed. If any open items were found, the close stops at this point. Fix them and rerun the close. If no problems are detected the close continues. A series of Closing Accounts messages is displayed as PropMan updates the year to date totals and moves this month's activity to the archives for each building. When the close is complete the Processing Month is incremented and you may begin entering data for the new month. See the Reference Manual for a complete description of the close activities. PropMan User Guide 3.4 Month End Close Section Year End PropMan performs the year end close as part of the month end Close close for the final month of the Fiscal Year. There is no special requirement for the year end close. However be sure you have entered any necessary year end adjustments before closing. The year end close generates a permanent year end archive for the year and resets all year-to-date totals to zero for the new year. Be sure to make a backup before running the year end close. Running 1 From the Main Menu select Month End Operations. the close 2 From the Month End Operations Menu select Month End Close. 3 The cursor is on Close accounts. Enter <Y> for Yes to start the close. 4 If this is a year end close, PropMan will ask for a confirmation that the close should continue. The cursor is on Close accounts. Enter <Y> for Yes to start the year end close. 5 PropMan will attempt the close. It will generate a printed report and a message will be displayed on the screen saying either that the close was successful or why it was stopped. 6 Press <Esc> to return to the Month End Operations Menu. 7 Press <Esc> from Month End Operations Menu to return to the Main Menu. PropMan User Guide Rent Changes 4.1 Section PropMan allows you to schedule tenant rent changes as far in advance as you wish. You tell PropMan the new rent and the date it is to go into effect. Once the change is scheduled, the tenant can be included on rent changes reports and selected when rent change notices are run. On the date you specified, PropMan will make the change. You may alter the amount or date of the change at any time until it takes effect. Rent changes In all systems rent changes may be entered on the Tenant Tenant Financial screen. The larger PropMan versions also have a Financial Scheduled Rent Changes screen. screen 1 From the Main Menu select Daily Operations. 2 From the Daily Operations Menu select Tenant activity. 3 Your cursor is on Building. Enter the building number. 4 The cursor is on Unit. Enter the unit ID. 5 On the line labeled New under Rent Changes are two fields, an amount and a date. Press <Enter> until the cursor in on the first field, the amount. Enter the new scheduled rent. 6 The cursor is on the second field, the date. Enter in the date that this rent is to become effective. This must be the same day of the month as the tenant's rent Due day. 7 To enter a rent change for another tenant, press <Enter> until the cursor is on Building and return to step 3. 8 Press <Esc> to return to the Daily Operations Menu. 9 Press <Esc> from Daily Operations Menu to return to the Main Menu. PropMan User Guide 4.1 Rent Changes Section Scheduled OWNER AND PROFESSIONAL VERSIONS ONLY Rent Changes screen In the larger PropMan systems there is a second way to schedule rent changes. The Scheduled Rent Changes screen allows you to specify a block of changes by dollar amounts or by percentages. As you approve each rent change PropMan enters the new rent amount and date on the Tenant Financial screen for you. 1 From the Main Menu select On Demand Operations. 2 From the On Demand Menu select Scheduled Rent Changes. 3 The cursor is on Building. Enter the building number. 4 The cursor is on Effective date. Enter the date you wish the rent changes to become effective. For each unit PropMan will select the first rent due date following this date. 5 The cursor is on Amount. If you want to change rents by a fixed dollar amount, enter the amount. 6 The cursor is on Percentage. Use this field to change rents by a percentage of the current rent. Enter the percentage of the change. 7 The cursor is on Rounded to. This allows rounding the new rents to even amounts. Enter in ".01" for no rounding, ".1" to round to the nearest dime, "1" for the nearest dollar, or "10" for the nearest ten dollars. 8 The cursor is on Unit. You may now step through the units and review the rent changes. Press <F1>. Find the function key labeled Next Unit. Press <Esc> and then press the Next Unit function key. The units will be displayed in sequence. To start at a specific unit, type in the apartment number and press <Enter>. 9 When you have selected a unit, PropMan will calculate the proposed New rent, based on the above criteria. The tenant's Current rent and the date it went into effect will be displayed along with the proposed rent change. 10 The cursor is on the question "Default rent change as above?" If you are satisfied with the proposed rent change enter <Y> for Yes. Continue at step 14. PropMan User Guide Rent Changes 4.1 Section 11 If you want no change or a different change, for the rent for this unit, enter <N> for No. 12 The cursor is on New under Date. Enter the effective date you want. 13 The cursor is on New under Rent. Enter the new scheduled rent. 14 Depending on how you accepted, refused or modified the proposed rent change, your cursor may be anywhere on the screen. It does not matter. If there are both a New Date and Rent on the screen, the change will be scheduled. If either is missing, no change will be scheduled for the unit. 15 If you are stepping through the units sequentially, press the Next Unit function key and return to step 9. 16 To go directly to another unit, press <Enter> until the cursor is on Unit and return to step 8. 17 Press <Esc> to return to the On Demand Menu. 18 Press <Esc> from the On Demand Menu to return to the Main Menu. PropMan User Guide 4.2 Accounting Corrections Section It is possible that in the course of running PropMan you will run across an abnormal accounting situation. Account Corrections allows you alter any building account in the system. There are two kinds of corrections. Activity Every account may have an Activity correction. These amounts Corrections are included in the financial reports as part of the current month's activity. An example: you receive back rent from a tenant months after they have moved out; this can be entered as an Activity correction to account 2510 Rents; it will be shown as rent income on the building financial statements. It will not appear on unit related reports. Balance You may also change the balances for accounts where a Corrections running balance is maintained, (tenant deposits, reserve accounts, and mortgages). A Balance correction changes the account balance directly and does not appear as part of this month's activity. An example: a mortgage balance in PropMan's records is off by a few pennies; enter a Balance correction to account 2010 1st T.D. Principal; this will change the balance but will not be included as part of the month's mortgage payment. Entering 1 From the Main Menu select On Demand. corrections 2 From the On Demand Menu select Account Corrections. 3 The cursor is on Building. Enter in the number. 4 The cursor is on Correction number. To add a new correction enter the number 0. PropMan will assign the next number in sequence. To review an existing correction, enter the number of the correction. 5 The cursor is on Acct. Enter the account number for the correction. To step through the accounts, press <F1>. Find the function key labeled Next Acct #. The up arrow means to use the shift key. Press <Esc>. Press the Next Acct # function key to step through the accounts. When you locate the desired account, press <Enter>. 6 On Activity Correction, enter the amount of the correction. This month's activity in this account will be changed by the amount entered. Use the minus sign, to enter a negative correction. PropMan User Guide Accounting Corrections 4.2 Section 7 If the account selected has a running balance, the cursor is on Balance Correction. Enter the amount of the correction. The running balance in this account will be changed by the amount entered. Use the minus sign, to enter a negative correction. 8 Your cursor is on Description. Enter any note that will help you remember why the correction was made. 9 Press <Esc> to return to the On Demand Menu. 10 Press <Esc> from On Demand Menu to return to the Main Menu. PropMan User Guide 4.3 Deleting Vendors Section A DELETED vendor may still have information in the PropMan system but no more invoices may be charged to them. When you know you have finished using a particular vendor's services, you may mark that vendor as DELETED. The vendor's name and address and Year-to-date and Last year $ Volume totals are retained for your reference, and for reference by any archived invoices from this vendor. Vendor numbers can be reused. Merely call up the vendor number and replace the old vendor's information with information about the new one. However, before reusing a number, wait for two year end closes after the vendor is marked DELETED. After 12 months all archive references to this vendor will be gone. After the second year end close all $ Volume data will be set to zero. To mark 1 From the Main Menu select System Maintenance. a Vendor DELETED 2 From the System Maintenance Menu select Vendor list. 3 The cursor is on Vendor Number. Enter the number. 4 Press <Enter> until your cursor is on Status. Enter <D> for deleted. Note that the Status changes and today's date is entered as the Deleted date. 5 Press <Esc> to return to the System Maintenance Menu. 6 Press <Esc> from System Maintenance Menu to return to the Main Menu. To re-use 1 From the Main Menu select System Maintenance. the number of a 2 From the System Maintenance Menu select Vendor list. DELETED Vendor 3 The cursor is on Vendor Number. Enter the number. 4 The cursor is on Status. Enter <A> for ACTIVE. Note that the Status changes and the Deleted Date is set to blanks. 5 You may now begin using this vendor again. Or you may enter all new information for this vendor number and re-use the number for an entirely different vendor. 6 Press <Esc> to return to the System Maintenance Menu. 7 Press <Esc> again from the System Maintenance Menu to return to the Main Menu. PropMan User Guide Purge Files 4.4 Section File purges remove data completely from the PropMan system and release the disk space for re-use by your DOS. There are two kinds of purges. The tenant purge removes outdated tenant records from still operating buildings. It leaves all other building data intact. The building purge removes all record of a building. It will only remove buildings that are marked DELETED. Run this after a building is sold or no longer being managed and you need no further records or reports about its operations. The purges make major changes to the PropMan file structures. A good time to run them is just after making a backup. To Purge 1 From the Main Menu select System Maintenance. buildings or 2 From the System Maintenance Menu select Purge files. tenants 3 The cursor is on Num under Building. Enter "All" or up to 5 individual building numbers. 4 The cursor is on Purge Buildings. To purge buildings, enter <Y> for yes. The buildings referenced under Building, above, will be examined. Any with a status of DELETED will be removed from the PropMan system. 5 The cursor is on Purge tenants through: Enter the date of the most recent data to be discarded. 6 The cursor is on Purge Tenants. To purge old tenants data, enter <Y> for yes. The tenants in the buildings referenced under Building, above, will be examined. Tenant records will be purged from the system if their Close field is marked Closed and their Date out is on or before the date entered in Purge tenants through, above. 7 Press <Esc> to return to the System Maintenance Menu. 8 Press <Esc> from System Maintenance Menu to return to the Main Menu. PropMan User Guide 4.5 Building to Building $ transfers Section Property owners often have situations in which one property generates cash and another uses it. This could be ongoing, or a now and then occur-ance. In these situations the total money for all buildings in the PropMan system has not changed but it's necessary to record that the money has been moved from one building to another. The connection between buildings is the owner. Buildings that generate cash pay it to the owner. Buildings that need cash get it from the owner. To move money between buildings two accounting corrections are entered. One takes the money out of the source building, the other puts it in the receiving building. For the building generating the surplus, enter an account correction to account 2410, Cash to Owner, for the dollar amount to be moved. This building's records will include this amount as part of the owner's draw for the month. To this building, it is unimportant that you are transferring the money to another property. All that matters is that cash was generated and paid to you. For the building receiving the funds, enter an account correction to account 2810, Cash from Owner, for the dollar amount to be moved. This building's records will include this amount as part of money received from the owner for the month. To this building, it is unimportant that you are transferring the money from another property. All that matters is that it was your money and it was spent on this building. The Cash to Owner and Cash from Owner entries offset, so the PropMan Consolidated report totals do not change. The records for the individual buildings involved accurately show the earnings and losses. Three-way or multiple building transfers can also be done. Just be sure that the total of the Cash to Owner entries matches the total of the Cash from Owner entries. These transfers are simple to record. However, remember there are fiduciary and legal aspects to consider if the properties involved have different owners. PropMan User Guide Reserve Account Activity 4.6 Section Reserves are money that is retained from income and set aside, earmarked for a specific purpose. The most common use is for annual bills such as property taxes or insurance. Each month 1/12th of the annual bill is withheld and put in a reserve account. Eventually the cash from the reserve is spent to pay the bill. PropMan maintains running balances in five reserve accounts. These accounts are the only way that PropMan carries money forward from month to month. If money is retained in reserve accounts, this balance carried forward each month will grow. See Checkbook Reconciliation and Bank Reconciliation. The General Reserve is a fixed account and is used by PropMan to resolve differences between collections and disbursements on a month to month basis. The other four accounts may be used to accumulate funds over a period of time so that money is available to cover large bills when they come due. PropMan can be set to retain a fixed amount each month for each of the reserve accounts. This amount is specified on the General building screen. The beginning balances of the reserve accounts is set at the time the building is entered into the system. Once the building is made active, the balances are maintained by PropMan. See Building Information - General Screen. Retaining You may alter the amounts to be retained or spent in a and particular month on the Account Balances screen of the Spending Income and Expense Recap. If a previous month's shortage Reserves made the General reserve negative, you should Retain money in following months to make up the shortage. If you have been retaining money in reserves for a bill that has now come due; enter the invoice for the bill as you would any other, then Spend from the reserve account to put the necessary money in CASH on-hand to cover the expense. 1 From the Main Menu select Month End Operations. 2 From the Month End Operations Menu select Income / Expense recap. PropMan User Guide 4.6 Reserve Account Activity Section 3 Month to Date, screen 1 of the recap, is displayed. Reserve activity is viewed and controlled on screen 2, Account Balances. Press <F1>. Find the function key labeled Balance. Press <Esc>. Press the Balance function key. Screen 2 of 3, Account Balances, is shown. 4 The cursor is on Building. Enter the number. PropMan will display the current balances and this months activity for RESERVES, MORTGAGES and DEPOSITS. Only RESERVES activity can be entered here. The other accounts are display only. 5 The cursor will move to all five accounts under Retained. You may enter or change any of them. As you do, money will be taken from the CASH On-hand and added to the reserve balances accordingly. 6 After the last Retained entry your cursor will move to the Spent column. Here you specify how much money is to be Spent from the reserve accounts. You may enter or change any of them. As you do, money will be taken from the reserve Balances and added to CASH On-hand accordingly. 7 To review reserve accounts for another building, press <Enter> until the cursor is on Building and return to step 4. 8 Press <Esc> to return to the Month End Menu. 9 Press <Esc> from Month End Menu to return to Main Menu. PropMan User Guide Impound accounts 4.7 Section Impounds, or escrow accounts, serve the same purpose as reserve accounts. The difference is who is holding the money. When you set up a reserve account, you are accumulating money in your checking account to cover expected future expenses. When the bank sets up an impound account they collect money from you, accumulate it, and then pay specific expenses on your behalf. Impound activity affects PropMan in two ways. Monthly, PropMan records impound payments as part of your cash flow records. Then, when the bank disburses impound money, PropMan records the expense in the appropriate category. PropMan does not maintain balances for bank impound accounts. Impound Payments to an impound account are recorded as any other payments expense. When PropMan generates mortgage invoices it includes any impounds you have specified. If you make a special, one time payment, merely enter the invoice and charge the impound account. Impounds are recorded in an expense account because they are payments made by the property. Each month PropMan records the impound expense. When Year-to-date reports are examined this expense is seen to accumulate. However, the impound payments themselves are not a true expense. Even though you have paid the bank, the money is still yours. The expense does not occur until the bank disburses the impound money. Impound When the bank disburses money from the impound account, the disbursements payment becomes a legitimate expense. Two corrections are used to move the expense from the "artificial" impound expense account to the correct expense account. Offsetting corrections are used so cash flow and account balances all remain unchanged. This is a simple process. When you receive notice from the bank that a bill was paid from impounds; 1) make a negative Account Correction to the impound account for the amount of the payment to lower the impound expense; 2) make a positive Account Correction to the expense account for the bill that was paid, (taxes, insurance, etc), to record the actual expense. PropMan User Guide 4.7 Impound accounts Section Year-to-date The year-to-date and year-end impound expenses may vary and widely and may be positive or negative, especially in the Year-end first year of a new loan. This is because of the way impound impounds are used. expenses Over the course of the year money is paid to impounds and the year-to-date expense grows. Then, when the bank pays a bill from impounds, a lump sum correction is made and the year-to-date impound expense drops. It may even go negative. As further monthly payments are made, the year-to-date expense increases again. Over the long term you will pay as much into the impounds as the bank disburses. In any one year there will be small differences between what the bank collects and what it pays out. One year, you may pay more than they disburse, this will show a year-end impound expense on your PropMan reports. Another year, you may pay less than the bank disburses, this will show as a negative year-end impound expense on your PropMan reports. These small, remaining, year-end impound expenses, both positive and negative, are correct. They resolve your cash flow to your expenses. A positive impound expense means your cash paid out was higher than your actual expenses. The extra cash is in the impound account at the bank. A negative impound expense means your cash paid out was lower that your expenses. The extra expense was paid from the impound account at the bank. If there are large impound expenses at year-end, verify that you have recorded all of the banks disbursements. PropMan User Guide Mortgages, New, Payoffs / Re-Financing 4.8 Section PropMan records mortgage expenses to track the property's cash flow. The mortgage balance is maintained in order to calculate the distribution of mortgage payments between interest and principal. When mortgages are paid off or taken out, all that is necessary is to set the new mortgage payment amount and principal balance. Payoffs When a mortgage is paid off, PropMan needs entries to change the mortgage records and charge any final expenses. If the mortgage is paid off at the end of its term, the final payment is usually different than the regular payment. The payment invoice will need to be adjusted. When paying off a mortgage early you may need to remove this month's payment invoice. These steps may not all require action for every payoff. 1 Call up this month's mortgage payment invoice. If the amounts actually paid are different than the invoice, correct the invoice. If no payment was made, set the invoice to zero. See Changing Invoices. 2 If the payoff included any final interest payment, enter an invoice for the interest expense. See Entering Invoices. 3 If the payoff included any closing charges or bank fees, enter an invoice for these expenses. See Entering Invoices. 4 If any of the final payments or fees were paid out of pocket with the owner's money instead of the building's money, enter an Account Correction to the Cash from owner account for the amount. See Out of Pocket Expenses. 5 Remove the mortgage payment so that no further payment invoices will be generated by PropMan. Set the Payment Principal & Interest and Impound fields to zero on the Mortgage screen. See Building Changes and Building Information - Mortgage Screen. 6 Set the mortgage balance to zero. Make a negative Balance Correction for the full balance of the mortgage. See Account Corrections. PropMan User Guide 4.8 Mortgages, New, Payoffs / Re-Financing Section New loans When a new mortgage is taken out, PropMan needs entries to change the mortgage records and charge any expenses for the new loan. Here we are charging all new loan costs to the building. You may need to check with a tax advisor concerning allowable charges. From the viewpoint of PropMan, the loan proceeds are the owner's money not the building's. Therefore any loan proceeds used to pay points, escrow fees, or other loan acquisition costs are treated as cash from the owner. The new loan can be assigned any Mortgage number on the Mortgage screen. There is no need to require number 1 to correspond to the 1st mortgage, number 2 to the 2nd and so on. These steps may not all require action for new loan. 1 Enter the mortgage information so that PropMan can generate mortgage payment invoices. Set the Interest Rate, Payment Principal & Interest and Impound fields on the Mortgage screen for the new loan. See Building Changes and Building Information - Mortgage Screen. 2 Set the new mortgage balance. Make a Balance Correction for the principal of the new mortgage. See Account Corrections. 3 If there is a mortgage payment due this month, enter the invoice. Remember to distribute the payment between principal and interest (see NOTE below to figure the distribution). See Entering Invoices. 4 Enter invoices for loan charges, points, prepaid interest, etc. See Entering Invoices. 5 If any of the loan charges were paid out of pocket with the owner's money or with loan proceeds, instead of the building's money, enter an Account Correction to the Cash from owner account for these charges. See Out of Pocket Expenses. NOTE: To calculate the principal/interest distribution, multiply the principal balance by the interest rate, then divide by 12. This is one month's interest. Charge this amount to the interest account. Subtract this interest charge from the total payment. The remaining amount will be applied to the principal. Charge this to the principal account. PropMan User Guide Mortgages, New, Payoffs / Re-Financing 4.8 Section Re-financing Treat a re-finance as two separate activities. Make the entries to payoff the old loan, then make separate entries for the new loan. When re-financing with the same lender or adding to a line of credit loan, it is not necessary to pay off and re-open the loan. Enter invoices and account corrections to cover any loan charges. Then modify the current loan payment information and balance to the new amount. This is done just as you would for a new loan with the exception that the Balance Correction is made for the amount of the loan extension rather than the full principal. PropMan User Guide 4.9 Out of Pocket Expenses Section Often, as a property owner you will spend your personal money or use your personal credit card for a purchase for the properties. Resident managers sometimes do this also, or may have a petty cash fund available to them. Occasionally you may reimburse a tenant. There is a simple reimbursement procedure that can be used for any of these situations. For owners there is also an easy way to record the personal money that you spend when you do not reimburse yourself. Reimbursements For people you reimburse often its convenient to have a reimbursement vendor in the Vendor List. To reimburse an owner or manager for personal funds, call the vendor something like "John Smith, reimb". If a manager keeps some of the property's money in a petty cash box you can use: "Petty Cash, Bld xxx". For an occasional or one time reimbursement, use vendor 0, Cash. When you or a manager spend your own money, keep the receipt. Monthly, or whenever convenient, enter invoices for these expenses. Charge the invoices to the proper expense accounts and use the reimbursement vendor as the vendor. Don't forget to enter an invoice charging the building for car mileage, too. Then write a reimbursement check from the property's checking account. Petty cash has an additional consideration. Here the manager already has, and is responsible for, some pre-established amount of the building's money. From time to time they spend money and get a receipt. The total of the receipts plus the cash remaining should always match that pre-set amount. Now, when the manager presents you with the receipts you are reimbursing the petty cash box. It might be a good idea, that each time you process a batch of receipts, have the manager confirm that the reimbursement has in fact brought the petty cash box back to the pre-set amount of cash. It wouldn't be a bad idea, either, to include a note with the "petty cash vendor" information in the Vendor List as to what that pre-set amount is. PropMan User Guide Out of Pocket Expenses 4.9 Section Tenant Actual reimbursements should be handled as explained above Reimbursements in REIMBURSEMENTS. This is when the tenant pays their full rent and, in addition, spends their own money and presents you with the receipt. Use vendor 0 and note the reimbursement on the invoice. A second type of tenant reimbursement is really rent forgiveness. In this case the tenant presents you with the receipt, deducts the expense from the rent and pays the rent less the deduction. Here the tenant has already reimbursed themself from their rent money. When you post their rent, enter a Rent Payment for the actual money received and a Rent Credit for amount of the receipt. This gives the tenant full credit for both. In addition, the Rent Credit appears as an expense in account 1720 to keep your cash flow in step. For small amounts you can leave the expense in account 1720, Rent Credit Given. However, a large credit, for painting a unit or paying a repairman's bill, you will want charge to the appropriate expense account. Enter the tenant transaction as above. Then use Account Corrections to move the expense to the proper account. Enter a negative correction to 1720, Rent Credit Given, and a positive correction to the true expense account. See Account Corrections. Cash From If an owner deposits their own money in the property Owner account, just enter this as a Cash from Owner Miscellaneous Receipt. See Miscellaneous Receipts. Other times the money is not actually deposited in the property account. Instead the owner uses their personal money or credit card for a property expense, but is not reimbursed. This needs to be recorded as Cash from Owner, account 2810 (REGISTERED AND OWNER VERSIONS) or accounts 2810-2850 (PROFESSIONAL VERSION). Enter an invoice for the expense, charging the correct expense account and the actual vendor, not the owner's reimbursement vendor. Mark the invoice paid. Then enter an account correction to account 2810-2850, Cash from Owner, as appropriate. The invoice records the expense for the building; the correction records the owner contribution; and the building checkbook stays in balance. Index The PropMan index is in a seperate file named "INDEX.DOC" it can be found on the 1st PropMan program disk. This is done so that the index may be more conveniently printed or refered to without accessing or printing the entire User Guide.