The NSF fee General Ledger (GL) account is set as an account that is associated with Management Fees. It is a charge to the tenant but the GL is an income account. All money received from a tenant is income.
The Property Management company typically receives 100% of an NSF fee and this charge to the tenant is programmed on the property page as an Additional Fee.
The Property Management company typically receives 100% of an NSF fee and this charge to the tenant is programmed on the property page as an Additional Fee.
The actual fee (charge) can be found on the Property Page as shown below,
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Or on the Tenant Page under the FINANCIALS section.
This is an automation that will automatically charge the fee when a tenant’s payment is returned as non-sufficient funds.
Many times a Property Management company will "suppress" the NSF fees from the owner statement which suppresses the charge and payment from the owner statement. Meaning, the "income" that is received isn't reported on the Owner's statement or 1099 because 100% of it is “expensed” to the Property Management company as a fee on the property before it ever becomes the "owner's" money.
When the GL account isn't suppressed, the NSF fee will show as income. Then it is shown as being taken right back out when Management Fees are paid. The owner's year end 1099 shouldn't be affected as that NSF fee GL nets out to $0.
ManagingYourProperties.net is a division of Ala Carte Bookkeeping & Business Solutions with expertise in Property Management Trust Accounting. Is there something more that you would like to know about the AppFolio system dealing with a specific accounting solution? There are many ways to go about seeking those answers. Here are a few:
Many times a Property Management company will "suppress" the NSF fees from the owner statement which suppresses the charge and payment from the owner statement. Meaning, the "income" that is received isn't reported on the Owner's statement or 1099 because 100% of it is “expensed” to the Property Management company as a fee on the property before it ever becomes the "owner's" money.
When the GL account isn't suppressed, the NSF fee will show as income. Then it is shown as being taken right back out when Management Fees are paid. The owner's year end 1099 shouldn't be affected as that NSF fee GL nets out to $0.
ManagingYourProperties.net is a division of Ala Carte Bookkeeping & Business Solutions with expertise in Property Management Trust Accounting. Is there something more that you would like to know about the AppFolio system dealing with a specific accounting solution? There are many ways to go about seeking those answers. Here are a few:
- Post your questions here and I’m always happy to respond;
- Post your questions on the AppFolio User Group www.facebook.com/groups/appfoliouser. I’m a moderator and the members there are always helpful;
- Post a question on the statewide Property Management Facebook group that I’ve developed. You can find most of them by searching for <state> Property Management. These groups are new but growing;
