It is essential to configure the trust accounting settings prior to completing daily trust accounting duties as well as the end-of month-process. Completing the settings will ensure balanced reconciliations as well as help automate the entire process.
To access the settings, go to:
- Global Settings
- Settings Assistant
Navigate to "Owner Accounting Setup" on the side menu:
Enable or Disable Owner Accounting
Unchecking this setting will result in disabling the Owner Accounting Module and the ability to produce and finalize Monthly Owner Statements. Don’t worry, you can enable the Owner Accounting Module at a later time.
This setting can be disabled on a per Owner Account basis via Advanced Unit Setup. For example, if managing one or more properties where financials are not to be accounted for. Once disabled on a unit basis, the property will not appear on any accounting report generated by the system.
Owner Transaction Types
Owner transaction types can be used as the general ledger or chart of account. The owner transaction types are assigned to each transaction to create bookkeeping reports and annual statements. The system has a number of predefined types available, which cannot be deleted or modified. However, new owner transaction types can be created.
To create a new type:
- Click the "plus" icon
- Type in the category column
- Click the "save" icon
Based on the set date-mode, the system can trigger rental revenue to the owner statement once the following criteria is met:
- Arrival date has passed, and full payment is received from the guest
- Departure date has passed, and full payment is received from the guest
Once a reservation has met the above criteria, the reservation will automatically trigger to apply to the monthly statement.
For example, booking arrives on February 23rd and departs on March 2nd, the owner will receive rental revenue on the March monthly statement, if set to once the departure date has passed.
This efficient method provides a more automated solution to owner accounting. There is no need to individually credit the owners account for each reservation for each property one by one.
To apply the rule, either specify the rule against each reservation source or select "Bulk Apply' to quickly apply the rule to all reservation sources.
General Owner Account Settings
Configure the general accounting settings on this screen.
Trust Account Settings
It is important to enter the Trust Accounting settings prior to generating the monthly statements to ensure accurate financial details.
There are three settings to configure on this screen:
- Enable taxes to be included on the End of Month Payout Report
- Trust Account Details
- Date Mode
1. Include taxes on End of Month Payout Report? - if set, the taxes will appear on the end of month profit report to the Property Manager.
When this setting is enabled, taxes will reflect on the End of Month PMC Payout Report. As a result, taxes are being transferred out of the trust into the operations account to submit to your tax authorities.
When this setting is disabled, taxes will be paid out of the trust account.
2. Trust Account Details:
- Opening Balance Date: In CiiRUS, the Trust Account needs to match the real-life bank activity. To commence Trust Accounting in CiiRUS, pick a day to start tracking transactions.
- Opening Balance Amount: Enter the balance of the real-life bank statement based off of the opening balance date.
- Bank Name: Enter Trust Account bank name.
- Account Number: Enter Trust Account bank number.
3. Date Mode:
When applying rental income to the owner accounts, it is based off of either the Arrival Date or the Departure Date. Specify whether you base reports and end of month financials on strictly the Arrival Date or strictly the Departure Date.
For example, booking arrives on February 23rd and departs on March 2nd, the owner will receive rental revenue on the March monthly statement, if set to departure date.