Trust accounting can be a bit confusing. It allows a tenant to pay odd amounts and gives them an 'effective date' which is different from their 'paid to' date. This date is often completely incorrect for example if a tenant pays $20, and their daily rate is $100, trust accounting software will credit them a full day - not bad for the tenant (Free money!) but it is incorrect and also very confusing for your owners and tenants.

To make things simple, Managed App does not have 'effective dates' - tenants are required to pay full periods.

So what happens when we migrate?

When we migrate a property with a partial payment, we reduce the first payment period in Managed App by the overpayed amount, essentially using the amount in hand and bringing them back in line with their lease frequency.

For example, if your tenant pays $500 per week and is paid to the 17th March but at some point they paid $50 randomly, your trust account software will say they are paid to the 17th March with an effective date of the 18th March (even though they should have paid $71.43 for that extra day).

If the above happens, We set their first payment period in Managed App to be from the 18th to the 24th March, but instead of paying $500 for that period, we add a credit of $50 so the tenant will pay $450 for the same dates and then continue with the normal $500 every week after that.

You now have a nice clean accurate ledger with no amounts in hand and no effective dates that are confusing reports for owners and tenants