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Account Types: Balance Forward or Open Item

Introduction to Account Types

DomicoCloud allows for two “account types” that affect how payments are applied.

A lease can have an account type of Balance Forward or Open Item. The account type setting affects how payments are applied to charges.

This type can be changed at any time, by locating the desired lease on the Tenant Form, going to the Lease Tab, and changing the Account Type setting.

DomicoCloud account type

Balance Forward Account Type

Balance Forward is the default account type in DomicoCloud. This is chosen unless otherwise requested during the initial configuration. On an account marked as Balance Forward, the oldest charges on the account are paid first. 

Example:

  1.  Acct Activity shows three charges unpaid:
Domico Cloud self storage software account activity

2.  The Payment Entry screen shows the same three charges:

Domico Cloud self storage software payment entry

Any moneys posted to the account will pay the $120.00 first, then the $9.90, and lastly the $1.00 Statement Fee.

Important Notes about Balance Forward Option

If the selected lease has an account type of Balance Forward, it is unnecessary (and impossible) to select charges to be paid. The charges will be paid from oldest to newest. 

If you take a payment for more than the amount owed you will need to select the edit link under the prepay heading.

Domico Cloud self storage software prepay

Open Item Account Type

The Open Item account type allows the user to select which charges are paid. Using the same account as above, the Payment Entry screen looks different:

domico self storage software charges

There are checkboxes next to the charges. If the customer wanted to pay only the Statement Fee, the user can uncheck the other charges and only apply to the Statement Fee. 

If you do not check any charges, the system will apply the payment to the charges overnight, oldest to newest. As you check boxes next to charges, a running total of the selected charges is displayed at the top right corner. If you select more charges than the payment amount you enter, the payment will be applied to charges oldest to newest until the payment is exhausted.

DomicoCloud has a default choice for account type, but it can be changed on a unit if needed. Located in Lease > Settings, the options can be swapped:

DomicoCloud account type

Important Notes about Open Item Option

Using the Open Item account type can lead to mixed up accounts if the user isn’t careful. If an account owes multiple months of rent, it is not advisable to selectively pay the newer rent charges.

The Paid Through Date is calculated based on the monthly period assigned to each rent charge and paying newer charges while leaving older charges unpaid will result in the incorrect Paid Through Date and possibly inaccurate late fees.

Open Item should only be used for accounts that require their payments to be posted in a specific fashion. Using Balance Forward should suffice for facilities whose accounts accrue primarily rent charges and the occasional fees. 

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