We recommend the traditional method of tracking reserves, which can be found under the topic "Managing & Reporting Property Reserves", however the instructions below are an alternative method that some customers have used:
1. Discontinue using the reserve feature under the property menu -
under management fees. This will confuse the issue if you're using the
functionality recommended below. You will have to indicate outside of
RT to your owners what the reserve account funds are as explained in step #9 below.
2. Under Settings > Setup Categories, add a category called "Owner Contribution", and set the type as "Other".
3. If an owner sends in money to apply to the property - reserve or otherwise - use the category in #2 to post an income transaction to the property. This will not show as true income for the property in the Income/Expense Statement reports but rather as "unclassified income" on the Owner Statement reports to show it is accounted for.
4. Under Settings > Setup Categories, add a category called "Transfer To Reserve Fund", and set the type as "Other".
5. Create a new bank account for the owner for reserves in the Accounts tab.
6. Once there is a positive cash flow in the property ledger (either after rent has been collected or after the owner contribution posting in step #4) you can post an expense transaction to the property for the amount of $ you wish to transfer. Use the category created in #4. On the expense transaction, set the bank account as the account that the funds are being transferred out of.
7. Now, head to the Accounts tab and click on the balance for the new bank account you created for this owner. From here, select "update balance" and make an adjustment entry that will give the desired balance (existing balance + amount of the expense in #6. In the description, note what property the funds are coming from.
8. When you want to show a transfer of funds back into a property from this fund, you will basically do a reverse of this process - post an income transaction using the "Owner Contribution" category that you created in step #2, and enter an adjusted deduction in the accounts tab.
9. If an owner would like to see a report showing the reserve funds deposits and transfers out, you could print the report called "Accounts Ledger" and the memo notes you created would appear.