Amounts received into the Trust Account are processed one behalf of the Landlords and the resulting Payment Splits are then distributed and paid to Beneficiaries. At any point in time the Trust Account Balance would typically consist of:
- Payments Received but not imported yet into the system
- Payments Received that was imported, but which have not been processed yet.
- Payments Received that was imported and only partially processed in other words some Beneficiaries have already been paid. The remaining amount that has not been paid out yet would therefor still be in the Trust Account and form part of the Trust Account Balance.
- Interest Earned
- Bank Charge Recoveries - Bank Costs (Only included if > 0)
- Trust Account Credit Adjustments - Trust Account Debit Adjustments (Only included if > 0)
- Positive Balances on Trust Creditor GL Accounts - Money that was received into the Trust, but have not been allocated to Lease Accounts and have not been distributed out of the Trust Account yet.
The money that is in the Trust Account at any point in time belong to the Tenants and is refered to as Trust Creditors.
The Trust Account Balance must always be more than or at lease equal to the Total Trust Creditors. If any bank charges are posted to the Trust Account, these bank charges must be recovered by means of transfer from the Business Account to the Trust Account.
rpmsOnline have a Trust Creditor Feature to assist you to do this check on a regular basis, typically daily. Please note that this query only shows the Lease Trust Creditors and not the Total Trust creditors as explained above.
To open the Trust Creditor query:
- Navigate to Accounts on the menu
- Select the Banking menu option
- From the Banking Dashboard Tools drop down menu, select Current Trust Creditors (See example below)
Trust Creditor Query Example
On the Query above you can see:
- the Total Received amount for every payment that was received into the Trust Account and where the payments have not been fully processed or distributed to Beneficiaries yet.
- the Balance Unpaid portion of the payment that was received.
- the SUM of all Balance Unpaid amounts make up the Trust Creditor Total
In the example above you can see R 4316 of the R 5000 payment have not been distributed yet. In order to view the detail of this, just click on the double right arrow to open the Payment Split as shown below.
In the example above, you can see that the status of the payment to the Landlord for an amount of R 4316 is Approved and have therefor not been marked as PAID yet. This amount therefor forms part of the remaining portion of the R 5000 that should still be in the Trust Account.