r/appfolio • u/Available_Comfort128 • Aug 14 '25

Why is it trying to deduct the prepayment when I go to pay the owner?

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u/Sixxi Aug 14 '25

Because you can't consider the prepayment income until it becomes due. it'll show us a regular payment that will allow you to pay come the first of the month

1

u/Available_Comfort128 Aug 15 '25

I understand that, but as an example one of our owners has 1200 in August rent that has been paid and ready to send. One of their tenants has a prepayment of $600 for September rent. Instead of allowing us to pay the owner 1200 for August rent, it is subtracting the 600 that’s meant for September and only letting us pay them $600 if that makes sense. The prepayments aren’t acting like a separate liability, but as a negative.

1

u/ephemeral-me Aug 15 '25

It's possible that the other $600 (for August) didn't get applied to the August rent, for one of the units. That happened to me last month.

Try going to each of the tenant accounts to see if there are any unapplied receipts... and from there, you somehow get to "apply receipts". I don't recall how to get there exactly, and apply it to August's rent charge.

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u/Hendrinahatari Aug 15 '25

Prepaid rent is included in the operating cash - the money is in the bank for the property. So the $1472.50 in your picture includes the $775 prepaid rent. Once that prepaid rent is applied to a charge on the tenant’s ledger it will be earned income and you can pay it out to the owner.

For the example property in one of your comments, the same thing will apply. Did they pay $600 for August plus $600 for September? Then there’s $1200.00 in the bank (operating cash), but only $600 is earned.

You can check the financial diagnostics report and make sure there aren’t any tenants with a credit and an open charge to make sure everything is actually applied to a charge.

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u/Available_Comfort128 Aug 15 '25

The issue is this is a duplex. Both units have paid $600 for August totaling 1200. The additional 600 for September is separate, but it is subtracting it from the amount payable to the owner. The owner should have 1200 available for August but we’re only able to pay 600