ACCOUNTING OVERVIEW
VERSION 4.0
YARDI SYSTEMS, INC.
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© 2015 Yardi Systems, Inc. All Rights Reserved
2755 E. Cottonwood Parkway, Suite 560
Salt Lake City, UT 84121
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www.yardi.com
Accounting Overview
Store Enterprise/Advantage
CONTENTS
Introduction
Revenue
1
3
Revenue Classes
Accounting Methods
Proration Methods
3
4
6
Accrual Basis and Cash Basis ............................................................................................................................ 6
Daily Accrual Basis .............................................................................................................................................. 7
Revenue Smoothing ............................................................................................................................................ 9
Cash Reconciliation
Receipts/Revenue Reports
GL Accounts
11
13
15
Income Statement Accounts
15
Discount Expense ............................................................................................................................................. 15
Service Charges ................................................................................................................................................ 15
Balance Sheet Accounts
16
Accounts Receivable (Assets) ........................................................................................................................... 16
Refunds (Liabilities) .......................................................................................................................................... 16
Deposits (Liabilities) ......................................................................................................................................... 17
Sales Tax Collected (Liabilities) ........................................................................................................................ 17
Prepaid Revenues (Liabilities) .......................................................................................................................... 18
Cash Credits/Escrow (Liabilities) ...................................................................................................................... 18
Discounts Accrual (Contra Liabilities) ............................................................................................................... 19
Promotions Accrual (Contra Liabilities) ............................................................................................................ 20
Manager Credits Accrual (Contra Liabilities) .................................................................................................... 21
GL Interface Mapping
23
GL Mapping
Multi-Site GL Mapping
23
27
Index
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INTRODUCTION
Note.
Your accounting professional(s) should review and understand the accounting principles available to your
organization prior to implementing Store Enterprise/Advantage (Store).
Yardi offers two distinct self storage rental management software applications:
Store Enterprise. Yardi's premium application provides the full-spectrum of features and functionality.
Store Advantage. Yardi's standard application designed primarily for organizations with 1 to 4 sites and
consists of the baseline functionality that Yardi offers. Store Advantage can be further enhanced by
purchasing additional bundles, which increase the functionality of the Store Advantage application based
on the needs of the customer.
Note.
Unless specifically stated, this document refers to the Store Enterprise/Advantage applications as Store.
Yardi goes to great lengths to provide flexibility in how its clients choose to recognize revenue and liabilities
in Store. There are many types of revenues, revenue classes, accounting methods and proration methods
that can complicate the setup and use of the Store applications. It is important to gain a thorough
understanding of the accounting options and how they can be modified to recognize revenues and liabilities
in a compatible manner with your accounting practices.
By having the requisite knowledge and tools, the full benefit and functionality of the Store applications can
be utilized. This document details what you need to know about how the Store applications recognize
revenues using the multiple recognition methods that are available to you.
Additionally, there are two sections on GL accounts and the mapping of them with your accounting software.
However, the primary purpose of this document is to help you set up Store to conform to your accounting
principles.
For information on the setup and use of the Store application as a whole, see the following guides:






Store User Guide
Reports Guide
FIU (Financial Integration Utility) Guide
YieldPlan Guide
DocDesigner Guide
Site Map Guide
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REVENUE
In Store Enterprise/Advantage (Store), all revenue generated by your site will be accounted for in one of
these five revenue categories:
Rental. Revenue generated from rental activities. Revenue which can include, but is not limited to, general
storage, wine storage, RV storage, boat storage, art storage, etc.
Retail. Revenue generated from retail sales. Revenue that is typically in this category can include, but is
not limited to, moving supplies (boxes, tape, wrapping, etc.), locks, food items (candy, soda, etc.), etc.
Fee. Revenue generated from assessed fees. Revenue that is typically in this category can include, but is
not limited to, late fees, early termination fees, Org admin fees, etc.
Service. Revenue generated from additional services charged in conjunction with a rental. Revenue that
is typically in this category can include, but is not limited to, monthly invoice service, 24 hour access service,
electricity service, and rental of amenities like shelving.
Misc/Other. Revenue generated from anything not considered Rent, Retail, Fees, and Services. This
typically includes unplanned revenue like proceeds from an auction.
In This Chapter
Revenue Classes ....................................................................................... 3
Accounting Methods .................................................................................. 4
Proration Methods ...................................................................................... 5
Revenue Classes
Store Enterprise clients can create and modify as many revenue classes as needed for each of the
revenue categories.
Store Advantage clients can only modify one revenue class per category which means they are limited to
one Rent, one Retail, one Fee, one Service, and one Misc/Other revenue class. However, you can modify
the class attributes and class defaults within each revenue class.
Note.
Store Advantage customers can contact their Account Manager for more information on adding the
Application Enhancement bundle which includes the ability to create and modify an unlimited number of
revenue classes per category.
There are numerous benefits to having at least one revenue class per category, and depending upon the
sophistication of the organization, multiple revenue classes per category.
These additional benefits of revenue classes include the following:
 Revenue classes break out the different revenue categories so they can be mapped to different
accounts for financial reporting purposes. This allows your organization direct insight as to how its
revenues are generated.
 Revenue classes determine the profitability of the different aspects of the organization's ventures (e.g.
rentals, services, fees, etc.). When revenue is associated with a revenue class, the organization can
match the revenues and expenses associated with each revenue generating activity and determine
whether the revenue generated from each activity is greater than the expenses incurred.
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 Revenue classes are useful for budgeting purposes. When revenues are separated into specific
revenue classes, it is easier to budget because the organization can determine which revenues are
recurring and which revenues are non-recurring in nature and derive projections and estimates for
future periods.
 Revenue classes can automate the process of collection and remittance of sales tax. Each revenue
class may have a different sales tax status (sales taxable or sales non-taxable depending on the
location of the site and the product and/or service being purchased by the customer). By separating
revenue into different classes, the site can set each revenue class up as sales taxable or sales
non-taxable. When selling products and services, Store will automatically determine which products
and services are taxable and add the appropriate tax rate to the transaction.
Accounting Methods
Store Enterprise/Advantage (Store) provides a rule with three different accounting method choices for
managing your organization's revenues and expenses. The method you choose must reflect the accounting
method used by your organization's accounting system.
Note.
Once the Accounting Method rule is defined and your sites are operational, you can run into potential problems
should you decide to change accounting method mid stream. If you are unsure of which accounting method
your organization uses, consult your accounting department prior to defining this rule.
The three accounting methods differ in the timing of when revenue and associated assessments are
recognized.
These accounting methods behave in the following ways:
 Cash Basis. Revenue is recognized only when payment for a service, fee, rental or product is actually
received.
With the cash basis of accounting, payments equal revenue. This relates to rental, fee, service and
retail transactions. (This is the most common accounting method.)
Example. On December 31, a customer pays 2 months worth of rent for January and February. On
December 31, the entire amount paid for January and February rent is recognized as revenue. During
January and February, no revenue is recognized because the revenue was already recognized in
December. On March 1, no revenue is recognized (unless a subsequent payment is received) because
the customer has not made any payments since December 31.
 Accrual Basis. Revenue is recognized in full when the service is delivered, the fee is assessed, the
rental period begins or the product has been received, regardless of when payment is received.
For rental and additional rental services that are charged in conjunction with rent (e.g., 24 hour access,
shelving rental, invoicing charges, etc.), revenue is recognized on the first day of the rental period. For
fee items, revenue is recognized on the day the fee is assessed. For retail transactions, revenue is
recognized when the retail item is sold.
All associated discounts are also recognized at the same time as the revenue. Fee waives are
recognized on the day the fee waive is conceded.
Example. On December 31, a customer pays for 2 months worth of rent for January and February. On
January 1, January’s rent revenue is recognized. On February 1, February’s rent revenue is then
recognized. On March 1, even though the customer has not paid for March's rent, revenue for March is
recognized.
 Daily Accrual Basis. For rental revenue only, revenue is recognized on a daily pro-rated basis for
each day a rental is in force, regardless of when the money is received. For services, fees and retail
items, revenue is recognized on an accrual basis as defined above.
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All associated rental discounts are also recognized at the same time and at the same proportion as the
rental revenue. For additional rental services that are charged in conjunction with rent (e.g., 24 hour
access, shelving rental, invoicing charges, etc.), revenue is recognized in its entirety on the first day of
the rental period. For fee items, revenue is recognized on the day the fee is assessed. For retail
transactions, revenue is recognized when the retail item is sold.
Enterprise Only!
This feature is available to Store Enterprise users only. For information about
adding this feature to your Store Advantage application, contact your Yardi account manager.
Example. On December 31, a customer pays for two months worth of rent for January and February.
On January 1, one day’s rent revenue is recognized with any associated discount being recognized in
the same proportion. On January 2, one day’s rent revenue is recognized with any associated discount
being recognized in the same proportion, and so on throughout the life of the rental. On March 1, even
though the customer has not paid for March rent, one day of rent revenue is recognized with any
associated discount being recognized in the same proportion.
Table 1: This table illustrates the daily accrual of revenue (i.e., standard per diem) for a 10th of the month
rental.
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Proration Methods
Store Enterprise/Advantage (Store) recognizes rental revenue for the Accrual Basis and Cash Basis
accounting methods in a simple, straightforward way. However, Store recognizes rental revenue for the
Daily Accrual Basis in a somewhat different and more precise way. Both methods for recognizing rental
revenue that is prorated are explained in detail.
ACCRUAL BASIS AND CASH BASIS
In the event proration of rent is required for a certain transaction (e.g., a customer vacates a rental unit in the
middle of the period), Store will prorate and recognize rent for either the accrual or cash basis accounting
method in two steps.
These proration steps are as follows:
1. Store determines the standard daily per diem (i.e., the daily rental revenue in any given period). This is
determined by dividing the original amount due by the number of days in the period and rounding down
to the nearest penny.
Example. A $100 rental with a rental period from January 1st to January 31st would determine the
standard per diem (SPD) for January to be $3.22 (100/31 = 3.22580…).
2. Store determines the difference between the total rental amount for that given month and the amount of
standard per diem assessed each day. This will provide the final day supplement. The final day
supplement is then added to the final day standard per diem to determine the total rental assessment
for the final day.
Example. A $100 rental minus the standard per diem of ($3.22 x 31 days) equals an $0.18 final day
supplement. This supplement is added to the standard per diem to determine the January 31st per diem
of $3.40 ($3.22 + $0.18).
These additional examples illustrate a $100 rental with different rental periods:
 January 1-31 (31 days)
SPD = (100/31) = $3.22
FDS = 100 – (3.22 x 31) = $0.18
January 1-30 = $3.22
January 31 = $3.40
 February 1-28 (28 days)
SPD = (100/28) = $3.57
FDS = 100 – (3.57 x 28) = $0.04
February 1-27 = $3.57
February 28 = $3.61
 April 1-30 (30 days)
SPD = (100/30) = $3.33
FDS = 100 – (3.33 x 30) = $0.10
April 1-29 = $3.33
April 30 = $3.43
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 February 15 thru March 14 (28 days)
SPD = (100/28) = $3.57
FDS = 100 – (3.57 x 28) = $0.04
February 15 thru March 13 = $3.57
March 14 = $3.61
Note.
SPD = standard per diem FDS = final day supplement
DAILY ACCRUAL BASIS
Enterprise Only! This feature is available to Store Enterprise users only. For information about adding this
feature to your Store Advantage application, contact your Yardi account manager.
Note.
Store utilizes a somewhat different and more precise method of accounting for the Daily Accrual Basis than
what was utilized in Store 3.1.
In the event proration of rent is required for a certain transaction (e.g., a customer vacates a rental in the
middle of the rental period), Store will prorate and recognize rent in a more sophisticated way. Rental
revenue is recognized on a consistent 30 day period, regardless of the number of days in the current
calendar month. No revenue will be recognized on the 31st day of any calendar month.
These steps describe how the Daily Accrual Basis accounting method works:
3. Because no revenue is recognized on the 31st day of any calendar month, no rental will be allowed to
have an anniversary date of the 31st. As a result, Store will automatically designate the anniversary
date of a rental on the 31st as a 1st of the month anniversary date.
Example. On January 31, a customer pays $100 for one months rent. Store will force the anniversary
date to the 1st day of February. The standard per diem will be calculated as $3.33 per day ($100/30 =
$3.33...). The last day of February will account for either three days worth of standard per diem (e.g., not
a leap year) or two days worth of standard per diem (e.g., leap year).
4. Since most monthly rent rates are not equally divisible by 30, all standard per diem days will be rounded
down to the nearest penny. The fractions of a penny that accumulate each day (i.e., the supplement)
are added together and recognized on the last day of the rental period.
Example. A customer pays $100 for a 30 day month of rent which amounts to a standard per diem of
$3.33 per day. The standard per diem is then multiplied by 30 ($3.33 x 30 = $99.90) which amounts to
$99.90. This amount is subtracted from the $100 of rent for a supplement of 10 cents ($100 - $99.90).
Store takes this 10 cent supplement (i.e., the fractions of a penny that were rounded off each day) and
adds it to the final day of the rental period for a total amount of $3.43 ($3.33 + $0.10).
st
This logic is used for all rental cycles, regardless of whether they are on the 1 of the month or some
th
other rental anniversary date (i.e., the 15 of the month). The only difference is when the supplement
amounts are recognized.
5. When a customer has a 1st of the month rental, the two or three days of standard per diem are
recognized on the 30th day of a 31 day month or the 28th (normal years) or 29th (leap years) day of
February. The supplement amount is recognized on the same day as well.
6. When customers have any other anniversary date besides the 1st of the month (e.g., February 10th), the
two or three days of standard per diem are still recognized on the 30th of a 31 day month or the 28th
(normal years) or 29th (leap years) of February, but the supplement amounts are recognized the day
before the rental's anniversary date (e.g. February 9th).
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Example. As you will notice, the date before every monthly anniversary date (the 9th of every month
because the anniversary date is the 10th of the month) includes the supplement amount. See Table 1 in
Accounting Methods on page 4 to review the daily accrued revenue over a four month period with an
anniversary date of the 10th of the month.
These additional examples illustrate a $100 rental with different rental periods:
 January 1-31 (31 days)
SPD = (100/30) = $3.33
FDS = 100 – (3.33 x 30) = $0.10
January 1-29 = $3.33
January 30 = $3.43
January 31 = $0.00
 February 1–28 (28 days)
SPD = (100/30) = $3.33
FDS = 100 – (3.33 x 30) = $0.10
February 1-27 = $3.33
February 28 = $10.09
 April 1-30 (30 days)
SPD = (100/30) = $3.33
FDS = 100 – (3.33 x 30) = $0.10
April 1–29 = $3.33
April 30 = $3.43
 February 15 thru March 14 (28 days)
SPD = (100/30) = $3.33
FDS = 100 – (3.33 x 30) = $0.10
February 15–27 = $3.33
February 28 = $9.99
March1–13 = $3.33
March 14 = $3.43
Note.
SPD = standard per diem FDS = final day supplement
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Revenue Smoothing
For most organizations, the amount of recognized revenue needs to be consistent across all fiscal
quarters--all things being equal. This is especially true for publicly traded organizations, as it provides
revenue figures that are consistent for each quarter. This allows decision makers and readers of the
financial statements the ability to determine true variances from quarter to quarter.
When revenue numbers are inconsistent from quarter to quarter, false variances are a result, and the
readers of the financial statements can be misled to believe something has changed from prior quarters
when, in reality, they have not.
Example. If a property recognized $10,000 in rental revenue in January, and no changes to rented units
occurred in February, then it stands to reason that the property would recognize $10,000 of revenue in
February as well. The same should hold true for future quarters. If only, $9,032 of revenue is recognized in
February (because February has only 28 days and January has 31 days), the financial statements would
show a variance of $968 between January and February, when there was no change in anything but the
number of days in the month.
There are several challenges in making all three months agree when accruing revenue on a daily basis. The
first challenge is obvious--there are a different number of days in each calendar month, with as many as
three days difference between January and February. The second challenge is that often a tenant’s rental
period does not correspond to the first day of a month.
th
th
This means that a rental period spanning from the 10 of the month through the 9 of the next month could
have anywhere from 28 to 31 days in any given rental period as well. These differences could cause a
significant variance between how much revenue is recognized during any calendar month, especially when
considering a portfolio of several hundred properties. Additionally, your customers could be confused if a
consistent proration method is not applied across all months.
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CASH RECONCILIATION
Store does not recognize cash received as being eligible for a bank deposit until after it has been reconciled
within the Store application. However, by default, the Auto-Reconcile Cash rule in Store is set to
automatically reconcile all cash received and generate a bank deposit for you. This lets you to avoid the
tedious process of manually creating a bank deposit each day.
If the Auto-Reconcile Cash rule in Store is not being utilized, each site must manually reconcile its cash in
Store before making bank deposits or else the cash deposited in the bank will not equal the cash received
amount shown in Store.
There are advantages to manually reconciling the Cash Drawer, including the following:
 Ensures that the Site Manager has accountability for balancing the Cash Drawer at the end of his shift.
 Provides audit control for accounting purposes.
For information on the Cash Drawer and the cash reconciliation process, see the "Store User Guide" or
online help.
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RECEIPTS/REVENUE REPORTS
Store provides a number of reports that display revenue and cash receipt information. The management
reports provide a broad overview of the information, while the accounting reports display more intimate
details, including, account information, revenue class, transaction dates and so forth.
Management Reports




Business Summary
Executive Summary
Key Statistics
Revenue Analysis
Accounting Reports












Accrued Account Balances - Detail
Accrued Account Balances Summary - Multiple Sites
Accrued A/R Aging - Detail
Audit - Voids and Reversals
Cash Audit
Cash Receipts Worksheet
Credit Card Transactions
Deposit Slip
General Ledger Posting
Receipts and Deposits
Revenue By Category
Revenue By Category - Multiple Sites
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GL ACCOUNTS
This section describes some of the various Income Statement accounts and Balance Sheet accounts that
are of significant importance to how your organization accounts for assets and revenue.
Note.
This section does not cover every GL account in Store. It only explains some of the more significant GL
accounts that you should take into consideration.
In This Chapter
Income Statement Accounts .................................................................... 15
Balance Sheet Accounts .......................................................................... 16
Income Statement Accounts
The Income Statement GL accounts in this section are primarily concerned with how discount expenses
and service charges are recognized during a rental period and how they are prorated when a rental is
prematurely vacated.
DISCOUNT EXPENSE
Holding true to the matching principle, all rental discounts will be recognized as a discount expense at the
same rate as their corresponding revenues.
Example. A discount is given for one month at 50% off on a $100 rental. In Store, the discount expense will
be recognized daily as 50% of the standard per diem or $1.66 ($100 x .5 = $50/30 days)
Operations Report
 Discount Expense – Detail
SERVICE CHARGES
In Store, services are amenities that can be added to a rental for an additional fee (e.g., billing statements or
24 hour access to rentals). Due to the nature of service charges, they are typically smaller charges tied to a
parent rental charges and are not considered material enough to merit a daily revenue accrual.
Therefore, service charges will be recognized on an Accrual Basis (recognized in full on the anniversary
date of the rental period). If a rental is vacated, the services will be prorated using a simple formula of
rate/number of days that have transpired in the rental period.
Example. A 24 hour a day access service of $10 is assessed to a monthly rental at $0.33 cents per day. If
the rental is vacated on the 10th day of the rental period, then $3.30 will be charged for the service ($0.33 x
10 days).
Note.
By default, the Prorate Services rule is set to True. However, it can be set to False which will charge the entire
rental period's amount for the service. This only applies to first of the month rentals.
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Balance Sheet Accounts
All transactions that impact accrual basis accounts (refunds, deposits, sales tax collected, prepaid
revenues, accounts receivable, discounts accrual, credits and etc.) will be accrued in database tables within
the Store application, regardless of whether the Accrual Basis or Cash Basis accounting is used for
financial reporting purposes.
These database tables include accounts that are not utilized for financial reporting purposes and are for
information purposes only when the cash basis accounting method is used.
These database tables can be utilized by the different accounting methods as follows:
 Accrual Basis. When the Accrual Basis accounting method is used, the balance sheet accounts
within Store are populated with the accrual related database table amounts. This information can be
exported into your organization's accounting software application using Store's Financial Integration
Utility (FIU).
 Cash Basis. When the Cash Basis accounting method is used, no balance sheet accounts are
populated with the accrual related database table amounts; the information is purely for informational
purposes. As a result, there is no balance sheet impact and the information will not be exported from
Store when using the Financial Integration Utility (FIU). However, this information is displayed on
certain reports that derive the information from the accrual related database tables.
ACCOUNTS RECEIVABLE (ASSETS)
When a customer fails to pay for a rental period that has already begun, the rental is considered delinquent
in Store. The Daily Accrual and Accrual accounting methods used for accrual of revenue still takes place,
however, the record entry to the balance sheet is made to the Accounts Receivable - Rent account in Store,
with the offset entry to the appropriate rental revenue account. Once a payment is made for that period’s
rental charge, Store automatically zeroes out the balance in the Accounts Receivable - Rent account and
places the appropriate balance in the Prepaid Rent account, which will then be decremented as the rental
revenue accrues.
Upon termination of a rental, all A/R and Pre-Paid rent GL accounts for that rental are zeroed out. If the rent
remains unpaid, then the offset will be to the Rent Write-Off GL account. If it is prepaid, the offset is a credit
to the Refund Liability GL account.
REFUNDS (LIABILITIES)
When a customer is due a refund, Store automatically creates a refund and a record entry is made against
the original revenue account(s) with an offset record entry to the refunds payable account. These refund
records will appear on the Refund Liability report.
Once a refund is approved, the refund record is available for export/import within the Financial Integration
Utility (FIU). The FIU can export your refund records to a file that can be imported into many popular
accounting software packages. When a refund record is exported, Store flags the record so that it does not
display on the Refund Liability report.
If you choose not to import refund records into your accounting software, you must still export the records
using FIU in order to flag them as "Processed" so they do not display on the Refund Liability report.
Accounting Reports
 Refund History
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 Refund Liability
Note.
There are several rules within Store that govern when and how refunds are disbursed (e.g., minimum refund
amounts and automatic/secondary approval thresholds). The way your organization configures these rules will
impact how your sites process refunds.
DEPOSITS (LIABILITIES)
There are multiple general ledger (GL) accounts within Store that handle deposits. Specifically, there are
GL accounts for security deposits and reservation deposits. Depending on your organization's policy
regarding the different deposit types, you may have refundable and non-refundable deposits as well.
Regardless of whether deposits are refundable or not, Store considers deposits as liabilities. This is
important to note because your organization may choose to map the GL account for non-refundable
deposits to an income account within your accounting software package so that revenue for non-refundable
deposits is recognized when the deposit amount is received.
Accounting Reports
 Reservation and Security Deposits – Detail
 Reservation and Security Deposits – Multiple Sites
SALES TAX COLLECTED (LIABILITIES)
Sales tax collected from your customers is recorded into the Sales Tax Collected account within Store as a
liability. This liability remains until the amounts are remitted to the applicable taxing authorities.
Management Reports
 Executive Summary
 Business Summary
Accounting Reports
 Sales Tax Collected
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PREPAID REVENUES (LIABILITIES)
All revenues and discounts that have been prepaid will be accrued on accounts within Store. For rent, a
prepayment record entry is posted to the Prepaid account. It will remain on the balance sheet in the Prepaid
account until the first day of the rental period to which it applies (Accrual Basis) or will be decremented on a
daily basis throughout the rental period (Daily Accrual Basis) with the offset record entries being posted into
their respective Rental Revenue or Discount Expense accounts. To determine the total revenue amount on
any given day during the rental period, you can add the balance of the Prepaid account to the balance in the
Rental Revenue account.
Management Reports
 Executive Summary
Accounting Reports
 Accrued Account Balances - Detail
CASH CREDITS/ESCROW (LIABILITIES)
Cash credits represent revenue received from customers that was not applied against any outstanding
charges. This can occur for any number of reasons, depending on your organization's specific operating
policies. However, for simplicity, a customer makes a payment for less (or more) than the amount owed at
the time of payment. The excess money that cannot be applied to a specific rental charge becomes a cash
credit for the customer's account. This is considered to be escrow because you are holding money on behalf
of the customer.
Another way to create a cash credit is by applying the refund amount from one rental to another rental
belonging to the same account. Cash credits, when used, are considered a form of payment and are not tied
to a specific assessment. AutoPay recognizes cash credits and only charges the credit card/ACH the net of
the balance due less cash credits for that rental. Cash credits must be manually applied at the time of
payment.
These are the significant aspects of cash credits:
 Cash credits are considered a liability.
 Cash credits used to be part of prepaid rent in Store 3.1. In Store Enterprise/Advantage (Store),
there is a separate GL account to track them.
 Cash credits are most often caused by a check transaction since no change can be given. However,
you can direct Store to retain an excess cash payment as well by processing it as an underpayment
and directing the application to put the unapplied amount on a cash credit rather than giving change
back to the customer.
 Cash credits are considered to be a cash equivalent and should be refunded back to a customer when
a rental is vacated.
 Cash credits must be explicitly applied during payment as a form of payment.
 Cash credit amounts are considered non sales taxable and are not included in the sales tax report until
they are applied as a form of payment to a sales taxable item. The reasoning behind this is that it is
unknown whether the cash credit is going to be applied to a sales taxable amount or not at the time the
cash credit is given.
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Accounting Overview
Store Enterprise/Advantage
The following examples illustrate how to create a cash credit in Store:
 Underpay 1. A customer owes $100 for one month of rent. He mails in a check for $90. Your
operating policies state that a customer is not allowed to make partial payments on a rental. Rather than
send the check back to the customer, your Store user processes the check in the Store application
where the entire $90 is allocated to a cash credit escrow account. When, and if, the customer returns
with the remaining balance of $10 that is owed, the cash credit can be used in conjunction with the $10
payment to complete the $100 rental payment that was initially due.
 Underpay 2. A customer owes $100 for one month of rent. She mails in a check for $90. Your
operating policies state that a customer can make partial payments, so your Store user applies $90 of
payment against the $100 rental charge, resulting in advancing her paid thru date to the 26th day of the
month. However, 26 days of rent for that customer works out to be $89.66. The remaining $0.34 is
applied to the rental as a cash credit for later use.
 Overpay. A customer owes $100 for one month of rent. He mails in a check for $110. Your Store user
applies $100 towards the rental charge and, as noted above in Underpay 1, your operating policies
state that a customer is not allowed to make partial payments and but must pay for the entire
month. Rather than give the customer a refund check for $10, you "hold" the $10 in a cash credit escrow
for later use.
 Refund. A customer has two rentals which are both prepaid in advance for a number of months. The
customer vacates one of the rentals, and, rather than receive a refund check in the mail, directs the
Store user to apply the refund total from the vacated rental to the one remaining rental. The money is
then assigned to the remaining rental as a cash credit for later use.
Management Reports
 Executive Summary
Accounting Reports
 Accrued Account Balance - Detail
DISCOUNTS ACCRUAL (CONTRA LIABILITIES)
Discounts are fixed concessions given to a customer and assigned to a specific rental item only. Discounts
can be set to be valid for a specific number of rental periods or be perpetual, meaning they do not expire
unless they are manually removed from the rental in Store.
When discounts have a fixed start and end date, these dates control only when they can be given to a
customer--not when they can be used.
Example. If a discount has a start date of June 1st and an end date of June 30th, the Store user will be able
to grant that discount during the month of June only and at no other time during the year. However, once the
discount is granted, the discount may be used until exhausted, regardless of the expiration date.
The Store application performs a formal rent assessment at the start of each rental period (or, in the case of
a prepayment, at the time the payment is made). At the time the rental charges begin to occur, Store will
determine whether there are any eligible discounts that correspond to the rental assessment. Discounts can
include manager discounts (credits), senior citizen discounts, student discounts, military discounts, etc. All
eligible discount amounts are posted to the Accrued Discounts - Rent GL account which is a contra liability
balance sheet account that is used to offset prepaid revenues (liability).
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Accounting Overview
Note.
Store Enterprise/Advantage
Discounts are only accrued for on the balance sheet when rent has been paid, and there is a resulting prepaid
revenue balance. This means that there are no accrued discounts on the balance sheet when the Cash Basis
accounting method is used. The effect of the discount accrual (contra liability) offsetting the prepaid revenue
balance (liability) is net revenue expected to be earned. When revenue is earned, the prepaid revenue balance
goes away and the discount accrual is moved to discount expense, leaving the total revenue and expense line
items grossed up for financial reporting purposes.
Since discounts are accrued for in the Balance Sheet account only after the rent has been paid, Store
retains the discounts in a separate database table outside of the Accrued Discount - Rent GL account if the
rental becomes delinquent. When the rental is paid, the discount will be applied to the Accrued Discount Rent GL account. So, in order to determine the current Accounts Receivable balance if all discounts are to
be utilized in the future, the discounts retained outside of the balance sheet GL account in a Store database
table must be deducted from the current Accounts Receivable GL account. These Store database tables
keep the discount out of the Balance Sheet account because it is unknown as to when the discount will be
utilized. So, the liability will be unknown at the time the rental becomes delinquent as well.
Discounts are accrued and treated the same way as revenues. They are recognized at the same time the
rent is recognized and at the same pro-rated rate. And similarly, for any given discount amount on any given
date during the rental period, the total discount amount can be determined by adding the balance of what is
left in Accrued Discounts - Rent GL account to the amount that has been moved into the Discounts Expense GL account.
Management Reports
 Executive Summary
Accounting Reports
 Accrued Account Balance - Detail
PROMOTIONS ACCRUAL (CONTRA LIABILITIES)
In Store, a promotion behaves exactly like a discount except that the best available promotion can be
automatically displayed in the Item Finder feature during the rental selection process. Promotions are
intended to be used for a new rental; however, they can be applied to an existing rental as well.
Your organization will create promotions because the Store application distinguishes them from ordinary
discounts and can calculate and display the best available promotion for the customer when a new rental
occurs.
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Accounting Overview
Store Enterprise/Advantage
MANAGER CREDITS ACCRUAL (CONTRA LIABILITIES)
A manager credit is a discretionary credit granted to an account by an authorized Store user in your
organization. Manager credits can be applied to any charge on an account (e.g., rent, retail, services,
etc.). However, manager credits must be applied to a specific charge (e.g., June's rent or a specific late fee)
by the Store user. For this reason, manager credits cannot be granted to accounts that are set up to use the
AutoPay feature in Store. When the AutoPay process runs each day, it assesses the next period's rent
and includes only the outstanding discounts or promotions--not manager credits.
Manager credits are not recorded in the GL accounts for Unamortized Discount or Discount Expense until
they are explicitly applied against a specific charge.
Similar to discounts, manager credits can have start and end dates that govern when they can be
granted. There is one difference. At the time the manager credit is granted, your Store user can specify an
expiration date for when the manager credit must be applied to a rental charge.
Example. Your Store user grants a $25 manager credit to a customer but adds an expiration date caveat
that the manager credit must be used before the end of the month, or that the manager credit cannot be
st
used until after December 1 .
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Accounting Overview
Store Enterprise/Advantage
GL INTERFACE MAPPING
General Ledger Interface mapping (GL mapping) lets you map your sites' financial activity in Store to your
accounting software's GL accounts for recording and reporting your financial information in the format that
your organization is accustomed to. Since Store tracks all financial activity using internal account codes,
each site will need to map the Store GL account numbers to the GL account numbers used by your
organization's accounting software.
In This Chapter
GL Mapping.............................................................................................. 23
Multi-Site GL Mapping ............................................................................. 27
GL Mapping
The default Store GL mapping values can be an alpha-numeric string up to 32 characters. Since Store
utilizes both the Cash Basis and Accrual Basis accounting methods, some Store GL account numbers may
not be applicable for one or the other accounting methods. Regardless, it is your responsibility to map your
accounting software's GL account numbers to the Store default GL account numbers using the GL Interface
Mapping form in Store.
Table 2: This table displays the Store GL account mapping information and which accounting methods are
supported for each GL account.
 Both Methods. Both the Accrual Basis and Cash Basis accounting methods use this GL account for
financial reporting purposes.
 Accrual Basis. Only the Accrual Basis accounting method uses this GL account for financial reporting
purposes.
Note.
The Cash Basis accounting method excludes these accounts. However, these accounts can be mapped
to the applicable asset account, liability account, expense account or revenue account in case a
transaction is recorded incorrectly to these accounts.
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Accounting Overview
Store Enterprise/Advantage
GAAP
Class
Type
Sub Type
Default GL
Account #
Asset
Cash
Operating
100
All cash collected and paid out at the site is recorded
here.
Asset
Deposits
Cash
200
Both Methods
This represents the amount of cash that was deposited
into the bank. The only way amounts are entered into this
GL is as the result of reconciliations for GL 100 wherein
excess cash above the maximum on-hand balance is
recognized.
Asset
Deposits
Checks
300
Account used to record all payment transactions made by Both Methods
check. Will be recognized on the daily deposit slips.
Asset
Deposits
Money
Orders
400
Account used to record all payment transactions made by Both Methods
Money Order. Will be recognized on the daily deposit
slips.
Asset
Deposits
Travelers
Checks
500
Account used to record all payment transactions made by Both Methods
Travelers Check. Will be recognized on the daily deposit
slips.
Asset
Deposits
ACH
600
Account used to record all payment transactions made by Both Methods
ACH (Automated Check Clearing House) . Will NOT be
recognized on the daily deposit slip.
Asset
Deposits
Visa/MC
700
Account used to record all payment transactions made by Both Methods
Visa or MasterCard. Will not be recognized on the daily
deposit slip.
Asset
Deposits
AmEx
800
Account used to record all payment transactions made by Both Methods
American Express. Will NOT be recognized on the daily
deposit slip.
Asset
Deposits
Discover
900
Account used to record all payment transactions made by Both Methods
Discover Card. Will NOT be recognized on the daily
deposit slip.
Asset
Deposits
Other1
910
Reserved for future use.
Both Methods
Asset
AR
Rent
1000
Accrued, unpaid rental charges. (Not utilized for cash
basis accounting sites.)
Accrual Basis
Asset
AR
Retail
1100
Accrued, unpaid retail purchase charges. (Not utilized for Accrual Basis
cash basis accounting sites.)
Asset
AR
Fees
1200
Accrued, unpaid fee charges. (Not utilized for cash basis Accrual Basis
accounting sites.)
Asset
AR
Services
1300
Accrued, unpaid service charges. (Not utilized for cash
basis accounting sites.)
Accrual Basis
Asset
AR
Other
1400
Accrued, unpaid misc. charges. (Not utilized for cash
basis accounting sites.)
Accrual Basis
Asset
AR
Taxes
1500
Accrued unpaid taxes reserved for future use. (Not
utilized for cash basis accounting sites.)
Accrual Basis
Asset
AR
Insurance
1600
Accrued, unpaid renter's insurance charges. (Not utilized Accrual Basis
for cash basis accounting sites.)
Asset
AR
Intra
company
1700
Accrued accounts receivable from a consolidated entity.
(Not utilized for cash basis accounting sites.)
Asset
Inventory
Retail
1900
Value of all retail items, at cost, on hand. Added to when Accrual Basis
retail is purchased or returned, decremented when retail
is sold/written down. (Not utilized for cash basis
accounting sites.)
Liability
Accrued
Discounts
Rent
2000
Discounts given and applied but not yet recognized
against corresponding revenue. (Not utilized for cash
basis accounting sites.)
Accrual Basis
Liability
Deposits
Security
2100
Amount of security deposits received and in escrow.
Both Methods
Yardi Systems, Inc.
GL Account Description
24
Accounting
Method
Both Methods
Accrual Basis
6.4.2015
Accounting Overview
Store Enterprise/Advantage
GAAP
Class
Type
Sub Type
Liability
Deposits
Liability
GL Account Description
Accounting
Method
Reservation 2200
Amount of reservation deposits received and in escrow.
Both Methods
Deposits
Prepayment 2300
Amounts paid by customers but NOT applied against any Both Methods
charge or assessment.
Liability
AP
Insurance
Premiums
3000
Net amount collected from customers for insurance
premiums. (Not utilized for cash basis accounting sites.)
Accrual Basis
Liability
AP
Sales Tax
Collected
3100
Net amount of sales tax collected from customer
transactions. (Not utilized for cash basis accounting
sites.)
Accrual Basis
Liability
AP
Rental
Refunds
3200
Amount payable to customers for rent refunds. (Not
utilized for cash basis accounting sites.)
Accrual Basis
Liability
AP
Service/Ins
Refunds
3250
Amount payable to customers for services and insurance Accrual Basis
refunds. (Not utilized for cash basis accounting sites.)
Liability
AP
Retail
Refunds
3300
Amount payable to customers for retail refunds. (Not
utilized for cash basis accounting sites.)
Accrual Basis
Liability
AP
Intra
company
3400
Accrued accounts receivable from a consolidated entity.
(Not utilized for cash basis accounting sites.)
Accrual Basis
Liability
AP
Liquidation
Overage
3500
Amount in excess of total due received as a result of
auctioning the contents of a rental unit. (Not utilized for
cash basis accounting sites.)
Accrual Basis
Liability
Prepaid
Prepaid
Rent
4000
Amount of rental charges paid by customers but not yet Accrual Basis
recognized as rental revenue. (Not utilized for cash basis
accounting sites.)
Liability
Prepaid
Prepaid
Services
4100
Amount of service charges paid by customers but not yet Accrual Basis
recognized as rental revenue. (Not utilized for cash basis
accounting sites.)
Revenue
Revenue
Storage
Rentals
5000
Gross revenue recognized from rental operations.
Both Methods
Revenue
Revenue
Retail
5100
Gross revenue recognized from selling retail.
Both Methods
Revenue
Revenue
Fees
5200
Gross revenue recognized from charging fees.
Both Methods
Revenue
Revenue
Services
5300
Gross revenue recognized from service/amenity charges. Both Methods
Revenue
Revenue
Other
5400
Misc./other non-expected revenue recognized.
Other
Income
Revenue
Rent
Refund
Retained
5700
Revenue recognized as a result of a denied rental refund. Both Methods
Other
Income
Revenue
Retail
Refund
Retained
5710
Revenue recognized as a result of a denied retail refund. Both Methods
Other
Income
Revenue
Service/Ins
Refund
Retained
5720
Revenue recognized as a result of a denied
service/amenity/insurance refund.
Both Methods
Other
Income
Revenue
Sec Deposit 5800
Retained
Revenue recognized as a result of a denied security
deposit refund.
Both Methods
Other
Income
Revenue
Res Deposit 5900
Retained
Revenue recognized as a result of a denied reservation
deposit refund.
Both Methods
Contra Rev
Discount
Expense
Storage
Rentals
6000
Discount recognized against corresponding rental
revenue.
Both Methods
Contra Rev
Discount
Expense
Retail
6100
Discount recognized against corresponding retail
revenue.
Both Methods
Contra Rev
Discount
Expense
Services
6300
Discount recognized against corresponding
service/amenity revenue.
Both Methods
Yardi Systems, Inc.
Default GL
Account #
25
Both Methods
6.4.2015
Accounting Overview
GAAP
Class
Store Enterprise/Advantage
Type
Sub Type
Default GL
Account #
Contra Rev
Discount
Expense
Other
6400
Discount recognized against corresponding misc.
revenue.
Contra Rev
Write Off
Expense
Storage
Rentals
7000
Rental revenue recognized but uncollected at time of
Accrual Basis
rental termination. (Not utilized for cash basis accounting
sites.)
Contra Rev
Write Off
Expense
Retail
7100
Accrual Basis
Retail revenue recognized but uncollected at time of
rental termination. (Not utilized for cash basis accounting
sites.)
Contra Rev
Write Off
Expense
Fees
7200
Fee revenue recognized but uncollected at time of rental Accrual Basis
termination. (Not utilized for cash basis accounting sites.)
Contra Rev
Write Off
Expense
Services
7300
Accrual Basis
Service revenue recognized but uncollected at time of
rental termination. (Not utilized for cash basis accounting
sites.)
Contra Rev
Write Off
Expense
Other
7400
Misc./other revenue recognized but uncollected at time of Accrual Basis
rental termination. (Not utilized for cash basis accounting
sites.)
Contra Rev
Waive
Expense
Fees
8200
Fee revenue recognized but forgiven. (Not utilized for
cash basis accounting sites.)
Contra Rev
Bad Debt
Expense
Vacated
Tenants
8900
NSF or other revenue adjustments post-termination. (Not Accrual Basis
utilized for cash basis accounting sites.)
Cost Of
Goods
Cost Of
Goods
Retail
9000
Std. cost of merchandise sold. (Not utilized for cash basis Accrual Basis
accounting sites.)
Cost Of
Goods
Shrinkage/ Retail
Write
Downs
9100
Std. cost of merchandise inventory adjustments. (Not
utilized for cash basis accounting sites.)
Accrual Basis
Expense
Operating
Cash
Write-Off
Operations
9800
Cash drawer reconciliation adjustment expense.
Both Methods
Expense
Misc
Expense
Operations
9900
Use of funds from cash drawer (GL 100) for discretionary Both Methods
purchases at the site level.
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GL Account Description
26
Accounting
Method
Both Methods
Accrual Basis
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Accounting Overview
Store Enterprise/Advantage
Multi-Site GL Mapping
Store can map its GL account numbers to multiple sites using different GL account numbers at each site.
Within Store, each site can designate its own GL account numbers to map to for accounting purposes. This
is accomplished using the alphanumeric capabilities in the GL Interface Mapping feature.
Example. If there are two sites that are owned by two different organizations for accounting and financial
reporting purposes, but managed by the same company, the management company is able to set up the
mapping for each site.
The following examples illustrate how to map GL accounts for two sites:
Site 1
Default GL Account #
Mapped GL Account #
100
1000-1
200
1450-1
300
2600-1
Site 2
Default GL Account #
Mapped GL Account #
100
1000-2
200
1450-2
300
2600-2
When FIU data is exported for accounting and financial reporting purposes, the Mapped GL Account
numbers will correspond with the GL Account numbers represented in the software accounting package(s)
used by the management company.
In the scenarios presented above, two sets of data would be exported (one set for each site), which could
then be imported into your organization’s software accounting package. The software accounting package
recognizes that the numbers are different for each entity and populates the GL accounts appropriately. The
management company will then have the ability to provide financial reports to each of the two entities that
own the sites.
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Accounting Overview
Store Enterprise/Advantage
REFUNDS (LIABILITIES) • 19
INDEX
REVENUE • 5
REVENUE CLASSES • 5
A
REVENUE SMOOTHING • 10
ACCOUNTING METHODS • 6, 9
S
ACCOUNTS RECEIVABLE (ASSETS) • 19
SALES TAX COLLECTED (LIABILITIES) • 20
ACCRUAL BASIS AND CASH BASIS • 8
SERVICE CHARGES • 18
B
BALANCE SHEET ACCOUNTS • 18
C
CASH CREDITS/ESCROW (LIABILITIES) • 21
CASH RECONCILIATION • 13
D
DAILY ACCRUAL BASIS • 9
DEPOSITS (LIABILITIES) • 19
DISCLAIMERS & COPYRIGHTS • 1
DISCOUNT EXPENSE • 17
DISCOUNTS ACCRUAL (CONTRA LIABILITIES) • 23
G
GL ACCOUNTS • 17
GL INTERFACE MAPPING • 25
GL MAPPING • 25
I
INCOME STATEMENT ACCOUNTS • 17
INTRODUCTION • 3
M
MANAGER CREDITS ACCRUAL (CONTRA LIABILITIES) •
24
MULTI-SITE GL MAPPING • 29
P
PREPAID REVENUES (LIABILITIES) • 20
PROMOTIONS ACCRUAL (CONTRA LIABILITIES) • 24
PRORATION METHODS • 8
R
RECEIPTS/REVENUE REPORTS • 15
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