How to Record Opening Trust Tax Liabilities in VRTrust
This article explains how to record opening trust tax liabilities in VRTrust. This entry is required when guest taxes were collected into the trust before your VRTrust Go-Live date but had not yet been remitted.
What Is an Opening Trust Tax Liability? 0:03
An opening trust tax liability represents guest taxes already collected and held in the trust account as of your VRTrust Go-Live date.
These taxes:
Have been collected from guests
Have not yet been paid to the taxing authority
When Is This Entry Required? 0:14
You do not need to record this entry if:
Taxes are paid out to owners, and
Owners remit taxes themselves
You must record this entry if:
The property manager collects taxes from guests
The property manager remits taxes on behalf of owners
1. Create the Opening Tax Liability Deposit 0:30
Go to Deposits
Click Add Deposit
Set:
Date: First day of the month for your first VRTrust owner statements
Bank Account: Trust Account
Deposit Amount: $0
Description: 'Opening Tax Liabilities'
6. Add the Tax Liability Entry 0:52
Go to the Non-Reservation tab
Add a Non-Reservation line
Set:
Contact: Property Manager
Description: Opening Tax Liabilities
You may:
Enter one total liability, or
Add multiple lines to break the liability out by listing
7. Account Selection 1:08
Select the Taxes Payable account:
Lodging and Occupancy Taxes Payable
Enter the total tax liability amount as of your VRTrust Go-Live date
8. Offset the Entry to the Opening Trust Account 1:20
Add a second Non-Reservation line
Set:
Contact: Property Manager
Description: Opening Tax Liabilities
Account: Opening Trust Account – Surplus/Deficit
Leave Bill to Owner unchecked on both lines
Enter this amount as a negative value
This ensures:
The total deposit amount remains zero
The trust balance is established correctly
9. Save and Confirm Posting 1:39
Click Save.
This entry will appear:
On the General Ledger Report in the Lodging and Occupancy Taxes Payable account
On the Property Management Income Statement for the first month
Under the Opening Trust Surplus/Deficit account
This completes the setup of your opening trust account balance.
13. Ongoing Tax Recording After Go-Live 1:55
Going forward:
All tax payments reduce this liability
Taxes collected from guests before and after Go-Live should be recorded to:
Lodging and Occupancy Taxes Payable
Summary
Recording opening trust tax liabilities ensures:
Accurate trust balances at Go-Live
Proper tracking of unpaid guest taxes
Clean general ledger and income statement reporting
This setup is completed once at Go-Live and supports accurate tax tracking moving forward.