VRPlatform's automations are configured with assigned locations, either "Trust" or "PM" (Property Manager), to precisely attribute revenue and expenses. This location tagging is pivotal in delineating which entity earns income and bears expenses when coding transactions. When configuring your automation settings, each automated transaction will be assigned a specific location. Trust-related automations must be designated under the "Trust" location. Similarly, when categorizing transactions from your bank feed, you'll specify the respective location.

Revenue and expense transactions are categorized into either a balance sheet account within your Trust Liabilities section for amounts payable to owners or to a Profit & Loss (P&L) account for property management revenue and expenses. Refer to the transaction categorization rules for guidance when categorizing bank feed transactions

By systematically categorizing transactions and assigning them locations (PM or Trust), running a balance sheet by location in QBO provides insights into property management expenses incurred from the trust account, as well as expenditures from the operating account on behalf of owners. This methodology extends to credit card transactions as well. These insights facilitate the completion of your month-end journal entry, capturing adjustments for reimbursable expenses, thus adjusting the amount transferable from the trust account to the management company.

Within the equity section of the trust column of your monthly balance sheet by location report, two trust accounting adjustment accounts—"Reimbursable Payments Clearing" and "Transfers to/From OPEX/Trust"—comprise the equity section. The net income line, sourced from your P&L, indicates the PM income collectible from the trust. The "Reimbursable Payments Clearing" account contains reimbursable expense amounts recorded in your month-end journal entry, while the transfers account documents funds transferred between trust and operating accounts in accordance with transfer rules.

Once all transactions are assigned locations, and all accounts are reconciled using our month-end accounting process, the total equity line in the trust column signifies the amount transferable from trust to operating. It's crucial to note that the sum of PM and Trust columns in the Total column of the Trust Accounting Adjustments section must equal to zero.