What are payables? payables are the amounts of money that your company is due to distribute, but has not yet distributed (paid) the amount owed; these are: expenses paid on a property to vendors or yourself, management fees paid to yourself, reimbursable deposits, owner distributions paid to property owners, and any other outgoing payment you must make - these are not all necessarily expenses.
Why is a payment to myself considered a payable? If you are a property manager, you handle a pool of money collected from tenants (in the form of rent, deposits, or other income generated from property)... this pool of money partially belongs to you (the fees you charge your clients to manage the property), and the money partially belongs to the property owner. Additionally, part of the money may belong to a tenant (reimbursable deposit) or to a vendor (for maintenance expenses). Because you manage a pool of money belonging to multiple people, you must re-distribute the money out through payables to yourself and others. This is called trust-based accounting, and for this reason, you money distributions, even to yourself, are considered payables. Just think of yourself as two entities: the manager of the money, and the manager of the property. As money manager, you must distribute payments to the property manager (which happens to be yourself).
Where do the payables come from?
From the Property Management Page: in the property management page, your owner distributions and property management fees are automatically generated after you approve them; if you do not mark the distributions or mgmt fees as "paid," a payable will appear in the payables page (the same payable item will remain in the property management page), pending your payment and record thereof.
Payables Manually Created in the Payables Page: you may always manually create a payable, just click the "+" icon on the right side of the page; if you have a similar payable in a future month, you may select to "create similar payable" - you may do the same for payables already marked as "paid" from the Payables>Receipts page.
General Overview Screenshot of Payables Page (zoom in on your browser if the text explanations are too small to read).
ADDING A NEW PAYABLE
Step 1: Click the Add Payable Icon: "+" icon on the right side of the page
Step 2: the "Add Payable" box will appear, allowing you to detail the payable
Step 3: Record the payable as "Paid" - remember when you create an unpaid payable, you've only recognized an amount that must be distributed in the future, but you have not recorded the payment as already complete... to do so, you may click "Paid" in the "Add New Payable" box shown above, or you may click "pay" from the Payables main screen.
Marking payable as paid from the "Add Payable" box: remember to select a bank account to draw the money out of... this is not the same as the owner balance or the Ledger Account. The owner balance merely keeps track of the money you currently hold on behalf of the property owner, and the Ledger Account keeps track of the type of cashflow and/or expense this payable/paid item belongs with (example: Maintenance Expense - helps you to differentiate this expense from other expenses, instead of lumping them all together for book keeping purposes... however, you may choose to keep your books as you like)
Click "Pay" from the Payables Homescreen - remember, if everything looks in order from the list of payables already created, you may record cash payment for any previously created payable by clicking "Pay," and confirming the payment after you've selected a bank account to use as the payment bank account.
Next, a screen shot of the payment confirmation screen - where you will be asked to select a bank account to make the payment with...
After the Payment has been recorded...
You may return to the record of the payment in the Payables> receipts page - where you may edit, adjust, mark as unpaid, or delete the recorded payable
Items applied to property owners will be reduced from the owner distribution owed to the owner (for the current statement period) - expenses will be itemized on the owner statement so the property owner will never wonder why the check is less than the full amount
Journal Entries, Owner Balances, and Ledger Balances will automatically be posted/adjusted - and again, Owner Statements will automatically reflect expenses applied to the property owner.