Accounting by Guesty is a premium feature available to Pro users only. Please contact us to discuss activating it.
As part of Accounting by Guesty's trust accounting, you have the ability to block owner transactions so that if the owner does not have enough funds on the date of an expense that they owe, the transaction will not go through.
For example: An owner's balance in the trust account is $500. A recurring or manual transaction tries to post an expense to the owner for $600. This would bring the owner balance into the negative, therefore the system will block the creation of the transaction.
Important:
We strongly recommend blocking owner transactions only if you are required to by local authorities. If you choose to proceed, you are responsible for manually tracking and following up on any blocked transactions.
Step by step:
- Sign in to your Guesty account.
- In the top navigation bar, click the mode select and select Accounting mode.
- Click Setup.
- In the menu to the left, click Accounting method.
- Under "Do you want to block owner transactions?", select Yes, block owner transactions.
- In the pop-up, click Block owner transactions to confirm.
The following actions will be blocked if there are insufficient funds in the owner account:
- Recurring owner charges and expenses set up in the business model.
- Adding a manual transaction that includes a charge to the owner. This could be a journal entry, owner charge, or expense.
A blocked transaction will be added to the "unrecognized transactions" report found under General ledger > Preconfigured reports.
Since a blocked transaction will still needs to be processed, you will need to check when there are sufficient funds, add the transaction manually, and keep track of which blocked transactions have been re-entered and which have not. As this is a manual process, all blocked transactions will remain in the "unrecognized transactions" report.