Auction Quick Steps

1) Tenant is considered for auction status according to the Late Rules

2) A fee will apply and the auction work order will generate on the account

3) The manager will pull up the 'Manage Work Orders' screen and change the filter from 'Approved' to 'Needs Approval'

4) If they need to add items to the auction work orders, they can select and edit the work order and add content to the Solution box

5) When the certified notice is ready to be sent, the manager will need to change the Approval Status from 'Needs Approval' to 'Approved.' Completing this step will issue the process of sending a letter to the tenant.

   - from the Manager Work orders screen, they can select the work order and click the 'Approve' button

5) Once the auction has been completed, the auction work order can be closed by selecting the work order and clicking the Complete button

Auction Work Orders

Auction are handled with work orders. When a unit gets to the appropriate late step, an Auction work order gets opened on their account.

 

Auction work orders start out with Needs Approval status. 
Once an auction work order is set to Approved the auction notice is generated. *
After the unit sells, the work order should be set to Completed.
If the unit will not be sold in auction, then the work order should be set to Canceled.

* Auction letters can be set to Print and/or Email.
* Work Order Start Date field is used in the letters as the Auction Date

Auction Report

Units will get added to the report as soon as they are eligible. The "Approved" column is how you will know who is assigned to the current auction.

The auction report has a filter "As Of Date", this date will be the cut off for the "Work Order Start Date" on the auction work order.
Only work orders with a start date after the “As Of Date” will be on the report.

For an auction record to show on the report, these conditions must be met on the work order:

1. Unit attached to the work order must still be occupied
   
2. Start Date must be after the report setting “As Of Date”
   
3. Approval Status cannot be “Denied”Status cannot be “Canceled”
   

 

Posting Auction Proceeds with Sales Tax 

Method 1 – Applying Proceeds to a separate SKU to be tracked.

1 -    Create a new SKU "Auction Proceeds" or something similar, make this SKU taxable. *

2 -    On the tenant account, create a charge with this SKU in the amount of the auction sale, which will automatically apply sales tax. 

3 -    Enter the auction payment for the same amount as the charge and write off the rest with a BADDEBT credit.
If your company is set up to automatically write off bad debt, simply move the unit out and the system will automatically create a bad debt credit for the remaining balance. The Taxable Sales report will show the taxes from the auctions as well as any other normal taxable sales.

 

*Ask the support team for help setting up SKU’s if you are not familiar with this. 

 

Method 2 – Applying Proceeds to Past Due Charges

1 -    Calculate the tax for the auction proceeds separately

2 -    Manually add the tax charge to the account (Put “"Auction Proceeds" in the description.)

3 -    Set the account to “Open Item” mode

4 -    Post part of the proceeds directly to the tax charge

5 -    Post the remainder of the proceeds to the account allowing it to be spread across the rent charges / late fees.