How do you enter an incumbered asset into the Stessa system?
@michael.collinscpg What type of asset and/or recording are you looking to accomplish? To my understanding, a mortgage can be considered an encumbered asset. Therefore you would just record the mortgage under the property section.
I have a feeling you’re looking for a more advanced answer for a specific type of encumbrance (Mortgages, Easements, Property tax liens, Leases, Restrictive covenants, Legal judgments, Unpaid taxes). To keep the conversation simple, true bookkeeping of an encumbrance requires a journal entry (JE). Stessa cannot handle JEs and double-entry accounting at this time.
If you want a work flow answer within Stessa, I suggest exploring:
- The use of an extra cash management account to physically restrict the money of the encumbrance
- Creating a separate property/portfolio to track the encumbrance
It won’t be anywhere near perfect but it’s the system we’re working with. Best of luck to you. Hope you find that helpful.