Trust Receivable End of Month

Introduction

The Trust Receivable module has its own end-of-month processing routine, in which the user, aided by the checklist, verifies and balances cash and deposits, reviews outstanding receivables, prepares the customer statements, bills back clients for any charges for the month and then rolls T/R System transactions into the General Ledger. With appropriate training, this month-end process can be performed by the entry-level employee with supervisory review of balancing problems.

As with other modules, you must be observant about the processing month which is displayed in each menu within the T/R system. Once you are in month-end processing, the T/R System sets a flag so no further transactions can be processed until the system indicates it has been rolled into the next processing month. This prevents data being added to the system, affecting totals and statements as you are trying to balance.

In order to minimize problems, we recommend the person responsible for daily T/R processing also be responsible for processing the end-of-month if possible, restricting the number of persons accessing the system during critical periods. This will also provide important feedback to you as to the effects of decisions made during the processing month.

In addition, a checklist is included for completing customer statements. We will review all the steps, explaining what is to be accomplished and what to do if information does not balance.

Prior to beginning the month-end processing, complete any outstanding T/R transactions, including:

  • Post all payments recieved & make final T/R deposit for the month.
  • Create any miscellaneous charges or credits.
  • Process move-ins and address corrections

The End-of-Month Checklist can be printed from the Miscellaneous→ Print EOM Checklists menu option.

T/R End-of-Month Checklist
Client Fees List
(if using A/R billbacks)
From the Client Database menu, select Client Reports. This list allows you to review the management fees being charged to each client. If fees have been changed during the month, the system should be updates so billbacks to clients will be correct.
Set End-Of-Month Processing Flag From the Trust Receivable menu, select End of Month → EOM Flag. Click on Create to set the flag. Setting this flag restricts the ability to post additional transactions. The flag can be overridden by a system administrator in order to process any correcting transactions necessary for balancing.
You will still be able to accept payments and generate receipts, since these items are in a "hold" file and not actually updated to the system until a deposit occurs.
Balance Next 4 Totals:
The following four totals need to be balanced: the bank deposit receipts, the amounts posted to the Bank Account System (bank totals), the cash receipts posted to the Cash Receipts file (Cash Receipts Totals), and the cash amounts to be updated to the G/L System at update time (Cash Totals). If discrepancies exist, they need to be researched and corrected before proceeding with the next steps.
Deposit Receipts on Hand Add up the deposit receipts on hand for each client. This should be the total amount deposited to each clients account during the month.
T/R Bank Totals This report Reflects the Bank Account transaction totals having an T/R module source. From the Banking System menu, select Banking Reports → Bank Account Totals. Use the drop down to select Journal type Trust Receivable.
T/R Cash Receipts Totals Located under the Trust Receivable menu, Receivables Reports → Cash Receipts. This report adds up T/R cash receipts posted during the current processing month. These are totals for each Client.
T/R Stmt Checklist with Cash Totals Located under the Trust Receivable menu, Receivables Reports → G/L Postings Reports. This report totals all postings to CASH (to be subsequently updated to G/L). These are totals for each Client.
Clean Up the Accounts:
Apply ADVs & Credit Memos
Using the Unpaid Invoices by Unit
Located under the Trust Receivable menu, Invoice Reports → Delinquency Reports. This report is used as a workskeet in order to clean up each account of any unposted items.
The Unpaid Invoices by Unit report reflects details on every customer/unit record, reflecting all the unpaid invoices, along with any unposted funds held in ADVPMT or UNAPPLY. All monies must be applied to invoices (using option Unit Information → Adjust Accounts) before the customer statements are prepared, in order to distribute accurate information to your clients' customers.
Postings Trial Balance This is the standard accountant's Trial Balance report. It balances all debits with all credits. The debits are considered positive numbers while credits are negative numbers. When all of your accounts balance, they will add up to zero.
Balance Next 3 Totals:
Verify the balance due on the following 3 reports match. The following reports are point-in-time reports and can serve as a month-end snapshot. The reports may be printed and filed - or a copy of the PDF may be stored to a designated directory on your local network.
Unpaid Invoices by Unit Located under the Trust Receivable menu, Invoice Reports → Delinquency Reports. This is the final, detailed, copies of the delinquent aging reports.
Totals by Unit Located under the Trust Receivable menu, Invoice Reports → Delinquency Reports. This report provides a single line totals for each resident/owner who does not have a zero balance.
Name & Information Report Located under the Trust Receivable menu, Information Reports. This report contains the name, monthly charges, balance due, fees and deposits paid, move-in date, percent ownership of project (Associations), and expected move-out date.
Print and/or Save:
The following reports are point-in-time reports and can serve as a month-end snapshot. The reports may be printed and filed - or a copy of the PDF may be stored to a designated directory on your local network.
Monthly Sales Journals Located under the Trust Receivable menu, Invoice Reports → Invoice Reports. The Monthly Sales displays the income or discount invoices created in the current monthly period. Invoices not created in the current monthly period, or invoices with non-income G/L account numbers assigned, are excluded.
Current Invoice Report Located under the Trust Receivable menu, Invoice Reports → Invoice Reports. This report displays all invoices created in the current monthly period.
Cash Receipts Journal (by Dep Date) Located under the Trust Receivable menu, Recievable Reports → Cash Receipts Reports. This report includes each Client's cash receipts. All transactions are sorted by deposit number.
Create Mgmt & Acct'ng Fees & Billbacks:
There are two ways you can maintain contract fee information on each Client. You can do it in the Client's record (menu# 6.1.1) or in the A/R Customer record for your Corporate Client# (menu# 1.1.1). The differences between these two methods are only flat contract fees can be maintained in the A/R Customer record (menu# 1.1.1). Not only can you maintain flat contract fees in the Client Maintenance program, but you can also maintain percentage of income contract fees by entering their percentage rate. The creation of these corporate contract fees differs depending on how you're maintaining this data. If you maintain the data in the A/R Customer records for your corporate Client, the fees are automatically generated during the A/R End-of-Month process (next month's invoices are created). In addition, the A/P invoices, from your Client to your Company, will be created with an invoice and due date of the 1st of the month. However, if you maintain your contract fee data in the Client file, use menu# 1.7.3 to create these special fees. The invoice date will be the last day of the current processing month and the A/P invoices, from your Client to your Company, will be created with the same invoice and due date.
Run the End-of-Month Update Process:
This process will update all files and move the processing month forward one month. The following tasks are accomplished during this End-of-Month process:
  1. T/R unit accounts are updated:
    • MTD balances are updated
    • If changing calendar year, YTD balances are updated
    • Legal Date is cleared if unit balance is 0
    • Paid invoices are deleted
    • Current postings are flagged as having appeared on a monthly statement
    • The Client record is updated with total due, AdvPmt, and sec dep onhand
    • History records beyond the archive period are purged
  2. Automatic monthly invoices are created
  3. Cash receipts are deleted
  4. ADVPMTs are applied to unit accounts according to configured payment apply rules
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