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.

Cautions

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.

End of Month Task(s) to Complete

  • Make Sure ALL Deposits have been made for Current T/R month - Review the manual deposit receipts and any funds that haven't been deposited - deposit them. Also review all remittance files to ensure they have been processed and deposited.

  • 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.

Validate Financial Totals and Balances

  • Add all Deposit Receipts on Hand - Balance these totals against the client totals of the deposit receipts totaled above. 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.

  • T/R Stmt Checklist with Cash Totals< - This report is 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. You should balance the cash totals on this report to the deposit totals calculated above.

  • Validate Cash Totals - This process balances the cash receipts totals, the bankbook deposit totals, and the G/L cash totals. A listing of those clients that do not balance will be displayed. If there are clients out of balance they need to be fixed before proceeding.

  • Unit Invoice/Balance Report - This report will report if the outstanding invoices equal the balance due for each unit.

  • 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.

Clean Up Unit Accounts

  • Print Unpaid Invoices by Unit reports and Clean Up the Accounts - Using This report is used as a workskeet in order to clean up each account of any unposted items. It 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.

Run Owner/Resident Billing Statements

  • Complete the "T/R Homeowner's Statement Checklist" - This report was printed above and should be used to ensure all unit owner/resident statements are prepared and mailed/sent.

Create Billings for Management Company (if fees collected at EOM)

  • Print 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.

  • 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.

Print Point-in-Time Reports (or Save as ".pdf")

  • EOM Reports - These reports contain all reports for each client in a single ".pdf" file. These reports are prepared and copied to your "FTP" directory on the Advantos server(s). They can be accessed via your SFTP Client software (normally Bitvise SSH Client - formerly Tunnelier). Copy these files to your network and store in your electronic financial files. After copying the files please remove them from the Advantos Server(s).

Run the Month-End Process

  • Run the End-of-Month Update Process - This process will update all files and move the processing month forward one month. A wide variety of tasks are automatically performed to prepare the T/R module for processing in the next financial monthly period.

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