Accounting > Financial > Association GL Setup

 

Learn how to set up the General Ledger for an Association. 

 

Step 1. Navigate to Accounting > Financial > Association GL Setup page.


Step 2. Use the Search fields to find the Association you need. 



Step 3. Click the Pencil icon next to the Association to Edit the record.


 

 

Overview Tab - Overview Section


Step 1. Complete the fields on the Overview tab.


  • Fiscal Year Month End - From the dropdown menu select Fiscal Month End or Calendar Year. This setting creates the default accounting periods based on the specified year type.  


NOTE - Once this selection is saved, it cannot be changed.


  • Calendar Year- A standard year (Jan - Dec) 


  • Fiscal Month End- Non-standard year. When you select Fiscal Month End from the dropdown box, an additional field will appear. In that field choose the last month in the Fiscal year from the dropdown menu.


  • Copy Chart of Accounts From - This option allows you to copy a complete Chart of Accounts from an existing Association. From the dropdown list select the Association to copy the chart of accounts from. 


NOTE- If you wish instead to create a Chart of Accounts from scratch leave this field blank and  CLICK HERE for more information. 


  • Period Format - Choose preferred date format for periods.


  • Accounting Method - Choose the preferred method of account: Cash, Accrual and Modified Accrual Accounting.  Note - Once this selection is made, it cannot be changed once transactions have been added to the general ledger.


  • Enable GL Department - Check this box to enable Departments for the Association. Once enabled, you will need to create the department names on the Department tab. CLICK HERE for more information. 


  • Include Dept in the GL Account - Check this box to automatically transaction to the department linked to your general ledger accounts. Leave it unchecked if you prefer to select the Department manually when entering transactions.  


NOTE- Any transactions posted after the Department is linked to a GL Account will not post to the department. To correct this situation, you must re-save the department on the general ledger account. CLICK HERE for more information. This re-save will update all transactions with that general ledger account with the selected department. 


 NOTE- this only impacts open periods--transactions in closed periods are not updated.


Step 2. Once setup is complete, click Save.  If your setup is correct, click OK.  If not, click Cancel and make any changes needed. 

Overview Part 2

Step 3. Once the initial setup is saved, additional setup items will appear in the Overview tab.


  • Start Period - Select the starting month of the currently open period. The system will automatically create accounting periods for the current and prior years. Periods before the start period will be marked as closed.


Depending on the accounting method, default GL accounts will need to be established.


  • A/R Account - This account is used as the default A/R account. Note - Not used with cash accounting.


  • A/R Clearing - This account is used to track received checks that have not yet been deposited.


  • Revenue Clearing - This account is used when a corresponding revenue account on a trans type is not found.  This can happen when a new association is assigned to a workflow but the workflow charge (for example, a violation fine) is not set up on the Trans Type tab.  This account should be zero.


  • Prepaid Account - This account tracks owner payments not allocated to existing charges.  For cash accounting, this is typically a revenue account.  For accrual, this is a liability account.


  • A/P Account - Select the default payables account.  Note - Not used with cash accounting.


  • R/E Account Operating - Select the retained earnings to account used to capture net income during the year-end close process.


  • R/E Account Reserve - This is an optional field.  Select the retained earnings account used to capture net income during the year-end close process for GL accounts using the Reserve fund.


  • R/E Account Other - This is an optional field.  Select the retained earnings account used to capture net income during the year-end close process for GL accounts using the Other fund.


  • W/O Account - Select the write-off account that is accessible for all trans types.  If the selected 


  • Bank Interest Account - Select the account to post interest earned from the bank statement.


User defined fields


  • User defined Net Income  - This is an optional field.  Enter user defined value to show on reports in the place of Net Income.


  • User defined Show Income Before ______ - This is an optional field.  Enter user defined value to show on reports when "Enable Level Subtotal on Financial Reports:" is chosen in the chart of accounts.GL account does not apply to all trans types, then leave this blank and set up the write-off account(s) on the individual trans types.


Step 4. Once setup is complete, click Save.  If your setup is correct, click OK.  If not, click Cancel and make any changes needed. 

Overview Tab - Adjustment Section


Use this Section to set up returned item information to allow the system to automate the returned item process. When processing a returned item, the system will add all charge(s) paid with the original check back to the owner's ledger and add any additional processing fees, as established below. All charges added to the homeowner account will be dated on the date of the returned item. 


NOTE- Returned items (including NSF's) are handled on the Transaction Adjustment page or from Transactions tab on the owner's account CLICK HERE for more information.


  • Return Item Trans Type Default - Select the transaction type to be used to add the unapplied portion of the returned payment to the owner ledger.


  • Bank Return Fee GL Account - Select the GL account to capture the bank service fees related to returned items.


  • Bank Return Fee - Enter the amount of the returned item fee charged by the bank. This fee is added as a journal entry that debits the expense and credits the bank. If you want to pass the bank fee on to the owner, include the amount in the Firm Return fee below.  


  • Bank Return Fee Memo - Enter description for the returned item fee to be added to the owner's account. 


  • Firm Return Fee Trans Type Default - Select the trans type to be used to add a firm-level fee to the owner's account.


  • Firm Return Fee - Enter the amount of the return item fee to be added to the owner's ledger when processing a returned item/NSF. This fee does NOT impact the bank balance as part of this process. When processing the returned item/NSF this fee can be removed so it is not charged to the owner.


  • Firm Return Fee Memo - Enter description for the returned item fee to be added to the owner's account.



Overview Tab - Move Payment Section


Use this section to set up payment transfers. A transferred payment adds a charge to the 'from' account and a credit to the 'to' account.  It also creates the appropriate General Ledger accounting entries. 


NOTE- This allows payments to be easily moved to a homeowner account within the same association or an account in a different association. CLICK HERE for more information.


  • Charge Trans Type - Select the charge trans type to be added to the 'from' account ledger.  This charge will negate the payment that is being moved to the 'to' account. 


  • Credit Trans Type - Select the credit trans type to be added to the 'to' account ledger. This credit will add the payment that is being moved to the 'to' account.  Note - The credit trans type to be used is determined by the 'to' association.


  • Revenue Clearing GL Account - This GL account is used when the transfer payment is within the same association.  This GL account is used when adding the charge and credit instead of the GL account associated with the charge and credit trans type. The balance in this GL account should be zero after a transfer payment is made. 


  • Due To Liability GL Account - This GL account is used when the transfer payment is for an account in a different association,  Once the funds are moved from the 'from' association to the 'to' association, a journal entry will need to be done to zero out this GL account.  


NOTE - the funds will need to moved separately.


  • Due From Receivable GL Account - This GL account is used when the transfer payment is for an account in a different association. Once the funds are moved from the 'from' association to the 'to' association a journal entry will need to be done to zero out this GL account.  


NOTE -the funds will need to moved separately.


Overview Tab - KPI Section


This tab identifies the KPIs (Key Performance Indicators) applicable to the association. 


CLICK HERE for more information on how to enable KPI’s

 

From the drop down menu, check the box for all that apply.