Accounting > Financial > Association GL Setup (Adjustment Tab)
Learn how to create and set up default settings for the automated handling of Returned Items (NSF) and the automated handling of the transfer of a payment from one account to another.
Returned Check (NSF) Settings
Use the Adjustment Tab 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.
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.
Step 4. Select the Adjustment Tab
Step 5. Complete the fields in the Adjustment portion of the pop-up window.
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.
Step 6. Click the Save button to finalize.
Move Payment Setup
Step 1 - Step 4- Follow steps 1-4 as above.
Step 5- Complete the Move Payment Portion of the window. 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.
Step 6. Click the Save button to finalize.