Utilizing the Master/Sub bank account feature is a great way to manage Deposits and Payments for special projects. It’s easy to set up, and use, and provides your Boards with the information they need to track projects and make decisions. 


What is a Sub Bank Account?


A Sub Bank Account is a virtual “account” that separates deposits and payments within the main bank account. This allows special projects or activities to be tracked separately without the need to open a bank account for each one. For example: When managing a Special Assessment, incoming payments from Owners can be directed to the sub-account. Costs for the project are then paid from the same sub account, allowing all items related to the Special Assessment to appear as a separate item on the Balance Sheet, for easier analysis. Sub bank accounts can also be used for repairs, insurance claims, and even events. 


How to Set Up a Sub Bank Account


Step 1. Navigate to Banking > Manage Bank Account.


NOTE- Prior to adding a Sub account, the Master account must be set up. 

 

Step 2. Select Add Account from the Page Actions drop down menu.

  


Step 3. Complete the following fields in the Bank Account window. 


NOTE- The fields below MUST be completed to set up and activate the Sub Account to reflect both deposits and payments.  CLICK HERE for information about additional fields you may need. 


  • Bank- Select the Bank used for the Master Bank Account from the drop down menu.

  • Master Bank Account- Select the correct Master Bank Account from the drop down menu.

  • GL Account- This will default based on the GL Account selected for the sub Bank Account.

  • Title- Enter a Title for the Sub Account. 

  • Account Number- Enter the Master Bank Account number. 

  • Check Allowed- Check to allow checks to be disbursed from the sub account.

  • Deposit Allowed- Check to allow deposits to be made to the sub account. 

 

Step 4. Click the Save button to finalize.



How to Use the Sub Bank Account


Once the account is set up, you will use it as you would any other Bank Account. 


Make a Deposit


Select the Sub Bank Account from the drop down menu when making a deposit.



Pay Invoices


Select the Sub Bank Account from the drop down menu when entering Invoices.