How to Process and Bank Match a Kept Escrow Journal Entry
43 steps
|
4 minutes
1
Navigate to Brokerage Engine.
2
Review the "Escrow Deposits" section of the Commission Detail Page at the front end of the system. The Escrow Deposit amount is $22,875.00.
3
Review the "Accounting Details" section. The expected Commission Payment is $35,000.00.
In this Transaction, the Escrow Deposit is to be kept by the Brokerage and the funds transferred from the Escrow Account to the Operating or Commissions Account. The Brokerage will also receive a Commission Payment of $12,125.00 for the difference.
Keep Escrow
4
From the menu on the "+ Add Deposit" button, click the "Keep Remaining Escrow" option.
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The Commissions Deposit Banking Account selected on the Brokerage Settings will display. A new Account can be selected using the dropdown menu. \ \ The Post Date for Keeping Escrow will default to today's date. The date can be adjusted using the small calendar icon. Select the date of the Bank Transfer processed externally for easier reconciliation.\ \ Click the "Keep" button.
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Click "OK"
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The Escrow Deposit will now show as being "Kept".
If needed, click on the "Hold Deposit" button to revoke the Kept Escrow Journal Entry and reset the Escrow Deposit settings to "Total Amount Deposited".
Review the Kept Escrow Journal Entry
8
Click the "View Entries" button on the "Accounting Details" section.
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The Kept Escrow Journal Entry will now display. The Journal Entry records the transfer of funds between General Ledger Escrow Account and the Operating or Commission Account. The Journal Entry also reduces the balance of the Escrow Liability Account.
For this Transaction, an external transfer needs to be processed at the Bank in the amount of $22,875.00.
10
The Kept Escrow Journal Entry can be reviwed in the BE Accounting interface by clicking on the "View in Accounting" button.
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The recorded Kept Escrow Journal Entry will display.
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Click "Close"
Close and Complete the Transaction
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Click "Settle Escrow"
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Click "OK"
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Click "COMMISSION_VERIFIED"
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Click "OK"
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Click "CDA_SENT"
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Click "OK"
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Click "CLOSING_PAYMENT_RECEIVED"
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Click "OK"
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Click "COMPLETE"
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Click "OK"
Upload the Transaction to Accounting
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Click "Upload to Accounting"
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Select "No" to posting to send the deposit to Undeposited Funds.
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Click "OK"
Record the Deposit
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Click "Accounting" to navigate to the BE Accounting interface.
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Click the "Quick Actions" menu.
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Select the "New Bank Deposit" option.
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The Default Operating Account selected on the Configuration Panel will display. A different account can be selected using the dropdown menu.
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The Deposit entry of $35,000.00 will display which will be reduced by selecting the negative Kept Escrow entry (-22,875.00).\ \ The Deposit amount will match the Commission Payment due to the Brokerage.
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Click "Save"
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Click "OK"
Review the Deposit
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Click the "Bank Register" option on the Banking menu.
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Select the Account that the deposit was recorded using the dropdown menu.
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The Bank Register will display the Kept Escrow Journal Entry and the Commission Deposit. The entries total $35,000.00 which is the amount due to the Brokerage.
Bank Match the Commission Payment
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Click the "Banking" menu.
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Click the "Banking" option.
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Select the Account where the Commission Deposit was recorded.
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The downloaded Transactions that need to be Categorized will populate.
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From the table, select "Find Match" from the dropdown menu on the "+ Add" button.
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Select the Transaction from the list.
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Click "Save"
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The Deposit will now show as Cleared.
