Disbursement
Disbursement is the process of sending money out of our Trust account into the respective bank accounts of the ledgers in our system. Currently, it consists of EFT and BPAY transactions. The money flow is defined by the transactions entered into our system.
The disbursement process will generate BPAY and ABA files for the user to upload to his/her bank and initiate the actual money transfers. Till this is done, the Trust account bank balance will not match our system’s expected balance, and it will show the difference on the Reconciliation page.
The Disbursement page consists of sections with tasks to walk you through the process of disbursement. You can create different combinations of disbursements and it isn’t always necessary to make a selection on each step. It depends on the task.
To confirm the selection the Apply button should be pressed.
The disbursement process allows choosing and approving selected data, and it’s made up of 9 steps:
- Date – shows the date for this disbursement.
2. Reconciliation – shows a preview of the Trust account balance.
3. Pending Payments – Shows pending payments previously created in the section Add Payments. To be able to process a pending payment, the paying entity’s ledger has to have enough balance. Otherwise, it will show the pending payment as red, and the user will not be able to select it. Processing will also mean that this money is debited out of this entity’s ledger and is credited into the respective creditor’s ledger.
4. Disburse Landlords – displays the landlords who can be disbursed after all expenses and held funds are reduced. The final disbursement amount will be seen in the Payment field.
Select Disburse Landlords checkbox. Then you can sort which landlords are going to be disbursed according to their series of payments. To see the full list of landlords who are eligible for disbursement, select All Series and press the Preview Disbursement button. In any case, only the Landlords with enough balance to be able to be disbursed will show up in the preview.
Fields for the Preview Disbursement popup for Landlords:
- Name: The name of a landlord.
- Available: Current balance of the landlord. It is calculated as All receipts to this Landlord from Add Receipts + Add Generic transactions(Receipts + Journal(to Landlord) – Journal(from Landlord)).
- Fees: The sum of Management and Sundry fees that will automatically be taken out during the disbursement.
- Hold: The sum of selected pending payments the Landlord will be paying(EFT and BPAY) + Withhold amount that is manually set in the Landlord’s details page.
- Payment: The amount that will be paid to the landlord during this disbursement. It is calculated by:
Payment = Available – Fees – Hold
5. Disburse Creditors – displays creditors who can be disbursed after all expenses and held funds are reduced. This step is only for showing and processing EFT payments to creditors.
Select the Disburse Creditors checkbox and then choose creditors you want to be paid.
The Disburse Creditors step is made to show the funds creditors will get after all receipts and payments are processed. It’s translated into the Payment field.
It is very important to know, that the field Available here is the combination of a selected EFT Pending payments + previously created receipts in the Add Receipts.
Fields for the Preview Disbursement page for Creditors:
- Name: The name of the Creditor.
- Available: Current balance of the Creditor. It consists of all receipts to this Creditor from Add Receipts + Add Generic transactions(Receipts + Journal(to Creditor) – Journal(from Creditor)) + all payments from the Add Payments page to this Creditor.
- Fees: Our fees will automatically be taken out during the disbursement of that creditor if any.
- Hold: The sum of selected pending payments from that Creditor and Withhold amount that is manually set in Creditor’s details page
- Payment: The amount that will be paid to the owner during this disbursement. It is calculated by:
Payment = Available – Fees – Hold
6. BPAY file Payments – show all BPAY pending payments selected to be processed in the Pending Payments step.
7. Trust account reports – allows selecting the types of reports to be generated after disbursement.
8. Summary – the notification to ensure that disbursement is almost finished.
When all steps are completed at the right-side panel you’ll see a brief summary of the Trust account statement and the reports going to be generated.
