GENERAL LEDGER SETUP. Mortgage Computer Ogden, Utah

Transcription

1 GENERAL LEDGER SETUP Mortgage Computer Ogden, Utah

2 Contents - Updated September 6, Processing... 5 Construction... 9 Servicing Accounting Entries Servicing GL Subsidiary Accounts Credit Line Foreclosure Accts Payable GL Accounting Print GL Setup... 19

3 General Ledger

4 This selection is to set up the General Ledger accounts for the various programs that will be affected when monetary transactions are posted. Each of the packages provides a Transaction Register with a summary of activity and indicates to which GL or bank accounts the totals should be posted. The General Ledger account number in the consists of four digits followed by a three digits (XXXX-XXX) The first digit is used to identify assets, liabilities, income, expense, and equity accounts. The last three can be an additional segregation. Example Asset accounts would be Your asset accounts would be _ Liability accounts would be Your liability accounts would be _ Income accounts would be Your income accounts would be _ Expense accounts would be Your expense accounts would be _ Equity accounts would be Your equity accounts would be _ To set up your General Ledger, identify the Edit Series.

5 Indicate which series of numbers (e.g., 1, 2, 3, 4, 5) is to be used for assets, liabilities, income, expenses, and equity (used only within the GL Accounting package). The first digit of the Series Number must be greater than zero. The button toggles between Edit Series and Update Series. Prior to setting up any of the various packages, i.e., Loan Processing, etc., set up bank accounts if some of the funds will be deposited into a checking account. Options to display the manual and to listen to the recorded audio training session. Steps to Set Up the General Ledger With the General Ledger accounts identified and the bank accounts set up, the next step is to set up each of the GL accounts by package. Each of the packages provides various transactions to post to the GL accounts. Master The Master is the main account for the company. If you wish to have different GL accounts for various branches/controls, simply add the ones you want. The Master will be duplicated for each branch/control, and you can add to or modify any line item for that branch/control. Accounts Payable and GL Accounting will only have the Master. Package The name of the package selected displays. Branch/Control From the drop-down list, select the Branch for Loan Processing and Construction and the Control for Loan Servicing and Credit Line and click Add. Only those branches/controls not previously set up will display.

6 Processing

7 The field numbers are the same as those used on the HUD Settlement Statement, except Field 9. Field 9 is cash refunded to the borrower. A Custodial Checking Account will be used for cash received and Field 9. The item description can be changed; however, the function remains the same. Indicate the General Ledger (GL) or Checking Account on each line item. Checking is a debit to the Custodial Account. The GL is a credit to the account set up and a debit to the Custodial Account. Save the data entered and return to the GL - Account Numbers screen.

8 Field 1306 Settlement Agent allows a Wire Transfer rather than printing a check. Although a check will not be produced, the checking account is debited the amount of the wire transfer. Checking must also be selected when indicating Wire Transfer. Notes:

9 Fields allow a Wire Transfer rather than printing a check. Although a check will not be produced, the checking account is debited the amount of the wire transfer. Checking must also be selected when indicating Wire Transfer.

10 Construction The descriptions can be modified, but the program function cannot be changed. MC recommends using the same descriptions as much as possible. This will help Customer Support understand any questions you may have. Set up each Transaction Code as either a GL or a Check. If no GL is set up, then a check is to be written. UDCF CANR EX IA II = = = = = Undisbursed Construction Loan Funds A Custodial Checking Account for borrower or loan funds Construction Notes Receivable A disbursement item expense Debit to Construction Interest Accrual A credit to Construction Interest Income Save the data entered and return to the GL - Account Numbers screen. Notes:

11 Servicing Accounting Entries From Account Description of Entry 1 Debit entry from payment(s) that are applied. 2 Credit entry from interest received on payment(s). 20 Monthly accrual credit entry with interest on escrow funds. Based on frequency, this account is debited with credit to escrow. 3 Credit entry from investor service fees received on payment(s). 4 Principal portion debit with new loan in Loan Servicing. Principal portion of payment(s) will credit this account. 5 Debit entry from escrow disbursements. Credit entry with escrow funds collected upfront on new loan and the escrow portion of payment(s). 51 Credit entry from escrow disbursements. 6 Credit entry for partial portion of payment. 7 Credit entry for late fees collected with a payment. 73 Credit entry for prepayment fees collected. 75 Credit entry for other fees collected. 79 Monthly accrual debit expense entry with interest on escrow funds. 81 Principal portion credit with new loan in Loan Servicing (debit entry is GL account 4). 91 Credit entry for assumption fees. 93 Credit entry for collection of return check charges. 95 Credit entry for foreclosure expenses. 97 Credit entry for selling expenses AA Advance funds on a loan to debit the principal account (AA will be the credit entry). AH Advance funds on a loan to debit the principal account for hazard insurance (AH will credit Escrow Payable). AL Advance funds on a loan to debit the principal account for life insurance (AL will credit Escrow Payable). AT Advance funds on a loan to debit your principal account for taxes (AT will credit Escrow Payable). IA Monthly debit entry from interest accrual due program. II Monthly credit entry from interest accrual due program (interest income account(s)). LA Debit late fees accrual account. LW Debit entry when late fees are waived with credit to LA. P1 Miscellaneous loan fees with create a credit entry to this GL account. P2 Credit entry with new loan discount points and/or origination fees. Debit with the monthly FASB 91 amortization. P3 Credit entry amortizing discount points from the monthly FASB 91 program. P4 Credit entry amortizing origination fees from the monthly FASB 91 program. S7 Debit entry with borrower buydown payment. S8 Debit entry with investor buydown payment. SP Credit entry from a payment that has been suspended/rejected (GL account 1 will be the debit entry). When suspended payment is then applied, this account is automatically debited.

12 Servicing Accounts in the Loan Servicing GL Interface are set up by Control Number. Each monetary transaction in Loan Servicing creates an entry to the General Ledger, a General Ledger Subsidiary Account, or a Checking Account. The description can be changed; however, the function remains the same. Indicate the General Ledger (GL), General Ledger Subsidiary (GLS) or Checking Account on each line item. If a line item is not used, enter the GL account number as Interest Income = A (P&I) Custodial Checking Account for investors. 4. RE Notes Receivable = A (P&I) Custodial Checking Account for investors.

13 Transaction Code AA allows modification to the GL/checking account assigned. The account entered will be the GL/checking account credited when the Transaction AA is updated. When the transaction is updated, the program will increase the principal balance. Transaction Codes AT, AH, and AL will display the GL/checking account assigned to 5 Escrow Payable and the corresponding Control Number, and cannot be modified. When Transaction Codes AT, AH, or AL are updated, the program will debit 4 Principal Receivable and credit 5 Escrow Payable. The program will increase the balance of the corresponding escrow. Save the data entered and return to the GL - Account Numbers screen.

14 GL Subsidiary Accounts GL Subsidiary is based on using the Loan Product as set up in Loan Processing. The principal and interest collected will be a credit to the GL accounts by Loan Product. The Product has to be set up in Loan Processing and each loan has to be assigned a Loan Product. Accrue Interest - Yes When the monthly Accrued Interest Due is processed, the entries will be: C Debit - Accrued RE Interest C Credit - Each GL Interest Income account by Loan Product as set up in Loan Processing and displayed in the Loan Information section of the Master Record. When a real estate loan payment is made: C Debit - Cash C Credit - Accrued RE Interest Accrue Interest - No When the real estate payment is received, the entries will be: C Debit - Cash C Credit - Interest Income Account by Loan Product as set up in Loan Processing and displayed in the Loan Information section of the Master Record. Loan Product Loan Product from the Loan Information section of the Master Record.

15 Description Description of the GL account or Loan Product. GL Principal General Ledger Principal Account for the Loan Product. GL Interest Income General Ledger Interest Income Account for the Loan Product. Save the data entered and return to the GL - Account Numbers screen.

16 Credit Line Accounts in the Credit Line GL Interface are set up by Control Number. Each monetary transaction in Credit Line creates an entry to the General Ledger. The description can be changed; however, the function remains the same. Save the data entered and return to the GL - Account Numbers screen.

17 Foreclosure Foreclosure Transaction Code descriptions can be modified from the standard default in this area. The descriptions can be up to 30 characters long. The descriptions will display in the drop-down listing in Loan Servicing > Foreclosure > Post Entries. Payment Checks from GL Use this option when the MC program does not prepare the check. The debit and credit General Ledger accounts entered will be printed on the Foreclosure Register. Payment Checks through Accounts Payable The Foreclosure transactions are placed in the Accounts Payable Proof Listing (Accounting > Accounts Payable > Transaction Entry > Proof Listing) to be reviewed and updated, and a check printed. The checking account number will default to the AP account set up in Bank Codes and Accounts (Accounting > Cashbook Reconciliation > Bank Codes and Accounts). The GL entries will be made in Accounts Payable.

18 Accts Payable The Accounts Payable program only uses the Master. With the Master, set up the standard accounts. A screen displays to enter the GL number and description. Only one account may be set up for Assets and Liabilities. There is no limit as to how many may be set up for Expenses.

19 GL Accounting GL Accounting only uses the Master. With the Master, set up the standard accounts. A window displays to enter the GL number and description. Enter the GL number and description and click Submit. The same description may be used for more than one account as long as the first four digits of the GL number are the same.

20 Print GL Setup This selection provides a hard-copy printout of the checking and GL account numbers entered in the. This report should be printed or saved for future reference. Package From the drop-down list, select the package to include on the report. Control/Branch From the drop-down list, select the Control for Loan Servicing and Credit Line. Select the Branch for Loan Processing and Construction. Or select All to print the package/control/branch combinations. Controls and branches will not display for packages that have only have a master set up. Options to display the manual and to listen to the recorded audio training session. The program creates a.pdf (portable document format) of the report. The toolbar within the PDF report display screen contains options to save to a file, print or the report. Notes: