Bank Accounts and Ledgers

Contents

Overview

Bank accounts are associated with ledgers to be able to use them on files; the ledger type
set on the ledger drives where on the file the associated bank account will be able to be used.

This demonstrates how bank accounts and ledgers are set up in Resware and to explain how they work on files.

Depending on the type of ledger selected, note that the associated bank account will either be subject to a three-way reconciliation or a two-way reconciliation. If a ledger type that reconciles as a two-way reconciliation and a ledger type that reconciles as a three-way reconciliation both have the same bank account selected, this account will never be able to be reconciled. Typically customers do not actually reconcile accounts related to the ledgers that use a two-way reconciliation in Resware and choose to reconcile those accounts in their GL accounting system instead, as there is more information related to those accounts than what’s held in Resware and the desired revenue reports (e.g. balance sheet) do not exist in Resware.

Three-way Reconciliation	Two-way Reconciliation
Settlement Clearing Trust Remittance Recording Fees Holding Sub-Escrow Filing Fees	Receivables Bills Property Sub-Escrow Invoice

NOTE: Resware strongly recommends a one-to-one relationship between banks and ledgers: One ledger/ledger type per bank account. This recommendation exists both for the sake of simplicity and to ensure that all bank accounts will be able to reconcile properly. If there are questions about the ability to deviate from this recommendation, contact support@resware.qualia.com to make sure there won’t be any reconciliation issues.

Adding Bank Accounts

Each account that is going to be utilized in Resware needs to be added to Resware. This is typically at least a settlement account, but there is not a limit to the number of accounts that can be entered.

Admin/Accounting/Bank Accounts

Click Add

Required Fields:

Enter a Name. This is what will be used to select the bank account when associating it with a ledger.
Enter the Routing Number. This will print in the MICR line on checks.
Enter the Account Number. This will print in the MICR line on checks.
Set a Current Check Number. This number will be used on the next check printed.

Optional Fields/Selections:

To give the account a name to make it easier to identify, enter it in the Alias field. If a name is entered here, it will be added to the end of what’s in the Name field when the bank account is displayed in Resware (e.g. “Wells Fargo (Escrow Account)”). This field is not printed on checks.
If the bank’s routing number and wire routing number are different, enter the wire routing number in the Wire Routing Number field.
If a fund claim integration is in use and the bank’s integration requires the federal reference ID number, enter it in the Federal Reference ID field. It’s an eight character identifier in the middle of the fed reference number that the bank uses when sending and receiving wires. Resware will advise if this is necessary.
If the account has a fractional code, enter it in the Fractional Code field. It will be printed under the bank address on checks.
If the account has a transaction code, enter it in the Transaction Code field. It will be printed on the MICR line of deposit splits.
If outgoing wires are being sent through a bank integration and the integration requires it, enter the Integration ID. Resware will advise if this is necessary.
Enter the bank’s address in the Street 1, Street 2, City, State, and Zip Code fields. This information will print on the check.
If this bank account is linked to a settlement ledger that receives wires from a clearing account via bank integration, select an Account Holder. This is a partner that represents the account holder and a valid address on the partner is necessary. The partner selected is used to populate information when an outgoing wire integration is utilized and fund are automatically transferred from the clearing account to the settlement account.
Select a Positive Pay File Format that is compatible with the bank to ensure that the bank can read the positive pay file generated by Resware. If there is not a format that is readable by the bank and positive pay will be utilized, contact Resware to discuss adding a new export format.
Select a Transaction Import File Format to use to import cleared bank transaction information into reconciliations.
- BAI: If the bank can provide a BAI file, select BAI. This is a standard banking format and is not bank-specific.
- CSV: If the bank cannot provide a BAI file, Resware can also use CSV files. The current available CSV bank formats are in the drop-down. If there is not a format that matches the bank, contact Resware to discuss adding a new import format.
If the bank account is going to be used in a state where it’s required that companies keep unique receipt and disbursement numbers by bank account (e.g. California), select Use Receipt and Disbursement Numbering.
- Supply a starting number for Current Check Receipt Number, Current Wire Receipt Number, and Current Wire Disbursement Number.
  - When a check or wire is received or a wire is disbursed, the next number will be assigned to the transaction and a report will be automatically generated and attached to the file.
- If reports should be printed instead of displayed, select the Auto-print Receipt/Disb Reports to Default Printer option.
- If an individual deposit should be made for each check that is receipted into a file instead of being able to batch multiple checks together into one deposit, select the Automatically Create Deposits for Check Receipts.
In the Print Check drop-down, select the location of where the check should be printed on the check stock. The options are top, middle, or bottom.
If any additional text should be printed on the check, such as “Void after 90 days,” enter into the Extra Text field. This information prints under the signature lines.
The Dollar Text is used to indicate what to print before the dollar amount and defaults to the “$” symbol. If checks already have this on the stock, remove this.
If preprinted check stock is being used and an administrator should be notified when it’s time to order new checks, enter a number in the Warning Check Number field. When this check number is printed, an email will be sent to the email address set in Admin/General Setup/Offices.
Use the Horizontal Adjustment and Vertical Adjustment fields to adjust the alignment of the check form. This offset is measured in inches.
If checks should print with a signature, utilize the Signature Image area.
- If the signature image that should print on the check is specific to the user who prints the check, select the Use User Signature If Available option.
- If the same signature should print on all checks, click the Change button and select the signature image that should be used.
- If a second signature image should be required on a check, as is common for escrow accounts, check the Required box in the Second Signature Image area.
  - To add an image, click the Change button and select the signature image that should be used.
  - If Required is checked and an image is not set, a blank line will be printed on the check, allowing for a second, wet signature on the check.
- If there is a maximum amount for which a check can be printed using the specified signature, enter that amount in the Max Print Amount field.
- Use the Horizontal Adjustment and Vertical Adjustment fields to change the alignment of the signature on the check. This offset is measured in inches.
  - Max Print Amount, Horizontal Adjustment, and Vertical Adjustment can be different for each of the two signatures, if two signatures are used on the bank account’s checks.
To insert text onto the stub of a check, enter it in the Stub Text field. Merge fields and conditional fields can be used in this field. This data will print at the top-center of the check stubs.
If the bank account number should not be displayed on check stubs, check the Hide bank account number on check stubs option.
If pre-printed check stock is going to be used, select Use Pre-printed Check Stock.
If blank check stock is going to be used, select Use Blank Check Stock.
- To add a company logo to the company name and address section of the check, select Change in the Company Logo area and select the logo image.
  - This image offset can be adjusted using the Horizontal Adjustment and Vertical Adjustment fields. This offset is measured in inches.
- By default, the name and address information that’s printed on the check comes from the information on the office (Admin/General Setup/Offices) from which the check is printed. To override that information, utilize the Override Company Name/Addr field. Merge fields and conditional fields can be used here.
  - Ex: This may be useful for companies that whose Resware office has the name of a parent company and they would prefer the name of their closing offices to print on their checks. If the closing office is added to each file as a partner, merge fields can be used to pull this data onto checks.
To add reports that will print by default when printing a set of reconciliation reports, click the Default Reconciliation Reports button.

Click Add and select the reports that should print by default. The order of the reports can be changed by using Move Up and Move Down. When the list is complete, click Save.
- Reports can be manually added or removed when printing the reconciliation reports. This is just a default list.

Adding Ledgers

Ledgers are associated with bank accounts and the ledger type drives where the bank accounts can be used on files. Resware typically recommends at one-to-one relationship between bank accounts and ledgers: One ledger per bank account. There is not a limit to the number of ledgers that can be created.

Admin/Accounting/Ledgers

Click Add

Enter a Name. This will be displayed to the user on the file.
Select a Bank Account to associate with this ledger. When this ledger is selected, receipts, checks, and wires will use the selected account.

Select a Ledger Type. This drives where on a file the selected bank account can be used.
- Bills: A ledger of this type allows the associated bank account to be used on the Bills tab of Resware. Users can enter and pay vendor bills on this tab. This type of ledger would typically be tied to an operating account.
- Clearing: This ledger type is used with the fund claims system. It’s not displayed on files. Clearing accounts are used to receive incoming wires and the wires are then disbursed to their respective settlement accounts.
- Filing Fees: A ledger of this type allows the associated bank account to be used on the Filing Fees tab. Users can enter and pay recording/filing fees on this tab. This ledger allows for over drafting, as filing fees are typically entered before receiving funds for them, and there is also an office option for Filing Fees: Print Blank Check that can be enabled, which will allow a user to print a blank check that, for example, can be taken to the courthouse to have the amount entered later.
- Holding: A ledger of this type allows the associated bank account to be used on the Holding tab. Holding is typically used when funds need to be disbursed before they’re received, as this ledger allows for over drafting.
- Property Payments: A ledger of this type allows the associated bank account to be used on the Property Payments tab. Users can enter property-related expenses (e.g. lawn care, county taxes, etc.), pay partners for these expenses, and invoice the expenses to a partner on the file.
- Receivables: A ledger of this type allows the associated bank account to be used on the Receivables tab. Users can enter receivables (e.g. search and exam, copies) and invoice the receivables to a partner on the file. This type of ledger is typically tied to an operating account.
- Recording Fees: A ledger of this type allows the associated bank account to be used on the Recording Fees tab. Funds for recordings can be held in this ledger and disbursed when needed. There is an auto-transfer feature that allows funds to be automatically transferred from a settlement ledger to a recording fees ledger.
- Remittance: A ledger of this type allows the associated bank account to be used on the Remittance tab. Funds for remittances due to the underwriter for the file can be held in this ledger until the policy is pulled to a remittance report, at which point Resware will disburse the funds from this ledger for the file.
- Settlement: A ledger of this type allows the associated bank account to be used on the Settlement tab in Resware. These ledger types are associated with bank accounts used for closings, as the Settlement tab is associated with a HUD and CD.
- Sub-Escrow: A ledger of this type allows the associated bank account to be used on the Sub-Escrow tab of files designated as sub-escrow files, which are common in parts of California.
- Sub-Escrow Invoice: A ledger of this type allows the associated bank account to be used on the Sub-Escrow Invoice tab of files designated as sub-escrow files, which are common in parts of California. It’s recommended that this ledger be tied to a “dummy” account and not a real account.
- Trust: A ledger of this type allows the associated bank account to be used on the Trust tab. This allows funds to be held in a separate account and still be related to the file. This is common for earnest money being held for commercial properties, as it’s generally held for a while, or funds held for repairs. The trust ledger cannot go below a zero balance without enabling the office option for Ledgers: Trust Ledger: Allow Negative Disbursements.

NOTE: Once a Bank Account and Ledger Type have been selected and the panel has been saved, they cannot be changed.

Select the options for the ledger.
- If users should have to enter the ABA number, bank name, account number, and name on the account (e.g. “John Smith” or “Wells Fargo Payoffs”) before disbursing a wire, select require Bank Information for Outgoing Wires. If this option is selected, users will not be able to request an outgoing wire without providing this information.
- If users should have to provide a supporting document before disbursing a wire, select Require Supporting Document for Outgoing Wires. If this option is selected, users will have to associate a document (e.g. payoff letter, wiring instructions) from the Documents tab with the wire before being able to request the wire.
- If users should have to provide a supporting document before disbursing a check, select Require Supporting Document for Outgoing Checks. If this option is selected, users will have to associate a document from the Documents tab with every check before being able to put checks in a Pending status.
- If copies of issued checks should be automatically attached to the Documents tab of the file, select the Attach PDF Copy of Check option. This is beneficial for audits.
- If the ledger is one that most users should not be able to access, it may be useful to select the Don’t Copy when using ‘Copy Ledger Roles to All Ledger’ option. If this option is selected and an administrator uses the Copy Ledger Roles to All Ledgers option on an internal user, this ledger will be excluded from that copy and the user will not automatically be granted rights. Users will have to be manually granted rights to ledgers with this option selected. This may be useful if a Bills ledger is being used and only a few users should have access to this ledger: Selecting this option would prevent users from automatically be granted access to this ledger.
If this ledger should be the default ledger of the selected type when a file is created, use the Set as Default for section.
- If this ledger should be the default ledger of this type for all files created in all states, click the Enable All in All States link.
- If this ledger should only be the default ledger of this type in certain areas, select the State from the drop-down and check the Enabled box next the counties in which the ledger should be the default.
- NOTE: Only one ledger of each type can be set as the default in a given area. For example, there cannot be two settlement ledgers set as the default in Adams County, Colorado.
If this ledger should only be used when a specified underwriter is on the file, select the Selected radio button in the Underwriters section, click Add, and select the appropriate underwriter. This is most common for remittance ledgers and for customers whose underwriters require their remittance funds to be kept in an account separate from other underwriters’ remittance funds.

Depending on the ledger type, other options may become available.
- If the ledger type is set to Settlement and the Ledgers: Fund Claim System office option is enabled, the Fund Claim System area is enabled.
- If Fund Claims should be used for this ledger/account, check Use Fund Claim System.
  - If funds are being wired into the account associated with this ledger, select This Account from the Claim From options.
  - If funds are being wired into a clearing account and then being transferred into the account associated with this ledger, select Clearing Account from the Claim From options and click Add to select the clearing account(s).
  - NOTE: Both options can be selected and more than one clearing account can be selected.

If the ledger type is set to Receivables, the Invoice Headers/Footers area is enabled.
- To move the mailing address on the invoice, use the Horizontal Adjustment and Vertical Adjustment fields. These offsets are measured in inches.
- If additional information should be added to the invoice in a header or footer, enter that information in the Left Header, Right Header, or Footer areas. Merge fields and conditional fields can be used in these fields.

Updated on March 18, 2022