Bank Accounts: Interest-Bearing Accounts (IBA’s)

Overview

This demonstrates how to set up, hold, and account for funds in interest-bearing accounts (IBA’s).

Internal user roles

Admin/Internal Users/Roles

The following internal user roles may need to be enabled in the General Access Roles area and on the trust ledgers if users are going to be selecting the appropriate IBA for the file.

Ledgers: Reassign from this Ledger
Ledgers: Reassign Ledger After Transactions Made
Ledgers: Reassign Ledger Even if Not Balanced
Ledgers: Reassign Ledger For Zero Balanced File
Ledgers: Reassign to this Ledger

Add the Account and Ledger

Admin/Accounting/Bank Accounts

Click Add to add a new account.
If there is already an account in Resware at the same bank as the new IBA, select Yes on the Copy settings? prompt.
- If there isn’t, select No. Resware support may need to get involved to adjust the check settings to make sure that they’re complaint with the bank’s requirements.

Highlight the account whose settings should be copied and click Select.

Enter a Name.
Enter an Alias. This can be used to help distinguish the account from other IBA’s.
Enter the Account Number.
Enter the Current Check Number.
Add any other information that will need to be used for checks or wires from this account.
Click Save.

Admin/Accounting/Ledgers

Click Add to add a ledger.
Enter a Name. This will be displayed to users on the file; it’s recommended that the name is easily identifiable.
Select the Bank Account created above.
Select Trust as the Ledger Type.
Select any of the applicable options for the ledger, such as Attach PDF Copy of Check.
Do not select anything in the Set as Default for Counties section.
Click Save.

Add a Transaction Type for Use on Disbursements

Admin/Accounting/Transaction Types

Select the newly added trust Ledger from the drop-down.
Click Add.

Enter a Name. This will be used on files when requesting disbursements on this ledger.

Holding Money Before Closing

File/Trust

Select the appropriate Ledger for the file from the drop-down.

Click Deposit

Select the Received date.

Select the Payor. This is the party who sent the funds.
Select the Method, which is how the funds were sent.
Enter the Amount.
Enter a Memo.
Click Save.

When interest is earned, typically at the end of each month and determined by the bank statement, click Deposit.
The Received date will default to the current date; change it if it’s not accurate.
Select the Payor, which would be the bank.
Select the Method. Since this is an automatic deposit, Wire is the most accurate selection.
Enter the interest Amount.
Enter a Memo.
Click Save.

When the file is ready to close and the funds need to be transferred to the settlement account, click Disbursement.
The Requested date will default to the current date.
Select the Payee. If the funds are going to be use for a closing, this will be the company doing the closing.
Select the Type, which will likely be the transaction type created above.
Select the Method.
Enter the Amount that should be disbursed.
If the funds are being transferred to another account or wired, enter Wire Information.
Click Save.

Issue the wire or check from the trust ledger.

File/Settlement

If the funds are going to be used for a closing, go to the Settlement tab and select the expected receipt to which the funds should be applied.
Click Post or Claim Wire/Post.

Enter the correct Amount, if it doesn’t match what the file is expecting.
Select the Method.
Enter any other pertinent information.
Click Save.

If the amounts don’t match, Resware will want to create a receipt or disbursement for the difference. Click Yes to accept this.

The Settlement tab will show the funds receipted and available for closing.

Holding Money After Closing – Manual Transfer

Admin/Partners

Click New to add a new partner to use for disbursing investment funds.
Enter the Company Name.
Click Add in the Partner Types area and select a partner type.
- A new partner type can be added for this partner by going to Admin/Partner-Related/Partner Types.
Enter any other pertinent information, which may include entering the Wire Information.
Click Save.

File/Settlement/Postings

Select the disbursement for the investment partner and amount and click Disburse Single.

Select the Method.
1. If the funds are being wired or transferred to another account at the same bank, select Wire and enter the wire information.
2. If the funds are being moved by issuing a check, select Check.
Click Save.

Issue the disbursement.