Redirecting to default login.. Ledgers: Clearing

Ledgers: Clearing

Overview

To demonstrate how to set up and use a clearing ledger in Resware.  A clearing account is used to receive all incoming wires and hold them temporarily until transfers are created in Resware to allocate the funds to state-specific settlement ledgers and their associated bank accounts.   This process is used in conjunction with the fund claims functionality.  The benefits of utilizing a clearing account include streamlining wiring instructions to one clearing account while limiting the publication of settlement bank account numbers, which increases wire fraud preventative measures.

This information is explicitly focused on the configuration and use of a clearing ledger.  For complete setup of the fund claims process, a fund claims article is available.  If the fund claims system is not already in use, contact support@resware.qualia.com to enable the fund claim system.

Enabling Office Options

Admin/General Setup/Offices/Accounting

  • Enable the office options as needed:
    • Fund Claims: Auto-Initiate Clearing Account Transfers – When enabled, and a transfer is created from a clearing ledger to a settlement ledger, the resulting wire will be automatically marked as initiated.  If this is not enabled, a user will have to go to Accounting/Review Outgoing Wires and review and initiate the clearing-to-settlement transfers.
    • Fund Claims: Auto-post from Clearing Accounts – When enabled and either Fund Claims: Auto-Post Wires by Borrower Last Name or Fund Claims: Auto-Post Wires by File Number or Loan Number is enabled, then Resware will search and attempt to auto-post wires to the appropriate files in a settlement ledger that is associated with the clearing account where the wire was received.

Internal User Role

Admin/Internal Users

When the fund claim system is enabled, all the related fund claim roles are activated and can be enabled as needed.  The following role is specific to clearing accounts:

  • Ledgers: Fund Claims: Make Transfers from Clearing – The user has access to make transfers from a clearing account to other settlement accounts. This role is specific to the use of a clearing account.

Create a Bank Account

Admin/Accounting/Bank Accounts

  • Click Add to create a new bank account.
    • Click Yes to copy settings from an existing account.   This will save time entering information, primarily when the account is held at the same bank as another existing account in Resware.
  • Highlight an account to copy from and click Select.

All fields, except for the ones highlighted in pink, will pull information from the source account.

  • Enter a Name for this bank account.
  • Enter the Routing Number (if settings were not copied).
  • Enter the Account Number.
  • Select the Transaction Import File Format from the dropdown menu associated with the bank for this account.
  • Enter the Current Check Number.

NOTE: A clearing account typically does not need Check Printing settings since it is a pass-through account for wires, but the Current Check Number field is required to save this panel.

Create a Ledger

Admin/Accounting/Ledgers 

  • Select the Office that will use this new clearing account from the dropdown menu.  If this bank account is used in multiple offices, then a ledger for each office is needed.
  • Click Add to create a new ledger.

  • Enter a Name for this ledger.
  • Select the Bank Account to associate with this ledger from the dropdown menu.  NOTE: Once this panel is saved, this selection cannot be changed.
  • Select the Ledger Type as Clearing from the dropdown menu.
  • Select the State (and Counties if applicable) in the Set as Default for Counties area.  If this is the only clearing account, click the Enable hyperlink to select All in All States.
  • Click Save.
  • Select a response to the Enable Ledger for Users pop-up question:
    • Yes: will copy all default ledger roles to this ledger on both role groups and users.
    • No: will not enable the default ledger roles on this ledger for any role group or user.  The roles will need to be manually enabled.

Enable Clearing Ledger on Settlement Ledger(s)

Admin/Accounting/Ledgers

  • Highlight the settlement ledger that will use the clearing account through the fund claim system.
  • Click Edit.
  • In the Fund Claim System area:
    • Enable Use Fund Claim System.
    • Enable the Clearing Account(s) option in Claim From area.
    • Click Add and highlight the clearing account associated with this settlement ledger.
    • Click Add.
  • Click Save.

Fund Claims for Incoming Wire(s)

A user will receipt incoming wires through fund claims as they would typically do in a file, however, when the Fund Claim Search window opens, it will automatically display the wires from the clearing account associated with the selected or assigned settlement ledger on the file.

Transfer from Clearing

Accounting/Transfer from Clearing

A user with the role Ledgers: Fund Claims: Make Transfers from Clearing can create a transfer for any incoming wire(s) that are claimed into files.

  • Highlight the wire(s) sitting in the Items to Transfer area.  A display of the # Selected and the Amount will display on the panel.
  • Click Create Transfer to combine the item(s) into one transfer.  The transfer created will display in the Transfers area and will also generate an outgoing wire to process.

  • To view the transfer details, highlight the transfer and click View.

Outgoing Wire for Transfers

Accounting/Review Outgoing Wires

  • Select an Office from the dropdown if it is not defaulted to the desired office.
  • Select the clearing account as the Ledger from the dropdown menu.
  • The Status will default to Need to be Reviewed.
  • Select the wire and review it.  Click Mark Reviewed.

NOTE: If the office option Fund Claims: Auto-Initiate Clearing Account Transfers is enabled, each time a transfer is created the associated outgoing wire will be marked as Initiated and will be in the status queue of Needs to be Issued, bypassing the need to perform the review step.

NOTE: If the office option for Outgoing Wires: Marking Users Must Be Unique is enabled, the user who marks the wire as reviewed, initiated, issued, and the user who requested the wire will each have to be different users.

  • Change the Status to Need to be Initiated.
    • If a banking integration is not being used, view the wire and provide the information to the bank to initiate it.  Click Mark Initiated.
    • If a banking integration is being used, clicking Mark Initiated will send the wire information to the bank.

  • If a wire integration with a bank is used, the step above is the last step. When the wire is issued, the bank will send the confirmation number back to Resware and Resware will associate the confirmation number with the wire and mark the wire as Issued.
  • If a wire integration with a bank is not used, change the Status to Need to be Issued.
  • When the wire has been issued at the bank, either highlight the wire and click Mark Issued or edit the wire, enter a Confirmation Number, and click Save.
    • If the office option for Review Wires: Mark Wire Issued when Confirmation Number Entered is enabled and the user entering the confirmation number has the ledger role for Ledgers: Review Outgoing Wires: Mark Issued enabled for the ledger, entering a confirmation number will mark the wire as Issued.
    • Entering a confirmation number, typically a Federal reference number, is recommended as it gives users a reference number to locate the completed wire.

Accounting/Reconciliations

The resulting items will display on the reconciliations showing the funds in and out of the clearing account.

NOTE: Incoming wires claimed to files on the settlement account will not be available to be reconciled until the corresponding transfer from the clearing account to the settlement account has been issued.

Updated on April 27, 2022

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