Summary: Subledgers allow for money to be categorized separately on homeowner ledgers, which will show in separate ledgers on the owner's account as well as their statements.
Objective: To create a subledger for an association or for individual homeowners.
The first step is to set up a fund within that association. This isn't a necessary step, but it can help in further categorizing the monies being designated for these subledgers. To create a fund, navigate to Association>Funds and click +New Fund.
Label it with a name that will help others to understand how the money is being grouped and choose whether it's in the Operating or Reserve group. Adding a Default Bank Account isn't required, as the fund will default to the association's Operating account.
Next, you'll go to System>Subledger and click +New Subledger.
- Description will be similar to what you named your fund; something that helps other staff to know what it's categorizing.
- The code has to be 3 digits and alphabetic.
- Isolate Lockbox Distribution will take that homeowner's payment via the lockbox and only apply that money to that subledger, whether it's an overpayment or not.
- Isolate Credit Distribution is virtually the same thing. It just means when the nightly process runs, it won't pull the credits out of the subledger into the general. It will keep any credits within that subledger.
After creating the fund and the subledger, you'll set up an assessment in that association for this prepaid water account. For help setting up a new assessment, visit this article: How to Set Up Assessment Billing. You'll most likely want the type to be a manual charge, but set it up however you'd like. Give it a GL code, give it the fund you created, and choose the subledger you've just created.
The rest is up to your company, aside from Payment Order. If you have it set as a manual charge, be sure to make the payment order -1.
Now that you've done all that, you'll be able to place payments on those homeowner accounts and have the Subledger as a distribution choice.
Under the Transactions Tab, you can see the General Ledger and you can see just what's on the Subledger you've created.
When you Generate Statements for those owners, their statement will be on two pages, but separated out by General Ledger and Subledger.
CONGRATS! You've created your first Subledger!