Real Estate Software - ProGold i2 web site: www.progoldi2.com
Real Estate Search Engine - ViewMyListing.com web site: www.viewmylisting.com
Search Local Classifieds – www.viewmylisting.com/buy-sale-trade
Agent Tools web site: real estate agent software
Article ID: 4232
Subject: How to Setup a New Escrow Bank Account
Last Modified: April 27, 2013
Applies to: Pro Gold i2 2.xx, 3.xx
Purpose: When a new bank account is created in Pro Gold i2 for handling Escrow funds, there are several steps that should be taken to ensure the account is setup correctly. You can have as many bank accounts as needed.
Procedure: Actions to setup an Escrow bank account and set defaults in Pro Gold i2 are explained below.
• Step 1: Setup/Verify General Ledger Account:
- Each bank account must have its own General Ledger (G/L) account number because once the G/L account is assigned it permanently belongs to that bank account and should not be changed nor used with another bank account
- A unique G/L account must be assigned from the Chart of Accounts
- Log into Pro Gold
- Select the Accounting Tab and click on the Accounting icon
- G/L account numbers for bank accounts are located in the Asset Tab
- Verify/enter escrow Cash G/L account
§ System contains a default escrow cash account: 1100
§ If the 1100 account is present and has not been assigned to another bank account, you do not need to enter a new account
§ If the 1100 account is not present or has been assigned to another bank account, you must enter a new escrow cash account G/L
• Select New button to create a new G/L account
• Fill in the red fields to create a new G/L account
• The new G/L must have a unique number (e.g., 1150)
• Click Ok button to save the new G/L account
• Click Done button to save and close the Chart of Accounts screen
• Step 2: Create a New Bank Account
- Go to the Banking Tab, select Bank Accounts icon
- Click Retrieve button to enter the Bank Account screen
- The bank account number, bank name, type and G/L cash account are all required
- Make sure you have this information before you click the New button
- Click the New button to create a new bank account
§ Enter the Bank Account Number and Bank Name
• The bank account number cannot be changed once it is saved
• Make sure it is entered correctly before continuing
§ Enter the Bank Name
• Ensure each account has a unique name so you can easily distinguish between the different accounts (e.g., BofA/Operating, BofA/Escrow, BofA/Commission, etc...)
§ Select the Bank Account Type
§ Select the G/L Cash Account number verified in Step 1 for this bank account
• Step 3: Assign Bank Account as the Default Escrow Bank Account and Verify Escrow Liability G/L
- This is an important function because it helps to enforce the primary rule of escrow accounting function:
You must always work from a property record to enter an escrow banking transaction
- The default escrow bank account function automatically assigns an escrow bank account to each new property when it is created
- Do the following to assign the bank account as the default escrow account
§ Go to Setup Tab
§ Select the Change Company Info icon Select the Default 2 Tab
§ Click the dropdown arrow in the Default Escrow Bank Account field
§ Select the new bank account from the list
§ Verify/assign a default escrow liability Debit/Credit G/L account
• You must have a escrow liability account in the G/L
• System contains default escrow liability account: 2500
• System uses the default liability G/L as an automatic offset account to the escrow cash G/L accounts that are utilized in Pro Gold
• No matter how many escrow bank accounts (i.e., escrow cash G/L’s assigned) only one escrow liability offset account is needed
• Click dropdowns in both the Escrow Liability Credit Account and Escrow Liability Debit Account fields
• Select the escrow liability G/L account from the list
• Click Save and Done buttons to close and exit screen
• Step 4: Enter a Starting Balance in Escrow Bank Account
- Because an escrow bank account is made up of balances by property, it is important to understand that you cannot simply make a beginning balance entry like you would for an operating bank account
- You MUST build your detail balance property by property, transaction by transaction working from the property record
- Appendix C in the user guide contains an overview and instructions for entering escrow starting balances
Additional Information: Below is a link you can use to access Enhancement HelpNet Center resources, which includes the Knowledge Base Article (KBA) Library, Pro Gold i2 Documentation, and Training Webcasts:
• The Enhancement HelpNet links are located on the right side of the web page.
Keywords: Beginning Balance, Create New, Default, Escrow Bank Account, Setup, Trust, 4232