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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:

        

   http://secured.progoldi2.com

 

          The Enhancement HelpNet links are located on the right side of the web page.

 

Related articles: N/A

 

Keywords:  Beginning Balance, Create New, Default, Escrow Bank Account, Setup, Trust, 4232


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