how2ar04.htm

Club Office Pre-Paid Dues Setup and Operation

  1. Create a level 1 liability G/L account named Prepaid Dues Holding.
  2. Create another level 1 liability G/L account named Prepaid Dues Used. It’s a good idea to use the next available G/L number to keep them together in the G/L.
  3. Create a Special Interest for the prepaid, link it to the same billing code as the dues amount it is designed to offset, and assign it to the Prepaid Dues Used liability account G/L number. (Note: the prepaid function will automatically reverse the sign on the existing billing code value to create the credit. Optionally, you may create a separate billing code and link the special interest to it instead if you wish to apply a different amount than the dues amount.)
  4. Go to A/R configuration and update A/R from G/L to make sure the A/R system recognizes the new prepaid accounts.
  5. Select to MODIFY the accounts, and set the Ppd# column of both the new Prepaid Dues Holding and the Prepaid Dues Used accounts to the member prepaid balance to use (either 1, 2 or 3)
  6. If dues are taxable, be sure to set the tax % column of the Prepaid Dues Holding account appropriately. Leave the tax % of the Prepaid Dues Holding account set to zero as it is essentially an escrow account; tax is only collected when the dues are sold to the member, i.e. monthly.
  7. Create the member account, setting up normal billing, special interests, etc. DO NOT CHECK THE SPECIAL INTEREST FOR THE NEW PREPAID YET.
  8. Key the member payment as normal
  9. Key the member charge to the Prepaid Dues Holding account. The amount to key is the net amount of the total paid less the first month’s dues and any applicable sales taxes on the dues. (When the system calculates the amount to deduct from the member’s prepaid balance it subtracts the total of the base sale plus applicable sales tax.) Example: The member pays $1500 and dues are $150 plus 6.5% tax, for a total of $159.75. The charge to enter is $1500-$159.75 or $1340.25
  10. Process the month as normal, finishing monthly, etc. The member statement will not display the prepaid balance in the month of payment. This will occur beginning in the next month.
  11. Go into the member’s account
  12. NOW turn on the special interest for the new prepaid special interest.
  13. Go into the member’s financial record.
  14. Select EDIT OPTIONS.
  15. Answer Yes to the "edit prepaid/installment amounts" question.
  16. Edit the PREPAID VALUE for the prepaid balance that the prepaid account is set to use (from step #5 above). The amount to type is the CREDIT BALANCE equal to the unused amount to date. In the above example, this would be -$1340.25
  17. Click SAVE.

For this account, the system will generate the normal dues amount. It will also create an offsetting prepaid transaction until the credit balance in the member’s prepaid balance field is zero. If it should happen that there is not enough money left in the prepaid balance to create the full prepaid entry, the system will use whatever is left in the member’s prepaid balance as the prepaid amount.

Optional: You may want to set up a Total Prepaids account in the G/L to give you a net total of those sold and already used. This would be a level 2 totaller right after the prepaid dues used account. If you do this, be sure that there are no other level 1 detail accounts that would total into the Total Prepaids level 2 totaller or your Total Prepaids total won’t be correct.

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