UB Factor Interest on Deposits

1 Create a UB Adjustments and Fees batch.

Select the Adjustments and Fees palette in UB> Adjustments and Fees. This will expand the Adjustments and Fees palette and display the steps of the Adjustments and Fees process.
Select New from the Adjustments and Fees batch number drop-down menu to create a new batch. This will open the New Batch window.

If there are open batches in the Adjustments and Fees process, you can create a new batch without affecting the open batches.

Enter a Batch Month and Batch Year. These fields default to the current calendar period and are used for reference only. The batch month and batch year do not affect the transaction or journal entry date of the transactions in the batch.

The transaction date of the billing is set up in the Generate step and the fiscal period the transactions are posted to is determined by the Journal Entry Date entered when creating the GL Distribution Report in UB> Adjustments and Fees> GL Distribution.

Click the Generate icon to populate the Batch Number field with the next available batch number. Batch numbers are limited to five digits and must be unique within the batch month of the batch year.

You can also manually create a new batch by entering a Batch Number and clicking the Save icon .

2 Factor interest on selected customer accounts.

Open the Factor Deposit Interest window (UB> Adjustments and Fees> Factor Deposit Interest).
Select the billing cycles you would like to include the process in the Cycles field. You can also accrue interest on a single UB customer account by using the Account Number field.

Press CTRL+A to highlight all of the toggles in the fields. Press SPACE to check or uncheck the highlighted toggles.

Select the deposit codes you would like to factor interest on in the Deposit Codes field.

There must be an interest rate attached to the deposit fee code before it will display in the field. Interest rates are attached to deposit fee codes in the Fee Code Maintenance window (UB> Maintenance> Fee Code> Select the deposit fee code> Percentage Amount field).

Click the Account Number field label to accrue interest on a single customer account. This will open a window to select a customer account. Leave this field blank if you would like to accrue interest on customer accounts by billing cycles.
The Transaction Date field is used to enter the transaction date of the interest factored on the deposits.

If you select Calculate Interest Since Last Time in the Calculate Interest Range drop-down menu, the date entered in this field will determine how interest will be calculated on the customer accounts.

For example, if interest was last calculated on a customer account on 06/01/11 and 08/15/11 is entered in the Transaction Date field, interest will be calculated on the account for 06/01/11 to 08/15/11.

The Transaction Date field will default to the current date, but you can modify the date if you would like to factor interest to a different date.

The Use Alternate Interest Rate drop-down menu is used to select a deposit fee code that contains the interest rate you would like to apply to the deposits. If there are multiple deposit fee codes selected in the Deposit Codes field, the selected interest rate will be applied to all of the deposit codes.

Select None if you would like to apply the interest rate attached to the deposit fee code. Interest rates are attached to deposit fee codes using the Fee Code Maintenance window (UB> Maintenance> Fee Code> Percentage Amount field). If there are multiple deposit fee codes selected in the Deposit Codes field, the interest rate attached to each fee code will be used to calculate the interest on the deposits.
The GL accounts used to create the interest on the deposit codes will be pulled from the GL accounts attached to the deposit fee codes. If you do not want to use the GL accounts attached to the deposit fee codes, create a new deposit fee code with the correct GL accounts and select it in the Use Alternative Interest Rate drop-down menu.

The Calculate Interest Range drop-down menu is used to select how you would like to calculate interest on the customer accounts in the batch.

Select Calculate Interest For One Year to accrue interest for an entire year.
Select Calculate Interest Since the Last Time toggle to accrue interest since the last time interest was calculated on the deposit fee codes included in the batch.

Check the Apply the interest to accounts toggle if you would like to apply the interest to the customer account rather than the deposit. This will lower the customer account balance, rather than increase the deposit amount.

The selection in this toggle will affect the journal entry created by this process.

Press ENTER to factor the interest immediately or enter a date and time in the field next to the Confirm icon to schedule the process to run at a later time.

You can view the progress of the process on the Job Viewer window in SS> Utilities> Show Scheduled Jobs. If the process has been scheduled to generate at a later time, you can view the scheduled date and time in the Scheduled Date/Time field.
Once the process is complete, the interest transactions will display in the Input window (UB> Adjustments and Fees> Input).

3 View the interest transactions.

After the Factor Deposit Interest process is complete, the interest transactions will populate in the Input and Display window (UB> Adjustments and Fees> Input).
Open the Input and Display window to view the interest transactions.
Highlight a transaction and press DELETE to delete the selected transaction.
Highlight a transaction and press ENTER to open the selected transaction. This will open the Cash Receipt Maintenance window.

The Cash Receipt Maintenance window will display the detail line items attached to the transaction.

4 Print a Proof List.

Open the Proof List window (UB> Adjustments and Fees> Proof List) and print the Proof List Report.
The Proof List will display the amount of the interest.

If the interest was applied to the customer account balance, the interest amount will display attached to the service that will be credited.
If the interest was applied to the deposit amount, the interest amount will not be attached to a service on the Proof List. The interest amount will not be applied to a service because the amount is increasing the deposit amount.

5 Print a General Ledger Distribution Report.

Open the GL Distribution window and print a GL Distribution report.

Select a detailed option in the Report Type drop-down menu if you would like to display the journal entry line item created by each customer account in the batch.
Select a summary option if you would like to display the net journal entry created by all the transactions in the batch.

The journal entry created by this process will vary depending on how the factored interest is applied.
If you are applying the factored interest to the deposit amount the following journal entry will be created.

GL Account used in transaction	Debit	Credit
Revenue account attached to INT fee code	XXX
Cash account attached to INT fee code		XXX
Cash account attached to Deposit fee code	XXX
Revenue account attached to Deposit fee code		XXX

XXX - The debit and credit amounts will be the amount of interest factored on the accounts pulled into the batch. This amount will vary based on the interest rate (rate), the deposit amounts (principal amount), and length of time that you are generating interest on.
The GL accounts are not affected by the GL type of the deposit adjustment type code selected in the Setup window (UB> Utilities> Setup> General tab> Apply Deposit Adjustment Type field). The GL type of an adjustment code is set up using the Adjustment Type Maintenance window (UB> Maintenance> Adjustment Type> Select the deposit adjustment type> GL Type field).

If you are applying the factored interest to the accounts, the following journal entry will be created.

GL Account used in transaction	Debit	Credit
Revenue account attached to the INT fee code	XXX
Cash account attached to the INT fee code		XXX
Cash account attached to the service rate on the customer account that is being reduced (The service rate will display on the GL Distribution Report)	XXX
AR account attached to service rate		XXX

If the deposit adjustment type selected in the Setup window (UB> Utilities> Setup> General tab> Apply Deposit Adjustment Type field) is set up as a Cash rather than Bill type (UB> Maintenance> Adjustment Type> Select the deposit adjustment type> GL Type drop-down menu) the Revenue account on the service rate will be debited instead of the cash account attached to the service rate.
XXX - The debit and credit amounts will be the amount of interest factored on the accounts pulled into the batch. This amount will vary based on the interest rate (rate), the deposit amounts (principal amount), and length of time that you are generating interest on.

6 Commit the batch.

Open the Commit window (UB> Adjustments and Fees> Commit) and commit the batch.

7 View a customer account processed in the batch.

Open a customer account processed in the batch (UB> Maintenance> Account> History tab> select Deposit History in the drop-down menu).
If you applied the factored interest to the balance of the customer account, there will be only one interest line item. The single line item records the interest on the account and has a transaction type of Interest. Select Account History from the drop-down menu at the top of the window to view the Adjustment transaction line item than reduces the balance of the customer account.

Click on the Overview tab of the Account Master Maintenance window to view how the interest transaction has affected the Ending Balance on the customer account.

If you did not apply the factored interest to the balance of the customer account, there will be two new line items in the Deposit History.

The first line item records the interest factored on the deposit and has a transaction type of Interest.
The second line item in the increase in the deposit and it has a transaction type of Deposit.

UB> Adjustments and Fees> Factor Deposit Interest

Factor Interest on Deposits