Customer Deposits

You can process security deposit money received from customers and apply the deposit to their account.  In addition, Edifice can calculate and apply deposit interest for these customers.

Directions:

To see directions for ...

• Setting Up for Receiving Deposits & Calculating Deposit Interest, click More.

  1.  Create a Transaction Code for deposits and set the following fields:

  • Transaction Type set to Cash Entry

  • Special Handling set to Deposit

  • Calculation Type set to Enter Charge

   

  2.  Create a Transaction Code for deposit interest and set the following fields:

  • Transaction Type set to Bill Entry

  • Special Handling set to Deposit Interest

  • Calculation Type set to Flat

   

  3.  Maintain the deposit interest rate and the number of days in the interest cycle during Deposit Calculation Maintenance.
  
  Note:  If this maintenance is not set up interest can not be calculated.

   

• Entering a Customer Deposit, click More.

  1.  To record that the customer paid a deposit, enter the customer's deposit information into Cash Receipt Entry using the deposit transaction code.
  
  Note:  Generally, a deposit transaction code is not included in the Cash Transaction Profile, because a deposit is holding AR, therefore you are not receiving a payment.

   

  2.  Run the Cash Receipts Post to update the following customer fields (see Customer Financials):

  2. Customer Deposit Amount updated with the Deposit Amount

  3. Customer Deposit Date updated with the Cash Date

   

• Calculating and Applying Deposit Interest to Customer Accounts, click More.

  1.  Add the deposit interest transaction code to the customer's Billing Transaction Profile, or you can manually enter the deposit interest transaction code during Bill Entry.

   

  2.  During Bill Entry the deposit interest transaction code is used to create the deposit interest detail transaction.  Deposit interest is calculated by using:

  2. The customer's deposit amount

  3. The interest rate from the Deposit Calculation Maintenance

  4. The date deposit interest was last calculated (if this is not available because the deposit was taken in after the last billing for the customer, Edifice will use the Deposit Date)

  5. The Service To Date from the Import Dates record or Service To Date from the Billing Run Code
     Note:  The deposit interest date (or deposit date) and the Service to Date are used to determine the number of days in the billing period that the deposit was held.

   

  3.  During the Billing Post the deposit interest amount will be credited to the customer's Current Balance and to the customer's Deposit Interest Balance.

   

• Understanding Deposit Interest Calculations, click More.

  Daily Type Deposit Interest Calculation:

  (annual percentage rate/# of days in calculation year) x deposit amount = daily interest amount

  Daily interest amount x # of deposit days in billing period = amount deposit interest for billing period

   

  Example:  

  Deposit amount = $300.00, the days in the calculation year = 365, interest rate is .32%, 30 days in billing period

  During Bill Entry, when you enter a deposit interest transaction code the system will generate an interest amount:

  • (.0032/365) x 300.00 = .002628

  • .002628 x 30 days (# of deposit days in billing period) = .08 that is applied to the customer's account