Convert Taxes to Lien Instructions

Use the Convert Taxes to Lien program to process liens for severely delinquent Tax Accounts.  The program converts unpaid tax detail transactions for the specified year from tax charges to liens and creates the associated lien cost transactions.

Notes:

• To see a list of functions performed by the Convert Taxes to Lien program, click More.

   

  • Converts unpaid tax charge detail transactions for the specified year from Tax Type Code 01 to Tax Type Code 07 (lien).
    Note:  No new transaction is created for the lien.  This is simply a modification to the existing tax charge transaction.

  • Creates new tax detail transactions for lien costs with Tax Type Code 13.

  • Creates the following summary General Ledger journal entries:

  • Debits the Liens Receivable General Ledger Account Number (from Row 2 in the GL# Table)

  • Credits the Taxes Receivable General Ledger Account Number (from Row 1 in the GL# Table)

  Note:  Lien costs are not posted to the General Ledger until payments are entered in the Cash Receipts module.

  • Prints the Taxes Converted to Liens report, which is a summary page listing the credit and debit totals.

  Note:  The Convert Taxes to Lien program does not calculate interest charges.  For more information, refer to Understanding Interest Charges.

   

• Run this program after completing the lien letters to insure consistency with the costs stated in the letters.

• Refer to the Tax Billing and Lien Notice Runbook for guidelines about when to run the Convert Taxes to Lien program.

• Convert Taxes to Lien uses the GL# table, which contains the General Ledger Account Numbers.
  Note:  Convert Taxes to Lien automatically replaces the year suffix in the General Ledger Account Number with the Tax Year.

• To create supplemental lien charges and lien cost charges after Convert Taxes to Lien has been completed (anytime during the year), refer to Tax Charge Entry.

• For more information about running reports, see Print View.

Directions:

• To see instructions for opening Convert Taxes to Lien, click More.

   

  1. Click Lien Work from the Menu Bar.

  2. Click Convert Taxes to Lien.
     Keyboard shortcut: [ALT] [l] [t]

   

• At the prompt window, choose the selections.  To see the prompt options, click More.

   

  Convert Taxes to Lien Prompt Options
  Number of Due Dates	Click the correct number of billings in the drop-down list for the tax year being converted.  (1 - 4)
  Lien Cost Charge Amount	Enter the fixed cost for processing a lien.  The cost covers expenses for processing the lien, such as postage, special forms, and labor.  (5.2) Note:  This program creates tax detail transactions for the lien cost charges with Tax Type Code 13.
  Tax Year	Enter the tax year to convert.  (2.0 YY)
  GL Period	To specify which General Ledger Period to update, click one of the periods in the drop-down list.  (1-13)
  Printer	Displays the default printer number.  For more information, see Printing Options.
  	To run the routine and print the summary report, click Process or press [ENTER] if the button is in focus. Keyboard shortcut: [ALT + p]   Note:  To determine when the routine is complete: If you specified the Printer Number for Print View, you will see the summary report in the Print View window.  When you close the Print View window, you can then click Cancel to close the Convert Taxes to Lien prompt window. Or, if you specified a Printer Number for a printer other than Print View, the Processing message on the Status Bar disappears and the Prompt window automatically closes.
  	To escape from the routine, click Cancel. Keyboard shortcut: [ALT + c]

• To see the report sample, click More.

  Selection Parameters for this Report Sample:
  Number of Due Dates = 1	Lien Cost Charge Amount = 12.95
  Tax Year = 98	GL Period = 1

   

• To see descriptions of the report fields, click More.

   

  Taxes Converted to Lien Report Fields
  Description	General Ledger Account Description
  Account #	General Ledger Account Number
  Debit	Debit Amount Posted to the Liens Receivable General Ledger Account Number
  Credit	Credit Amount Posted to the Taxes Receivable General Ledger Account Number
  Total Lien Cost	Total Lien Cost Charge Amount Note:  Lien costs are not posted to the General Ledger until payments are entered in the Cash Receipts module.