Summary

Deposit fee codes and a deposit adjustment type code must be created before you can create a deposit on a UB customer account. You can also create an interest fee code that will be used to factor interest on the deposits on customer accounts. The factored interest can either be used to reduce the balance of the UB customer account or increase the deposit amount that will be returned when the deposit is refunded.

Step by Step

1     Create a service to contain the deposits. This is an optional step.

• Some Springbrook Software customers create a separate service to display the deposit amounts on the billing statements. This is optional because you do not have to create a separate service for deposits. You can have services that contain deposit amounts and account balances. For example, you can charge deposits using a service that also contains billings for meter consumption.
• Open the Service Maintenance window (UB> Maintenance> Service) to create a service.
  • If you have already created 20 services in the Utility Billing module, you will either have to use an existing service for deposits or modify an existing service.
• The service created in this step should be attached to the fee codes used to create the deposits (UB> Maintenance> Fee Code> Select a fee code> Service to charge drop-down).

2     Create a deposit fee code.

• The deposit fee code is used to create the deposit on the customer account. The deposit fee code is used to define the service that will be charged, deposit amount and GL accounts used to create the journal entries.
• Open the Fee Code Maintenance window (UB> Maintenance> Fee Code).
• The Flat Amount field on the fee code will be used as the default deposit amount.
  • When a deposit is created using the New Account Wizard, the deposit fee code is attached to the New Account Wizard to create the deposit. When the deposit fee code is attached to the New Account Wizard, the deposit amount will default to the value entered in the Flat Amount field. This is just a default value and you can modify the amount before completing the wizard.
• The percentage amount in the Percent Amount field is used as the interest amount when factoring interest on a deposit when factoring interest in either the Refunds process or the Factor Deposit Interest process (UB> Adjustments and Transactions> Factor Deposit Interest). The interest rate entered in this field will be applied as an annual interest rate. For example, enter 3.75 if you would like to factor interest at an annual interest rate of 3.75%.
  • If you are not going to factor interest on deposit amounts, you do not have to enter a value in this field.
  • For specific information on factoring interest, see the Refunds process or the Factor Deposit Interest process documents.
• The service selected in the Service to Charge drop-down menu is used to select the service that will be charged by the deposit.
  • If you have created a service that will only be used for deposits, select that service in the Service to Charge drop-down menu.
• There will be three transaction line items generated when a deposit is created: Billing, Payment and a Deposit.
  • The GL account entered in the Revenue Account field will be credited when the Billing line item is created.
    • Most organizations will use the deposit liability GL account here.
  • The GL account entered in the AR Account field will be debited when the Billing line item is created. This account will then be credited when the Payment transactions line item is created.
  • The GL account entered in the Cash Account field will be debited when the Payment line item is created.
• Check the Deposit toggle to define the fee code as a deposit fee code.

3     Create a fee code titled INT. You can skip this step if you are not factoring interest on deposits.

• The INT fee code is used when factoring interest on a customer deposit. The general ledger accounts attached to the INT special charge code will be used when interest is factored.
• Open the Fee Code Maintenance window (UB> Maintenance> Fee Code) to create the interest fee code.
• Enter INT in the Fee Code field.
• The interest rate attached to the fee code is not the interest rate that will be used to factor interest on the customer account deposits. Interest will be factored using the interest rate attached to the fee code used to create the deposit (UB> Maintenance> Fee Code> Select a deposit fee code> Percent Amount field).
• For specific information on the journal entries created by the Refunds process or the Factor Deposit Interest process, refer to the documents that describe those processes.

4     Create the deposit adjustment type code.

• The deposit adjustment type code is used to set up the GL type that will be used to create journal entries on deposits.
• Create an adjustment type code using the Adjustment Type Maintenance window (UB> Maintenance> Adjustment Type> Create icon).
• The only field that matters is the GL Type field. Most organizations select Cash.
  • The GL type determines which GL accounts attached to service rates and deposit fee codes will be used to generate the journal entries to record the deposit or interest amount.
  • For specific information on how the GL Type affects each step of the deposit process (generate the deposit, factor interest and refunds the deposit), refer to the documents that describe those processes.
• After the deposit adjustment type code has been created, it will be selected in the Setup window (UB> Utilities> Setup> General tab> Apply Deposit Adjustment Type field).

5     Set up the Utility Billing module.

• Open the General tab of the UB Setup window (UB> Utilities> Setup> General tab).
• Check the Charge for Deposit toggle if your organization charges a deposit on some or all customer accounts.
  • If you check this toggle, the final and new billing statements will display the payment and billing transactions that create a deposit on the account.
• Select the deposit adjustment type code that you just created in the Apply Deposit Adjustment Type field.
• Click the Save button   to save the new settings.

6     The Utility Billing module is now set up to create deposits on customer accounts.