Program Release Documentation
                       Building Permits Escrow Module
                              3:25PM Feb/9/2012
                              4:04PM Feb/10/2012
                              3:43PM Feb/11/2012
                              3:12PM Feb/12/2012
                              3:39PM Feb/13/2012

This module provides a fully integrated escrow system for contractors that is compatible with the existing fee payment functions.  It allows contractors to make escrow deposits and have fees paid from the escrow account as needed.

Here's how it works: A contractor may choose to make a deposit to an escrow account as a convenience.  When fees are assessed for inspections the fees are automatically paid from the escrow account.  If BP is interactive with the IMS General Ledger, all escrow and payment activity may be transferred to GL.  Escrow amounts deposited by contractors are posted as debits to a cash account and credits to a liability account.  Payments from an escrow account are posted as debits to a liability account and credits to a revenue account.  Payment from an escrow account is not allowed if the balance in the escrow account is insufficient to cover the entire payment.  Payments from escrow may be made for any fees, including permit, application, inspection, and contractor fees.

How to set it up: First, create a fee type for "To Escrow" transactions and one for "From Escrow" transactions.  They must contain valid G/L account numbers for cash, revenue, and liability, and have the method set to Escrow.  Then enter the two fee type codes in the fields provided on the window at Setup, General System Data.  You will need to install version 4.513 or later of General Ledger to allow transferring escrow transactions.  That's about it.

How to use it: Before any fees can be paid from an escrow account there must be funds in the account.  Funds may be added using either File, Escrow, Browse Escrow, or File, Contractors, Escrow button.  The former displays a list of all contractors and the escrow balance for each, while the latter displays the same information for the selected contractor.  Select a contractor and either will display the escrow transaction history and the current escrow balance for the contractor.  Press the Replenish Escrow button to add to the escrow account.  Enter the payment amount and method of payment and press the OK button.  Do this for any contractor that wishes to make a deposit into their escrow account.  You can also view and replenish escrow balances using File, Contractors, Escrow button.

Accounting issues: When fees are paid from escrow a liability account is required for transfer to General Ledger.  When release 4.500 of Building Permits is installed a liability account will be added to each fee type record.  Initially all fee types will have a blank liability account number field.  There could be hundreds of fee types to deal with if each is to have a liability account added.  We have provided a means to save you from this.  When a payment from escrow is made, the fee type is checked to see if it has a liability account.  If not, it will use the liability account from the From Escrow fee type listed in the window at Setup, General System Data.

Paying fees from escrow: The procedure is exactly as for non-escrow payments.  For example, go to File, Permits and select a permit, and press the Change button, then click on the Fees tab.  If there are unpaid fees the Pay Balance button will be active.  Pressing that will bring up an Adding a Receipt window.  If the permit has a contractor with an escrow account, and the escrow balance is sufficient to pay the fees, the Escrow button will appear in the Payment Type box.  Click on OK and the payment is made.  If the escrow button does not appear, either there is no contractor for the permit that has an escrow account, or the escrow balance is not enough to pay the amount due.

If a payment was made in error, it can be reversed by going to File, Receipts, and finding the permit for which the payment was made, or to the fees tab when viewing the permit at File, Permits.  That has not changed.  The change is that if the payment deleted was made from escrow, the amount paid will be refunded to the escrow account.  Note that this can be done only if the payment has not yet been transferred to General Ledger.

Auto payment entry: This option is for organizations that do not record fees until they are paid. It simplifies the bookkeeping because the payment is automatically posted when a fee is entered.  Paying from escrow is supported when the Auto Payment Entry option is enabled, but there are caveats that should be recognized.  When permits are added, the permit type often triggers a number of fees and inspections that are required, and all are added automatically.  However, this will happen the instant the permit type is selected, often before a contractor has been added to the permit.  To avoid this problem, if the escrow module is present, auto payments will be made only if a valid escrow contractor is associated with the permit.  If such a contractor has not yet been entered, the payment may be initiated by clicking on the Pay Balance button on the Fees tab.

A report is available at Print, Standard Reports, Contractor, Escrow Balance that lists all escrow contractors and their current balance.  The list includes only escrow contractors.
 
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