2016 Resource - FG Trustee Voids Voids / Refunds / Overpayments Voids, Refunds, Overpayments The first thing you should check when considering a void/change is whether or not a transaction was prorated. The Prorate function in Flexgen is the act of processing receipts to the General Ledger. Once proration is done, voids / changes all take on a different meaning. You have committed “x” amount of cash to the GL when you prorated. When you void a prorated receipt it is going to reverse the revenue with a debit entry, but it will not reverse the Cash account due to audit constraints. Instead it will reverse the payment by crediting 28310/NNM. Look under Inquiry > Prop Tax Receipt THREE (1) explains prorate function and it’s affect on void receipt. 2 & 3 (quick) show the lookup menu. A non-prorated receipt that’s voided won’t post entries and are usually not a concern. 3

2016 Resource - FG Trustee Voids Voids / Refunds / Overpayments When checking to see if a receipt is prorated make sure that you are looking at the correct Transaction Number. There could be many transactions. Be sure to start at the first transaction (oldest) and work your way to the most recent transaction. This will provide you with history on this receipt, and will help you make an informed decision. TWO - (1)points out the prorate flag NO and (2) is YES 2

2016 Resource - FG Trustee Voids Voids / Refunds / Overpayments For receipts that have multiple transactions it may be easier to write it all down. The ones that are not prorated shouldn’t be a concern. Even the transaction that has the Overpayment as yes is not a concern because it’s not prorated. Transaction #4 would be my focus in this example. THREE (1) circles the no prorate (2) the Over Pay but still not prorated (2) Transaction 4 3

2016 Resource - FG Trustee Voids Voids / Refunds / Overpayments Let’s assume the Revenue Code was wrong on Transaction #4. Since it was prorated, the void will make a Debit to the Revenue and a Credit to NNM (28310 for County). When we re-receipt it on Transaction #5 and correct our Revenue Code, we’ll use 88 for the payment type NNM. When we re-prorate for that day it will Credit the Revenue and Debit 28310 – creating a “wash” out of 28310. GL ENTRIES: 2/28/2015 THREE EXPLAIN this is the GL and it shows the Proration (1) shows the void and the GL entry (2) shows the Rereceipt (3) is the GL final entry 3

2016 Resource - FG Trustee Voids Voids / Refunds / Overpayments After prorating Transaction#5 a change came from the assessor to adjust $25.00. Again, when we void it’s going to Debit to the Revenue and a Credit to NNM. After we adjust the Master Record down $25.00 and re-receipt on Transaction #6 we want to use the entire amount originally paid to NNM. It will show ‘change due’. Flag the receipt as Overpayment (trustee writes a check, not change given from drawer) . When prorating this last Transaction#6, 28310 will Debited for the full amount of $504, Revenue will be Credited for the reduced Tax amount $479, and 21100 will be Credited the ‘change due” amount of $25.00 (this entry is an RF=Refund) GL ENTRY 2/28/2015 SIX & QUESTION MAN - (1) void entry show on GL (2) Rereceipt Trans #6 (3) Prorate hits GL (4) show wash on Rev (5) show wash on NNM (6) End Result on GL -- QUESTION MAN In the end you will have a debit of $504 to Cash, a Credit of $479 to the correct revenue code, and $25 to your overpayment/refund account. 6Q

Voids / Refunds / Overpayments Returned Checks There are two (2) different scenarios on Returned Checks: Prorated or Not Prorated. Either way the first order of business is to void that receipt. Holding the check and leaving the taxes paid can give false information to a title searcher. Prorated Receipt Your bank has notified you of the return and has taken that amount out of your account (or required you to bring in a trustee’s check). When you void this receipt an entry will be made to credit the 28310/NNM account and debit revenue. To finish the process make a CR entry to credit your Bank and debit 28310, which shows your bank account being reduced by this returned check, and clears the 28310/NNM account balance back to zero. (or you will write a trustee’s check to the bank, posting a CD entry to credit Checking and Debit 28310.) Un-Prorated Receipt The receipt has not hit your cash account (not prorated). You should have made a DP since the Bank received the money and is notifying you of a returned check. Void the Receipt, no entry will be made for this. Follow up with a CR or a DP entry to record that returned check being charged to your bank account: Debit Cash 11120 and credit Bank 11130 to reduce your bank balance.

2016 Resource - FG Trustee Voids Voids / Refunds / Overpayments Receipt Void Reason Code On a prorated receipt that is being refunded completely, there is an option in Flexgen you can use to expedite the process of voiding and clearing out the 28310 NNM account. A receipt for $75.00 that is going to be refunded entirely can use the correct Void Reason to generate an RF entry to Debit 28310 and Credit 21100, leaving a balance in Account 21100 to write your CD entry. The void will have Debited the Revenue and Credited NNM as it normally would, then the RF generated by the correct Void Reason will create the ‘wash’ for 28310. This should only be used when refunding the entire payment. Note: if used to void a non-prorated receipt it will not make entries ONE + Question Man **HOW MUCH TIME LEFT? Need 5 Min for Last (1) slides that follow will not be reviewed - QUESTIONS ? The next several slides are examples of other refund/ overpayment scenarios and won’t be reviewed in class, unless time allows. 1Q

Voids / Refunds / Overpayments The examples in the following screens assume that the receipts are prorated. 1

Voids / Refunds / Overpayments 2

Voids / Refunds / Overpayments 3

Voids / Refunds / Overpayments 4