Account Company Transfer

Account Company Transfer

Purpose

There is a requirement to be able to "move" lending accounts from one company to another

The transfer may be undertaken on an account by account basis only

Timing

When a loan has been impaired and is to be transferred to another collection company

Access

  1. Edit the Fixed Loan Account | 
  2. Edit the Variable Loan Account | 
  3. Edit the Lease Account | 

Process

Fixed Loan and Variable Loan -  or  the following dialog will display:


Lease -  the following dialog will display:


Field
Explanation
New Dealer Account
[F2] to highlight and  the Dealer this Account will now be associated with

This is a mandatory field

The Dealer must have the same Company selected in the next field
New Company
[F2] to highlight and  the Company this Account will now be associated with

This is a mandatory field
Default Insurer
Fixed Loan and Variable Loan Only

[F2] to highlight and  the Insurer this Account will now be associated with

This is a mandatory field

The Insurer must have the same Company selected in the next field

Rules that apply to Fixed Loan Account Transfers

  1. Click  button and enter a new dealer, company and default insurer account
  2. If the company on the dealer and default insurer does not match the new company then you will be advised and returned to the transfer screen to correct these
  3. If there are insurance policies on the account and the user has not specified a default insurer account then they are advised and returned tot he company transfer dialog to correct this 
  4. The process goes through all insurance policies and attempts to find another insurer account for the client of the current insurer account for the policy which matches the company that the transfer is being made to
  5. If an insurer account is found then it is assigned to the policy
  6. If not then the default insurer account is assigned
  7. This is useful where you do not care about the insurer being maintained
  8. Once all the policies are updated the Company and Dealer Account on the account is set and the screen is closed out to save the account with the changes

Set Up Requirements

Company

The new company must first be created. This is done from the menu:
  1. Control | Edit/View Company Codes
 details of the new company

Dealer

At least one new dealer must be created

You may wish to add a second company dealer for every dealer you currently have in order to keep the link to the same dealer

Alternatively, a default dealer may be set up that all transfers go against

If you are replicating each dealer, the fastest way to do this is to:

 the existing dealer



 the dialog

 Close out of the account

 and change the dealer code and then change the company to the one set up above

Insurer

At least one new insurer must be created

You may wish to add a second company insurer for every insurer you currently have in order to keep the link to the same insurer

Alternatively, a default insurer may be set up that all transfers go against

If you are replicating each insurer, the fastest way to do this is to:

 the existing insurer


 the dialog

 Close out of the account

 and change the dealer code and then change the company to the one set up above



Company Transfer Process

 the lending account to be transferred

Existing details that will be changed are highlighted below






Complete the dialog with the new set ups:



After Transfer:



General Ledger Implications

There are some general ledger implications arising from this process.

After month end processes have been run on each system, print a General Ledger Trial Balance for the period. Check the Contra/Control Accounts section of the trial balance. It is likely that there will be an offsetting amount in the FLCLEAR account for each company.

If any of the accounts transferred still had interest to be earned or fees/commissions to be spread under IFRS, then it is likely an adjustment will be required between the companies to get the revenue/expenses booked correctly.

The easiest way to achieve this is to make sure the Fixed Loan Interest Earned, Unearned Fees and Unexpired Dealer Commission Reports are all printed by company. Each of these reports will show the total amount of income or expense by company. Compare the relevant figures to the GL Trial Balance.

A GL Journal entry can then be raised to make sure income or expense if booked to the correct company.

Intercompany GL Journals should be raised to correct these balances.

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