Fund Deduct Tab

Fund deducts allow owners to be paid a return on investments and allow the excess to be remitted to a re-investment fund account. See the Revenue / Billing Partnerships tab. For this tab to be visible, the information on the Partnerships tab must be defined for the Fund Deducts box.

The deduction can either be set up for each property's cash flow to be independent or for multiple properties to be grouped together for that computation.

For each owner participating in this automatic deduction, the properties (or group of properties, depending on how the company option is defined) are identified along with a Type of computation and the rate information.  The two types are:

Pct Deduct: A Percentage to be deducted is specified (as long as the property/group has a positive cash flow).  

Max to Owner: The amount invested and a Percentage return are also coded for each property/group.  The system will display the maximum monthly amount to be paid to the owner each month for that property/group, with any amount over that amount getting deducted.  If there is insufficient cash flow for the owner to obtain the stated return, a deduction won't be made during the current Revenue Cycle for the fund for that property/group.  Deductions to the fund flow in only one direction.  It will not create a refund from the fund to bring up the month's cash flow to the owner's stated percentage return.  The Max Monthly Amt to owner assumes that there will be one monthly payment to the owner.

Special considerations:

The A/R Account Range (Company A/R Options > General Tab) must include the A/R account setup for this owner on the DOI.

The property/group cash flow is computed at Revenue less revenue-related deductions (Severance Tax, other revenue deducts), less Billing expenses plus any prepaid AFE amounts applied to the account. Typically, an owner would be Netted (the amount to pay the expenses deducted from their revenue) for this option to work effectively.  Prior month's negative cash flow (i.e. A/R balance – if the owner hasn't funded it), is not part of the above computation.

Owner Minimum payment code should be set so that the owner gets a check each month. Otherwise, the revenue will be held, but the expenses will be charged each month until the revenue amount exceeds the minimum payment amount. Then, the computations are based on the revenue being paid and only the current billing's expenses.

See the Revenue/Billing > Partnerships tab to set the Fund Deducts options.

Fund Deduct "P" Option on Owner Master

If the Fund Deduct is set to the G = Deduct by Rollup Group option in Company Master, the Owner Maintenance screen will look like this:

Once the setup is complete, the Revenue cycle will have a new option on the Revenue Tab: Make Fund Deductions.  When this option is checked, and the Company Maintenance is set to P or G, the Owner Pct Deductions are run within the cycle.  In addition, the Extract G/L 1099-INT to Billing option appears in the 1099 module.

How to create a Rollup Group-See Rollup Settlement Statements

Owner Master > Revenue Billing Tab > Project Reporting

If entering Project Notes in Property maintenance.  Select the report destination and enter an email if notes are to be sent via email.