Setting up DIV in Check Stub Entry

The setup must be completed in Check Stub Entry and in Revenue/Billing to have the ability to use the Rev 1099-DIV extract for 1099's. This menu item will not be visible in the 1099 module unless this setup is complete.

Go to Company Maintenance > Product and add the product code “DIV.”

Once the DIV product code is set up, add the Dividend Income Distribution account for the DIV product code to the chart of accounts by clicking on [F11] (Account Maintenance) and adding the new account. Account 9705 will be used in this example.

With the account set up, the mapping for the DIV 100% account needs to be set up in Check Stub Entry. This is done by going to Company Maintenance > 100% Account and adding the 9705 account to the gross line for product code DIV.

Now that mapping is in place, it is time to determine whether an existing purchaser will be utilized to record the DIV income that needs to be distributed or if a new one needs to be created. In most cases, a new one is created. To do this, go to Master File Maintenance > Purchaser and add a new purchaser with Gross $ and Net Rev stub line items.

Dividends are not considered associated with a property. To facilitate the dividend distribution process, set up a pseudo property.

Once the purchaser is set up, create a Division Order for the property (or properties) to distribute the DIV income. To do this, go to Master File Maintenance > Division Order [F3]. This will need to run through a Revenue Distribution cycle, so choose the option for Rev Distribution. If you have an existing DOI in Revenue/Billing containing the correct percentages, you can tie this entry to an existing DOI deck. If not, a new one will need to be created (directions provided for this in the Revenue Billing part of the setup):

This completes the Check Stub Entry Module set up for the product code DIV.

Setting up DIV in Revenue Distribution

A DOI must be set up to distribute dividends. This DOI is not a normal DOI." Dividends are not considered associated with a property. We are only using a pseudo property to facilitate the process.

To do this, go to Revenue Distribution > Master File Maintenance > Division of Interest [F3] and review the DOI or add a new one if necessary.

*****NOTE***** Each Owner's Revenue Percent is equal to the number of shares. DIV distribution – the number of shares (Revenue % column) will not equal 1.00000000 unless they have exactly 100 million shares outstanding. The distribution has a special code to handle this.

Now that both modules are set up, you will be able to enter a check stub for the DIV product code into the check stub entry module, post the stub, and distribute revenue in the Revenue/ Billing Module.

Enter the distribution in Check Stub > Enter Deposit/Stub. It is beneficial to set up a Current Year Dividends account and to have the Check Stub post to that account. Enter the Check stub as normal.

Run a Revenue cycle. This cycle can be run separately for the property.

NOTE: Netting should generally be turned off! We cannot, but any netting will be associated with 1099-MISC-type reporting and not dividend reporting.