When processing investments or subsidiaries, please consider:
Processing of maturities or principal paydowns
- If you receive the principal at maturity but the income trails at a later date, you will need to close the investment to avoid future accrual processing. Determine what and how you need to account for the investment maturity and trailing interest, and post accordingly.
Settlement of interest payments in your corporate account
- If you post directly from your corporate to your G/Ls, you will need to then adjust the subsidiary record with one caveat – you will NOT post the J/E that the adjustment creates. You must DELETE the J/E, so you don’t double-post the entry.
- If you choose to post an adjustment directly to the subsidiary record, you can use your G/L offset of your corporate G/L to clear it.
Monthly accrual processing using Tool #316 INV 2: Create/Work Income Accr Work File
- The Income Accr Work File can be created as many times as you need to ensure proper accrual processing. If you are missing a new investment or find an error when working the work file, just delete the existing work file and return to the dashboard for edits.
- Editing the work file will update the subsidiary record with the new payment amount going forward. Do not edit the work file for one-time changes.
- When you are ready to process your subsidiaries, make sure the processor is the only employee in that tool. If multiple people are in the tool at the same time, it could cause a processing error that cannot be reversed. If a process does not complete, all individual records that failed during the process may need to be updated manually.
- If an error occurs during your monthly accrual processing, do NOT delete the J/E that is created. (Deleting the entry will not undo the records.)