Any collected funds (including agency fees and/or retained commissions) deposited into your agency's Trust account can be transferred to the Operating account. While these funds sit in the Trust account, they are listed as a liability and are not included in the agency's financial reports. In order for these funds to be recorded as an income or expense, they must be transferred from the Trust account to the Operating account, and recorded as such.
This article explains how to transfer fees and retained commissions from the Trust bank account to the Operating bank account and record them properly as agency income or expense, as well as record any balances waived. This article also explains how to create a Journal Entry that records the income for agencies who have a combined Trust and Operating account.
This process is typically performed as a part of Close of Month procedures after Reconciling the Trust Bank Account in QuickBooks.
In this topic
Required permissions
In order to complete this task, user permissions must be set to include:
Accounting Reporting > Access Company/Agency Payable Reports and Workflows
See User Permissions for more information.
Video: Agency Revenue Reports
For Agencies with Separate Trust Accounting and Operating Accounts
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Select Accounting > Trust Accounting from the HawkSoft menu bar.
The End of Period Processing and Reporting window opens.
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Choose Agency Revenue at the top of the window, and select Unpaid Agency Revenue.
The Select Agency Revenue Accounts dialog window opens.
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Check all accounts in the dialog.
You can click the checkbox next to the "Account" row header to select all accounts at once.
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Optional: Select a Date to Filter and a Date Range, Start Date, and/or End Date.
The Date to Filter can be the Invoice/Credit Memo Creation Date, the due date of invoices, or the item date listed on the invoice/credit memo.
On a Paid report or All Company Payables report, the option for Company Payable Paid Date is available.
On a Paid report or All Agency Revenue report, options for both Company Payable Paid Date and Agency Revenue Paid Date are available. -
Click Generate Report.
The Unpaid Agency Revenue Report opens.
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Check the box next to each transaction for which you will be creating an agency check.
This will be payable to the agency and clear the transfer accounts in QuickBooks.
Any items where the agency has not been fully paid will not be available to add the agency revenue check.
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Click Create Agency Check after selecting your transactions.
The Create Agency Check dialog opens.
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Type the agency name into the Pay to the order of field.
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Select the Trust Account in the Bank Account drop-down.
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Optional: Add a Memo.
Example: "Agency Bill retained commissions for the month of mm/yyyy"
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Click the Create Check button.
A check is generated for the agency to deposit into their operating account, pulling the funds that have been held in the Trust Account. This check is submitted to your Trust Accounting Report in HawkSoft.
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Export this check to QuickBooks as part of your typical end-of-day process.
See Exporting to QuickBooks for more information.
From here, follow the steps below to complete the transfer in QuickBooks. When you export the agency check to QuickBooks, it will clear the Transfer accounts and show the funds debiting your Trust Account.
Go to Chart of Accounts from the main QuickBooks menu bar.
Locate the Transfer account.
Select Run Report using the arrow on the right.
The Account QuickReport opens.
Use the date fields at the top of the report to select the date range for which you are transferring funds.
Example: Select Last Month if you are transferring funds from all of the previous month, or select Custom from the drop-down list to enter your own date range.
Make note of the ending balances for each sub-account.
Example: Transfer:Retained Commissions in Trust - $2,525 and Transfer:Balances Waived -$89.26.
Use the information from the QuickReport and ensure it matches the amount you created the agency check for in HawkSoft.
Each category should show a zero after the Agency Revenue check has been exported from HawkSoft.
Complete an Operating account deposit for the agency.
Add a line on the deposit for each of the Transfer accounts reflected on the check created from the Trust account.
Example: Retained Commission income account for the Income and a Balances Waived or Bad Debt expense account for the Expense.
- Select Lists > Chart of Accounts from the main QuickBooks menu bar.
- Right-click Transfer, and then select Quick Report: Transfer.
Use the Dates fields to select or enter a date or date range for which you are transferring funds.
For example, select Last Month, or Custom from the drop-down list.
Make note of the ending balances for each sub-account.
Example: Transfer:Retained Commissions in Trust - $2,525 and Transfer:Balances Waived - $89.26.
Review the information in the Quick Report, and ensure it matches the amount you created the check for in HawkSoft.
Each category should show a zero after the Agency Revenue check has been exported from HawkSoft.
Complete an Operating account deposit from the agency.
Make sure you select the Income/Expense account that corresponds with the Transfer account in the Trust account.
Example: Retained Commissions income account for the Income and Balances Waived or Bad Debt expense account for the Expense.
You have now transferred funds from the Trust account to the Operating account in QuickBooks.
It is the agency's responsibility to make sure the actual funds are transferred from the bank Trust account to the bank Operating account.
For Agencies with a combined Trust Accounting and Operating Account
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Select Accounting > Trust Accounting from the HawkSoft menu bar.
The End of Period Processing and Reporting window opens.
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Choose Agency Revenue at the top of the window, and select Unpaid Agency Revenue.
The Select Agency Revenue Accounts dialog window opens.
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Check all accounts in the dialog.
You can click the checkbox next to the Account row header to select all accounts at once.
-
Optional: Select a Date to Filter and a Date Range, Start Date, and/or End Date.
The Date to Filter can be the Invoice/Credit Memo Creation Date, the due date of invoices, or the item date listed on the invoice/credit memo.
On a Paid report or All Company Payables report, the option for Company Payable Paid Date is available.
On a Paid report or All Agency Revenue report, options for both Company Payable Paid Date and Agency Revenue Paid Date are available. -
Click Generate Report.
The Unpaid Agency Revenue Report opens.
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Check the box next to each transaction for which you will be creating an agency check.
This will be payable to the agency and clear them from the Unpaid Agency Revenue report.
Any items where the agency has not been fully paid will not be available to add the agency revenue check.
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Click Create Agency Checkafter selecting your transactions.
The Create Agency Check dialog opens.
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In the Pay to the order of field, type the name of your agency.
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Select the Trust Account in the Bank Account drop-down.
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Optional: Add a Memo, if needed.
Example: "Agency Bill retained commissions for the month of mm/yyyy"
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Check the Do Not Transfer to QuickBooks box.
This box tells HawkSoft that funds are not being transferred (because the Trust Account and Operating are a shared account).
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Click the Create Check button.
From here, follow the steps below to create the general journal entry in QuickBooks to report the income.
Go to Chart of Accounts from the main QuickBooks menu bar.
Locate the Transfer account.
Select Run Report using the arrow on the right.
The Account QuickReport opens.
You may need to switch to classic view.
Use the date fields at the top of the report to select the date range for which you are transferring funds.
Example: Select Last Month if you are transferring funds from all of the previous month, or select Custom from the drop-down list to enter your own date range.
Record this information for later in this workflow.
Make note of the ending balances for each sub-account.
Example:Transfer:Retained Commissions in Trust - $2,525 and Transfer:Balances Waived -$89.26.
Use the information from the QuickReport and ensure it matches the amount you created the agency check for in HawkSoft when clearing the agency revenue.
On the main menu in QuickBooks, click on the +NEW button, and then select Journal Entry.
The Journal Entry dialog opens.
In the Journal Date field, enter the last day of the month for the month the money was earned.
On the first line, choose the appropriate Transfer account.
Example: Transfer: Retained Commissions.
In the Debit field, enter the amount from the Quick Report in Step 5.
Optional: Enter a Description.
On the second line, enter the Income account for Retained Commissions.
In the Credit field, enter the amount from the Quick Report.
Repeat Steps 9-13 for each Transfer account.
When there is a balance due (e.g. balances waived), credit the Transfer account and debit the Expense account.
When you are finished click the Save and Close button.
- Select Lists > Chart of Accounts from the main QuickBooks menu bar.
- Right-click Transfer, and then select Quick Report: Transfer.
Use the Dates fields to select or enter a date or date range for which you are transferring funds.
For example, select Last Month, or Custom from the drop-down list.
Make note of the ending balances for each sub-account.
Example: Transfer:Retained Commissions in Trust - $2,525 and Transfer:Balances Waived - $89.26.
Record this information for later in this workflow.
Review the information in the Quick Report, and ensure it matches the amount you created the check for in HawkSoft.
Each category should show a zero after the Agency Revenue check has been exported from HawkSoft.
Select Company > Make General Journal Entries from the main QuickBooks menu bar.
The Journal Entry dialog opens.
In the Journal Date field, enter the last day of the month for the month the money was earned.
On the first line, choose the appropriate Transfer account.
Example: Transfer: Retained Commissions.
In the Debit field, enter the amount from the Quick Report in Step 4.
Optional: Enter a Memo.
On the second line, enter the Income account for Retained Commissions.
In the Credit field, enter the amount from the Quick Report.
Repeat Steps 8-12 for each Transfer account.
When there is a balance due (e.g. balances waived), credit the Transfer account and debit the Expense account.
When you are finished click the Save and Close button.
You have now reported your agency fees/retained commission as income.
Customizing columns
Click
Edit Columns to add, remove, or reorder columns on the report. Re-order columns by clicking-and-draging the dots on the left-side of the column name.
Saving a layout for reuse
Customize the columns the way you want them.
Select Layout Options > Save as New Layout, and give it a name.
Using a saved layout
Open Customize Columns and select it from the Use Layout drop-down.
Managing existing layouts
Select Layout Options for an existing layout to set it as default, rename it, or delete it. You can also update your selected layout to match your current column settings.
You can set a default layout for each report.
You can change the sort order of the report by clicking on any of the column headers.
Click once to sort the report by the data in that column from A-Z or from smallest to largest. The column displays an up arrow to show it is sorted in Ascending order:
Click again on the same column to reverse the sort, arranging the data by the value in that column from Z-A, or from largest to smallest. The column displays a down arrow to show it is sorted in Descending order:
Click on the same column a third time to remove the custom sorting, returning the report to the default sort order (typically Customer ID, ascending).
For example, you may choose to Summarize a Trust Accounting report by Payee, and then sort by Name.
HawkSoft enables you to Summarize your report to quickly narrow down your results.
- Click Σ Summarize.
The Summarize Report dialog opens.
Click the Select Column drop-down, and then select the desired column.
Click Summarize.
The summary sorts all items in the report by the selected column, and groups all items with the same value in that column into a single row.
Example: When a report is summarized by 'Last Name', the summary displays all last names present in the report, and groups all clients with the same last name into the same line.
Click on the name of any item to see a sub-report of all the entries that contain that row's value.
Click the
Clear button next to the "Summary of [column name]" or "Report of [column name]" tag to return to your original report.
You can export report information from HawkSoft to a CSV spreadsheet file. You can then open the exported data in a spreadsheet program, such as Microsoft Excel.
Click Export to CSV.
The Enter Filename dialog opens.
By default, the spreadsheet will be named "[mm/dd/yyyy][report name]".
Optional: Re-name the exported file by typing a new name into the field dialog.
Click Download.
The CSV spreadsheet will be saved to your computer's local Downloads folder.
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