Interest Allocation is the sixth item in the Transactions section of AgWare MGR. Before you can start allocating interest you have to have your firm farm that holds the trust account and the trust farms, that have money in the trust account set up properly.
Farm Designated Account Setup
Firm farms should only have data the Interest Allocation Account of the Farm’s designated accounts section; the Interest Earned Account should be left blank. The exception to this rule is if the firm is holding money in the checking account and wants to receive part of the allocated interest. If this is the case, you will complete the Interest Earned Account for the firm’s designated accounts.
Farms included in a trust account that will be allocating interest should be configured similar to the example below. The key to correct setup is to have the Trust Account Farm point to the Trust Farm.
Interest Allocation Wizard
Step one of the wizard is creating the Firm’s Interest transaction. You’ll first choose the trust account from the grid. Then, you’ll fill out the firm transaction details: transaction date, production year, interest earned, transaction vendor, and the description. The description will be shown on the allocation transactions as well. Once all items are entered, click continue to move to step two of the interest allocation wizard.
At the top of step two you will see the Trust Account information; this is for informational purposes only. Next, you’ll see the unclaimed interest field. This will automatically be populated with any unclaimed interest from the last allocation period for this trust account, but you can modify this as needed. The interest to be disbursed dollar amount carries over from step one – again, you can modify this if needed (if you modify this number in step two, the number from step one will be automatically updated to match). Next, enter the interest period start and end dates. Once entered, you will see the total number of interest days displayed to the right of the interest period end date field. The last two items in step two are optional. Generate management fees from interest transactions will auto generate management fee transactions if a management fee percentage is set up on the interest allocation account. Exclude negative daily balances will exclude those farms from the interest allocation that have a negative daily balance. Once you have completed step two, click continue to move to step three.
Step three of the interest allocation wizard is an informational and review step. Here you will see the allocation breakdown as well as what farms will be receiving what amounts. You can filter the farm list by using the drop down option to display all farms, only farms with interest transactions, or all farms with zero interest. Once you have verified all of the information in step three, click continue to move to step four.
Step four is the interest allocation breakdown report. This shows you a summary of the funds allocated, unclaimed interest, and exactly how much interest each farm received. If you want to verify or post the interest batch, you can click on the manage batch toolbar button to move directly to the manage batches transaction window. If you have more accounts to allocate interest for, you can click on the done button to be taken back to step one of the wizard.
Note: Farm Security Groups are not implemented in the Interest Allocation section of AgWare MGR.