1. Draw Fundings
Review the Funding Sources procedures for handling of draw fundings on various types of projects.
A. Notification. When a draw is funded, Cash Management will e-mail notification of receipt of funds. Attached to the e-mail message will be a .pdf file of the bank statement reflecting the wire transfer and description. The confirmation e-mail and its attachment are used as supporting documentation for the journal entries to record the funding. The draw funding should be recorded as soon as possible after receipt of notification and no later than the last day of the month in which it was received.
B. Record the Draw Funding. Except for the types of projects which require special handling as described in the Funding Sources procedures, Redevelopment is typically responsible for preparing both Yardi (Operations) and Timberline (Redevelopment) journal entries to record draw fundings. Both JEs are required to record the draw funding.
1) The General Ledger Clearing Account. In both locations, draw fundings always affect the development clearing account. Note the clearing account numbers:
a) Timberline: 295.9999 = Development Clearing
b) Yardi: 2890-0950 = Clearing-General Development
2) Determine the second GL account affected by a draw funding varies by project depending on funding sources. To ascertain the second account to be used, you may ask the Project Accountant. You may also review transactions for past draw fundings. How:
a) Enter Yardi through the Fairfield main portal.
b) Select “Executive Reports” from the menu bar at top left.
c) In the Property box, enter the company number and click the Display button.
d) In the Period box, enter the date range.
e) Since the clearing account is a constant, you can review past GL transactions in the 2890-0950 account for the project for an idea of what was done previously. Find the clearing account and click the dollar amount which is also a link.
f) Yardi displays the 2890-0950 GL transactions for the year. At right under Remarks, locate a draw funding transaction. The Control column is located near the center of the report. Click on the control number which is a link. Yardi displays the details of the transaction, including which two accounts were used to record the prior draw funding.
3) Verify that the draw funding has actually hit the operations account by viewing the Operations account current balance. How:
a) In Yardi, click the Reports folder at left.
b) Select Bank Reports, then Bank Account Summary (FF) from the drop-down menu.
c) The Ops bank account is identified as
d) Fill the company number in the Property box.
e) Click Submit and print the report.
4) Create the Yardi JE. How:
a) Verify the draw funding JE has been recorded by comparing the Yardi and Timberline clearing accounts, whose totals should match.
b) On the Yardi Home page under the G/L heading. Select “Create Journal Entry Batch.”
c) The Batch Journal Entry page displays. The Batch Description box defaults to user name, date and time.
d) In the Notes box, enter “Dw.
e) In the Total of Journal Entries box, enter the draw funding amount.
f) In the Number of Journal Entries box, enter “1.”
g) In the Properties box, enter the company number.
h) Click the “Submit” button.
i) The Journal Entry page displays.
j) In the Entity box, enter the company number.
k) The Book box defaults to “Both.”
l) In the Reference box, enter “RD.”
m) In the Date box, enter the date the draw funding was received. The date should be the same as that which is shown on the bank statement attachment to the Cash Management e-mail notification.
n) In the Post Month box, enter the current month and year.
o) In the Source box, enter “RD.”
p) The Owner box is not required and may be left blank.
q) In the Account boxes of the entry, Enter the Yardi G/L clearing (debit) and second (credit) account numbers.
r) In the Remarks boxes of the entry, enter “Draw Funding #
s) In the Debit and Credit boxes of the entry, enter the draw funding amount in the appropriate columns.
t) At the bottom of the page in the Notes box, enter “Draw funding received from
u) Note the unposted batch number which appears in the upper right of the JE and is a link.
v) Click the “Save” button.
w) Return to the Yardi Home page to print the JE.
x) Under the Reports heading, select “W. Journal Report (FF).”
y) The FF Journal Entry page displays. In the Property box, the current company number should be displayed. If it is not, type in the correct company number.
z) In the Batch Number box, enter the batch number.
aa) Click the “Submit” button.
bb) The printable version of the JE is displayed. Check the JE for accuracy. Return to the Home page and select “Edit Journal Entry” under the G/L heading to make any necessary modifications and re-save the JE.
cc) When the JE is correct, print it.
5) Create the Timberline JE. How:
Open the project file on the G drive:
v G:\Accounting\Acct-rd\Projects\Open Projects\
G:\Accounting\Acct-rd\Projects\Open Projects\
C. JE supporting documentation includes the following items, which should be attached:
1) Yardi Year-to-Date General Ledger for the General Clearing Development account.
2) Yardi Year-to-Date General Ledger for the second account.
3) Timberline Year-to-Date General Ledger for the Development Clearing account.
4) Timberline Year-to-Date General Ledger for the Redevelopment Construction Checking Account.
5) Cash Management e-mail and its bank statement attachment.
v G:\Accounting\Acct-rd\Projects\Open Projects\
A. Create the Timberline JE. How:
1) The Timberline form is an Excel spreadsheet which is located in the project file on the G drive:
v G:\Accounting\Acct-rd\Projects\Open Projects\
a) Open the Excel spreadsheet.
b) A message box pops up which indicates the workbook contains links to other data sources. Click the “Don’t Update” button.
c) Review the project information on the template for accuracy. Do not make changes to the template.
d) Wire transfers FROM Ops TO Dev should show “Post Only” in the upper right corner of the JE form. Wire transfers FROM Dev TO Ops (Repays) should show “Wire” in the upper right corner of the form.
e) Right-click the tab at the bottom of the workbook and select “Move or Copy” to generate a duplicate of the template.
f) Rename the duplicate with today’s date by right-clicking its tab and selecting “Rename.”
g) In the Account Number column, enter the GL code(s) affected by the transaction.
h) In the Account Name column, enter the account name as listed in Timberline.
i) In the Description column, enter “Transfer—Advance from Ops to Dev.”
j) In the Amount column, enter the amount.
k) In the Explanation space at the bottom of the page, enter a detailed description of the transaction. You may include the reason for the transaction and more details.
l) Complete the “Prepared By” and “Date” sections.
m) Save the journal entry and print it.
n) Initial the JE and submit it for review.
o) The approved JE is routed to the Administrative Assistant, who further processes it for posting.
E. JE supporting documentation includes the following items, which should be attached:
1) Timberline Year-to-Date General Ledger for the Development Clearing account.
2) Timberline Year-to-Date General Ledger for the Redevelopment Construction Checking Account.
3) Yardi Year-to-Date General Ledger for the General Clearing Development account.
4) Yardi Year-to-Date General Ledger for the second account.
5) Cash Analysis showing invoices due which cannot be covered.
6) Copy of AM’s approval e-mail.
2. Wire Transfers
Sometimes there is not enough cash within the Redevelopment checking account to cover invoices which are due to be paid. In this event, an advance can be requested from Operations to cover the costs temporarily. Note that on tax credit projects, an advance is requested from Corporate.
A transaction of this type must be recorded in both Yardi and Timberline. Redevelopment is responsible for preparing both transactions.
A. Verify the Redevelopment and Operations account balances to ascertain whether funds are available for the advance. How:
1) For Operations account, in Yardi, click the Reports folder at left.
2) Select Bank Reports, then Bank Account Summary (FF) from the drop-down menu.
3) The Ops bank account is identified as
4) Fill the company number in the Property box.
5) Click Submit and print the report.
B. E-mail the Asset Manager to request approval for the advance request. Explain why the advance is needed:
1) List which invoices are due to be paid but cannot be covered.
2) Current Redev cash account balance. How:
a) Enter the Timberline Cash Management module.
b) Select “Inquiry” and “Bank Register” from the drop-down menus.
c) Click “OK.”
d) Locate the project’s Redevelopment Construction account. The far-right column shows the current Register Balance.
4) Current Ops cash account balance. See 1.B.3 above for how.
5) Identify when the advance will be repaid.
C. Determine the GL accounts affected. Redevelopment is responsible for preparing both Yardi (Operations) and Timberline (Redevelopment) journal entries. Both JEs are required to record the wire transfer. The accounts affected typically are as follows:
1) Yardi: 1190-001 = A/R-Due/To From Development (Debit – Wire Out)
2) Yardi: 101.2211 = Cash-Operating 1 (Credit – Wire Out)
3) Timberline: = 119.0002 Cash Advances (Op & Dev) (Credit – Wire In)
4) Timberline: = 101.2211 Checking (Const) (Debit – Wire In)
D. Prepare the Yardi Wire Transfer and Timberline JE (Ops to Dev). The Cash Management deadline for wire transfer processing is 11:00 AM. In order ensure that the transaction takes place the same day as the JEs, submit the approved wire transfer JEs to the Administrative Assistant by 10:30 AM.
2) The Yardi form is an Excel spreadsheet which is located in the project file on the G drive:
v G:\Accounting\Acct-rd\Projects\Open Projects\
3) The Timberline form is an Excel spreadsheet which is also located in the project file on the G drive:
v G:\Accounting\Acct-rd\Projects\Open Projects\
p) Open the Excel spreadsheet.
q) A message box pops up which indicates the workbook contains links to other data sources. Click the “Don’t Update” button.
r) Review the project information on the template for accuracy. Do not make changes to the template.
s) Wire transfers FROM Ops TO Dev should show “Post Only” in the upper right corner of the JE form. Wire transfers FROM Dev TO Ops (Repays) should show “Wire” in the upper right corner of the form.
t) Right-click the tab at the bottom of the workbook and select “Move or Copy” to generate a duplicate of the template.
u) Rename the duplicate with today’s date by right-clicking its tab and selecting “Rename.”
v) In the Account Number column, enter the GL code(s) affected by the transaction.
w) In the Account Name column, enter the account name as listed in Timberline.
x) In the Description column, enter “Transfer—Advance from Ops to Dev.”
y) In the Amount column, enter the amount.
z) In the Explanation space at the bottom of the page, enter a detailed description of the transaction. You may include the reason for the transaction and more details.
aa) Complete the “Prepared By” and “Date” sections.
bb) Save the journal entry and print it.
cc) Initial the JE and submit it for review.
dd) The approved JE is routed to the Administrative Assistant, who further processes it for posting.
E. JE supporting documentation includes the following items, which should be attached:
7) Timberline Year-to-Date General Ledger for the Development Clearing account.
8) Timberline Year-to-Date General Ledger for the Redevelopment Construction Checking Account.
9) Yardi Year-to-Date General Ledger for the General Clearing Development account.
10) Yardi Year-to-Date General Ledger for the second account.
11) Cash Analysis showing invoices due which cannot be covered.
12) Copy of AM’s approval e-mail.
F. Prepare the Repay Yardi Wire Transfer and Timberline JE (Dev to Op). Once positive cash flow has been restored to the Redev cash account, repay the advance. Use the same form and procedures as in 2.E - G above. Note the following for the repay wire transfer:
1) The debit and credit are reversed.
2) The description should indicate it is a repay.
3) The form must state “Wire” in the upper right corner.
3. Direct Costs
Some circumstances necessitate changes to hard costs which cannot be handled by a simple invoice. Under such circumstances, a journal entry is needed. One example is a cost that needs to be re-classed from one cost code to another. Another example is the recording of a vendor’s refund check. JEs of this type are recorded as direct cost entries in Timberline only. The Direct Cost Entry form is an Excel spreadsheet located in the project file on the G drive:
v G:\Accounting\Acct-rd\Projects\Open Projects\
B. Create the Timberline Direct Cost journal entry. How:
1) Open the Excel spreadsheet.
2) A message box pops up which indicates the workbook contains links to other data sources. Click the “Don’t Update” button.
3) Review the project information on the template for accuracy. Do not make changes to the template.
4) Right-click the tab at the bottom of the workbook and select “Move or Copy” to generate a duplicate of the template.
5) Rename the duplicate with today’s date by right-clicking its tab and selecting “Rename.”
6) In the Cost Code column, enter the Job Cost code(s) affected by the transaction.
7) In the Description column, enter the Job Cost description.
8) In the Amount column, enter the the amount(s).
9) In the Explanation space at the bottom of the page, enter a detailed description of the transaction. You may include the reason for the transaction and more details.
10) Complete the “Prepared By” and “Date” sections.
11) Save the journal entry and print it.
12) Initial the JE and submit it for review.
13) The approved JE is routed to the Administrative Assistant, who will post it to Timberline.
C. JE supporting documentation includes the following items, which should be attached:
1) Timberline Job Cost Detail Report displaying the affected cost code(s).
2) Timberline Year-to-Date General Ledger for the Redevelopment Construction Checking Account.
3) Timberline Year-to-Date General Ledger for the Development Clearing account.
4) Timberline Cash Analysis Report displaying the transaction when it applies to a refund check.
5) Copy of the refund check when the transaction is to record one.
6) Initial the JE and submit it for review.
7) The approved JE is routed to the Administrative Assistant, who will post it to Timberline.
4. Journal Entries to Record Deposit Checks
A. Record an insurance claim payment (including a partial advance on a claim not settled yet) to be deposited into Redev checking (not Ops) because Redev is incurring costs relating to the claim, not Ops. Although costs incurred directly relating to the claim may be recorded in job cost, we do not want the insurance payment to hit job cost because it will negate the costs and we will be unable to draw for them. The transaction must be recorded in Timberline & Yardi. How:
1) TL DB: 101.2211 (Redev Const. Checking)
2) TL CR: 295.9999 (Development Clearing)
3) Yardi DB: 2890-0950 (Clearing – General Development)
4) Yardi CR: 1180-1065 (A/R – Insurance)
5) Attach a copy of the check.
6) Record the TL GL account number for Redev Const. Checking above the magnetic numbers at the bottom of the check.
B. Record a vendor’s check for a refund to be deposited in to Redev checking. Because the refund check reverses a previous invoice transaction from the vendor, it is a direct cost entry and it must be shown as a negative to offset the positive that exists in job cost. The transaction is recorded in Timberline only. How:
1) TL DB: 140.
2) TL CR: 295.9999 (Development Clearing)
3) Attach a copy of the TL Job Cost Detail report showing the cost code involved and the original transaction that is being negated.
4) Attach a copy of the check.
5) Record the TL GL account number for Redev Const. Checking above the magnetic numbers at the bottom of the check.
