To make effective use of Keystone as a sub-ledger, you must have several accounts set up in your accounting system. Refer to your QuickBooks manual for more information on setting up accounts.
The following are required when using Keystone as a sub-ledger.
Every transaction you post directly to QuickBooks requires two QuickBooks accounts, a deposit account and a clearing account. If you are not using Keystone Direct Posting, the deposit accounts are your affiliate bank accounts into which you deposit funds. If you are using Keystone Direct Posting, the accounts needed are Undeposited Homeowner Payments and Undeposited Donations. These are Current Asset type accounts in which you hold funds until you make the deposit. “Bank” and “Current Asset” are QuickBooks account types.
QuickBooks automatically generates an Undeposited Funds account that it uses for invoicing. This account cannot be used for your Keystone posting account.
Since closing fees and mortgage payments include funds that belong to homeowners, they can both use the same undeposited account. Donations, however, belong to the affiliate and need to use a separate undeposited account.
Closing fees, mortgage payments, and donations should have their own clearing account (“Closing Fee Clearing Account”, “Mortgage Clearing Account” and “Donations Clearing Account”). The closing fee and mortgage clearing accounts should be the same type as your mortgage receivable account. The donation clearing account should be an Income account. All of these accounts should be cleared to the appropriate asset, liability, and income accounts at the end of the month.
Add to your QuickBooks Other Names list (See your QuickBooks Manual) the following names to be used when making deposits:
- Homeowners - This is a general name for recording mortgage payments.
- Pre-homeowners - The is a general name for recording closing fee payments.
- General donors corresponding to each class of donations you plan to track - This includes contacts such as Individual Donors, Business Donors, and so forth.
- Covenant Partners (house sponsors) and other specific donors, but only if you track them in Keystone - Specify house sponsors and other contributors of temporarily restricted funds individually, and optionally any large donors whose contributions require individual tracking.