Importing Interest on Trust Investment Accounts

Created by Dakota Martin, Modified on Thu, 12 Jan 2023 at 12:53 PM by Dakota Martin

There are two scenarios where a deposit would be required:

  • Importing opening balances which can be done with the Bulk Importer
  • Receiving interest - this can be completed in Multiple ways!

 

The Interest Menu is at the Bottom of the Main Trust Account Menu.


Importing the Interest

Using the Receive Interest (multi)

The new trust interest importer is designed to capture more information that just the interest amount, for example the ability to deduct firm's fee or tax which was already deducted by the IRD.

 This will allow more detail to be captured and used for reporting in the future (like preparing tax information for clients in the future). This data is only available when using the interest specific importer/form which also bypasses restrictions like the inability to receipt funds directly into the Investment account (since funds should always be transferred through the trust current account).

 

The Import CSV file is reasonably simple, it has 8 columns:

  • Matter ID - the ID of the matter to import the funds to
  • Or Matter Reference - if no ID specified, it will try find the Matter by this reference instead
  • Administration Fee Rate - A rate (ie 10%) that the administration fee (if any) is taken - only used for display value
  • Tax Rate - The tax rate applied to this (ie 30%) or 0 if not applicable - only used for display value
  • Gross Interest - the Interest amount BEFORE any fees or tax
  • Tax Amount - The dollar amount of tax (gross interest * tax rate). Required rather than calculated to account for any rounding issues from your bank system
  • Administration Fee Amount - The dollar amount of administration fee (gross interest * administration fee rate). Required rather than calculated to allow for different rules (like before/after tax or rounding errors)
  • Net Interest - The dollar amount of the Gross interest - tax amount - administration fee. Required as a double-check that the other numbers all add up and make sense

So, in an example where there is interest, but no tax or administration fee, the file would be very simple:


If you enter an administration fee or tax rate, use the actual number (do not put a % in) for example:


This import would create a receipt like the following:


The importer will not import the figure entered in as the Gross interest column. Instead this will be calculated based on the Net Interest plus the tax, plus the administration fee.

 

Related Articles:

Bulk Import Specifications - Trust Accounting Administration