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Year End Processing

Escapia WebinarJan 10, 2012

Escapia Year End Processing

• A physical close is not required for either month end or year end processing.

• Escapia GL accounts are all balance sheet accounts.

• No clearing to a Retained Earnings account is required.



What this means:1. You must be careful not to delete any prior

period transactions.



What this means:1. You must be careful not to delete any prior

period transactions.2. If adjustments must be made to prior periods,

use a reversal date in the current period.

Month End Processing Steps

1. Review the reservation grid color codes to ensure that all reservations have been paid in full.

2. Process all bookings which appear on the Revenue Processing page for each for each processing method that you use. Use first day of the month to last day of the month as your processing period.

3. Ensure that all vendor and property management invoices you wish to include on your current month owner statements have been entered through the accounts payable process.

4. Ensure that all current period Service Order tasks and costs have been processed via the Service Order Processing program.


5. Print preliminary Owner Statements for all owners with active contracts.

6. Review individual Owner Statements for accuracy. Make corrections where necessary.

7. Process owner payments via the Pay Owners program. Make sure you have set the Processing Date, Billing Date to your owner statement ending date, and Posting Date to today’s date.

8. Review, print or email, save, and publish final owner statements.


9. Create a payment to the property management company for this period’s revenue via the Pay Open Items program.

10. Export the Business OIAP Check Distribution Report and submit the payment and spreadsheet for Operating Account bookkeeper for processing.

11. Print/export month end audit trails and save to disk. (see list of recommended reports)

12. Perform monthly bank statement reconciliation via the Bank Reconciliation program.

Month End Audit Reports (Note: Asterisks designate required reports)

Accounts Payable SubmenuAP Payments (Check Register)*Business OIAP Check Distribution Report*Accounts Receivable SubmenuPayment AuditBanking SubmenuBank Register*Credit Card Transaction DetailDepositsTrust ReconciliationBank Reconciliation Worksheets (after monthly bank reconciliation has been completed)Deposit Detail*Owners SubmenuOwner BalanceOwner Ledger ReportOwner Unpaid Bills Report

Reservations SubmenuReservation Activity ReportBooking Charge ReportFolio Balance ReportManagement Fees by JDT ReportTax SubmenuTax Audit Report (Excel 1 line)*District Tax Report or Tax Report by Tax Entity Occupancy ReportTrial Balance SubmenuBusiness Summary Trial Balance – Monthly by YearGL Detail Trial Balance – Monthly*GL Summary Trial Balance – Monthly by YearSeparate Beneficiary Report*Summary Trust Reconciliation Report*

Crossover Bookings

What year do you want to report “crossover bookings”?

Do nothing and bookings will be reported based on the processing method and the posting date for that method.

First Night bookings which begin in Dec and End in Jan will be reported in 2011.

Last Night bookings which begin in Dec and End in Jan will be reported in 2012.

Crossover bookings – This year or next year?

Don’t select for December processing if you want to include booking in next year’s 1099.

Crossover Bookings

What year do you want to report “crossover bookings”?

Do nothing and bookings will be reported based on the processing method and the posting date for that method.

First Night bookings which begin in Dec and End in Jan will be reported in 2011.

Last Night bookings which begin in Dec and End in Jan will be reported in 2012.

Use “Set a manual processing date” to record bookings in a different year that they would normally process.

Use manual override to process a next year booking in the current year.

Year End Processing Steps

1. Ensure that you have completed all of the Month End Processing Steps for the month of December.



2. Change your Owner Statement template in Admin>Correspondence to an abbreviated Year End version.

Toggle default to YE Owner Statement template

Include only <Owner_Unit Summary> tag for YE Statements.




3. Print and review Year End Owner Statements for accuracy.

Select start to end dates in Generate Owner Statements

Unit Financial Summary on YE Owner Statements





4. Process and print or export Owner and Vendor 1099s and 1042s.

1099 BasicsOwner 1099s are reported on an accrual basis rather than a

cash basis. The reason for this is that payments to owners may include amounts that are not reportable such as damage reimbursements, security deposits, and working capital reimbursements. They are also “net” amounts instead of “gross rents”.

Vendor 1099s are based on actual payments made to vendors during the calendar year (or user defined reporting period).

Check with your CPA to determine the method you should use based upon your prior reporting method.

Which GL Accounts do you want to report?

Use the “1099 Type” field on the Transaction Tab of your Unit type (3000.xxxx) Chart of Account records to determine what amounts you wish to report.

If you want to report “Gross Rents” select “Box 1 Rents” for GL 3000.1100 Unit Income only. This is the Escapia default for 1099s.

If you wish to add or subtract other accounts to provide a “net” amount, select “Box 1 Rents” on each desired account.

Vendor 1099s are based upon actual payments and therefore no selection process is required for vendors.

Use the 1099 Type field to select whether or not a GL Account will be included in the Owners’ 1099 Totals.

Print 1099s Program.Select current year start and end dates and verify Excel Output checkbox.

Select for Owners or Vendors, Click Find.

Verify Names, Address, Tax ID and Amounts

You may edit inline or by Owner Contact Record

Edit 1099 Amounts using Prev Box 1 Field.Note: the Prev Box 1 column does NOT automatically clear out the previous year’s entry. Your first step in reviewing 1099s should be to zero all Prev Box 1 Rent fields.

Click Save and Generate to print to Excel, 1099 Forms, or to SAVE updated entries to Owner Contact Record.

Use Excel Output for previewing 1099s and importing to 3rd party programsfor electronic 1099 submissions

Go to http://1099Express.com for information about a 3rd party 1099 program which works well with the Escapia 1099 export to Excel spreadsheet.

Printing 1099s to preprinted forms.Check start and end dates and leave Excel Output unchecked to print to actual forms.

To print 1099s on preprinted formsSelect Owners or Vendors and check checkbox, then Save and Generate 1099s

Test on plain paper and align to forms. Note that there are margin adjustments on Step 1 of 1099 wizard.

Use the 1099 Detail Report to provide owners the detailed transactions that tie to their 1099 Forms—one owner at a time.

Use the Income Report Box 1 Rents to provide owners the detailed transactions that tie to their 1099 Forms—multiple owners report.

Use the page slider to display individual owners. Exporting to Excel provides a separate worksheet for each owner.

Request the 1042-S Instructions for Printing IRS Form 1042 from Support if you are required to submit the form for your foreign owners.

You will need to cut and past the template in the instructions to the Owner Notes field in each Owner Contact for each foreign owner.

Read the IRS Form 1042-S instructions to determine the fields you must edit in the template prior to pasting into the Owner Contact Record notes.

Open the IRS Form 1042S 2 Per Page program and click the Printer Icon.

Click the Preview button in the printer driver dialog in order to adjust the form margins for your specific printer.

Click the Margins button, then set the appropriate Left and Top margins for your printer. A good starting point is Left = 0.2in and Top = 0.63in.

Test your forms on plain paper and line up with forms. Once you have the correct margin settings you can print on your pre-printed forms.

To export 1042 information to an Excel spreadsheet choose “CSV (comma delimited) format and click the Export button.

Converting CSV Format to Excel format.Open Excel and choose File>Open. From the Open dialog select the appropriate filters and select the file IRS_Form_1042S_2_Per_Page.csv file. Click the Open button.

Text Import Wizard Step 1- select Delimited and click Next.

Step 2 – Uncheck Tab and Check Comma checkboxes. Click Next

Step 3 – Click the Finish button.

The exported 1042S data can be reviewed in an Excel Spreadsheet. This export can also be used to import into 3rd party software for electronic submissions.

Save the spreadsheet with the appropriate Title and Excel format





4. Print or Export and save final Year End Audit Trails.

Year End Audit Reports (Note: Asterisks designate required reports)

Tax SubmenuPrint 1099s*1099 Detail ReportAccounts Payable SubmenuAP Payments (Check Register)*Banking SubmenuBank Register*Trust ReconciliationOwners SubmenuOwner Balance (same as month end)Owner Ledger ReportOwner Unpaid Bills Report

Note: All of these reports will be very long. Check with your local CPA to verify that .pdfor Excel versions will be sufficient.

Trial Balance SubmenuBusiness Summary Trial Balance – Monthly by Year* (same as month end)GL Summary Trial Balance – Monthly by Year* (same as month end)Separate Beneficiary Report*Summary Trust Reconciliation Report* (same as month end)GL Detail Trial Balance – YTD*(lists all transactions posted to your general ledger for the year by GL Account)

Audit Trails

Bank Register

Check Register Report

Deposit Detail Report

Summary Trust Reconciliation Report

Business Summary TB – Monthly by Year

Summary GL TB – Monthly by Year (all accounts)

Separate Beneficiary Report

GL Detail Trial Balance – YTDProvides a list of all transactions posted during the year by Account Number

Year End Processing Steps1. Ensure that you have completed all of the Month End

Processing Steps for the month of December.2. Change your Owner Statement template in

Admin>Correspondence to an abbreviated Year End version.


4. Process and print or export Owner and Vendor 1099s and 1042s.

5. Print or Export and save final Year End Audit Trails.6. Remember – no physical close or processing is required.

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