Setting up Controlled Monies accounts - including Report on Controlled Monies
The terminology used in this article
- GL Code = General Ledger Code
- Trust Account Ledger = the actual matter level trust account
- CMA = Controlled Money Account
Step 1 - Set up a GL Code for CMA's in the General Ledger
Create a GL Code on the Actionstep ledger as a child to the TRUST section of the ledger
Call this something generic such as 'Controlled Monies Ledger 1' - This way should you need to set up two or more controlled monies ledger in the future you can call it 'Controlled Monies Ledger 2' or 'Controlled Monies Ledger 3' etc.
Step 2 - Enable CMA GL Code
Go to ADMIN >TRUST ACCOUNTING> Add Bank Account and choose the account type - Controlled Money.
You will note that this will remove the option to detail the Bank Name, BSB and Account number - this is expected at this point.
Accept the defaults for the receipt templates or change to be customised versions of such. The templates as they are provided by Actionstep are compliant. However, you can change these to suit your firm's branding requirements. This will expect you have sufficient training on Document Coding within Actionstep to modify these templates.
Accept the system number sequences or change them as required. Normally you leave these as they are
You have now created the ability to setup a CMA trust account on Any Matter.
Step 3 - Open the CMA Ledger at the Matter (and detail its Bank Account Details)
Go to the Matter you want to open the trust account on.
Click on Trust Accounting and click on Add Account, then choose the GL code that states Controlled Money you created in step 1.
Enter the Bank Account details for this CMA.
You have now created a CMA on the matter.
Step 4 - Transact
You can now transact as normal on the CMA ie receipt funds and make payments as you would normally on a GENERAL trust account, just ensure you select the CMA account before receipting.
I have more than one CMA for my matter- what do a do for the 2nd or subsequent CMA'S?
If you require a matter to have a two or more CMA, then you will need to revisit the above steps and create an additional GL code per additional CMA you need to create.
Example: - Matter 100 has two CMA's One is held at CBA and the other at ANZ.
Instructions - You will need to have at least two GL codes setup to handle CMA's as per step 1 above, then you will need to link at least two GL Codes in the trust accounting Admin section as per step 2 above, now go to the matter 100 and open the CMA's and detail their unique bank details (Bank Name, BSB, Account Number etc) to open the CMA ledgers at the matter level.
As the above example has created two GL codes for CMA, then you will be able to create up to TWO unique CMA's for any matter across Actionstep. Likewise, if you created 5 CMA GL's as per step 1 & 2 above, then you will have up to 5 CMA's ledgers that you can create across any matter in the Actionstep system.
Reporting on Controlled Monies
There is no current report in the REPORTS MENU that provides you with a list of controlled being, trust balance, Last entry dates, Bank details, client name, Matter number.
As you may require this for trust compliance reasons we suggest you go to the menu TRUST (at the top of the screen) then select 'MATTER TRUST ACCOUNTS> MATTER TRUST ACCOUNT LIST. This list will show you every matter that has a trust balance which you can print to meet your obligations. Further more you can use the FILTER Button > Show available filters> and change 'ACCOUNT TYPE' to be 'Controlled' then click Submit which will then show you just a list of controlled monies.
Reconcile Controlled Monies
Actionstep does not provide the ability to reconcile Trust Controlled Monies. Please see here for further information Reconciling Controlled Monies