| Answer:
Loan accounting systems and loan tracking systems
maintain records of several events and sums on a year to
date basis. For example: Interest paid year to date,
late charges paid year to date, etc. The loan accounting
reason for the year end closeout procedure is to reset
all these year to date counters and sums to zero for the
beginning of the new year. It is obvious that this must
not be done before all transactions for the year
are posted and all reports for the year are printed.
After this procedure is run, it is too late. The sums
are all zero and the reports are no longer available.
The only way to print these reports after the closeout
procedure is to reinstall the backup copy you made
immediately before the closeout procedure.
This function is used by the system administrator to
clear all year to date totals after printing all the
year end reports and before beginning a new year.
This function updates the year end history file.
This function is NOT reversible ! Do not run it until
you are sure you have completed ALL year end procedures.
To access the year end close out function, select
"Administration / Loan Data Procedures / Year End
Close".
Only the system supervisor can access this function.
This is an irreversible procedure. It replaces ALL
year to date accumulators with 0.00.
Before you run this procedure:
Make a local backup.
Make a Remote Backup
Be sure you have printed all the year end reports and
statements you will need.
See the manual for details of backup procedures.
It is best to make an off line copy of the entire
system. At a bare minimum, make an off line copy of the
DATA directory.
Year End Statements:
This report prints a status report listing the year
end status of each loan. This is an optional report. It
is not a 1098 form. If you maintain paper files, it is
recommended you print these reports and store them in
the paper files.
The year end statements represent the status of the
loan at year end. These may or may not be given to the
borrower but they should be printed and filed in the
permanent loan file.
See Administration / Loan Data Procedures / Year End
Statements
Year End 1098 Forms:
This is the actual 1098 forms. It requires the
preprinted IRS forms with the red ink. This report is
optimized for cut sheet laser printer forms and is not
guaranteed to work properly with continuous forms or
dot-matrix printers.
This is found at Administration / Loan Data procedures /
Year End Tax Form (1098) This is the simplest screen in
the system. All you can do is click on the button
"Print 1098s". You can print as many copies as
you want. After the first copy prints, the button will
change to "Print Copy 2" then to "Print
Copy 3" etc.
1098s will be printed ONLY for loans with "Send
1098" is set to "Y". See Loan View Edit
Post - Tab Misc 2 to set this option.
The 1098 report can be run as many times as desired
before the year end closeout.
Each portfolio may ( must ) have a separate
"Recipient's Address". On the screen for
defining portfolio codes, You must define a portfolio
code and enter its "Recipient's Address" and
taxpayer Id number.
Even if all your portfolios require the same address and
or taxpayer id number you must still define them on this
screen. See Portfolio Codes, in the manual.
ALWAYS PRINT THE FIRST COPY OF THE 1098 FORMS ON
BLANK PAPER
This allows you to check for errors before you waste
your forms.
After the year end close out, forms and reports are
no longer available. If you have accidentally closed the
year before printing these forms, the only way to
retrieve them is to restore the pre-closeout backup
files.
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