Creating Trust Account Distributions

Trust Account Distributions

Proceed to the Debt Agreement Distributions wizard at Practice level. It will identify the payments due to be made per Job (Administration)

It will allow you to select:

• The relevant period for the distribution. Enter the "Distribution Date".
• All Jobs or a selected Job.
• All creditors or particular creditors.
• If do a bulk run or just creditors, or just the Administration Fee or AFSA Realisation Charge.
• To pay now or at a future date.
• If payments are to be grouped (batched) or not. For example some creditors want individual payments so you may process them first, ungrouped, before processing the remaining distribution run.
• Payment methods default to the Creditors recorded method (EFT, BPAY or CHQ).
  
  

Payment calculation

The payment calculation is as follows:

• Realisations
• less: Realisation Charge Liability
• less: Trustee Fees (Including controlling trustee fees)
• less: Cost/Provisions
• less: Fees to pay
  
  Equals: Funds available for distribution.

Funds available for distribution will be paid to each creditor on a prorated basis based on the percentage of the Admitted amount when compared to the total of all claims for that administration.

 

Distribution Date

Is the relevant "as at" date for considering of each component of the calculation. E.g.

• Realisations received as at the relevant date
• RC charges payable as at the relevant date.
• Fees Owing as at the relevant date.
• Costs provisioned as at the relevant date

Note

The creditor values will use the current admitted amount, not the amount admitted as at the distribution date.

Paying Trustee and Controlling Trustee Fees

Fees payable are entered into the system as accounts payable.  These can be paid via the make supplier payment function in individual jobs or in the accounts payable register in the job or in the practice.

There is an option to pay trustee fees based on a maximum percentage of the funds available for distribution to creditors ("fee limits").  By default this fee limit is set to 50% of the available funds (calculated as: realisations to date, less realisations charge, less controlling trustees fees, less costs and provisions), but can be changed to default to another percentage if required.  Note that the fee limits do not apply to controlling trustee fees.

To apply fee limits when paying fee accounts payable, take the following steps in the accounts payable register:

1. Make sure the billing supplier is set to "All Billing Practice Suppliers"
2. Set the filter to select "All invoices due for payment".  This will exclude any invoices that are not yet due from the list.
3. Tick the "Allow part payments" option.  This will allow part payment of any invoice where any unpaid invoice exceeds the funds available under the fee limits.
4. Tick the "apply fee limits" option.  If this option is not ticked, invoices will be selected for payment based upon available funds in the bank account rather than the fee limit available funds calculation.
5. Click the button "Select invoices for Payment based on Available Funds".  This will select for payment any invoices that meet the fee limit criteria.  Payment of these can then be made in the normal way by clicking the Pay now button (6)

Note that controlling trustee fees will not be subject to the fee limits and will not be selected for payment if the "Apply fee limits" option is ticked.  To pay controlling trustee fees, select the job type "Part-X Controlling Trustee" and untick the Apply fee Limits option.  You will be warned if the later option is not unticked.