How do I place an owner on a net out basis? I don't want to go back and forth between JIB and Net, but permanently place on net out expenses. (DMIE)

NET owners

Expenses for Net owners are processed when the Revenue Run is closed. The owner's expenses will be deducted from the revenue that he earns and a net check will be sent to the owner. If the owner has more expenses than revenue, this amount will go into suspense and will be known as a Deficit. Deficits are posted in QuickBooks to the account chosen (in SherWare) on the Accounts tab of the Disbursement and JIB Options screen as the Deficit account. The owners Deficit balance is stored as suspense on the suspense history screen. If the owner sends in a check for this deficit, you can receive the payment in the Receive owner NET payments screen. If the owner does not pay the deficit, it will automatically be deducted from future revenue before any more revenue is sent to him until the deficit is covered in full.

JIB owners

Expenses for JIB owners are processed when the JIB Run is closed. A JIB invoice (created by the JIB closing) will be printed and mailed to the owner for all of the expenses and a check (created when the revenue run is closed) will be sent to the owner for all of the revenue. The amount of the expenses is posted to the account chosen on the Accounts tab of the Disbursement and JIB Options screen as the JIB Receivable account. The owner's balance is then kept in QuickBooks. When the owner sends you a check for his portion of the expenses, you can receive the payment directly in QuickBooks. If the owner does not pay for the invoice his balance will continue to accumulate while his disbursement checks will still be sent to him in full.

Switching an owner from a Net to JIB or JIB to Net
We do not recommend changing owners between being Net and JIB. However, we realize that sometimes this has to be done. It you have to change this setting for an owner you can do so with the following steps. Understand that if you try to view past reports for this owner they may be affected.

To switch an owner from NET to JIB

1. Create a backup.
   
2. Mark the "JIB Int" option on the Division of Interest screen for the interests that need to be switched.
   
3. Make a journal entry in QuickBooks to Debit the Deficit account and Credit the JIB Receivable account for the owners deficit balance.
   
4. Clear the owners' deficit suspense by adding a suspense history record or with the Clear owner suspense utility. Be sure to only clear the suspense for the interests being transferred that are in deficit.
   
5. If the outcome is not as desired restore the backup from step one and repeat the process.
   

To switch an owner from JIB to NET

1. Create a backup.
   
2. Remove the mark from the "JIB Int" option on the Division of Interest screen for the interests that need to be switched.
   
3. Make a journal entry in QuickBooks to Debit the JIB Receivable account and Credit the Deficit account for the owners JIB balance.
   
4. Create the owners deficit suspense by adding a new suspense history record. Be sure to only add the suspense amounts for the interest that is being transferred.
   
5. If the outcome is not as desired restore the backup from step one and repeat the process.
   

Top

Return to Everything About Owners