Enable auto calculation in Workspaces to automatically calculate and adjust the vendor surplus amount.
The below information is relevant when the Practitioner representing the Proprietor on Title is responsible for handing vendor surplus.
Enabling auto calculation in the settings
Turn on auto calculation at Subscriber level.
As Subscriber Manager, navigate to Administrator Tools > Maintain Auto Calculation.
For Enable auto calculation of vendor surplus, select Yes to turn on auto calculation. By default, auto calculation is set to disabled but the option to enable it will be available on all Workspaces.
For Default auto calculation of vendor surplus to enabled when you are handling surplus?, select one option:
Yes The default status of auto calculation of vendor surplus on all Workspaces where you are handling surplus is enabled.
No The default status of auto calculation of vendor surplus is disabled.
For Unsign Settlement Statement when auto calculated vendor surplus amount changes?
Yes Set to Yes if you want the Settlement Statement will be unsigned if the auto calculated vendor surplus changes
No The default status. If signed the Settlement Statement will remain signed if the auto calculated vendor surplus changes.
Save the changes.
Setting up the auto calculation of vendor funds financial line item in the Workspace
Once auto calculation of vendor surplus is enabled in the Admin Tools by the Subscriber Manager, the Practitioner in the role of the Proprietor on Title can choose to enable this feature in any Workspace. Note: the Mortgagee on Title must be in the Workspace for this feature to appear.
Generally, it’s a good idea to set up your auto calculated vendor funds financial line item after the you have confirmed the Balance due to Vendor/ Amount due on Settlement (terminology varies with jurisdiction) with the Incoming Proprietor’s representative and you have added your adjustment line items.
Once this has been completed you should proceed with setting up your auto calculated vendor funds line item.
On the Financial Settlement Summary screen, for Vendor surplus to be directed by, select Assign to me as shown above. This indicates that you will be directing surplus funds to the vendor.
For Auto calculate vendor surplus for this workspace, select Enable to enable auto calculation of vendor surplus in this Workspace. Note: This will already be enabled if you selected this as the default in the Admin Settings.
For Vendor surplus account(s) for auto calculation (pending), select Add Account to add account details for where the vendor surplus funds will be deposited.
The Add Account buttons opens the Maintain Auto Calculation of Vendor Surplus screen.
For Allow any amount – Selecting this option will maintain your signature as the vendor surplus amount automatically calculates.
Note: if your Subscriber settings are configured to ‘always unsign’ (see point 4 in enabling auto calc section in the settings) you will unsigned if the vendor surplus changes after signing. Contact your Subscriber Manager if you need to change the Subscriber Settings.
For Minimum expected vendor surplus - select this option if you want the settlement statement to be unsigned if your automatically calculated vendor funds line item falls below the amount you enter here.
Note: If the auto calculated vendor funds falls below the minimum you set and you are unsigned you will need to update your minimum or contact the lender before being able to resign.
Next, click the Add Account button to create a Vendor funds destination line item. Complete the account details.
Note: if your client has provided account details via PEXA Key then you will be able to select this account.
Then click Back to get back to the Financial Settlement Summary. The section of the screen will look like this:
Once the vendor funds line item set up is complete, the auto calculation status is set to ‘Pending’ and is highlighted in orange as shown below. Note: if the Mortgagee on Title has already entered a Loan payout then the vendor surplus line item will start calculating straight away - see step 12.
The Destination line item is also orange.
12. The Vendors Funds will remain at $0.00 until:
A Loan Payout figure is entered by the Mortgagee on Title
A Balance due to Vendor amount is entered/confirmed by yourself and the Incoming Proprietors representative.
Once these figures are in the Workspace then the auto calculation of vendor surplus is active.
You will see that the Vendors funds turns green to indicate this.
Destination line item
As new destination line items are entered or edited the vendor funds item will fluctuate.
You can sign the settlement statement when you are ready. You remain signed depending on your settings.
If you have set a minimum expected vendor surplus then you will be unsigned if the vendor funds falls below this amount. In this case you will need to update your minimum or contact the lender to update their line item before being able to resign.
The main benefit of auto calculation is that if you have set your Auto Calculation of vendor surplus to ‘Allow any amount’ on the Maintain Auto Calculation of vendor surplus screen then you can sign the settlement statement and don’t have to worry about monitoring it as the vendor funds will automatically adjust if you or others Workspace Participants make last minute adjustments to destination line items.