Withdrawal Question

Linda on

When I took over as treasurer I had all sorts of issues with those dates and the way we did our payouts. It was complicated by people who took weeks to deposit their checks. I had the club rewrite the bylaws to specify the valuation and transaction dates AND when I enter the withdrawal, I put it in the PENDING WITHDRAWALS account I set up. When the check comes through it gets transferred to the pending withdrawals account to zero it out. I set the transaction date 1 day after the valuation date. This method seems to cause the least problems. The withdrawn member does not participate in any transactions that occur after the transaction date.

This method seems to work the best for us since we have a large club with frequent withdrawals. Be aware that if you deposit checks on the valuation date, you must identify those checks in Bivio before entering the withdrawal and getting a value for the withdrawal or it will be incorrect. Bivio treats deposits as income until they are identified as deposits.

You learn by experience!

Linda

Treasurer, Pointe Players

Sent via the Samsung GALAXY S(R)4, an AT&T 4G LTE smartphone

-------- Original message --------
From: "James P. Dickerson" <jpd@eastman.com>
Date: 04/07/2016 8:41 PM (GMT-05:00)
To: club_cafe@bivio.com
Subject: [club_cafe] Withdrawal Question

There are two dates listed to use when filling out a member
withdrawal: the "transaction date" and the "member valuation
date". I've always assumed that the member valuation date
fixed the end date for transactions, and the transaction
date is used to record the correct timestamp for the actual
entry BUT WOULD NOT CHANGE THE VALUE. In processing the
last transaction, moving the transaction date (and hitting
refresh) changes the valuation amount. Exactly what is
getting included in the calculation and what should be used
as the transaction date??

Laurie Frederiksen on

For a withdrawal, the transaction date is the date the persons membership in the club is closed off.

The member will receive a withdrawal amount equal to the number of units he has as of that date multiplied by the value of a unit on whatever you have chosen as a valuation date.

Laurie Frederiksen
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James P. Dickerson on

Thanks Linda. We are using a Suspense account and that
seems like a best practice based on experimenting with this
(make the transaction date one day after the valuation
date).

Ed Kennedy on

Agree, a suspense account, or due to or from members account is a best practice.

We are part of a larger membership club, so don't have to deal with checks -everything runs through the larger club accounts. But suspense account works when there is an error correction or delayed payout.

On Fri, Apr 8, 2016 at 11:31 AM, James P. Dickerson <jpd@eastman.com> wrote:

Thanks Linda. We are using a Suspense account and that
seems like a best practice based on experimenting with this
(make the transaction date one day after the valuation
date).

Laurie Frederiksen on

This is very true. Entering a withdrawal as paid from a temporary suspense (or "pending withdrawals") account when you will delay a transfer of funds is a highly recommended practice.

In general though, it is best to pay a withdrawal as close in time to the date you value the withdrawal as you can. If you don't, you open yourselves up to the potential for many other types of issues including not having enough money to actually pay the member what they are owed on a future date.

On Fri, Apr 8, 2016 at 11:43 AM, Ed Kennedy <kennedyedw@gmail.com> wrote:

Agree, a suspense account, or due to or from members account is a best practice.
We are part of a larger membership club, so don't have to deal with checks -everything runs through the larger club accounts. But suspense account works when there is an error correction or delayed payout.

On Fri, Apr 8, 2016 at 11:31 AM, James P. Dickerson <jpd@eastman.com> wrote:
Thanks Linda. We are using a Suspense account and that
seems like a best practice based on experimenting with this
(make the transaction date one day after the valuation
date).

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