The task is only available when you have selected a Community in context. The Maintain Selected Promissory Note task will not appear until the promissory note is signed.
To create an unsigned promissory note, follow these steps:
1. Go to Household Detail > Transactions.
2. Go to Tasks > Create Unsigned Promissory Note.
3. Review the Projected Event History.
4. Click Next.
5. Click Add Promissory Note, and then click Next.
Note
This schedule will determine the rate at which the promissory note will be repaid.
6. On the Add Promissory Note page, complete the following fields:
▪ Payment Start Date—Enter the first date the amount will be billed.
Note
This date must be the first of the month. You can manually bill any amount on any subsequent date from the Promissory Notes tab.
▪ Type—Choose the note type from the drop-down list.
Note
The note type available will depend on the funding program the household is counted in.
▪ Repayment Agreement - Include on HAP—This type is used when you will be paying the amount back to the agency on your HAP. When a payment is received from the tenant and applied to this note, the system creates an OARQ - Owner/Agent Adjustment credit that will appear in the Open Items section of the household's Subsidy tab. This will be included on your next HAP request. The GL entry created will debit the cash account and credit the subsidy receivable account you have setup for this charge type. This note type is only available when the household is part of a HUD funding program.
▪ Repayment Agreement - Cut Check—This type is used when you will be writing a check to pay back the agency. When a payment is received from the tenant and applied to this note, the system creates a GL entry that debits the cash account and credits the liability account you have setup for this charge type. This note type is only available when the household is not part of a HUD funding program.
▪ Frequency—Choose a billing frequency from the drop-down list.
Note
The frequency chosen will determine the next time the system will generate a bill for the specified portion.
▪ Payment Amount—Enter the amount you have agreed with the tenant to receive each billing period.
Note
When receiving payments against a Repayment Agreement Promissory Note (Accounting Detail > Payments) that creates an OARQ to be included on a HAP, the amount applied to the Promissory Note can only be in whole dollars. Amounts on HAP requests are rounded to whole dollars, so if the amount applied to the Repayment Agreement and the created OARQ are not in whole dollars, you will not receive the payment against the HAP.
▪ Effective Date—Enter the day you want to remove the full amount from the Subsidy Receivable ledger and report it as a Promissory Note Receivable.
7. Click Calculate.
Note
The system will display the number of payments, the unbilled balance, and the number of payments remaining.
8. When the note type is Repayment Agreement - Include on HAP, enter the amount or percentage to be retained. If applicable, add the amount of each tenant payment to be retained.
9. Click Calculate to generate the Calculated Entries, and then select Print.
10. Click Finished.