Issue and Redeem a Term Deposit or GIC

This article outlines the steps to Issue and Redeem a Term Deposit or GIC for Escrow/Trust deposits that are held for more than 60 days and exceed $5000.00. There is usually a clause in the Sale Agreement requesting that the deposit be invested.

Issuing a Term Deposit/GIC

Navigate to the Deposit tab of the transaction and select EDIT icon

Select the Escrow/Trust button and EDIT

Expand the Interest panel and ensure you have attached the applicable Interest Rule; How to Create, Edit or Delete Variable Interest Rules or How to Create, Edit or Delete Fixed Interest Rules

The maturity date will automatically default to the transactions Close Date, select the calculate icon and SAVE.

Expand the Deposit panel and select New icon

Action = Issue Term Deposit/GIC, select date that the Term Deposit/GIC was issued, enter the Term/GIC Certificate Number, place check in Post Immediately and Save.

This will create a journal entry moving the deposit out of the escrow/trust bank account and into the general ledger account configured for your Term Deposits/GIC’s.

Redeeming a Term Deposit/GIC

Navigate to the Deposit tab of the transaction and select EDIT icon

Select the Escrow/Trust button and select New icon

Action = Redeem Term Deposit/GIC, select date that the Term Deposit/GIC was redeemed, enter the Term/GIC Certificate Number, place check in Post Immediately and Save.

This will automatically create a journal entry moving the deposit out of the Term Deposit/GIC general ledger account and into the escrow/trust bank account.

Once the redemption is complete and the money is back in the escrow/trust bank account, you can process the transactions closing as usual.

 

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