Receipts and Disbursements
The receipts and disbursements screen gives you a list of checks the settlement agent should issue and deposits to collect in order to complete the closing.
Using the receipts and disbursements screen you can reconcile the loan proceeds being used for the transaction. For example, you can adjust whether or not loan proceeds are received in the gross loan amount or net of lender charges. You could also specify that a POC item to be funded by a loan will be paid by the settlement agent and you can increase the loan proceeds to reflect the source of the funds (e.g., a mortgage broker commission or fee that the lender has agreed to fund).
Many settlement statement lines represent a disbursement by the settlement agent (e.g., loan payoff on line 504, title charges in the 1100 section), or a receipt of funds.
Some entries do not require a receipt or disbursement: Entries that have identical amounts on the Seller's and Buyer's side of the closing statement may change the amount of cash due to/from seller and buyer at closing. However, these offsetting entries do not involve a separate receipt or disbursement.
As you enter each Hud-1 line that is a disbursement or a receipt, you should associate it with a payee/payor so that the list of disbursements (checks to write) will have a payee name for each check to write (this is the key to one of the program's most important and useful features: balancing the receipts and disbursements and transferring checks and deposits to QuickBooks). To associate an amount with a payee see Payees and Payors.
After making your entries in the Hud form, click Receipts/Disbursements. A window will appear and you will see that the receipts and disbursements are automatically in balance. You can print a list of receipts and disbursements (for check writing and deposit verification).
Balancing Lender Proceeds
+ In the Receipts/Disbursements screen, enter the amount of the loan proceeds from the lender, if different from the new loan amount (line 202). Changing the lender proceeds amount will initially cause the receipts and disbursements to be out of balance.
+ Then, to bring the receipts and disbursements back into balance, follow the on-screen instructions:
> Check any p.o.c. item that should be disbursed by the settlement agent (such as mortgage broker fee advanced by the lender as part of the loan proceeds), or check any other lender item that was not withheld by the lender and that will be disbursed by the settlement agent.
> Uncheck any amount due to the lender that you do not need to disburse (e.g., amounts withheld by the lender such as loan origination fee). This step is usually done automatically by the program, as the program initially presumes that all amounts due to the lender are withheld by the lender and deducted from the loan proceeds.
+ Verify that the Receipts/Disbursements screens states that everything is in balance. If not, then repeat step 2 of this section above until everything balances.
Payees and Payors
Post receipts and disbursements to QuickBooks Pro/Premier