Payees and Payors -- Associating Settlement Statement Lines with a Payee or Payor

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Payees and Payors - Associating Settlement Statement Amounts with a Payee or Payor

In order to group receipts and disbursements by the name of the payee/payor when using the Receipts and Disbursements menu, or to combine all receipts and disbursements to/from any particular payee/payor into one check or deposit, each settlement statement line should be associated with a Payee.

General Instructions:

As you enter each Hud-1 line that represents a receipt or a disbursement (apart from Cash to Seller, Cash from Borrower and Loan Proceeds), associate it with a Payee/Payor.

Entries That Do Not Require a Payee/Payor: 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 new payee and do not need to be associated with a payee/payor (e.g., Line 100, Contract Sales Price or Line 107, County Taxes).

Automatic entries for Special Payees:

Cash due to Seller and Cash Due from Borrower are automatically associated with the Seller and Buyer names that you enter for the settlement statement.
Loan Amount: The Loan Amount on line 202 or the Refinance Loan Amount for Hud-1A under the General Tab (Line 1600) are automatically associated with the Lender name that you enter for the settlement statement.
Excess Deposit, Line 501, does not require a payee. The excess deposit represents funds paid by a buyer to seller, or a portion of buyer's deposit held by a broker that is paid directly to the seller from the broker. The figure on Line 501 reduces the amount that the settlement agent must collect from buyer at closing and reduces the cash due to seller.

Default Payee Associations for Lender and Settlement Agent:

Figures entered into the 900 section (Items Required by Lender to be Paid in Advance) and the 1000 section (Reserves Deposited with Lender) are pre-associated with the Lender name that you enter for the settlement statement.

Figures entered into the 1100 section (Title Charges) are pre-associated with the Settlement name that you enter for the settlement statement.

Changing the default payee association: If one or more of the lines in sections 900, 1000 or 1100 should be associated with a different payee, click on the amount box for the line and then click on the Payees menu of the program. From the Payees menu, you can select an existing Payee/Payor that you have defined, or you can add a new Payee/Payor.

Printing Payee Name When No Dollar Amount was Entered for the Line

Normally, the payee name does not print unless there is an amount specified on the particular settlement statement line (either an amount for an expense disbursement or a POC amount). To print the payee name to without entering an amount for the line, precede the payee name with a period. For example, instead of "Sam's Survey Company", enter ".Sam's Survey Company" as the payee name. For best results, the period should be added only to lines that do not have an amount entered for the particular settlement statement line.

How to Associate a Settlement Statement Line with a Payee/Payor:

Settlement statement entries not covered by the above rules are handled as follows:

Click on the amount box for the particular settlement statement line, then click the Payees menu at the top. The Payees menu gives you a list of Payees and Payors that have been previously used; you can select the desired payee from the list by highlighting it, then click the button that says Select Payee for Current Line. If the desired payee/payor has not been previously used, you can click the button in the Payees window that says Add New Payee. After adding the payee to the list you can click Select Payee for Current Line.

Settlement statement lines that have a space to enter the payee (the pay to column):

Alternatively, you can simply type the name of the payee in the "pay to" column, for lines that have a space to enter a payee name. However, if the payee has been used before within the same settlement statement, it is recommended that you, instead of re-entering the payee name for the current line, click on the Payees menu to select the exact payee name from the list of payees already used. By selecting the payee/payor from the list, you will be sure not to enter the same payee with different spellings (which the program would treat as different payees).

Shortcut: For lines that have a space to enter a payee name, you can simply type SSS to enter the settlement agent name, or LLL to add the lender name as the payee for the particular line.

Saving Payee Information for Future Settlement Statements

Once information is entered for a payee/payor, from the Payee screen, a payee/payor can be added to a master list of payees. Doing so will allow you to select the same payee in other settlement statements from the master list.

Related Links:
See Payees and Payors
See Post to QuickBooks