Share Product (DIVAPL) Configuration (2)

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Screen Title: 

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USDIV-02

Share Account Setup

2749


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Access this screen by selecting a Share Dividend Application on the first screen and then "Select."

Check out the video related to this topic: Activating Debit Card Round Up (More videos below!)

Helpful Resources

SEE ALSO THESE HELPFUL BOOKLETS: Automated Non-Returns - Dividend Donations – Setting up a Plan for Your Members - Debit Card Round up - Health Savings Account HSA booklet - Card Activity Rebates (CAR) - ATM Surcharge and Service Charge Rebates

Learn how to change a share product description.

Pricing Strategies and CU*BASE Tools

Screen Overview

This second screen is used to set up all of the parameters for this Dividend Application, with the exception of actual rates and balance ranges for split rate products. To set up rates, use the separate Rate Maintenance feature.

To set up the parameters to automatically “score” your members to receive a Negative Balance Limit for the Auto Non-Returns system, click ANR Scoring (F20). This will be available only on share draft account types (Application type - SD).

To restrict certain memberships from opening accounts with of this Dividend Application type, click Restrict Mbr Desgn (F16).  This is done by Membership Designation, which are selected by using this button.  Learn more here.

Field Descriptions

Field Name

Description

Corp ID

Enter the Corporate ID to which this product applies. If this product can be used by members under all corporations (for a multi-corp. credit union), enter 99 here.

General Account Information

Description

Enter a description of this product. This description will be used by CU*BASE reports and rate maintenance/inquiry screens.

IMPORTANT: This description is NOT used by statements, Inquiry/Phone screens, online banking and other places where individual accounts are listed. These systems use the description attached to the account type suffix.

  • In other words, this description is used when the product is being shown; the account type description is used when the account is shown.

Account range

Enter the range of account type codes that have been configured for this product using the Account Suffix Configuration feature.

  • HINT: The range must be sequential (i.e., cannot use 012 and 014 and skip 013). To avoid problems, do not overlap the range used here with a range used for another DIVAPL.

For the base share account (usually DIVAPL 'SH') this range must be configured as 000 to 000.

Application type

The Application Type for this product: SH, SD, IR, CD, TX, LN, or OC.

  • BE CAREFUL: Once a DIVAPL has been set up, the Application Type cannot be changed without extensive programming efforts (if at all).

If using the IRA application type (IR) be sure to complete the IRA Plan Type field.

IRA plan type

For products with Application Type IR for IRA, use this field to designate the IRA Plan Type for this product.

Reg D transaction account

Check this flag if accounts under this product should be monitored for Reg. D transaction activity. Leave the flag unchecked if this product is not subject to Reg. D restrictions.

  • IMPORTANT: In order for Reg. D monitoring to occur, you must also define the individual transactions that are subject to Reg. D restrictions using the Regulation D Configuration feature accessed via Tool #751: Reg D/Trans Handling & Analysis Tools).

Reg D transfers per month

If Reg D Transaction Account is set to yes, use this field to indicate the maximum number of withdrawal transfers from this account that are allowed each month before activity is reported on the daily Reg. D monitoring report.

Zero balance account option

Choose one of the following to indicate how these accounts should be handled if they are brought to a zero balance:

No action should be taken. (N) Accounts with zero balances will remain open and no changes will be made to accrued dividends.

Close on zero balance. (C) During end-of-day processing, the system will automatically close all accounts that have a zero balance. Next, the system will auto-reverse any outstanding accrued dividends by debiting the accrual and crediting the income G/L accounts.

  • NOTE: This option is not allowed with the base share (DIVAPL SH, suffix 000) account, since this account type represents the membership base and must be closed manually only at the member's request.

Zero accrued dividends but leave account open. (Z) During end-of-day processing, the system will automatically reverse any outstanding accrued dividends by debiting the accrual and crediting the income G/L accounts, but the account will remain open.

Prompt for credit report on open

Check this checkbox if you wish to be prompted to pull a credit report whenever a new account of this type is opened. This was designed primarily for checking accounts, but could be used for any share account type.

  • NOTE: For the base share (SH) dividend application, this flag will be ignored. Instead, the system will pull a credit report if the Credit report flag is turned on in your credit union's Workflow Controls).

Allow account nicknames

Check this checkbox if you wish members to be able to designate an account nickname for accounts of this type. Will control whether the account can be nicknamed in CU*BASE as well as in online banking (if activated for your credit union).

  • For example, you may wish to disable this feature on IRA products to ensure that the standard description is always used.

Default negative bal limit

This field is used by the CU*BASE Automated Non-Returns feature. Enter an amount if you wish to automatically grant a certain negative balance limit whenever a new account of this type is created. Leave the field as 0.00 if you do not wish new accounts to be able to be posted to a negative balance through ANR processing.

  • This is not common, but might be useful for specialty checking accounts where members already go through some sort of evaluation process before the account is opened, and therefore can be granted a negative balance limit immediately as a type of reward for opening the account.

  • Also see the Auto-update neg. bal. limits field described below.

Report dividends to the IRS

Check this checkbox if dividend payments to members should be reported to the IRS for this product. If not, leave the flag unchecked.

  • NOTE: If the Application Type is set to “IR” (for IRA shares), dividends are NOT reported, regardless of the setting of this flag. However, to avoid confusion, we recommend that this be left unchecked for all IRA shares.

 Please do not check this for HSA accounts, as this will cause dividends to report.

Auto update negative balance limits

If you are allowing members to post to a negative balance for this account type using CU*BASE Automated Non-Returns processing, this checkbox must be checked in order for CU*BASE to automatically update negative balance limits on individual member accounts.

  • IMPORTANT: Use the Configure Negative Balance Processing button on this screen to set up the parameters that control what balances your members should receive (this is done in a batch process on a monthly basis).

Leave the checkbox unchecked if you do NOT want CU*BASE to automatically grant negative balance limits on member accounts.

Club processing allowed

Check this checkbox if this product is to be used as a Club Account (such as a Christmas or Vacation Club account), or if it will pay dividends annually.

If this checkbox is checked, when saving this dividend application you will see one or more warning messages regarding additional configuration you need to do in order for the Club account processing to be set up properly. Remember that you can set up the Club parameters to never expire the Club. (“Expire” refers to disbursing funds to members automatically on an annual basis.)

Special Note Regarding Annual Dividend Payments

This flag must also be checked for any dividend application that pays dividends using an annual payment frequency. Even though the account might not be subject to club processing for any other reason (i.e., you might not ever expire the accounts like a regular club), this makes sure that account history is retained longer than for other types of share accounts, so that the appropriate history is available for the annual dividend payment.

Accounting Interface

Liability G/L
account #

Enter the General Ledger account number to represent the balances of accounts under this product on your Balance Sheet. To make daily balancing easier, it is recommended that a unique G/L account be used for every DIVAPL.

  • IMPORTANT: In order for the interface with the G/L to work properly, the G/L Account Control Configuration feature must also be used to set up a cross reference to control how accrual activity is recorded in the G/L.

Expense G/L
account #

Enter the General Ledger account number to represent the dividend expense for accounts under this product on your Balance Sheet. To make daily balancing easier, it is recommended that a unique G/L account be used for every DIVAPL.

  • IMPORTANT: In order for the interface with the G/L to work properly, the G/L Account Control Configuration feature must also be used to set up a cross reference to control how accrual activity is recorded in the G/L.

Accrual G/L
account #

Enter the General Ledger account number to represent the dividend accrual amounts of accounts under this product on your Balance Sheet. This is used for products that accrue with the Simply Daily and Compound calculation types only. (Average Balance dividends do not accrue; however, an accrual G/L should still be configured in case the method of calculation is changed at a later date.)

To make daily balancing easier, it is recommended that a unique G/L account be used for every DIVAPL.

  • IMPORTANT: In order for the interface with the G/L to work properly, the G/L Account Control Configuration feature must also be used to set up a cross reference to control how accrual activity is recorded in the G/L.

Share Draft/Checking Only

Stop pay GL account #

(Used for share draft/checking products with Application Type SD only.) If your credit union wishes to charge a fee for stop pay requests made on this account type, enter the G/L account to which the fee income should be posted.

Stop pay fee

(Used for share draft/checking products with Application Type SD only.) If your credit union wishes to charge a fee for stop pay requests made on this account type, enter the fee amount that should be charged for each stop pay request.

Allow change of fee amount

(Used for share draft/checking products with Application Type SD only.) Check this flag to allow a teller or MSR to change the fee amount at the time a stop payment is being posted. This is useful if your credit union charges a different fee for special circumstances, such as stop pay orders on business accounts, or stop pays for a range of checks versus a single check.

Leave the flag unchecked and the fee can still be waived at the time the order is placed, but the amount cannot be changed by the employee.

In either case, any time a stop pay order is created and the normal fee is either waived or changed, a record will appear on the Fee Waiver Information report.

Offer debit card round up program

Check this checkbox to configure a debit card round up program for this dividend. Refer to the Debit Card Round Up booklet for details on offering this product to your members.

Dividend Information

Start date

Use this to record the starting date for the current dividend payment period for this product. Although it may seem counter-intuitive, the date entered here is actually the last day of the previous dividend period, or the date on which dividends were last paid.

The date used here will depend on when your credit union elects to pay share dividends, either during beginning-of-day or end-of-day processing. (This is configured in CU Master Parameters.)

EOD  In general, most CUs pay dividends during EOD on the last day of the dividend period. Therefore, for a monthly dividend period, a date such as Jan. 31, Feb, 28, Mar. 31, etc., would be entered as the start date. For a quarterly dividend period, a date such as Mar. 31, June 30, etc. would be used.

 

BOD  Some CUs elect to pay at BOD of the next business day. In this case a date such as Apr. 1, July 1, etc. would be used instead.

  • IMPORTANT: For BOD dividend payments, if a dividend regeneration ever needs to be performed on this account, the Start Date must be temporarily “backed up” one day until the regeneration is complete. The regeneration system logic says “take start date plus one day, then begin accruing.” (For example, if the date is left at 10/1, it begins accruing at 10/2.) After regeneration is complete, the Start Date should be changed back to its original setting.

Next pay date

Use this to record the date on which dividends will next be posted to member accounts.

After dividends are paid, the End Date is moved into this Start Date field, and a new End Date is automatically calculated.

As with the Start Date, the date used here will depend on when your credit union elects to pay share dividends, either during beginning-of-day or end-of-day processing. (This is configured in CU Master Parameters.)

Calc date

This field should show the last date on which dividends were accrued for this product. As with the Start Date and End Date, the date here will depend on when your credit union performs share dividend monitoring (configured in CU Master Parameters).

If Daily Dividend Monitoring occurs at EOD (the most common option, even for CUs who pay dividends at beginning-of-day), this date would represent the last end-of-day cycle completed. If it were set to BOD, this would represent the last beginning-of-day cycle completed.

  • CU*TIP: Remember that dividend monitoring can be set to happen at a different time than dividend payment. The most common option is to have both occur during EOD, but some credit unions monitor during EOD and pay during BOD. It is very rare to monitor dividends at beginning of day due to TIS guidelines (EOD monitoring allows a member to accrue dividends starting on the same day as a deposit is made).

Pay frequency

Choose one of the following to indicate the frequency at which dividends should be paid for this product:

Monthly (M) Quarterly (Q) Semi-annually (S) Annually (A) (see Special Note below)

All calculate using full months. Therefore, a quarter is defined as three full months, whether it is a 90-, 91- or 92-day quarter. The same holds for semi-annual (6 months) and annual (12 months). It is important to consider the member and the need to reconstruct dividend calculations when required. Remember that transaction history and balance information is not retained indefinitely. Products with long-term payment periods may require off-line research to prove the dividend amount for a member's inquiry.

  • IMPORTANT: If the payment frequency is changed on an existing product, always be sure to verify that the Start Date, End Date and Calc Date are correct for the new dividend period.

Special Note: If paying dividends annually, the Club processing allowed flag must be checked in order for the system to retain enough transaction history to handle dividend payments properly. (You will see a warning message to that effect when saving the dividend application; Club Parameters will be set to never “expire” the accounts so they won't behave like your normal Club accounts.)

Dividend Calculation type

Select one of the following to choose how dividends should be calculated for this product:

Simple Daily (S) (daily accrual)

Compound Simple Daily (C) (daily accrual)

Average Daily (D) (no daily accrual; based on an average daily balance for the dividend period)

Click here to see the formulas used for each calculation type.

  • If this product will require a minimum balance in order to earn dividends, the settings in this field are restricted somewhat. Click here for details.

  • NOTE:  For the Qualified Dividends feature you must use the Average Daily dividend calculation type.  (Qualified Dividend rate programs are designed to give members a higher or "Qualified" rate for signing up for certain services such as bill pay or for performing certain activity on their account.  SEE "Qualified Dividend posting" below.

Minimum balance to earn dividend (whole dollars)

This field, along with the Minimum balance penalty code field, controls how dividends are paid based on the account balance. (Click here for a more general description of when to use this strategy for your share products.)

If you wish to pay dividends only if the member retains a certain minimum balance in the account, enter the minimum balance here and be sure to complete the Minimum balance penalty code field. This amount can be up to 999,9999.  (Enter whole dollars in this field; there is no decimal in this field.)

  • IMPORTANT: Click here to learn more about how these fields will perform differently depending on the Calc Type used for this product.

Minimum balance penalty code

This field, along with the Minimum balance to earn dividend field, controls how dividends are paid based on the account balance.

  • IMPORTANT: The Minimum balance... fields will perform differently depending on the Calc Type used for this product. Click here to learn more about how these settings work together.

If you wish to pay dividends only if the member retains a certain minimum balance in the account, choose one of the following to indicate when the balance should be monitored:

Daily Compare (X) - Used with the daily accrual methods, this calculation code is used to flag an account not to earn a dividend for each single day on which the balance is below the minimum. Therefore, a member may earn dividends for only 22 days in a 31-day month, depending on the member's banking habits.

End of Period (E) - Used with the Average Daily posting method, this calculator uses the end of the period average balance to decide if the member should earn a dividend for the entire period. Therefore, the member might not earn a dividend for the entire period if he or she has not maintained an appropriate average balance

  • NOTE: Check TIS regulations before using this option with an accrual method. If you state daily dividends it may not be correct to repeal a dividend payment based upon a balance at the end of the period (rollback).

Daily Compare (Rollback) (D) - Not currently recommended for use. This daily compare method penalizes the member for an entire period if at any time during the period the member's balance fell below the minimum. This is a carryover from the days of rollback penalties.

Dividend pay code

This option lets you choose default settings for how dividends are to be paid for this product.

Transfer (0) - Dividends will be paid directly into the account shown in the Dividend Transfer Account field on the account record. This is set up at the time the account is opened. (Also see the Allow Change On Acct Open field described below.)

Addback (1) - Dividends will be added back to this account.

  • HINT: This is the most common option for most standard savings products. The Allow Change On Acct Open flag would also usually be set to No.

Check (2) - Dividends will be paid to the member by check. (These checks are printed using the Print Auto/Mail Checks feature)  Pay To information can be specified at the time the account is opened.

Transfer to G/L (4) – Dividends will be paid to a specific G/L selected when the account is opened. See the booklet Dividend Donations for more information. 

Transfer to DIVAPL

Enter the Dividend Application used for your base share account (000). Dividend transfers are always transferred to the base share account (000), regardless of what is entered in this field. (Other entries may be allowed, but regardless of the entry on this screen, the dividends are always transferred to the base share (000) account.) A member service representative can change the selected account if the “allow change on acct open box is checked. Otherwise the dividend will always be paid to the base share account.

  •  Warning: Members will be able to open an account of this Dividend Application, regardless of whether they have a base share (000) account to transfer the dividends to.

Allow change on account open

Check this box if you wish to allow members to choose how dividends are paid for their individual accounts (see Dividend Pay code above). If Transfer is selected, members can only select to transfer the funds to the base share (000) of another membership.

ONLINE BANKING NOTE: This setting controls only accounts opened in CU*BASE by a credit union representative. Accounts that can be opened in online banking will automatically use your default settings.

Create secured shares record

If an amount is entered here, the system will automatically create a Misc. Secured Funds record for this amount whenever a new account of this type is opened.

  • Designed for high-yield accounts where a minimum balance is required to keep the account open, earn dividends, avoid a penalty, etc., this feature simply saves your member service representatives a step when opening new accounts.

Leave the field blank if you do not wish to automatically secure any of the funds in this account.

Plateau dividend

If you plan to offer tiered rates for this product based on the member's account balance, choose one of the following to specify how dividends should be calculated.

  • Plateau (blended) - With this method, the member is paid by calculating a dividend at each tier by the balance represented. This is a method where multiple rates are paid at once giving the member a blended overall return. To use this method, the checkbox must be checked.

  • Straight Split (not blended) - To use this method, leave the checkbox unchecked.

If this product will not use tiered rates, leave the checkbox unchecked.

When using the Rate Maintenance feature to set up rates for this product, you will use the Split feature (F10) to set up balance ranges and rates for up to 7 tiers (base rate plus 6 split tiers).

HSA

Check this checkbox if this account is to function as an HSA account.

  • Also be sure to remove the checkmark from the Reports Dividends to the IRS flag because HSA earnings are tax free.

Base Rate

The base rate for this product. Access the Member Rate Maintenance feature (Tool #506) to set up rates for new products or to modify your rates.

Qualified dividend processing

Enter an A in this field to create a Qualified Dividend rate for this product. (Allowed with Share Draft Dividend configurations only.)  If an A is entered, and you press Enter, you will move to the screen where you configure the qualifications for the member to receive the qualified rate. See the booklet Qualified Dividends for more detailed information.

ATM surcharge rebate program code

Use images\magnifyingglasslookup_shg.gif to move to the screen where you can select the ATM surcharge rebate code (configured here) which allows members with accounts of this dividend application to receive rebates on the charges to foreign ATM terminals. All members with cards of this dividend application may receive these rewards.

These rewards can also be used in conjunction with a Qualified Dividend program.  You must select the code here to offer it as part of you program.  Learn more on the screen where you set up your Qualified Dividend Program.

Refer to the booklet: ATM Surcharge and Service Charge Rebates.

ATM service charge rebates

Use images\magnifyingglasslookup_shg.gif to move to the screen where you can select the ATM service charge rebate code (configured here) which allows members with accounts of this dividend application to receive rebates on the charges to use your credit union ATMs. All members with cards of this dividend application may receive these rewards.

These rewards can also be used in conjunction with a Qualified Dividend program.  You must select the code here to offer it as part of you program.  Learn more on the screen where you set up your Qualified Dividend Program.

Refer to the booklet: ATM Surcharge and Service Charge Rebates.

Card activity rebate program code

Use images\magnifyingglasslookup_shg.gif to move to the screen where you can select the Card Activity Rebate (CAR) code (configured here) which allows members with accounts of this dividend application to receive rebates on the charges to using credit union cards. All members with cards of this dividend application may receive these rewards.

These rewards can also be used in conjunction with a Qualified Dividend program.  You must select the code here to offer it as part of you program.  Learn more on the screen where you set up your Qualified Dividend Program.

Refer to the booklet: Card Activity Rebates (CAR)

Buttons

Button

Description

Suspend (F4)

Use this to temporarily suspend this DIVAPL so that new accounts cannot be created. This will not affect existing accounts.

Save (F5)

Use this to save changes made on the screen.

Skip (F8)

Use this to exit the screen without saving anything.

Qualified Dividends (F9)

Use this to create a Qualified Dividend rate for this product. (Allowed with Share Draft Dividend configurations only.)  If an A is entered, and you press Enter, you will move to the screen where you configure the qualifications for the member to receive the qualified rate. See the booklet Qualified Dividends for more detailed information.

Audio/Online Banking (F15)

Use this to define whether or not withdrawals can be made from these savings accounts using CU*TALK audio and It's Me 247 online banking.

  • NOTE: These flags will be ignored on escrow (application type TX) accounts and share IRA accounts. It is not possible to withdraw funds from an escrow account or to deposit or withdraw funds from an IRA account in online banking.

This button will not appear when creating a new dividend application. You will need to create and save the product first, then return to this screen and use F15 to access the Audio/Online Banking window.

Restrict Mbr Desgn (F16)

Alows you to restrict certain memberships from opening accounts with of this Dividend Application type.  This is done by Membership Designation, which are selected by using this button.  Learn more here.

Checklist

(F18)

Use this to move to the checklist creation screen for this dividend application. This will allow you to create open and closed checklists with tasks that can be checked off when opening and closing the account of this dividend type. (If this is your base (000) account, this checklist is also used as the membership checklist for the Open/Closed Dashboard.) This checklist can be used by your Member Service team to ensure each member receives the same level of service.

ANR Scoring (F20)

(Appears on Application Type SD accounts only.) Use this to set up parameters to automatically grant members a Negative Balance Limit to be used by automated non-returns processing.

Debit Card Round Up (21)

(Appears on Application Type SD accounts only.) Use this option to configure a debit card round up program for this dividend. Refer to the Debit Card Round Up booklet for details on offering this product to your members.

 

Additional Video Resources

View more member service videos.

Visit the Show Me the Steps video library to view more videos! 

 

Link to ID: https://help.cubase.org/cubase/cubase.htm#USDIV-02.htm