JustWare utilizes double-entry accounting, the standard accounting system used by businesses and banks around the world. Double-entry accounting offers a high level of accounting accuracy. Each transaction is recorded in at least two accounts, resulting in a debit to one or more accounts and a credit to one or more accounts. Double-entry accounting provides a method for quickly checking accuracy because the sum of all accounts with debit balances should equal the sum of all credit balance accounts.
JustWare helps justice professionals keep accurate financial records by utilizing an account-based financial system. This system allows users to set up a number of accounts, each of which serves a specific function. As funds move through these accounts, agencies can track where money has come from, why it was received, as well as where it can go next. The following are the different types of accounts:
- Asset: used for accounts receivable. An asset account has a balance representing funds that are expected to be paid into the system. When all funds owed to an account receivable have been paid, the account balance will be zero.
- Liability: used for accounts payable. A liability account has a balance representing funds that must be paid out of the system. When all funds owed from an account payable have been paid, the account balance will be zero.
- Cash: all money that comes in or is paid out from the system passes through this account.
- Overpay: holds funds from overpayments on financial obligations and/or funds released from bonds. Funds in an overpay account are made immediately available to voucher, unless they have a Code Type of [0-Check] and have not yet been marked as cleared.
- Bond: holds funds paid toward bonds until either bond
conditions are met or the bond is deemed forfeited.
- CAUTION: Bond accounts are created automatically in JustWare when Bonds are created on a case. Bond accounts cannot be created through the Accounts snap-in in the Accounting Tools section.
- Forfeiture: when a bond condition is not met, funds are transferred from a bond account to a forfeiture account.
Escrow: holds funds without immediately allocating them to a financial obligation or an overpay account.
Events and changes in payment or bond status can cause money to be transferred between accounts. Some common examples of this include:
Bonds: When bonds are set, a number of conditions are typically defined along with them. These conditions, if met, can result in the funds from the bonds being reimbursed. If the conditions of a bond are not met, then the funds from the bond are not refunded. This process is reflected in JustWare, which enables justice professionals to record and track bonds. When payment is made on a bond, funds are allocated to a bond account.
- If the bond conditions are met and the bond status has been set to a status with a MasterCode of [2-Available to Voucher], the funds paid on the bond are transferred from the bond account to an overpay account, where they are made available to voucher to the person who paid the bond.
If the bond conditions are not met, the bond funds are transferred to a forfeiture account.
Overpayment on financial obligation: When payments are made on a financial obligation, the funds are allocated to an asset account. If the sum of the payment is larger than the financial obligation, however, the excess funds are allocated to an overpay account, where they are made available to voucher to the person who made the payment.
Note: Payments allocated to the overpay account are immediately made available to voucher, unless they have a Code Type of [0-Check] and have not yet been marked as cleared.