Problem
What is/are the 'Control' Account(s)?
Solution
A control account is a holding or suspense account. You can think of this account as an Accounts Payable account. In RecTrac, we use the term Credit Balance Control Account/Liability Account to refer to the account where monies are held pending some further action (i.e., funds waiting to be refunded or applied to a future fee). Balances in the RecTrac Credit Balance Control Account are recognizable as household credit balances. With the RecTrac financial reports, you have a complete audit trail of all entries into and out of the control account.
Credits to the control account occur if a payment is made without an offsetting fee amount due, or if a cancellation refund is processed and applied to the household balance. They also occur if refunds are processed and the check is to be written later (either by RecTrac or the Finance department). In this case, the balance of the RecTrac Credit Balance Control Account equals or acts as a control amount over checks that are pending. The RecTrac Refund Report lists all such pending checks.
Setting up a control account in RecTrac is necessary for the system to work properly. Your finance office must have a RecTrac control account for the recreation department as well. The RecTrac Credit Balance Control Account is a liability account on your designated balance sheet.
RecTrac allows you to have multiple control accounts, if desired, to accommodate accounting requirements and different locations throughout your organization.