How To Setup And Track My PPP SBA Loan Payment in Evosus

A bank account is already created at your bank for the PPP SBA loan funds.  Now you need to show that account and balance in Evosus and transfer the funds from the New PPP checking account to your current checking account and reconcile this new PPP checking account.
 

Create New GL Accounts for the Checking Account and Loan Liability Account

Go to Administration > Accounting > General Setup > Chart of Accounts

1. For the New Bank Account:
   • Open the Asset Folder> then banking folder Or whatever folder you wish to show this new checking account on your financials
   • Select the "Create Detail Posting" option under the folder in which you wish to create the account.
   • The New Detail Posting Account screen appears.
   • Code: Input the account number of the new account
   • Description: Input a description of the GL account.
   • This is a bank reconciliation. Check this box if this is a bank account and/or will be reconciled
   • Save the New Chart of Accounts
2. For the New Loan/Liability Account
   • Open the Liability Folder> then whatever folder you wish to show this new Loan account on your financials.
   • Select the "Create Detail Posting" option under the folder in which you wish to create the account.
   • The New Detail Posting Account screen appears.
   • Code: Input the account number of the new account.
   • Description: Input a description of the GL account.
   • Save the New Chart of Account.

 

Create Journal Entry for Receipt of PPP Funds

 

Now that you have your new Bank GL Account and Loan Liability account setup for your PPP funds you will need to create a Journal entry to record receiving the PPP Loan amount from the SBA.
 

1. Go to: Administration > Accounting>Accounting Desk > General Journal Entry
2. Click Add. The General Journal Entries screen appears.
   • Post Date: Date you received the Funds in your bank account.
   • Reference: We recommend that you enter abbreviations based on the type of transaction or the person creating the journal entry. In this Case maybe PPPloan or something like that.
   • Comment: Describe why the journal entry is being created. This is for reference when reviewing journal entries from the General Journal Entry Search screen, but this text does not display on the general ledger report.
   • In the grid of the Journal entry select the Posting Account on the first line.
   • The Journal Entry should have a debit to the bank account which increases the balance and a credit to the loan liability account which increases your liability.
   • Save and Post the Journal Entry.

Example of a $10,000.00 Loan

Bank Accounts are assets, so they carry a normal Debit Balance while Liability Accounts carry a normal Credit Balance.

• First Line: Bank GL Code – Debit Column $10,000.00
•  Second Line: Liability Load Code – Credit Column $10,000.
  • Memo: Enter an explanation of the entry. Each memo will print on the general ledger.
  • Store: Select a store from the dropdown menu.

 

 

Show Transfers from new PPP Account to Payroll/Checking Account

Now you need to show the transfers from your new PPP checking account to your payroll/checking account as you use the funds.

There are two ways to do it:

1. Create a bank deposit with an ‘Other’ Type
 

1. Go to Select Administration > Accounting > Banking > Make Deposits. The Make Deposit screen appears.
2.  Select the bank account where you want to make the deposit in this case the bank account where the PPP funds were transferred to. 
3. Deposit Date:Date the deposit will post to the General Ledger, in this case the date the funds were transferred.
4. Click Next. Select Stores/Departments
5. Click Next and go past the cash and past the checks to be deposited screens by selecting next in each screen without selecting anything.
6.  In the third screen - Other Cash and Checks"  Enter any other cash or checks you would like to deposit.
   • Credit Account: Select the GL account to credit. In this case the PPP bank account GL code.
   • Enter the amount that was transferred from the PPP bank account into the bank account for which you are making the deposit.
   • The rest of the fields are not necessary so select Next.
7. Complete the deposit on the final screen. This is where you will enter a memo explaining why you are doing this ‘Other’ deposit. This memo will appear on the General Ledger.
8. Click Save Deposit and print, if needed.

 

2. Create a Manual Check
 

This feature is generally faster than creating a Write Check and has the same effect when reconciling your bank accounts.
 

Go to Write Checks and select the PPP bank account.
 

1. Use your bank vendor or create an Other Payee,
2. Date the check the day the funds were transferred 
3. In the Apply Accounts section, select the GL bank account into which the funds are going. Ex: Payroll/Checking Account.
4. Save and print the check to screen - check number could be eftXXX

When posted, the check takes the funds out of the PPP account and puts them into the Payroll/Checking account. The Bank Reconciliations will show the withdrawal check from the PPP bank rec. In the Payroll/Checking account rec., it will show the funds deposited with the check number in the number field.
 

Use PPP Checking Account without Transferring to Existing Checking/Payroll Account

If you plan on using your PPP Checking Account instead of transferring the funds to your existing Checking Account, you only need to choose this new bank account when paying bills in the Pay Bills screen. You will also choose this new bank account when recording payroll journal entries.

 

Payroll

Your payroll company will send you a journal entry. You will need to make sure you substitute the new bank account in that entry. Likewise, when recording paychecks drawn directly from the new bank account, you will need to make sure you substitute that bank account information in the journal entry.

 

Utilities

Create the bills as you normally would. On the Pay Bills screen, you should select the utility bill you are paying. In the Payment Bank Account dropdown, select the new bank account instead of your normal bank account.

 

Your bank statements and the Bank Reconciliation in Legacy will serve as the audit trail for how the funds are used.