Four standard transaction codes exist for use with generic impounds.

Transaction Code Number	Transaction Description
170	Impound Assessment
270	Impound Payment
466	Impound Distribution
468	Impound Refund

Often, a loan servicer will need to track the transactions and statistics for different kinds of impounds separately. For example, a separate set of transaction codes may be required for the tax impounds and insurance impounds. Therefore, a typical set of manual transaction codes for impounds might look like this:

Transaction Code Number	Transaction Description
1170	Tax Impound Assessment
1270	Tax Impound Payment
1466	Tax Impound Distribution
1468	Tax Impound Refund
2170	Insurance Impound Assessment
2270	Insurance Impound Payment
2466	Insurance Impound Distribution
2468	Insurance Impound Refund

The numeric relationship between these custom transaction codes and the standard codes was intentionally done for the purpose of clearly organizing the transaction codes, but it is not required.

General information on setting up manual transaction codes can be found in the section: Adding a User Defined Transaction Code.

The specifics related to how an impound transaction code is unique will be detailed here.

General Ledger Controls

Assessments
The assessment transactions are non-gl events and the GL controls for these transactions are generally left to NONE.

Payments
The payment transactions will generally debit a cash account and credit an Impound account on the GL. There will often be separate Impound accounts on the ledger for the different types of impounds (taxes, insurance, etc.), and that is one of the reasons why these manual transaction codes are often needed.

Distributions
The distribution transaction generates a check to a vendor. It therefore generally debits the impound account and credits Accounts Payable.

Refunds
The GL effects of a refund are identical to those for a distribution. The payee of the check is simply the borrower instead of a vendor.

Loan Controls

The Classification for all of these transactions must be Impound

Assessments
No loan balance is affected by the assessment.

Payments
The Impound loan balance is increased.

Distributions
The Impound loan balance is decreased.

Refunds
The Impound loan balance is decreased.

Payment Processing Controls

Assessments
The transaction is a receivable. The payment type is Impound. The associated payment is the Impound Payment trans code that is being configured for the same impound type.

Payments
The transaction is a payment. The payment type is Impound. The associated receivable is the Impound Assessement trans code that is being configured for the same impound type.

Distributions
No payment processing controls.

Refunds
No payment processing controls.

Voucher Processing

Assessments
No voucher processing.

Payments
No voucher processing.

Distributions
Use voucher type code of Impound Disbursements.

Refunds
Use voucher type code of Impound Refund.