CLASS ONE: Employee Management and Program Defaults > Program Defaults > Account Types

It is common for management companies to separate ledgers of accounts that have been placed in some sort of collection or bankruptcy process. In order to achieve this process, VMS allows you to create a sub-account to manage it.

What happens when bankruptcy sub-account is created?

•It will use the same account number as the original owner account.

•The account type will be changed to Bankruptcy.

•All the transactions and contact records will remain in this account.

•A new active owner account will be created with a zero balance, using the same contact records as the original account. This new account will be the one that will get any new billings or late charges.

•This new active account will be considered the Post-Bankruptcy account.

IMPORTANT: You cannot change a Bankruptcy account back to an Owner account. If the owner were to pull out of bankruptcy prior to the relief of the debt, you would have to recreate the history onto the new account.

How to create bankruptcy accounts?

First, if you do not have already a Bankruptcy (aka Collection) account defined:

•Create one in Program Defaults | Account Types tab

•Enter the name: Bankruptcy

•Select a unique color that will easily help you identify the type of account

•Close Program Defaults

Second, find the owner account which will be turned into a Bankruptcy account

•Under the Accounts tab

•Click the Change Account radio button

•In the Select Account Type, choose the Bankruptcy sub-account

•An Information window will pop-up, prompting “Are you sure you want To change current account To a Bankruptcy account?”

•Press Yes to proceed.