Understanding the Required Steps to File and Pay your Unclaimed Property


In order to perform an Escheat Payment Process, you must first ensure that you have completed your setup as well as your due diligence. A key step for success is to build your internal processes and regularly review the State Regulating requirements for each state that you will be submitting unclaimed funds to.   


Our goal today is to walk you through each step - from your initial setup, to running the escheat payment process. 


We will be covering the following Setup Steps:

  • Suspense Handling 
  • Payment Methods 
  • State Statistics Form 
  • Business Associate/Owner - details 
  • Business Associate/State Payor - details 
  • Mass Change - Due Diligence Maintenance 


Suspense Handling 

Master Files/Revenue/Suspense Handling

Suspense Code/Description - The Suspense Code is a 5-digit alpha numeric field, and the Suspense Code Description is a 35-character field that allows the user to identify the code and description for the Suspense Code used in the system.


Escheat Eligible - This checkbox signifies that this code will be treated as eligible to be escheated to the State. Revenues with this code will be handled according to the escheat rules set up on the Escheat tab of the State Statistics Setup form.



Payment Methods 

Master Files/Bank Recon/Payment Methods

Payment Methods Tab allows the user to set up various payment methods that identify the Corporation making payment, the payment type to be used, the payment process to be used for the associated payment type, the bank account, payment credit account, and payment handling type. Users can add payment types and payment handling types using two other tabs: Payment Types Tab and the Payment Handling Tab.

Payment Process Type - This field requires you to pick the type of Process for the current Payment Method from a drop-down list of values maintained via the Process Type system decode table. For example, when defining the valid Payment Methods for Revenue Escheat Payments to be made by the system, select 'EschPmtProcess'. 


Ensure you set up a Payment Method for each corporation submitting unclaimed funds to the state. 


Payment Handling Tab allows you to define the Payment Handling that is valid for Payment Methods. Here you can determine what EDI files will be created for each payment handling type by selecting the associated checkboxes. For each file type you can use the radio buttons to select whether the file will be created in the EDI Process or during the Payment Process. 


For the escheat payment process:  1 - Payment handling type needs to equal the Payment Method on the State Statistics, Escheat Tab. 2 - business choice; 3 - Check EDI - select either Create In Payment Process or Create In EDI Process. **Custom Enhancement Available: NAUPA EDI 

State Statistics 

Master Files/Common Files/State Statistics

The State Statistics form allows the user to set up state information for reporting and remitting escheat payments. The system provides the standard gas pressure base and allows users to define the escheat payment and reporting rules that are applicable for escheat eligible owners. The form must be filled out in order to use the system’s escheat payment processing.


Statistics Tab is used to assign default settings to specific states. The state codes can be set up for any country and will be used within Enertia for assigning addresses, setting default tax groups for customer invoice billing, default state pressure base for production and state withholding for revenue distribution. 



Escheat Tab is used to define the escheat payment rules for each state. The header section of this form displays the currently selected state listed on the Statistics tab. The arrow buttons at the bottom right of the form can be used to change to the previous or next state. Only one escheat record per state is allowed in the system. The escheat details can be edited but the Add button will be disabled if an escheat record already exists for the selected state.


Review the State Regulating requirements per state; using this information, populate the Escheat Tab accordingly:  Payee, Hold Years, Report Due Date & Payment Due Date (normally the same date); Eligibility Cutoff Date, Report Frequency; Payment Frequency; Payment Method. 


The next section will be determined based on your business needs and you will choose one of the radio buttons for each:   Unknown Owner Address Rule; Escheat Aging Rule; Payment Rule - as shown below:  

Unknown Owner Address Rule - This field is used to define whether the state of the corporation where the revenue is distributed or the state where the revenue property is located should receive the escheat payment for an owner with an unknown address. 

Escheat Aging Rule - This radio button is used to determine escheat eligibility. Depending on the state eligibility rules for escheated, the user can select eligibility based on the age of the production date or the accounting date. 

Payment Rule - This radio button works in conjunction with the Hold Years field to determine which items should be remitted to the state after an owner has been identified as eligible for escheat. Depending on the state requirements for escheat eligibility, the user can choose to remit to the state all revenue that is older than the hold years or remit all revenue to the state regardless of age in order to clear out the suspense. 

After Remittable Ignore Hold Period and Pay All - Users can select this checkbox in order to automatically update the BA’s address attribute with the process date in the Remittable Date field after the escheat process has been finalized.


The checkbox labeled “After Remittable - Ignore Hold Periods and Pay All” allows you to override all hold years; this setting is often used for the first-time submission of unclaimed funds.


Address Information

Enertia Lookup/Business Assoc/Address Information



Ensure there is a check in the Escheat Eligible check box; if there is no address in the address field, be sure to check the Address Unknown box. 


Eligible Date - This date is used to indicate when the owner became Eligible for Escheat. This information is for display purposes.


Remittable Date - This date specifies when the owner/address became remittable to the state. When the State Statistics form has “After Remittable - Ignore Hold Period and Pay All’ checked on the state’s Escheat tab, then the escheat payment process will remit the owner’s suspense that has an escheat eligible suspense code regardless of the hold years specified on the State Statistics form when the process date is greater than the remittable date defined on the owner’s address.


Escheat Annual Report - This must be selected to run an escheat payment prior to the report date defined on the State Statistics. Also, the Payment Frequency on the State Statistics form must be set to "Monthly” but can only be used when processing "TX" escheat records. The suspense must be classified as escheat eligible before it will be available for selection in an escheat payment process. 


For the State Entity being paid - Ensure that the address information is completed - address, city, city, state, zip. Select the role:  Vendor. 


Mass Change

Processing/Other Processes/Mass Change 

Once your due diligence is complete, you will perform a Mass Change to transfer the eligible owner(s) from their current suspense (ADDUN, DECD, TITLE, Etc.) to the Suspense Code of ESCHT. 



Escheat Payment Process

Processing/ Payments-Void Payments\ Escheat Payment Process


The system will evaluate escheat eligible revenue owners, distributed revenue transactions, and state escheat handling in order to generate escheat payments using the following eligibility criteria:  

  1. Escheat information is defined in the State Statistics form that determines the escheat payments that will be generated for the accounting date period specified. Only states that have an escheat payment due date within the specified accounting month and will be available to be escheated by the escheat payment process. Additionally, revenue that meets the aging criteria for the state that is to receive the escheat payment will become available. 
  2. Revenue owners with a known address are processed first for the state defined in the address record. The system then evaluates all revenue owners with address records marked as unknown address. The escheat unknown address handling rules for each state are defined in the State Statistics form which are used to determine the state that will receive the escheat payment. The escheat payments will be distributed to either the state of the corporation defined for the current escheat process OR the state in which the revenue property exists. 
  3. Evaluate outstanding receivables for the escheat owner and calculate netted revenue that is to be escheated to the state on the owner's behalf. The system will make the required journal entries to reflect the revenue netting as a part of this process.


To open the Escheat Payment Process, go to Processing/Payments Void Payments/Escheat Payments. The Escheat Payment Process Select Form will open. 


The user will need to input the following data:

  • Select Corporation 
  • Enter Accounting Date for current process 
  • Enter Payment Date that will appear on checks 
  • Override Payment Type, if applicable

Click OK and the Escheat Payment Process Form will open in a second tab.



The Selection panel displays the escheat payments available for processing. Detail information includes the Owner, Accounting Date, Production Date, State, and Property information.



The Criteria panel below the Selection panel is used to filter the records in the Selection grid. Users can set a specific filter by using the Prompts Menu which allows the user to edit, select or de-select the necessary prompts, apply filter to the Selection grid or remove the filter entirely. The user must select the Apply Filter button after the criteria has been set. The Open Criteria button allows the user to create and save a new criterion with the preset prompts that can be used every time during the Revenue process.


The left-hand side of the form is the Menu Toolbar which shows the listed-out Process Steps, and the Reports that will be generated. Using the checkbox located to the left of each Process Step allows you to expand the form to see each report. The panel at the bottom displays any Process Errors/Warnings and Instructions.



Escheat Payment Process Steps

Step 1 - Escheat Complete Selections

Select escheat payments and move them to the right grid. To process one escheat payment, use the single blue arrow to move the payment over. To process all escheat payments in the grid, use the double blue arrows  to move all payments over. The user must select an escheat payment to move through the process.



Click Move Next  button on the Menu Toolbar to move to the next step.


Step 2 - Escheat Payment Recap

This step generates a report with a recap of the escheat payments that will be made by the current process and any revenue netting. This recap will allow the user to review the total payment amount for each state and the detail revenue transactions that make up the balance that is to be escheated to each state in the current process.


Click Move Next  button on the Menu Toolbar to move to the next step.


Step 3 - Escheat Generate Remittance

This step generates the checks for each state that is included in the current escheat payment process. Payments to each state will be based on either the escheat payment method defined for the state in the State Statistics form OR the override payment type specified through the Escheat Payment Processing Selection form.





Note the difference between the Net Amount Selected on the Payment Recap of $11,944.15 and the Revenue Payment Netting Summary after Netting & Withholding have been run. The adjusted amount to submit to the state is:  $11,933.96.


Click Move Next  button on the Menu Toolbar to move to the next step.


Step 4 - Escheat Payment Journalization 

This step creates the journal entries that will be posted to the general ledger for the escheat payments and revenue netting in this process. The journalization records are generated based on the payment method or override payment type specified for each state included in the process. The system will evaluate the posting rules for each account that is to be posted to ensure that the necessary coding information is included on each journal entry record.



Click Move Next  button on the Menu Toolbar to move to the next step.


Step 5 - Escheat Payment Register 

This step will generate a report that will summarize the payments that will be posted when the escheat payment process is finalized. Users can still back up in the process and correct any problems before continuing.




 NAUPA EDI For Escheat Payment Process

      **NAUPA: National Association of Unclaimed Property Administrators

This step is also where the NAUPA EDI file is created. Please see below a couple of snippets of the NAUPA EDI that is generated. The file that is generated it an .xls that was created based off of the required reporting from the “National Association of Unclaimed Property Administrators” - NAUPA Import File. 




Click Move Next  button on the Menu Toolbar to move to the next step.


Step 6 - Finalize Escheat Payment Process 

This step posts the journal entries to the general ledger and creates these transactions in the bank reconciliation system. Users will be prompted before finalizing where they can select YES to finalize or NO to keep the process as unfinalized.