Escrow Accounts

IBS 2.7 > Group Administrator: Transactions

In any given accounting period, a Group’s expenditures may exceed its income. Therefore, each Group, whether Publishing or Academic (or both), must maintain an escrow account in IBS.

For example, Academic Groups may choose to sell items below cost, but must still pay the “wholesale” price (the Publisher’s price plus the IBS surcharge), even if their sale price is lower. Also, both Publishing and Academic Groups may need to refund payment for materials that are returned. Maintaining a balance in your escrow account ensures that these expenses can be paid.

Each escrow account has:

• A recommended balance: the account will be replenished automatically from the Group’s earned income (if available) to maintain this level
• A warning limit: if the balance falls below this level, the Group is notified
• A shutdown limit: if balance falls below this level, all IBS sales-related activity for the Group is suspended

To view your Group’s current escrow balance, as well as your recommended, warning, and shutdown levels, select Group Administrators > Transactions > Escrow > Escrow Activity. You can view detailed information about any transaction by clicking the transaction ID number.

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