Important
Banking Contract Information
SIMS FMS6
AND
RM Finance
May 2012
Cheques and Your Finance System
System Instructions
Transferring Balances
Wisepay
IMPORTANT
PLEASE READ
The person operating your Finance and Wisepay system will require this Bulletin.
28281Financial Systems HelplineTel No: 01992 555713 Option 2
email : /
Introduction 3
Cheques and RM Finance 3
Bank Reconciliation for RM Finance 4
Cheques and FMS6 4
System Instructions for FMS6 5
Transferring Balances - RM Finance 23
Transferring Balances - FMS 24
Wisepay 25
28281Financial Systems HelplineTel No: 01992 555713 Option 2
email : /
Introduction
This bulletin is designed to give further guidance concerning the change of bank account and how it will affect the cheque numbering and printing within your finance systems. It will also highlight considerations when ordering the pre-printed cheque stationery.
In addition, instructions have been included to give guidance to schools on how to change the bank account details within the Wisepay system. There is an optimum time for this change within Wisepay. If you use this system please read this document now so that you are prepared
If you have not signed up to the new banking contract and are therefore remaining with National Westminster Bank, you do not need to action any of the information within this document.
Cheques and RM Finance
Manual Cheques
The new general account cheque books have been issued. The new cheque numbers will not follow on from the Nat West cheque numbers but may start at 1 again. Even though this number has already been used within RM Finance the system will allow you to post the cheque number again.
Pre Printed Cheques
If you do not use pre-printed cheque stationery in RM Finance you can ignore this section.
RM Finance will not allow duplication of numbers for pre-printed cheque stationery as it records each cheque as it is used. When you are ordering your first batch of Barclays cheques the numbers should continue on from where your last batch of Nat West cheques finished.
For instance if you current batch of Nat West cheques end on number 205000 then your first Barclays batch should start at 205001. You must inform Checkprint when you order your pre-printed cheques of the starting cheque number.
When you are ready to use the first batch of the new Barclays cheques,
§ select the payment that you wish to process and click on print payment.
§ overtype the cheque number with the first number of the Barclays batch. The cheques will print as normal.
Bank Reconciliation for RM Finance
Until all of the Nat West cheques have been cleared, cheque numbers from both Barclays and Nat West will appear on the Bank Reconciliation screen.
Schools must remember to reconcile both the Nat West and Barclays statements each month until the Nat West account is closed.
Cheques and FMS6
New Bank Ledger Code
The FMS system will need a new bank account ledger code set up. Full details are included in this bulletin, see below. Once this has been done the system will allow the cheque numbers to start at 1 again.
Manual Cheques
The new general account cheque books have been issued. The new cheque numbers will not follow on from the Nat West cheque numbers but may start at 1 again. Even though this number has already been used once the new bank ledger code is set up the system will accept this number again.
Pre Printed Stationery
Please note that the manual cheques and the pre printed cheque stationery cannot use the same set of numbers.
For instance, if the manual cheque books start at 000001 the computerised stationery must start at a higher number. We recommend that the pre printed cheques start at 200001 or higher.
System Instructions for FMS6
Setting up a New Bank Ledger Code
A new bank ledger code will need to be set up with the new bank account details.
Tools | General Ledger set up | Tab 5 Ledger Codes
Add
You will need to select the Type of Ledger code to be created:
Select Bank Account
Select Next
This will take you to the next screen
You will need to select the Ledger Group
Highlight Bank
And Select
Click on Next
You will now need to enter the New Bank Code and Description
Enter new code – BA
Enter the new description – Bank - Barclay
Click on Finish -
You will now need to enter the new bank account information.
You will need the following information
Account Name
Sort Code
Account number
Once information has been entered Save
Order Books
Close Order book
To avoid confusion we suggest you close the Natwest Order books.
Tools | Books | Tab 1 Order Books
Highlight the open Order book
Click on the
It will ask you the following
Select NO
The Order book will now have the status of closed
New Order Books
A new order book will need to be set up.
Tools | Books | Tab 1 Order books
Add
Type the Prefix : ORD1
Type in the start and end book number
Using the browse select the new bank account in Payment source
Save
The new order book will now be ready to use.
Petty Cash Books
Close Petty Cash Book
To avoid confusion we suggest you close the Natwest Petty Cash books.
Tools | Books | Tab 2 Petty Cash
Highlight the open petty cash book
Click on the
It will ask you the following
Select NO
The petty cash book will now have the status of closed
New Petty Cash Books
A new order book will need to be set up.
Tools | Books | Tab 2 Petty Cash Book
Add
Type the Prefix : PC01
Type in the start and end book number
Save
The new order book will now be ready to use.
Cheque Books
Close Cheque book
To avoid confusion we suggest you close the Natwest cheque books.
Tools | Books | Tab 3 Cheque Books
Highlight the open cheque book
Click on the
It will ask you the following
Select No
The Cheque book will now have the status of closed
New Cheque Books
A new cheque book will need to be set up.
Tools | Books | Tab 3 Cheque books
Add
Select the bank account
Type in the start and end Cheque number
Save
How the change of bank ledger code affects FMS:
Accounts Payable
Invoices
Focus | Accounts Payable | Invoices/credit notes
When entering a new invoice on FMS you must make sure that you select the correct bank account in Pay From.
To select click on the browse button
Highlight the bank account you wish to use
Select
Cheque Processing
Focus | Accounts Payable | Cheque Processing
Add a new Cheque run
Select which bank account you wish to use, using the browse
You will now be able to select the cheque book for the new account.
Bank Reconciliation
Focus | General Ledger | Bank Reconciliation
Add a new Statement
You will now have the option to select which bank should be reconciled.
Click on the Browse and select Account
Enter the statement number and date
Reconcile as normal
Cash Book and VAT Reimbursement Journals
Focus | General Ledger |Manual Journal Processing
Add either a Cash book Journal or VAT Reimbursement Journal
Next
Enter the Narrative and the correct posting period
Select Next
This will take you to the next screen where you will need to select the correct bank account.
Click on the browse and select the bank ledger code
Continue filling in the cashbook or VAT reimbursement journal as normal.
Petty cash
A new petty cash ledger code will need to be set up.
Tools | General Ledger setup | Tab 5 Ledger Codes
- Add
Select the type of ledger code as ‘Petty Cash’
Next
Select the Group as ‘Petty Cash’
Next
You will now need to enter the new code and description
New Code – PCB
Description – Petty Cash Barclay
Finish
Save
You will now need to assign the new code in Petty cash.
Focus | General Ledger | Petty Cash
You will have a petty cash account set up
You need to select the New Petty Cash Ledger Code
Click through the browse
Double click on the new petty cash account (Highlighted in blue)
You will need to select the new funding source
Highlight your new bank account (e.g. Barclays – highlighted in blue)
Select
The next message will appear
Click on Yes
The new petty cash account should now be selected in the Petty cash account
Accounts Receivable
Focus | Accounts Receivable
A new Paying In Book will need to be set up.
Tools | Manage Books
We suggest you close the open Natwest Pay in Book
The books that are open will have a tick in the open column
Highlight the open Natwest Pay In Book
In the top right hand corner of the screen you will see the following icon
- Close book /Reuse Numbers
Click on this icon
The following message will appear
Click on No
Your Natwest Pay In Slip will now be closed.
New Pay In Book
Next you will need to open a new Pay In Book for your new bank account.
Tools | Manage Books
- Add
Select the Type by clicking through the browse
Select the Bank Account by clicking through the browse
Type in your chosen Prefix
Type in your Pay In Book numbers for your new bank account
Save with the blue tick
Your pay in book will now be available to use
Transferring Balances - RM Finance
For more detailed instructions please refer to RM Finance Bulletin 176.
The Nat West bank account will remain open from 1st June 2012 until 31st July 2012.
Schools are responsible for transferring the balance into the new Barclays account. This process cannot be done by the banking team.
It may help to stop ordering so that there are not so many cheques to clear from the Nat West account.
You cannot issue any cheques from the Barclays account until it has cleared funds in it.
To decide how much to transfer schools will need to find the cash book balance.
In RM Finance, run the LMSFR5, the balance at the top shows the balance as per the bank statement. Please make sure this agrees with the bank statement.
The balance at the bottom is the cash book balance and this is the figure that could be transferred to the Barclays account.
Before transferring the balance you should consider if there are any further Direct Debits and Standing Orders that may come out of the Nat West account before being moved to Barclays. If there are, schools should leave enough money in the Nat West account to cover it. It may be prudent to leave a buffer of £2000, or a figure of your choice, in the Nat West account to cover other eventualities.
Write a cheque from the Nat West account and immediately pay it into the Barclays account. The cheque will need to be processed in RM Finance.
For full instructions please read RM Bulletin 176.
The Nat West account will be closed on 31st July.
Further guidance will be available in due course concerning the closure and transfer of the final balance.
Further guidance will be available in due course concerning the disposal of the unused Nat West account stationery. It is important that this is done in prescribed way.
Transferring Balances - FMS
The Nat West bank account will remain open from 1st June 2012 until 31st July 2012.
Schools are responsible for transferring the balance into the new Barclays account. This process cannot be done by the banking team.
It may help to stop ordering so that there are not so many cheques to clear from the Nat West account.
You cannot issue any cheques from the Barclays account until it has cleared funds in it.
In FMS, under Focus > General Ledger > Bank Reconciliation click on the last reconciled statement. Please make sure the closing balance figure agrees to your last bank statement.
The Bank Ledger balance is the cash book balance and this is the figure that could be transferred to the Barclays account.
Before transferring the balance you should consider if there are any further Direct Debits and Standing Orders that may come out of the Nat West account before being moved to Barclays. If there are schools should leave enough money in the Nat West account to cover them.
It may be prudent to leave a buffer of £2000, secondary schools with a greater number of transactions may choose to leave a higher figure in the Nat West account to cover other eventualities.
Write a cheque from the Nat West account and immediately pay it into the Barclays account.
The cheque will need to be processed in FMS to transfer the income from the Nat West account in the system to the Barclays account within the system.
You must make sure that both the Cheque payment and the Deposit Amount are processed using the same ledger code.