Session Three - Handout

Session Three – Non-Invoiced Income, Petty Cash and Journals

Manual Journals

The Manual Journal Wizard

The routine for creating Journals will depend on whether the “Wizard” is in use or not.

To switch the wizard on or off, select Tools – User Options. Tick the “Use Wizard for Manual Journal entry” if you want to use the wizard.

Creating a Normal Journal

To create a journal you select a Ledger Code, Fund and Cost Centre and the amount to debit and a similar combination to credit. There may be more than two lines but the total credits must equal the debits.

Ø  Click on the “General Ledger” button and then the “Manual Journal Processing” button.

Ø  Click the “+” button towards the top of the screen.

With Wizard Switched on

Ø  Leave “Normal” checked and click “Next”.

Ø  Choose the period (month) and enter a narrative to explain the journal.

(Note that you can tick a box so that you don’t have to work through the wizard each time in the future).

Ø  Click “Next”.

Ø  Click “Finish”.

With Wizard Switched off

Ø  Leave “Normal” checked and click “Select”.

Both

You can amend the period and Narrative at this point.

Ø  Click on the “+” button next to the line details.

Ø  Enter or select the first Ledger Code, Fund and Cost Centre.

Ø  Enter the amount and click on “Debit” (increases expenditure) or “Credit” (decreases expenditure).

Ø  Click on “Update & Next Line”.

Ø  Enter or select the second Ledger Code, Fund and Cost Centre.

Ø  Enter the amount and click on “Debit” (increases expenditure) or “Credit” (decreases expenditure).

Ø  Click on “Update & Next Line” or “Update & Close.

When you have created all the lines you need, the bottom line should indicate that the journal is “Balanced”. You can save it at this stage and come back to it. You can save an unbalanced journal if you are interrupted, but you will not be able to “Post “ it.

Ø  When the journal is finished, save it and then click on the “Post Journal” button towards the top of the screen.

Ø  Close the focus window.

Note: The amount becomes “Actual” as soon as the journal is posted.

Copying Journals

The icon at the right hand corner of the screen allows the journal to be copied, if the journal is to be used on a regular basis this copied journal can be edited.

Direct Debits and Bank Credits – Cash Book Journals

When you receive the statement from the bank, you will see the record of all direct debits and credits (e.g. School Budget Share, interest). You process these through Cash Book Journals.

Ø  Click the “General Ledger” focus button and the “Manual Journal Processing” button.

Ø  Click the “+” button to add a new journal.

Ø  Click on “Cash Book” and click “Select”.

Ø  Change the period if necessary, enter a narrative to explain the transaction and enter a “Ref”.

Ø  Click the “+” button by the detail lines.

Ø  Select a Ledger code and, if appropriate, change the VAT code, Fund Code and Cost Centre.

Ø  Enter the amount and click on “Net” or Gross, and “Debit” or “Credit”.

Ø  Click the “Update & Close” or the “Update & Next Line” button.

Ø  Click save and then “Post journal” button to complete it.

Journals

Ø  Once familiar with journal processing you can remove the journal processing wizard:

Ø  Tools> User Options’ un-tick Use Wizard for Manual Journal Entry.

Ø  For repetitive normal journals you can use a journal template:

Ø  Focus> General Ledger> Manual Journal Processing + select Standard Template>

Ø  Enter Narrative e.g. Post payroll to individual cost centres + the relevant Ledger Code and Fund and Cost Centre.

N.B. Only enter values if they remain constant. Save.

Non Invoiced Income

To record income you first need to add receipts to the system.

Add Receipt

From the non invoiced income focus bar click on ‘Receipts’ focus button and add record from focus bar.

Ø  Enter date, enter reference, this should be a reference which identifies the receipt i.e. meals, tea etc.

Ø  Select payment method usually cash or cheque, occasionally direct bank transfer (see below).

Ø  Enter sum received, this should equal the whole amount to be paid in against this receipt.

Ø  Enter received from – if this is school income e.g. telephone income, school meals, it could be for a variety of ledger codes/cost centres, therefore several lines need to be added.

Ø  Enter detail + to add, select ledger code, cost centre and fund.

Ø  Enter narrative and amount.

Ø  Click save, the system will allocate the receipt a number (see top left).

Note a receipt is not posted until it is paid into a bank account.

Direct Bank Transfers

Follow the procedure as above, selecting payment method direct bank transfer. After saving, click the red post box (top right) this posts the income against the cash book.

Edit Receipt

A receipt can only be edited if it is un-posted, once it has been posted it cannot be adjusted.

Delete Receipt

Before a receipt is posted it is possible to delete the entire receipt. Select the receipt to delete, click delete record button.

Printing Records

There does not appear to be a facility for printing receipts at present.

Paying Receipts into Bank Account

Once receipts have been entered on the system they can be selected for payment into the bank account.

From focus bar, select Non invoiced income, Receipts, select receipts to pay in either by clicking at L/H side of receipt details, or click tag all to pay in all receipts.

Click the ‘pay in’ button in the processing section. Select the bank account, the income is being paid in against – save.

This will now give you access to paying in processing. In the reference box enter the paying in slip number. Next enter the cash or cheque amounts in the Control Totals Section.

Click Save

Click the ‘print & post’ button (red post box) at top R/H of screen.

View Paying in Slips

Select ‘non invoiced income’ from focus bar, then paying in processing. This will list all the paying in slips, both posted or unposted.

Cancel Posted Receipts

Only direct transfers, direct debit and standing orders can be cancelled once posted.

Petty Cash

Route: Focus>General Ledger>Petty Cash

Reimbursements

Ø  Click the add button

Ø  Choose reimbursement

Ø  Enter the amount.

Ø  Choose the cheque book.

Ø  Enter payee details – School Name.

Ø  Enter narrative i.e. Reimbursement and the date.

Ø  Click ‘Print Cheque’ once all these details have been entered.

Ø  Click Save.

Ø  Post.

Note: A separate cheque book for Petty Cash reimbursements should be kept.

Recording Expenditure

Ø  Click on the “General Ledger” focus button.

Ø  Click on the “Petty Cash Processing” button.

Ø  Click the “+” button towards the top of the screen to add a transaction.

Ø  Click on “Expenditure” and click “Select”.

Ø  If necessary, type “PC” into the “Petty Cash Book” box or use the browse to select the book.

Ø  Click the lower “+” button to add a line of detail.

Ø  Select the Cost Centre, Ledger Code and Fund.

Ø  Enter a description and the total amount and VAT Code.

Ø  Click “Save”.

You may want to take advice about the use of VAT codes since VAT will only be reclaimable with the appropriate receipt. The system now requires a VAT number to be entered for all expenditure.

Ø  Click the “+” button to add another line, or click the “Post Transaction” button.

Ø  Enter a narrative.

Ø  Click the “Post Transaction” button.

Ø  Enter a narrative, and click the “Post” button to complete the transaction.

If you want to record expenditure during the month but do not want to post click the save button at the top of the screen, this will save the expenditure but will not post it.

Printing the Expenditure Listing

After processing petty cash expenditure, it is good practice to print an expenditure listing for the period attaching the corresponding receipts to it and retaining for audit purposes.

Select Reports/General Ledger/Petty Cash/Expenditure listing, enter the dates to be reported on, i.e. from the day after the last expenditure posting to the day of the report.

Cancel or Adjust Petty Cash Transactions

This can be done in two ways either via Focus bar/Petty Cash/Adjust or cancel or via the focus button (close to the post button) when expenditure is adjusted the previous transactions are cancelled (contra) and the adjusted transactions are added.

This completes the notes for Session Three – Non-Invoiced Income, Petty Cash and Journals

Step by Step – Entering a Recurring Payment

A repeating payment needs creating for the direct debit for telephone costs.

1.  Select Focus | General Ledger | Manual Journal Processing.

2.  Click the Add button at the top of the screen and for this journal select Cash Book.

3.  Confirm the period (defaults to the lowest open one).

4.  Select British Telecom in the Supplier field.

5.  Type Direct Debit - Telephones in the Narrative field.

6.  Select the relevant Bank ledger code.

7.  Type DD Phones in the Reference field.

8.  Complete the journal line as described for the cash book journal.

9.  Click the Save button to save the journal.

10.  Click the Add for Recurrence Pattern button.

11.  Enter Start Date – Date of First Recurrence, leave at today’s date.

12.  Type 1 for every month, 2 for every other month and so on.

13.  Enter an end after date if required. This may be the date of the final payment for the year. If no date is entered, the payment will carry forward into the next financial year and beyond. The value can be amended in the future.

14.  Click the Save button to save the recurrence pattern.

15.  Click the Save button to save the journal.

16.  Post the first journal - using today’s date.

Petty Cash

Mouse for Laptop 24.00 4012 F16 VAT S

Ink Cartridge 19.00 4012 F16 VAT S

Boxes for Kitchen 25.00 4200 G03 VAT S

Business Cards 36.00 4013 G02 VAT S

Postage 70.00 4013 G01 VAT Z

Eggs 5.00 4011 F05 VAT Z

Post Petty Cash Expenditure

Reimbursement £179.00 Cheque Number 002128

DEBIT an expenditure code – INCREASES expenditure

CREDIT an expenditure code – DECREASES expenditure

CREDIT an income code – INCREASES income

DEBIT an income code – DECREASES income

Non Invoiced Income

Receipt No. 000292 Dinners I05 9221 £96.30

Staff Dinners I05 9221 £17.55

Paying In Slip 000292

Receipt No. 000293 Lettings I07 9300 £160.00 Fund 01

Paying In Slip 000293

Receipt No. 000294 Dinners I05 9221 £170.00

Staff Dinners I05 9221 £13.95

Paying In Slip 000294

Receipt No. 000295 Lettings I07 9300 £360.00 Fund 01

Paying In Slip 000295

Normal Journals

Transfer £300.00 from Building Maintenance to Other Premises Costs

E01 2000 Fund 01 E10 2500 Fund 01

Transfer £20.00 from Development & Training to Other Staff Costs

D05 1600 Fund 01 D02 1800 Fund 01

Transfer £3000.00 from General Curriculum to ICT

F05 4011 Fund 01 F16 4012 Fund 01

Cash Book Journals

Sports Grant I13 9163 £8000.00

School Budget Share I01A 9965 £21959.32

Pupil Premium I09 9925 £3040.00

VAT Reimbursement

£838.74 received

£2440.00 received

Recurring Journals

Rates Direct Debit £750.00 per month starting 26th November to 26th March

2350 E12

TV Licence £12.12 per month starting 26th November to 26th March

4013 G02

Capital Advance Income – always entered as a Fund to Bank Journal

£20,000 received in April

£50,000 received in May