RM Finance
USER BULLETIN No. 218
September 2015
Tel No: 01992 555713
Fax No: 01992 555727
email :
Included in this Bulletin:
· Introduction
· Paid Meals Price
· Year End Accrual
· Charges on Account
Financial Systems Helpline
Tel No: 01992 555713 - Option 2
email :
Herts for Learning
01438 845111
www.hertsforlearning.co.uk
Introduction
Please read this bulletin to familiarise yourself with the subjects contained within the document.
This bulletin contains similar instructions to Bulletin 205 and can be used instead although Bulletin 205 also explains how to set up the new analysis codes and headers.
Changes to the Price Charged to Parents for Paid Meals
Schools with primary pupils have been advised that they can set the price of paid meals themselves provided the price covers the basic cost of £2.20 per meal.
Some schools will have decided to charge parents more than the basic price. Hertfordshire County Council has suggested that schools could charge £2.30 for each primary paid meal with £0.10 per meal to come back to schools. Schools may have decided to charge a different amount to parents however.
This bulletin suggests a way for schools to account for the additional amount charged.
If your school has decided to charge parents £2.20, the basic cost, there are no additional transactions to complete.
A mock invoice and trading statement are shown to demonstrate the range of charges that schools may see.
The document then explains how to post the invoices into RM Finance. The guidance can be used month to month instead of Bulletin 205 however it assumes that the structure created in Bulletin 205 is still being used.
Year End Accrual
The year end guidance advised schools to accrue for the difference between the March charge on account and the actual free school meals taken in March, which would have shown on the trading statement to accompany the April invoice.
Schools posted the resulting accrual to Free School Meals budget (FSM).
After posting the April invoice schools will have seen that the Charge on Account heading did not match the current month charge on account.
Instructions are included to help schools adjust the postings, should they have this issue.
Charges on Account
The charges on account postings have been reviewed as we have reached the 1st anniversary of Hertfordshire Catering Ltd.
Instructions on how to post this part of the invoices have been included in this bulletin.
Mock Up of the Invoices
Mock ups of a typical October invoice together with a September trading statement have been recreated below with the addition of a column for notes. Please study the documents and read the bulletin notes below it, where applicable analysis codes and budgets are suggested.
Please note that if your school has decided to charge an increased amount to parents, demonstrated by the shaded line against note 12, there is now an additional entry to make. Please refer to page 9 for the additional posting.
Schools that have decided not to increase the cost of paid meals to parents can continue to follow the instructions but ignore the item on page 9 of this bulletin.
Notes to Accompany the Trading Statement
Charges on Account Lines
Please see page 15 for further information about these postings.
Lines 1 and 3
Line 1 relates to COA for paid pupil meals. Line 3 is the income collected on account for paid pupil meals.
Post line 1 as expenditure to code 401200 and budget COAPM.
Post line 3 as income to code 722001 and budget IOAPM.
Line 2
The line shows the COA for the free school meals.
Post expenditure to code 401220 and budget COAFSM.
Credit Previous Charges on Account Lines
Please see page 15 for further information about these postings.
Lines 4 and 6
Line 4 shows the credit of the previous months COA for paid pupil meals. Line 6 relates to repayment of the income collected on account for paid pupil meals. Post line 4 as an expenditure correction to code 401200 and budget COAPM.
Post line 6 as an income correction to code 722001 IOAPM.
Line 5
The line is the credit of the previous months COA for the free school meals. Post an expenditure correction to code 401220 and budget COAFSM.
Actual Meals Taken Lines
Lines 7 and12
Line 7 is the cost of the actual paid junior meals. Line 12 is credited to the invoice which shows that HCL is collecting the funds for the actual paid junior meals taken from the client account. The two lines will net off unless school charges a higher amount to parents.
Post line 7 as expenditure to code 401200 and budget account HCLEXP. Post line 12 as income to code 722001 and budget HCLINC.
Line 8
The line shows the actual charge for the junior free school meals taken.
Post as expenditure to code 401220 and budget FSM.
Line 9
The line shows the actual charge for the infant free school meals taken. It includes both newly entitled and those infants already entitled to a free meal.
Post as expenditure to code 401220 and budget FSM.
Lines 10 and 13
Line 10 relates to actual meals that have been paid for by staff and visitors. Line 13 is credited to the invoice which shows that HCL is collecting the funds for the adult paid meals from the client account. The two lines net off.
Post line 10 as expenditure to code 401100 and budget HCLEXP. Post line 13 as income to code 722101 and budget HCLINC, do not forget to reclaim the VAT.
Line 11
The line shows the actual charge for the adult duty meals taken in school.
Post as expenditure to code 108300 and budget MEALS.
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Posting the Trading Statement/Invoices
Please substitute your own figures, this is an example only
Post the Expenditure from the September Trading Statement and Matching October Invoice
To post the expenditure it may be best to use Multi Line posting. (Instructions on how to switch this function on are shown on page 8.)
The example below shows the multi line posting screen.
Add up the total costs against lines A (from the invoice) for a total batch figure.
Post the individual expenditure lines from the trading statement. (Please note that not all of the posted expenditure lines are visible in this picture.
Once all lines have been posted correctly the total of the expenditure lines should equal the total in the header of the expenditure screen. Click on Ok
Post the Income from the September Trading Statement and Matching October Invoice
To post the income it may be best to use Multi Line posting.
Add up the costs against lines B (from the invoice) for a total batch figure.
Post the individual lines, please do not net off income and expenditure.
Once all lines have been posted correctly the total of the income lines should equal the total in the header of the income screen. Click on Ok.
Please remember to recover the VAT for the Adult Paid Meals, the figure is noted on the invoice.
To switch on Multi Line Posting
If you currently do not have multi line posting but wish to switch it on
Click on System Manager
Click on Options
Click on the Display tab
Change the radio spots to Multi Line Entry
Click on OK
Post the Expenditure Correction to Credit the Previous
Charge on Account
Please see page 15 for further information about these postings.
Click on Transactions
Click on Adjustments and Corrections
Click on Expenditure and Adjust/Correct
Enter and post lines 4 and 5, one at a time, as noted in the instructions above.
Post the Income Correction to Re-Charge the Previous
Charge on Account
Please see page 15 for further information about these postings.
Click on Transactions
Click on Adjustments and Corrections
Click on Income and Adjust/Correct
Enter and post the line as noted for line 6 in the instructions above.
The information shown above is an illustration only.
Post Allocations to Move the Additional Income
Schools that charge parents the higher rate for school meals should also complete allocations for the difference between what Hertfordshire Catering Ltd charges the school and what the school charges the parents.
The picture shows that the Hertfordshire Catering Net Off area has a balance. This heading previously showed a zero balance if the postings had been completed correctly. The balance in the example is the extra income that school has received back from the income collection account.
This can be checked by calculating the difference between lines 7 and 12 on the trading statement, using the Net column. It is, in this illustration, 1449 paid meals at 10 pence per meal.
Schools should decide where the money should be allocated to. This could be based on where the cost of delivering the meals service is.
Suggested budgets are:
· Administration (Administration salaries)
· Other Staff (MSA salaries)
· Dinner Money Debts
The budgets mentioned above are a suggestion and are by no means an exhaustive list.
To allocate the income
Click on Transactions
Click on Budget
Place the radio spot in Income
Enter Budget Account HCLINC
Enter the date at the end of the month
Enter the amount, in this case £144.90
Enter a Reference
Enter the detail
Click on Ok and Yes
You will have to profile the amount before you can move on.
Profile the additional income in the period that you are working in, in the example period 7 October. Click on Ok.
Both Current Allocation and Total Budget must say the same figure before being able to move on.
To complete the allocations
Place the radio spot in Expenditure
Enter Budget Account ADMIN
Enter the date at the end of the month
Enter the amount, in this case £144.90
Enter a Reference
Enter the detail
Click on Ok and Yes
You will have to profile the amount before you can move on.
The budget account selected in this example is a staffing account and already contains some profiles.
Add the amount to period 7.
Both Current Allocation and Total Budget must say the same figure before being able to move on.
Accrual Difference
At year end schools will have accrued for the cost of the free schools meals.
The accrual was made up of the difference between the March charge on account and the actual charges for free school meals coming through on the April invoice.
The resulting accrual was posted to FSM budget.
You may see that the balance of the Catering Charges on Account section, on the List of Budget Accounts, does not agree to the Charge on Account for Free School Meals for the current month.
The accrual could have been done in two parts;
· A pre-payment to COAFSM to negate the previous months charge on account.
· A creditor to FSM for the actual cost of the March free school meals both Junior and Infant.
If you have this issue, below is what you can do to make the Herts Catering accounts balance again.
In the example;
· the March actual for free school meals was £4005.45
· the charge on account for free school meals for March was £2403.70
· the accrual was £1601.75
The example shows the list of budget accounts after posting the April Hertfordshire Catering Ltd invoice.
The balance of the Charges on Account area (from the invoice), should be £1479.20.
To work out the difference at your school look at the FSM budget account.
Click on Records
Click on Budget Accounts
Click on Find Record
Type FSM in the
Budget Account box
Click on OK
Click on Balance Remaining
Spy glass
Select Full Budget Analysis
Click on Print
Select Screen
Click on OK
Click on No
Click on Yes
The difference is £2403.70, (the difference between the actuals and the accrual).
Take the Junior free meals for Mar 301.00
Take the Infant FSM charge for Mar 3704.45
Take off the Creditor Reversal -1601.75
The figure to correct 2403.70
The image shows the FSM budget after the correction below.
So to correct….
Using the example figures, post an internal charge;
Click on Transactions
Click on Internal Charge
Budget to transfer from
FSM
401220
2403.70
Budget to transfer to
COAFSM
401220
2403.70
Remember: to
tab to make the posting
appear in the bottom box
Click on OK
The Catering Charges on Account area now shows the current months charge on account.
Charges on Account
The Hertfordshire Catering postings have been reviewed after the first year.
Previously schools have been instructed to post the Charge and Income on Account on a monthly basis together with the credit of the previous months Charge and Income on Account each month.
The amount associated with the Charges on Account has generally been static throughout the year.
It has been agreed that going forward where the amount of the Charge on Account has not changed from month to month there is now no longer the requirement to post the transactions.