How do I put my creditors and debtors into SIMS?

End of Year Journals in FMS6 (All Schools)

There are two parts to end of year journals:

1. Your journals entered in the Creditor/Debtor return. This informs Finance Services and, when agreed, is used to inform the FINEST system (i.e. the LEA’s record of your transactions).
2. What you do at school/college to ensure that your records are compatible with those of the LEA.

These notes are intended to help the user through part 2.

Example

The Creditor Debtor return included the following entries

The FINEST Financial Reports (assuming your creditor/debtor return is approved)

Any CRED entry on your return will be debited to the appropriate ledger code in the old year and will be credited to the same code in the new year. These should balance out with entries on FINEST when the payments are processed.

Any DEBS or entry on your return will be credited to the appropriate ledger code in the old year and will be debited to the same code in the new year. These should balance out with entries on FINEST when the income is processed.

Any PMIA entries on the Creditor/Debtor return will be credited in the old year and debited in the new year.

Any IRIA entries on the Creditor/Debtor return will be debited in the old year and credited in the new year.

Reversing journals in FMS6 – General Information

In the following notes:

Any reference to the New Year relates to the financial year starting 1st April of the current calendar year

Any reference to the Old Year relates to the financial year starting 1st April of the previous calendar year.

There are two ways of doing journals in FMS6:

1. using the Journal Wizard

2. not using the journal Wizard

The standard set of data defaults to using the Wizard. These notes will cope with either situation.

Assuming that the Financial year has been created, switch to the Old Year.

The small window at the bottom right hand corner confirms which financial year is in view.

Click on the General ledger focus button

Click on Manual Journal processing

Click on Next to add a journal

Notice that you can switch off the Journal wizard if you wish. The notes that follow are split into three sections

A: if you continue to set up the Journal header using the Journal Wizard

B: if you decide to switch off the journal Wizard and then create the Journal Header.

C: whichever option you take, the entry of journal lines is identical.

Note that it is possible to switch off the wizard at a number of screens. Should the user do this they will have to switch to the appropriate part of the notes.

It is also possible to switch the wizard back on once a journal has been completed (see last page)

A. Using the Journal Wizard

Click on the box to make this a Reversing Journal. (Note the radio button for Normal does NOT disappear)  

Click on Next

This screen allows the user to create the Journal Header

Please note that it is important to do the following in the order prescribed below.

1. Change the Reversal Year to be Next Year.

2. Change the Period to be 12 (you can use the browser)

3. Change the Reversal Period to be 1 (you can use the browser)

4. Enter a suitable Narrative for the whole journ

Narratives:

This will depend upon how you are going to handle this. You will already have a printout from your use of the Creditor/Debtor software. This printout splits up the return into sections for each fund. You are therefore advised to make a complete journal in FMS6 for your “Creditors return for Fund 01”. Then when that is completed and posted, make a new journal for “Debtors return for Fund 01 Revenue (SBS) and Fund 02 Capital”. Repeat for any other journal types related to Fund 01. Then repeat for each journal section for other Funds that were included in your return to FSE.

Click on Next and then Click on Finish (or back to edit or check on the Header information)

Not Using the Journal Wizard

It is possible to switch off the journal wizard at a number of places in the process. The following notes assume that the wizard was turned off at the first screen. If you turn off at a later point you will need to find the appropriate point to start.

Click on box to make it a Reversing Journal.

Then click on Select

Please note that it is important to do the following in the order prescribed below.

1. Change the Reversal Year to be the Next Year.

2. Change the Period for the current year to be 12 (you can use the browser)

3. Change the Reversal Period to be 1 (you can use the browser)

4. Enter a suitable narrative for the whole journal

Narratives:

This will depend upon how you are going to handle this. You will already have a printout from your use of the Creditor/debtor software. This printout splits up the return into sections for each fund. You are therefore advised to make a complete journal in FMS6 for your “Creditors return for Fund 01”. Then when that is completed and posted, make a new journal for “Debtors return for Fund 01”. Repeat for any other journal types related to Fund 01. Then repeat for each journal type for other Funds that were included in your return to FSE.

Journal Entries

Click on the + button.

  1. Enter the appropriate ledger code, fund code and cost centre for your creditor/debtor entry.
  2. Enter the amount.
  3. Choose Debit or Credit as required. Your Creditor/Debtor printout should help you with this
    This would normally be Credit
    For PMIA this would normally be Credit
    For IRIA this would normally be Debit.
  4. Enter a narrative (optional) as a reference (eg Blunkett Supplies).
    If you have further entries from your Creditor/Debtor printout for this particular Journal Section/Fund combination, click on Update & Next Line and repeat steps 1 to 4 above.
  5. The final line is the balancing entry to the appropriate creditor/debtor code (CRED\DEBS etc). Click on Update & Next Line.
  6. Enter the appropriate code (eg CRED)
  7. Enter the amount (the journal printout should help, or move the current screen sideways and read the Balance total on the main journal screen.)
  8. There is no need for a narrative
  9. Click on Update and Close

Check that the journal is Balanced. If not edit the appropriate line

Check your entries against the Creditor/Debtor printout and annotate the journal section/fund combination on the printout to indicate that journal entries made in FMS6 for that section.

When you are totally satisfied, click on the tick to save the entries.

Certain aspects of the entries on screen will change background colour to green to indicate that journal is posted and is not able to undergo further editing.

Clicking on the “red-handled browser” will return you to the opening journal screen, where your journals will be summarised.

The user will now need to create more journals for other Journal Section/Fund Combinations as required. You could create a Journal Template for each section or fund and then use this each year to create the year end journals

Switching the Journal Wizard back on

Go to Tools | User Options and click in the box next to Use Wizard for Manual Journal Entry

Reversing journal (recommended)

  • This is recommended for most situations. These can be entered in FMS6 before and after running preliminary closedown. This option will save work, as it will create the necessary ‘opposite’ entries in the New Year.
  • If an adjustment does prove necessary after preliminary closedown you will be able to enter a further adjustment Journal (Year end adjustment reversing).

Normal journal

  • If you want to use normal journals and enter a “mirror image” journal in the New Year then this can be done before running preliminary closedown.
  • After running preliminary closedown you will be able to enter year end adjustments in the Old Year and further normal journals in the New Year.
  • Normal journals are better suited to circumstances where the cost centre structures may have changed and different codes apply in the new year
  • You will not be able to pay old year bills in the New Year until you have run preliminary closedown. However even if you wait a few days you will still be able to meet most suppliers payment terms.
  • Detailed notes on Journals in FMS6 are provided for the users

Notes on Creditors Schedules (Local Payments Schools ‘CAPSCH’ codes only)

An entry must be made on the return only if it relates to goods or services received up to and including 31 March for which no invoice has been received. Unfulfilled orders are not creditors and must be omitted.

The school year-end software offers a menu leading to screens relating to each type of creditor.

One menu is for creditors external to Devon County Council, such as A. Black & Sons. Members of staff are external creditors too.

There is an option for creditors internal to Devon County Council, providers within Devon will use the internal invoicing system and so must not be included on creditors lists. DO NOT USE THIS OPTION

There should not be many entries in this section. If you do not know the actual costs, please estimate. Exclude VAT

DO INCLUDE

Claims (external creditor)

Any teachers claims for pay or travel that were not submitted by the deadline for payment in April.

Energy bills if there will not be a full year’s worth of charges recorded against the budget. Estimated energy bills may understate the true position so allow for the extra cost. (external creditor and estimate as required).

Income in advance, i.e. income received in the old year, which relates to goods and services (including courses) which will be supplied in new year e.g. deposits for trips lettings. The amounts to be included may be determined from local records such as trip collection records. Record the FULL amount received even if payment of deposits have been made. (see also Payments made in advance)

Any item that was brought to account in last year but where the liability has not been cleared and still remains. For example energy costs which are still significantly understated.

DO NOT INCLUDE

Staffs travel claims that will be paid on the April pay run, submitted by the deadline.

Trading surpluses (e.g. catering) – these form part of the carry forward figure

DO NOT introduce entries in respect of any unspent cost centre balances. These form part of the carry forward figure.

PLEASE SEND NIL RETURNS on the Finance Information Community via SecureNet using No Creditors as the message subject. Do not send NIL returns before 31st March.

Notes on completion of Debtors Schedules (Local Payments Schools CAPSCH’ codes only)

An entry must be made on this list via the software only if it relates to goods or services your establishment has supplied up to and including 31 March for which either no invoice has been raised or no cash has been banked (if this is a cash rather than a credit transaction) on or before 31 March.

DO INCLUDE

Items which are due in the old year but for which no official invoice has yet been raised.

Items which are due in the old year for which no official invoice has been raised but the cash has been received in the new year.

Payments in advance of exam fees for summer term, where the invoice has been paid from the school budget share in the old year.

Payments of money made in advance in respect of, for example, deposits for trips and events that have not yet occurred. The information for these parts of the return may be established from local records.

PLEASE SEND NIL RETURNS on the Finance Information Community via SecureNet using No Debtors as the message subject. Do not send NIL returns before 31st March.