[Busmanagers] Pre payment of fees for 2007!!
Greig, Chris
chris.greig at balwynhs.vic.edu.au
Wed Jul 26 10:36:52 EST 2006
Hi
I had forwarded some messages regarding payment of fees to Rita Gauci
for clarification and I am posting her reply on the BM Mailing List for
your information.
Regards
Chris
Business Manager
Balwyn High School
Tel: 9819 7911
EMR Rep Business Managers Finance Group
________________________________
From: Gauci, Rita M [mailto:gauci.rita.m at edumail.vic.gov.au]
Sent: Wednesday, 26 July 2006 10:31 AM
To: Greig, Chris; Malcolm, Patricia J; Gibson, Genevieve Marie; Schmidt,
Maxine J
Subject: RE: Pre payment of fees for 2007!!
Hello Ladies
I received the email trail below via Chris Greig, and it's good to read
all the opinions and preferences on handling 2007 receipts in 2006. To
clarify and assist, I'm attaching an extract of the Budget Preparation
PD Activity that will be delivered over the next few months and deals
with treatment of future charges/receipts.
Feel free to get back to me if you have any questions.
Regards
Rita
NOTE ABOUT REVENUE COLLECTED IN ONE YEAR WHEN IT IS APPLICABLE TO THE
FOLLOWING YEAR:
Often schools may collect camp deposits, subject contributions or other
receipts in one year that relate to the next year. It is important that
a clearly understood practice is applied, to ensure the budget process
and the timing of allocating the revenue to the correct budget period is
maintained.
There are two aspects to this situation:
1. Effect on revenue at the General Ledger level eg Camps and
Subject Contributions balances and
2. Effect on the Family Statements balances after end of year
processes
EFFECT ON REVENUE AT THE GENERAL LEDGER LEVEL
Example: In October, your school receipts fees for a camp being
conducted in November and also receipts deposits for another camp being
conducted in February. Both camps' monies will accumulate in the GL
Camps revenue 74301 code this year. Because one camp is related to next
year's budget, it will be necessary to perform a general journal
"Balance Day Adjustment" to remove the 2007 portion of the revenue,
otherwise the GL Camps 74301 balance is distorted in 2006. Essentially
what is created with the general journal entry is an amount of prepaid
revenue. Refer to the "CASES21Finance Process Guide" section 10 Balance
Day Adjustments for guidelines on completing the journal which MUST be
done before/during the end of year process.
EFFECT ON THE FAMILY STATEMENTS BALANCES AFTER END OF YEAR PROCESSES
Continuing with the above example, any charges created for camp deposits
(or other prepaid revenue) collected and receipted that apply to next
year, will NOT have the charge history retained after the end of year
process if they are FULLY ALLOCATED at the time of receipting. This is
because CASES21Finance is based on standard accounting debtor-management
principles that regards full payment by a debtor as cancelling the debt,
and therefore has no further impact on the software. In the event of a
query with the account, a transaction report or similar is accessed to
address the query.
There are two possible options for schools to ensure the charge history
is available in the year that the revenue applies:
1. In the previous year, create the charge and receipt the money
but DO NOT FULLY allocate the receipt e g do not allocate at all, or
only partially allocate. This may mean a change of internal process to
accommodate this option and each school will have to individually assess
the merits or otherwise of Option 1.
2. Delay creating charges until the year that the charge applies e
g create the 2007 camp charges in 2007. This has the advantage of
avoiding the need for the prepaid revenue general journal entry because
all revenue is captured and recorded in the correct year. Once again
each school will need to assess the merits or otherwise, of this option.
What has been described above for prepaid revenue, also applies for
prepaid expenditure if for example, the school wishes to separate any
expenditure paid in the current year that is applicable to a future
year. Subscriptions and conference bookings in advance are typical
examples. Section 10 Balance Day Adjustments of the "CASES21Finance
Process Guide" should be referred to for completing the appropriate
general journal entries.
________________________________
From: Greig, Chris [mailto:chris.greig at balwynhs.vic.edu.au]
Sent: Wednesday, 26 July 2006 9:23 AM
To: Gauci, Rita M
Subject: Pre payment of fees for 2007!!
Hi Rita
I am forwarding this to you as you might wish to clarify this with Pat
Malcolm.
Regards
Chris
Business Manager
Balwyn High School
Tel: 9819 7911
EMR Rep Business Managers Finance Group
________________________________
From: busmanagers-bounces at edulists.com.au
[mailto:busmanagers-bounces at edulists.com.au] On Behalf Of Malcolm,
Patricia J
Sent: Wednesday, 26 July 2006 9:16 AM
To: Business Managers' Mailing List
Subject: RE: [Busmanagers] Pre payment of fees for 2007!!
Be careful with this. It would pay to get advice from someone in town.
We did this with our Grade 6 camp which was in the 3rd week of Term 1
this year. We receipted a deposit or full payment in 2005 and entered
the charge in 2006 then allocated and got a slap on the wrist from the
auditor as it shows up in a strange way on the balance sheet. They
included this in our audit report. They told me that some schools were
getting the wrong information when doing the C21F training. I was going
to clarify this before we get around to next year's camp.
Pat Malcolm
Business Manager
Boroondara Park Primary School
________________________________
From: busmanagers-bounces at edulists.com.au
[mailto:busmanagers-bounces at edulists.com.au] On Behalf Of Schmidt,
Maxine J
Sent: Wednesday, 26 July 2006 8:11 AM
To: Business Managers' Mailing List
Subject: RE: [Busmanagers] Pre payment of fees for 2007!!
Hi Genevieve,
Receipt the money to the family and leave unallocated. Don't put any
charges for 2007 on the system this year. The reason being when you do
the end of year roll over all the information that is paid for 2007 is
deleted in the roll over. In 2007 after the End of Year you then put
the charges on and allocate the money.
If you have any further questions please ring me on 9546 3233
Regards,
Maxine
________________________________
From: busmanagers-bounces at edulists.com.au
[mailto:busmanagers-bounces at edulists.com.au] On Behalf Of Genevieve
Gibson
Sent: Tuesday, 25 July 2006 1:11 PM
To: Business Managers' Mailing List
Subject: RE: [Busmanagers] Pre payment of fees for 2007!!
Hi Maxine,
Allocation of fees would be a normal receipt for current families. How
would you receipt 2007 new students?
Regards
Genevieve Gibson
Business Manager
Melbourne Girls' College
________________________________
From: busmanagers-bounces at edulists.com.au
[mailto:busmanagers-bounces at edulists.com.au] On Behalf Of Schmidt,
Maxine J
Sent: Friday, 14 July 2006 3:17 PM
To: Business Managers' Mailing List
Subject: RE: [Busmanagers] Pre payment of fees for 2007!!
Hi Rose,
No just receipt it as normal - but do not allocate it. Allocate all
fees collected in 2006 for 2007 in 2007. It is easier to do it this way
Maxine Schmidt
Business Manager
Westall SC
________________________________
From: busmanagers-bounces at edulists.com.au
[mailto:busmanagers-bounces at edulists.com.au] On Behalf Of Sparkman,
Rosemary D
Sent: Friday, 14 July 2006 3:10 PM
To: Business Managers' Mailing List
Subject: [Busmanagers] Pre payment of fees for 2007!!
Hi Everyone,
I have a parent who has paid next year's fees now. Should I receipt it
as a family payment and leave unallocated or do a General Ledger Receipt
and then do a credit note next year??
Thanks Rose
Waverley Meadows Primary School
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received in error, please contact us and delete all copies. Before
opening or using attachments check them for viruses and defects.
Regardless of any loss, damage or consequence, whether caused by the
negligence of the sender or not, resulting directly or indirectly from
the use of any attached files our liability is limited to resupplying
any affected attachments. Any representations or opinions expressed are
those of the individual sender, and not necessarily those of the
Department of Education & Training.
*******************************************
Important - This email and any attachments may be confidential. If
received in error, please contact us and delete all copies. Before
opening or using attachments check them for viruses and defects.
Regardless of any loss, damage or consequence, whether caused by the
negligence of the sender or not, resulting directly or indirectly from
the use of any attached files our liability is limited to resupplying
any affected attachments. Any representations or opinions expressed are
those of the individual sender, and not necessarily those of the
Department of Education & Training.
________________________________
IMPORTANT:-
This email and any attachments may be confidential. If received in
error, please contact us and delete all copies. Before opening or using
attachments check them for viruses and defects. Regardless of any loss,
damage or consequence, whether caused by the negligence of the sender
or not, resulting directly or indirectly from the use of any attached
files our liability is limited to resupplying any affected attachments.
Any representations or opinions expressed are those of the individual
sender, and not necessarily those of the Melbourne Girls College.
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