Step 5 - Entering current year postings - Charitable Companies tutorial (ICHA)

The current year postings are to be entered from working papers rather than entering a trial balance.

1. Select Posting | New to add a new posting entry

2. Enter the Description as 2017 Working Papers.

3. Leave the  Currency set to UK Pound - £

4. Click the magnifying glass next to the Account period end field to display the Please Choose and Accounting Period screen. Click Add, the Insert Accounting Period screen displays. Enter the New year-end date 31/03/2017. Click OK.  Select the Accounting period 31/03/2017, click OK.

5. Click the magnifying glass next to the Previous account period end date field, then select 31/03/2016 and click OK.

6. Click OK to go into the postings option.

Running opening balances

Start a batch of Document type 1.  Account Production asks if you want to generate opening balances from Posting Entry 1 31/03/2016 Trial Balance for 31 March 2016.

Check the default date provided in the section Opening balance postings to be dated is correct (01/04/2016), this is the first day of the accounting period 01/04/2016. Click OK.

The opening balances are generated on the posting screen. Once the opening balances have been run the postings can be made from the working papers using double entry document types.

Starting a new batch

When in the postings screen select from the Toolbar Batch control | New to display the Specify Posting Batch screen.

Click the magnifying glass next to the Document Type field to display the list of all document types.

Select document type 4 CB Cash Book This completes the document type field on the screen. The default Double entry account is 692, Bank account no 1.

Click OK to accept the details of the new batch. Back in the postings screen, the document type information shows the Doc. Type as Cash Book.

Posting the control accounts

Now it is possible to start making the cash book postings using the double entry document type. Only one side of each posting needs to be entered. Accounts Production automatically makes the other side of the posting to the nominated control account for example, 692.

All postings on the credit side of the bank control account are posted as debits on the postings screen (that is, post the debit to the expense account, Account Production posts the credit to the control account).

Shown below is the working paper for the bank account with the description of each of the totals, the account to which the posting should be made and the amount to be posted. Make the postings accordingly.

Notice how before beginning to post the balance displayed for the DE Balance field (account 692) is £214855.00dr.   As the postings for the control account are made the balance changes to show the current balance on the bank control account. When the cash book postings are complete this balance should be £ 762,703.80.

Make the posting for the first of the items in the bank control account as follows:

For the trustees' remuneration and national insurance, the account numbers are marked with a *1 or *2, which matches the accounting order of the trustees that figure is in relation to.

Only one Grant type LOTTERY has been created, Accounts Production uses this as a default entry.  If multiple Grants were to exist, click the magnifying glass and select from the list or type the Grant id.

Bank control account

Once the bank account postings have been entered the other working papers can be posted. Before posting the next control account you must change the document type must be changed.

Select Batch control | New. Complete the Specify Posting Batch screen with document type 6 PDB Purchase Day Book. The debit side is posted to the expense accounts and Account Production posts the credit to the control account.

Make the posting for the first of the items in the Purchase Day Book control account as follows:

Purchases control account

Reversing journals

Accruals and prepayments can be made using a document type that reverses when opening balances are run next year. Select Batch Control | New. This time start a batch of document type 8 ACC Accruals.

Make the following postings. Note that only the debit side of the posting needs to be made. Accounts Production automatically posts the credit side of the posting to accruals in the balance sheet.

Select Batch Control | New. This time start a batch of document type 9 PRE Prepayments.

Make the following postings.

When asked the question 'Debit expected, credit entered. Change amount?' Click No.

Journal Entries

Now that the main control accounts and reversing entries have been posted some journal entries need to be made. Select Batch control | New. This time start a batch of document type 11 JNL Journals.

• As each fund is treated as an individual trial balance each fund will need to balance.  There are checks within the system when closing the posting screen and when running a report to ensure the funds balance.

Select Close to exit the Posting option.