Accounts Receivable Module for Local Payment Schools
and Academies
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Accounts Receivable Module for Local
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Financial Guidance for Schools
Accounts Receivable
(Invoiced Income)
for Local Payments Schools and Academies
Produced by Education Financial Services
“Making the money work for Children and Young People"
Updated August 2012
.
CONTENTS
Introduction
Setting up Accounts Receivable Checklist
Section 1 – Setting Up Accounts Receivable
Page
2
3
5
Ledger Codes
5
Defining Parameters
6-7
Managing Books
8-9
Managing Products
10-11
Adding/Editing Debtors
12-15
Section 2 – Processes in Accounts Receivable
16
Creating a Debtor Invoice
16
Creating a Credit Note
17
Processing a Receipt
18
Processing a Paying in Slip
19
Insufficient Receipt Numbers and Cancelling Paying In Slips
20
Writing Off Bad Debts
20 – 21
Processing Penny Write Offs
21
Processing a Refund
22
Invoiced Income and Year End Procedures
22 - 23
Accounts Receivable Reports
23
APPENDIX 1 – Creating a Debtor Invoice
24
APPENDIX 2 – Processing a Credit Note
25
APPENDIX 3 – Processing a Receipt
26
APPENDIX 4 – Paying In Income
27
APPENDIX 5 – Processing Write-offs
28
APPENDIX 6 - Refunds
29
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Copyright © 2012 Somerset County Council
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INTRODUCTION
This guidance book is in two sections. Section 1 gives instructions on how to initially setup and tailor the Accounts Receivable module within FMS, and there is a detachable
Checklist at the beginning of this section that you can tick off as you complete each step.
Section 2 explains how to process transactions. Accounts Receivable is a separate module
within FMS and is designed to help manage income within school. The module also
contains its own detailed guidance manual which is accessed via the ‘Help’ menu.
Although the Accounts Receivable module is similar to Accounts Payable and Non-Invoiced
Income within FMS, there are some notable differences:

Invoices are not transferred into the new financial year when the previous year is
closed. However, they are available in the new financial year when entering
receipts.

Credit Notes are raised by selecting the original invoice and selecting to create a
credit note.

The Debtor Review shows a complete list of transactions for the selected debtor,
with no processing options as in the Supplier Review in FMS.

Invoice and Credit Notes can be reviewed independently and a history of each
transaction can be reviewed.
Data Protection Act
Before entering any data on the system, you are advised to seek each Debtor’s permission
for the information they will permit you to enter on their behalf. Failure to do this could
result in an infringement of the Data Protection Act.
Printing in Accounts Receivable
There are no specific printer settings for the Accounts Receivable Module. Consequently, all
documents that are printed from Accounts Receivable will print to the default printer for the
computer.
Back to Contents
2
Getting Started with Accounts Receivable - Checklist
Define Debtor Control and Bank ledger codes in FMS
General Ledger Setup, Tab 5 Ledger Codes.
See page 5 for instructions.
Within Accounts Receivable
Define default parameters by selecting Tools >
Accounts Receivable Parameters.
See pages 6 - 7 for instructions.
Define books required for Invoices, Credit Notes,
Receipts and Paying In Slips.
See pages 8 - 9 for instructions.
Set up the product specifications, including post and
packing charges if applicable to your establishment.
See pages 10 - 11 for instructions.
Add details for all Debtors.
See pages 12 - 15 for instructions.
Back to Contents
3
PLEASE LEAVE BLANK FOR PRINTING
4
SECTION 1 - SETTING UP ACCOUNTS RECEIVABLE
FMS Ledger Codes
Before starting to use this module you must ensure that the relevant ledger codes have
been set up in FMS, route: Tools > General Ledger Setup > Tab 5: Ledger Codes.
The codes to be set up are as follows:

Debtor Control ledger code - access to Accounts Receivable will be denied unless
this code is set-up in FMS. If necessary, click ‘Add’ and select the ‘Debtor ‘Control’
ledger type. Select ‘Control Accounts’ as the Ledger Group and enter a suitable code
and description - see example below:

Bank ledger code - if the bank account used to collect income is the same as the
one used to pay invoices, the bank ledger codes should already be set up. If
necessary, click ‘Add’ and complete fields using your bank account information – see
example below:
Once these ledger codes have been defined, you are ready to start setting up your
Accounts Receivable/Invoiced Income system for general day to day processing.
Back to Contents
5
Setting up Accounts Receivable for Invoiced Income
Several tasks need to be undertaken before the system is ready for use:




Set-up Default Parameters for Accounts Receivable
Create the relevant Books
Create Product Codes
Set up Debtor Details
Defining the Parameters for Invoiced Income
In FMS, route: Focus > Accounts Receivable (Invoiced income)
Before the system is ready for use, several parameters need to be set up.
The first set involves limitations which will apply to the Debtors and Invoices to be entered
on the Accounts Receivable system.
Within Accounts Receivable, route: Tools > Accounts Receivable Parameters
Credit Parameters
 Terms - This field is used if you wish to allow Debtors a fixed number of days credit
before payment for products and services becomes due. The default value entered
will be 30 days, but this may be deleted, which will reset the value to 0.
 Limit - If you wish to set a Debtor credit limit, enter the amount in the ‘Limit’ field.
Otherwise you may leave the default setting of zero as the accepted limit.
NOTE: Settings entered for both of these fields will apply when the Debtor name is added
to the system.
Print Extra Copies
In the Invoice, Credit Note, Receipt and Statements fields, enter the number of extra
copies that are to be printed, if required. This option allows you to keep a printed copy for
your own records. Alternatively, by accepting the default value of zero only the Debtor’s
copy will be printed.
Back to Contents
6
Debtor Inactive Period
The figure entered in the Debtor Inactive Period should be the number of months that a
debtor remains inactive. By default this will be set to 12 months, but may be edited to
reflect your establishment’s policy.
For a Debtor to be deemed inactive the system will check for outstanding Invoices,
Receipts and whether the balance is recorded as zero. If these criteria are met for the
specified period, then details will be written to the Audit Trail and you will be able to
produce a report regarding Debtors declared inactive in FMS, route: Reports > General
Ledger > Audit Trail.
You will then be able to set the identified Debtors as inactive by selecting Tab 1: Basic in
‘Debtor Detail’.
Invoice Prefix
This is the prefix which is included before the invoice number. This can be a mixture of 4
alpha characters or numbers.
Write Off Code
Click the appropriate ‘browser’ button to select a Cost Centre, Ledger Code and Fund Code
for the Write Off account, which will apply to both significant Write Offs and Penny Write
Offs. The Ledger Codes listed will be expenditure type codes, linked to the selected Cost
Centre and Funds. If at a later date you wish to change any of these codes, all the fields
remain available.
Schools may wish to set up a specific Cost Centre and Ledger Code for the Write-Off
Account, in FMS route: Tools > General Ledger Setup.
Further information and guidance on setting up Cost Centres and Ledger Codes can be
found within the “Updating Chart of Accounts” financial guidance for schools, by searching
on iPost for “Updating Chart of Accounts”. You will need to be logged in.
Significant Write Off
In the ‘Period’ field, enter the number of months allowed before an unpaid balance may be
written off. The time that is allowed to lapse before a bad debt may be written off is usually
6 months, which is the default figure initially entered. The minimum amount that may be
entered is 0, while the maximum number of months is 99.
NOTE: It is not recommended that invoices should be written off before a defined period
has lapsed.
Penny Write Off
Enter the maximum amount of pence that can be written off. The maximum amount
permitted for Penny Write Offs is 100 pence.
NOTE: The lapse time definition entered does not apply to Penny Write Offs.
Free Text Annotation
This field is provided for you to enter text of your choice to be included on all Invoices,
Credit Notes and Receipts. A maximum of three lines is permitted.
Once all fields have been completed, click the ‘Save’ button to record your entries.
Back to Contents
7
Managing Books
To add the relevant books to your system, in Accounts Receivable, route: Tools > Manage
Books.
One book can be created to handle both Invoices and Credit Notes, or you can define two
distinct books, keeping the Invoice and Credit Note functions separate.
Browsing Books
All Invoice, Credit Note, Receipt and Pay In books will be displayed in the browser.
NOTE: If you decide to use a prefix for each book, it must be unique.
You can also restrict
the number of books
displayed in the
browser by selecting
a specific type, e.g.
Invoice/Credit Note.
Click the ‘Browser’
button adjacent to
the ‘Type’ field to
open the selection
process.
How the browser
is ordered will
depend on which
field header is
selected. Enter
the code,
description, etc.
in the ‘Looking
for’ field to
locate an item
quickly.
To add a new book, click the ‘Add’ button on the toolbar, or select route: Book > Add (see
page 7 for additional information).
To close a book that is no longer required, highlight the book within the Book Browse
screen and click the ‘Close Book’ button
or select route: Book > Close Book.
Closing a book in either of these ways will not allow you to re-use numbers that have not
been applied. You will also not be permitted to close a book containing invoices that have
been saved but not yet printed. It is also worth noting that when the last number of
a book is used, the book will be closed automatically.
To re-use numbers from an incomplete book about to be closed, click the ‘Close
Book/Reuse Numbers’ button
or select route: Book > Close Book/Reuse Numbers.
Back to Contents
8
Adding Books
This allows you to define and maintain a variety of Invoice and Credit Note books, Receipt
books and Paying In books. Initially, you will need to define one of each type. Books added
subsequently will automatically default to the selected prefix and start at the next number.
To add a new book, click the ‘Add’ button on the toolbar, or select route: Book > Add from
the drop down menus.

Click the ‘Browser’ button adjacent to the ‘Type’ field to select the book type to be
added.

The ‘Bank Account’ field is only applicable to Pay In Slip books. Click the ‘Browser’
button to select the bank account for the Pay In Slip being defined.

Enter the Prefix for the book you are defining. This should be unique to the book
being defined.

Enter the Start Number for the first Invoice, Credit Note, Receipt or Paying In Slip.

Enter the End Number for the last Invoice, Credit Note, Receipt or Paying In Slip in
each book.

Click the ‘Save Record Changes’ button on the Focus Bar, or select route: Book >
Save to record the new book in the browser.
Back to Contents
9
Managing Products
Using the Managing Products function allows you to define which products and services you
wish to sell. It will also save time when entering the same product details on all associated
documents. If you are going to charge Post and Packing for products, this must be set-up
as a product code.
To set up and view the products for your establishment, select Tools > Manage > Products.
Product Browse
This will contain the codes and descriptions for all the products and services that you
decide to set-up on the system. Once the product code has been entered, you are given
the choice as to whether the product details can be edited. You should be aware that once
the product code has been entered and saved, you will not be able to edit this field.
How the browser is ordered will depend on which field header is selected. Enter the code,
description etc. in the ‘Looking for’ field to locate an item quickly. You also can change the
sequence order of the browser by clicking on the field header and limit the number of
products displayed by clicking the ‘View’ browser button and selecting an option from the
drop-down list.
If the product is editable, a tick will be placed in the check box in the ‘Editable’ column.
To add a new product record, click the ‘Add’ button or select route: Product > Add (see
page 9 for additional information)
If you wish to view a specific product, highlight it in the browser and click the
select route: Product > Browser.
button or
Back to Contents
10
Product Details
Before completing this form, make sure that the relevant Cost Centre, Ledger Code, Fund
Code and VAT Code have been defined in FMS, route: Tools > General Ledger Setup.
Providing that the ‘Editable’ check box has been selected, then the Product details entered
here may be modified at any time and will have no impact on existing invoices that are
being processed.
To add a new product, click the ‘Add’ button or select route: Product > Add.
Enter the product ‘Code’ for the item. A maximum of six characters is allowed, which you
will not be permitted to edit once the code has been defined. Please be aware that certain
characters, e.g. ‘&’ should not be used in the Product Code as they will not be displayed
correctly. If you wish the product details for the item to be editable, select the ‘Editable’
check box.
Enter a unique ‘Description’ for the item. This is mandatory if the product is not editable,
but may be left blank and amended if the ‘Editable’ check box is selected. To select the
appropriate Cost Centre, Ledger Code, Fund Code and VAT Code, click the relevant Browser
button.
NOTE: Only Income type ledger codes will be available for selection.
Enter the ‘Unit’ type for selling the product, e.g. pack, box, hour, etc. Enter the net unit
cost of the product in the ‘Net Price’ field. To select the ‘Status’ for the product, e.g. ‘In
Use’, click the ‘Browser’ button and select from the drop-down list.
Other ‘Status’ options available are: All, Editable and Discontinued. When the
‘Discontinued’ status is selected, the product will not be available for processing and will
only appear in the browser if ‘All’ is selected. Discontinued products may be viewed
separately by selecting this option from the ‘View’ drop-down list in the ‘Product’ browser.
To save new product details or changes made, click the ‘Save Record Changes’ button on
the Focus Bar or select route: Product > Save.
Clone Product Definition
If you wish to define a new product based on one which has already been defined, highlight
the product in the browser and click the ‘Clone/Copy Product’ button . All the details for
the selected product will be copied into the new record, except for the Product Code. To
11
enter a new description, overwrite the original, although this is not mandatory. Click the
‘Save Record Changes’ button, or select route: Product > Save.
Back to Contents
Adding/Editing Debtors
To add or edit your Debtor details, either select route: Focus > Debtor or click the ‘Debtor
Details’ button
.
Browsing Debtors
Once the details for all Debtors have been entered, a complete list will be displayed in the
browser. Please remember that it will not be possible to delete Debtors, only set them as
inactive, providing there is no balance outstanding and the period of inactivity is that which
has been defined in Accounts Receivable (Invoiced Income) Parameters. Debtors deemed
inactive will not appear in the browser, unless ‘All Debtors’ is the selected option from the
‘View’ drop-down list.
If a dispute occurs between the Debtor and the establishment, then it is possible to place
the Debtor ‘On Hold’. This will prevent new Invoices being raised, although it will be
possible to process a Receipt. If a new Invoice is required for a Debtor placed On Hold,
then this flag must be removed before a new Invoice may be processed. A Debtor may be
placed ‘On Hold’ by selecting Tab 1: Basic from the ‘Debtor Details’ page.
How the browser is ordered will depend on which field header is selected. The example
above is sequenced by Name. Users are able to enter the first part of the code, description,
etc. in the ‘Looking for’ field to locate an item quickly.
By default, the browser will display all Debtors entered on the system. If you wish to
change the Debtors on view, click the ‘Browser’ button in the ‘View’ section. Choose from
All, Discontinued, In Use or On Hold. You may also change the sequence order for the way
the Debtor list is displayed.
12
Back to Contents
To add new Debtor details to the system, click the ‘Add’ button or select route: Debtor >
Add.
Tab 1: Basic
This section enables you to enter new details or edit existing details for a Debtor.
Enter the Name of the Debtor and, if applicable, their VAT registration number.
As soon as the Debtor name is added, the credit terms and limit will default to the settings
in Accounts Receivable Parameters. The ID will be assigned automatically by the system
when the details are saved.
The ‘Name’ field makes no allowances for Title, First Name or Surname, so it is advised
that you enter the Debtor name starting with the surname first, e.g. Smith Mr/Mrs X.
This will enable you to search for a specific Debtor by entering the surname of the person
in the ‘Looking for’ section of the ‘Debtor’ browse.
Enter the Address and the Post Code. If a different contact name is required, this can be
entered in the ‘Contact’ field. Email address, Telephone, Fax and Mobile telephone number
for the Debtor can also be entered.
The ‘Account Ref.’ field may be left blank, but where one is entered it must be unique to
the Debtor.
The ‘Open Date’ will default to today if an account reference has been entered. This can be
edited by clicking the ‘Calendar’ button. It is recommended that the date entered here
should be the Debtor creation date and should not be deleted.
The ‘Credit Terms’ and ‘Credit Limit’ fields will default to the values set in Accounts Payable
Parameters when the Debtor name is added, but may be changed if the terms do not apply
to the details being entered for the particular Debtor.
13
If you wish to make notes about the Debtor for your own information, click the ‘Notes’
button. Anything recorded will not appear on any printed documentation produced.
Back to Contents
To select the Debtor status, e.g. In Use, On Hold or Discontinued, click the ‘browser’ button
and click the status you wish to assign to the Debtor.
Click the ‘Save Record Changes’ button
details entered.
or select route: Debtor > Save, to record the
To continue processing the Debtor, click Tab 2 to enter ‘Bank Details’. To return to the
Debtor Browse, click the Focus Browser button
or select route: Debtor > Browser.
Debtor Details: Bank Details
Tab 2: Bank Details, allows you to enter new details or edit existing bank details for a
Debtor.
Enter the Bank Name, Branch Name, Sort Code, Account Name and Account Number for
your establishments’ bank account.
Next, enter a Contact name. This could be a specific Debtor contact, particularly if the
Debtor being set-up is an organisation.
Back to Contents
14
Finally, either enter any contact address plus post code, or the bank address that may
apply. Enter the Telephone and Fax number, if known.
Click the Save Record Changes
information entered.
button or select route: Debtor > Save, to record the new
To return to the Debtor Browse, click the ‘Focus Browser’ button
> Browser.
or select route: Debtor
Debtor Details: Review
Tab 3: Review, enables you to review transactions that have taken place between you and
the Debtor. The type of transaction and current status for each transaction entered will be
displayed in a browser.
NOTE: The ‘Account Balance’ will only take into consideration and include transactions
which have been posted.
You will only see a reference number displayed in the ‘Ref No.’ field if the Invoice, Credit
Note or Receipt has been posted, as only then is the number allocated. This field will
remain blank for items that have been created but not posted.
If you wish to create a refund based on the information shown here, either click the ‘Create
Refund Details’ button
on the Focus Bar, or select route: Debtor > Refund.
Highlight a specific Debtor in the browser and click the ‘Focus Browser’ button or select
route: Debtor > Browser to view or edit the details entered in the system about the
Debtor.
You may wish to select a specific Debtor requiring a refund payment. Highlight the Debtor
in the browser and either click the ‘Refund Details’ button on the Focus Bar, or select route:
Debtor > Refund.
NOTE: A refund may be created from any of the tabbed pages in the Debtor focus.
Back to Contents
15
SECTION 2 - PROCESSES IN ACCOUNTS RECEIVABLE
Raising a Debtor Invoice
Select route: Focus > Invoice/Credit Note
A browser is displayed showing Invoice/Credit Note transactions that have been entered in
the Accounts Receivable module. From this screen you are able to view individual Invoices
or Credit Notes and add new ones, which may then be authorised and printed. You can
also write off any invoices that have not been paid within the period set in Accounts
Receivable Parameters, if required.
To add a new invoice – See Appendix 1:









Click ‘+’ to add, or select Invoice/Credit Note > Add
Click on the browser button and select the Debtor – name, address etc now filled in
Invoice Date and Tax Point will default to today’s date, but can be amended
‘Date Payment Due’ field will default to the correct date according to credit terms
Click on browser by Period field and select the period – must be an open period
Enter information on Narrative field if necessary
Select an Invoice book from the drop down list – must be an open book
Invoice number will be assigned automatically when the invoice is printed
Transaction ID and Status will also be recorded automatically when the invoice is
saved.
Save
, Authorise and Print Invoice
Back to Contents
16
Creating a Credit Note
A Credit Note may be issued for Invoices which are unpaid, partly paid or fully paid and
may be the result of products or services not meeting an agreed standard, for example.
It is created as a duplicate of an original Invoice, with the quantity column split into two –
Available Quantity and Credit Note quantity. The selected invoice will take into account
any adjustment made through issuing a Credit note and new totals will be calculated. The
existing balance, however, will not be reduced until the Credit Note has been printed.
You will not be able to issue a Credit Note for a part of an amount invoiced on an Invoice
line. If this situation should occur, you are advised to create a new Invoice for the amount
to be credited and then issue the Credit Note based on the new Invoice.
To add a new credit note – see Appendix 2:







Click ‘+’ to add, or select Invoice/Credit Note > Add
List of invoices displayed
Select the Invoice you require Credit Note to be created for
Click ‘Credit’ in the top right corner of screen
Enter the reason, and edit the line details – eg quantity
Click
to save
Authorise and Print Credit Note (A credit note may also be authorised by clicking the
F8 key). You are unable to Print the Credit Note until it has been authorised – once
it is successfully printed it is also defined as Posted.
NOTE: Invoices and Credit Notes created in the previous financial year may be posted in
the new financial year before preliminary and/or final close is run. Please remember that
any Invoices/Credit Notes must be posted before attempting to close the financial year.
If you wish to review historical information about a Credit Note, e.g. when created, edited,
printed, etc., click the ‘History’ button on the Focus Bar or select route: Invoice > Credit
Note > History.
Creating a Credit Note/Write Off for an Invoice issued in the Previous Year
There may be occasions when you wish to issue a Credit Note for an Invoice issued in the
previous financial year which has already been closed. To do this:








In FMS, change to the previous financial year, either by selecting route: Focus >
Change Financial Year, or by clicking the ‘Change Financial Year’ button.
Highlight the required year and click the ‘Select’ button.
Select route: Focus > Accounts Receivable (Invoiced Income) and either select
route: Focus > Invoice/Credit Note or click the ‘Invoice/Credit Note Details’ button.
Highlight the Invoice to which the Credit Note is to be raised against and either
select route: Invoice/Credit Note > Write Offs or click the ‘Write Off’ button.
Providing the selected Invoice is for a Debtor with a debit balance, you will be asked
if you wish to copy the Invoice to the next financial year. Click the ‘Yes’ button to
continue.
Close Accounts Receivable and return to FMS. Change to the current financial year
using the same method as described previously.
Return to Accounts Receivable and select the ‘Invoice/Credit Note’ option.
Highlight the required Invoice and you should now be able to create a Credit
Note/Write off in the usual way.
Back to Contents
17
Processing a Receipt
This is for when payment is received for an invoice previously raised.
Select route: Focus > Receipt
A browse list of existing Receipts is displayed. The view area of the screen enables the list
to be narrowed down. It is possible to view an individual Debtor. The status view can be
used to select Cancelled, Created or Posted Receipts.
To add a new receipt – see Appendix 3:












Click ‘+’ to add, or select Receipt > Add
Click the browser button and select the debtor from the drop down list – Debtor
details will be added automatically, including Payers Name, and Account Ref
Enter the amount received
Select the appropriate Book from the drop down list – Receipt number will be
automatically allocated from the Receipt Book when receipt is printed or posted.
Select whether the payment made was cash or cheque – if it was a cheque, please
also enter cheque number
Receipt date will default to today’s date. To change the date, click the calendar
button
Select the Bank Account from the drop down list
Enter the Debtor name in the Payer Name field
Save
- the period will be recorded automatically and the transaction ID will be
assigned when the receipt is saved
Once the receipt has been selected for printing you be able to confirm if the printing
was successful or not – either the ‘Printed’, or ‘Print Failed’ check box will be
selected.
The Pay In Slip Number will be completed automatically by the system when a Pay
In Slip for the payment is posted – NB, Receipts are posted in the Pay In window.
The Outstanding Balance field is required for matching receipts to Invoices or Refund
Cheques, and will show the amount originally entered in the Amount field, and will
reflect the amount that has been matched to the Invoice.
18
Matching Invoices and Refund Cheques
Matching is a way of linking all relevant documents together. Receipts from Debtors are
matched to Invoices and any Refunds that have been made. Care should be taken to
ensure the correct Receipt is matched to an Invoice. This is particularly important for the
Write Off process, as the Invoice selected to be written off will take into account any
matched Receipt total.
The following illustrates matched and unmatched balances:
Matched Balances
Unmatched Balances
The matched balance of an Invoice is the
sum of all Credit Notes, matched Receipts
and Write Offs attached to one invoice.
The un-matched balance of an Invoice, is the
total value of the Invoice less all Credit
Notes, matched Receipts and Write Offs
attached to one invoice.
The matched balance of a Refund is the
sum of all matched Receipts that have
been attached to the Refund.
The un-matched balance of a Refund is the
total value of the Refund less the sum of all
matched Receipts attached to the Refund.
The matched balance of a Receipt, is the
sum of all amounts on the Receipt that
have been matched to Invoices or Refund
Cheques
The un-matched balance of a Receipt, is the
total of value of the Receipt less the sum of
all amounts matched to invoices or Refund
Cheques from the Receipt.
All balances, irrespective of whether they are matched or un-matched, will have a positive
value or show zero. A Credit Note and Write Off are considered to be automatically fully
matched with the Invoice when they are posted.
Processing a Pay In Slip
Cash and Cheques received as payments need to be paid into a bank account. The Pay In
process will record when receipts are banked and link relevant Pay In Slip numbers to
Receipts. At this point Cash and Cheques will be posted.
Select route: Focus > Pay In
A list of existing Pay in Slips is displayed. The view area of the screen enables the list to
be narrowed down. Through the View browse it is possible to display Cancelled, Created or
Posted Pay In Slips.
Processing a Pay-In Slip – see Appendix 4:





Select the Pay In Book
Check/amend the Paid In date as necessary
Click Period field and select the period
Type the Control Total (the grand total of all receipts being posted on the slip)
Click on the ‘Edit’ pencil to add any relevant notes, and Save
Back to Contents
19
Insufficient Receipt Numbers
When posting a Pay In Slip containing receipts that have not been printed, if any of the
receipts have been saved to a book containing insufficient numbers you will be prompted
that a new Receipt Book should be selected or created first.
If this is the case, you will need to remove any receipts that have been assigned to the
Receipt Book not containing enough numbers from the Pay In Slips you are trying to
create.
To do this:
 Click the field browser button and select the receipts from the Chosen Receipt
section of the Receipt Chooser, and click the Remove button
 Save changes –
 Return to the Receipt Processing screen and select the receipts that need to be
assigned to a different book, using the browser button.
 Change the Receipt book for the selected receipt
NOTE: If you need to create a new Receipt Book first, select Tools > Manage Books, and
either click the ‘+’ Add Record button, and select Book > Add.
Cancelling a Pay In Slip
You are able to cancel and Pay In Slip that has been created and saved in error, providing
the Pay In Slip has not been posted, and no receipts are attached.

Select the Pay In Slip from the list of Pay In Slips viewed through the browser.
Highlight the relevant line, and either click the ‘Cancel Pay In’ button, or select Pay
In > Cancel.
Cancel Pay In Button
Writing Off Bad Debts
You may wish to define a cost centre and ledger code specifically for bad debts in FMS,
route: Tools > General Ledger Set Up.
In order to Write Off bad debts, a Write Off account must have been set-up in Accounts
Receivable Parameters. The system will check for a Write Off account, and return a
message if one is not found. At the same time the system will also check for balances
outstanding according to the write off period entered in Accounts Receivable Parameters.
Outstanding balances are calculated from Receipts, Credit Notes and previous amounts
written off, that can be matched to a specific Invoice.
Before attempting the Write Off process you are advised to check that all Receipts and
Invoices have been correctly matched, as the amount to be written off reflects Receipts
which have been matched to Invoices.
You should also be aware that you will not be able to Write Off a debt for an Invoice in the
previous financial year, unless the year has been closed and the Invoice copied to the
current financial year. Attempting to Write Off a debt in a year where Preliminary Close has
been run, will result in a message stating that the Invoice must be copied to the current
year.
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NOTE: The lines entered on a Receipt will not be matched to the lines on the Invoice, as
only the Receipt total will be matched. As Write Offs will be ordered by VAT code, this has
an implication where more than one VAT code applies to an Invoice.
Writing Off Bad Debts from Invoice/Credit Notes Details
An Invoice may be written off as follows:

Highlight the selected Invoice in the browser of Invoices and Credit Notes and click
the ‘Create Write Off’ button or select Invoice/Credit Note > Write Off.
Processing Penny Write Offs
To process Penny Write Offs, select Tools > Penny Write Offs.
A list of transactions are displayed, showing posted Invoices which have small amounts
outstanding that can be written off. In this case, only those transactions which are in pence
(rather than pounds) and not greater than the value set in Accounts Receivable
Parameters, will be in the list. For example:

An Invoice for £15.25 was posted and sent to the Debtor.

The Debtor paid £15.00 and was issued with a Receipt for this amount.

The Receipt was subsequently matched to the Invoice on the system, therefore
leaving an outstanding balance of 25 pence. Providing the 25 pence does not exceed
the value set in Accounts Receivable Parameters, it may be written off through the
Penny Write Off process. The Period and month will be entered automatically
according to the system date.
NOTE: The write off time defined in Accounts Receivable Parameters is not relevant to
Penny Write Offs.
The ‘Total Amount Written Off’ box will show the sum of all the amounts to be written off.
If you wish to print a report showing the Invoices listed in the grid, click the ‘Print’ button.
NOTE: No Invoice amounts will be written off at this stage.
To continue with the Write Off process, click the ‘OK’ button. This action displays the
journal that will be created for a Penny Write Off.
If you now decide to continue with the Write Off process, click the ‘OK’ button to accept the
journal, otherwise, click ‘Cancel’.
NOTE: Once a Write Off has been posted, the action cannot be cancelled. You should also
be aware that Write Offs are only permitted in a started financial year and not in
preliminarily closed/closed years. Attempting to close a year with Invoices requiring Penny
Write Offs will result in a warning message.
Please see Appendix 5 for details on how to process a Write Off.
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21
Processing a Refund
Selecting this function allows you to enter details of any Refund cheques issued to a
specific Debtor, either because the Debtor overpaid or you have issued a Credit Note.
A refund may only be issued against a Debtor with a credit balance. You should also note
that Refund Cheques will not be printed by the system.
The facility to match refunds to Receipts is provided. You should be aware that not
matching refunds to receipts will result in inaccurate information on the Aged Debtor
Report and matched transactions.
Processing a refund – see Appendix 6:







Select either Focus > Refund, or Focus > Debtor > Refund
Click Refund > Add, or ‘+’ to add
Select the Debtor – the Date and Transaction ID will be entered automatically
The Status of the refund will initially be ‘Un Matched’
The amount of the refund will default to the outstanding balance. If you only wish to
refund part of the amount, you can over-type this field with the amount to be
refunded
Select the Bank Account, and Cheque Book required, and enter the reason for the
refund (max 120 characters)
Save details and Post
Cancel a Refund
If a refund has been created in error, you have the option to cancel the entry, thus creating
a contra journal. If the refund had been matched to a receipt then this needs to be unmatched before it can be cancelled.
Highlight the Refund to be cancelled and then select the ‘Cancel Refund’ button.
Invoiced Income and Year End Procedures
The year end procedures for Accounts Receivable are handled through the main FMS
module. You should be aware of the following:
Currently only Paying In Books need to be transferred at Year End within the main FMS
module. To do this, go to route: Tools > Define Financial Years > Update Next year’s
Structures. Click on Tab 4: Invoice Income.
All other books are visible in all years.
Preliminary or Final close will be prevented if each transaction indicates that further
processing is required before the year can be closed.
The System Check Report must be run in FMS before attempting to close the financial year.
This will allow you to identify any Invoices, Credit Notes, Receipts and Paying In Slips that
require printing and posting.
When the old year is closed, whether through preliminary or final closures, Invoices are not
transferred into the New Year. This does not mean, however, that they are not available
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when entering a Receipt for payment received in the new financial year. A list of all
outstanding Invoices and Refunds is available for matching the payments.
Creating a Credit Note/Write off for an Invoice issued in the previous year
There may be occasions when you wish to issue a Credit note for an Invoice issued in the
previous financial year which has already been closed. This can be done as follows:







In FMS, change to the previous financial year.
Go into Accounts Receivable and highlight the relevant Invoice.
Click on the ‘Write Off’ button.
You will be asked if you wish to copy the Invoice to the next financial year. Click on
the Yes button.
Close Accounts Receivable and return to FMS. Change to the current year.
Go back into Accounts Receivable.
Highlight the relevant Invoice and you should now be able to create a Credit Note or
Write Off.
Reports for Accounts Receivable
There are several reports which are available within the Accounts Receivable module under
the ‘Reports’ option.

Paying In Slip Detailed Report - Used to review payments recorded on a specific
Pay In Slip. Select the Date Range, Bank, Status and Pay In Slip No. Click ‘OK’.

Bank – Pay In Summary Report - A summary of all Pay In Slips posted to a
specific Bank account within a specified date range. Select the Date Range, Bank and
Sequence (only posted slips will be shown)

Transaction Report - Review all or selected transactions within a date range.
Selecting a specific Debtor and Pay In Slip, or All as the transaction type, will result
in the totals for each Pay In Slip being shown and not the amount paid by the
individual. It is recommended that a Debtor is not selected for this type of report.
Select the Date range, Transaction Type and Sequence.

Aged Debtor Report - This shows outstanding debt by days. A specific Debtor can
be selected. This report will be a summary of Invoices that have been posted and
have an outstanding balance and also Receipts that have been posted and have an
outstanding balance.

Statements - These reports show Debtors the balance on their account. They can
be produced to select specific Debtors and also Debtors with balances less than or
greater than a specific amount.

Debtor Details Report - This report allows you to view the details entered for
either one Debtor or all Debtors.

Products Details Report - This report shows details of all products on the system
or just one selected product.
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23
APPENDIX 1
CREATING A DEBTOR INVOICE
NOTES
Focus
Invoice/Credit Note
Top of screen
+
Magnifying glass
Top left of box
Choose Debtor
Check Invoice and Tax Point dates, Period and
Date Payment Due and amend if necessary
Period must be an open
period
Enter in Narrative any information to be
printed on the Invoice
You must select an Invoice
book
Select Invoice Book
Click on + to the right of the screen to add a
line to the invoice.
Complete the following fields:
 Product Code
 Quantity
All other fields are completed automatically
Then SAVE
Right hand side of box
Blue tick to save
Invoice No and Transaction
ID are added automatically

Authorise Invoice
1st button top right of screen
Print Invoice
2nd button top right of screen
Once an invoice is printed the details are posted to
the General Ledger – debiting the Debtor Control
and crediting the relevant ledger code.
PROCESSING A RECEIPT
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24
APPENDIX 2
PROCESSING A CREDIT NOTE
NOTES
Focus
Invoice/Credit
Note
+
To add a credit note
Browse from list of invoices
displayed
Select relevant
Invoice
Enter Reason, and edit line details Quantity
To save

Authorise
and Print
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25
APPENDIX 3
PROCESSING A RECEIPT
NOTES
Focus
Receipt
To add a new receipt
+
when
recei
Select
p
Debtor
Add Receipt Details:
Amount
Select Receipt Book – receipt number will be taken by
default from Receipt Book when receipt is printed or posted
Payment Type – Cash/Cheque - if cheque, enter cheque no
Receipt Date – default to todays date, amend if required
Enter Matched Amount against the relevant Invoice
Enter Narrative
Magnifying glass top left of
box. Other fields
automatically updated are:
Payers Name, and Account
Reference.
Printed Invoices displayed in
window
Type payment figure in
‘matched’ amount box

Period and Transaction ID
will be automatically
assigned when receipt is
saved.
To print the Receipt click Receipt > Print
Note - Receipts are
posted in the Pay In
Window
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26
APPENDIX 4
PAYING IN INCOME
NOTES
Focus
Pay In
+
Add the following Pay In details:
Select the Pay In Book
Check Paid in Date (defaults to today)
Check / Amend Period
Enter Control Total
The Pay In Slip No., Transaction ID and Bank account
are entered automatically
To add relevant notes, click on the Notes button
Receipts Window
Shows all unpaid
invoices
Click on the browser to select the receipts to be posted.
Use the arrow to move the receipts to lower window
The Control Total and Total Value of Receipts will be
calculated and displayed automatically
Save

Post
Cancel
Are you sure you wish
to post the selected
Pay In Slip?
Are you sure you wish
to cancel the selected
Pay In Slip?
Yes
Yes
Post and
Cancel Icons
on Browse Bar
- top right
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27
APPENDIX 5
PROCESSING WRITE OFFS
Focus
Write Offs
+
Select the following:
Debtor
Invoice
Enter Narrative
Edit the Write off amount
Save
If the related invoice is less than 6 months old a
message will appear asking do you wish to continue.
To confirm this is ok, click Yes.
PROCESSING PENNY WRITE OFFS
A list of transactions is
displayed showing invoices
which have small amounts
outstanding that can be
written off.
Tools
Penny Write offs
This action displays the
journal that will be created
for a Penny Write Off.
Click on OK
To accept the journal, Click on OK
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28
APPENDIX 6
PROCESSING REFUNDS
NOTES
Focus
Refund
+
Credit Balance Shown
Select
Debtor
Enter the following:
Will default to outstanding
balance, which will be a credit
balance. It can be over typed if
necessary.
Amount of Refund
Bank Account
Cheque Book
Reason for Refund
Save

Yes
To confirm that refund
should be posted.
Write a Manual Cheque for the
Refund
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29