bt lancashire services · 2017-03-27 · bt lancashire services finance 6 final closure for 2016/17...

BT Lancashire Services

Finance 6 Final Closure 2016/17 for Schools

Reference: FMS Yr End

Version: 6.172

Date: 02 February 2017

Owner(s): M Turner

Working in partnership


Finance 6 Final Closure for 2016/17 for Schools

Issued by: M Turner

Issue no: 6.172


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Issued by: M Turner

Issue no: 6.172


of 30

Contents Page

1 Checks in the old Financial Year 2016 5

1.1 Reconciliation (Month 12 and 13) .......................................................................................... 5

2 Budget Allocations for the old Financial Year 6

2.1 Cost Centre Allocation Virements ........................................................................................... 6

3 Schools using Personnel to Calculate Salary Commitments 7

3.1 Clearing Outstanding Salary Commitments in the old Year ..................................................... 7

4 Checks in the old Financial Year after Final Reconciliation 9

5 Schools Using Accounts Receivable 12

5.1 Working in 2016 ................................................................................................................... 12

5.2 Write Off in 2016 after the start of new Financial Year and prior to Preliminary Closure ...... 15

5.3 Transfer Outstanding Invoice to the new Financial Year after the Preliminary Close ............. 15

5.4 Working in 2017 ................................................................................................................... 16

5.5 Accounts Receivable Year End Adjustments (Central Schools) .............................................. 16

6 Closure of the old Financial Year 17

7 Preliminary Close of the Financial Year 18

8 Final Close of the Financial Year 21

9 Working in the new Financial Year 24

9.1 Petty Cash ............................................................................................................................ 24

9.2 Removal of Temporary Reimbursement ............................................................................... 24

9.3 Adjustment to Balances ....................................................................................................... 25

9.4 Adjusting Balances ............................................................................................................... 26

10 Useful Reports in the old Financial Year 27

11 Checks in the new Year 28

11.1 Check the Fund Reserves ..................................................................................................... 28

11.2 Fixing the School Budget ...................................................................................................... 28

11.3 Reminders for All Users ........................................................................................................ 29



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This year end manual provides information to carry out the smooth transition from one financial year

to another.

Before you attempt to carry out your year-end procedures, you should ensure that your data has

been backed up.

Once the LA has issued the final out-turn figures, it is essential that the old financial year is closed.

Follow the procedures in the order outlined in this document and aim to complete them by May half term.

A Final Closure can only be carried out after reconciling all the Month 13 printouts for the old financial year and following notification by the LA of your out-turn figures showing Balance c/f 31 March (Reserves Accrued).

Once the Close of Year procedure has been performed the old year is then only available for reports.

You will not be able to carry out ANY transactions in the OLD Financial Year once it has been finalised.

It is only possible to have two financial years OPEN at one time.



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1 Checks in the old Financial Year 2016

1.1 Reconciliation (Month 12 and 13)

Complete ALL reconciliations for the old Financial Year BEFORE Final Closure. There should be NO

transactions remaining in the Invoice Reconciliation area unless they are to be transferred to the next

year.

Use Central | Central Payment to reconcile any items on Month 13 printouts that do not have matching

invoices or income transactions. This will include the credit you may have received for Interest or debit

charged for a deficit.

Use Reports | General Ledger | Trial Balance | Ledger Code Balances to Print out a Trial Balance of

Ledger Codes Balances for Month 13 to check that all Finance 6 reconciliations match with printouts.

If necessary, use General Ledger | Chart of Accounts Review to explore more fully any mismatched

codes.



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2 Budget Allocations for the old Financial Year

All known Budget funding for the old Financial Year should have been added (or removed) to the

relevant 00Cost Centre as Direct Central Income (Or Cash Book Journal for Bank Account schools) before

Final Closure.

Ensure that your allocations are all in cost centres with Budget Management | Fund Allocation

(Reserves should = £0).

2.1 Cost Centre Allocation Virements

If necessary, perform any virements in the old Financial Year before Preliminary Closure using Budget

Management | Cost Centre Allocation.

NOTE: Schools who have already performed a Preliminary Closure will not be able to do any

virements.



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3 Schools using Personnel to Calculate Salary Commitments

NOTE: Schools not using Personnel to calculate salary commitments in Finance 6, please turn to

page 9.

Although Preliminary Close will not fail if there are any outstanding salary commitments, you will not

be able to run Final Close until all salary commitments have been cleared.

3.1 Clearing Outstanding Salary Commitments in the old Year

If there are outstanding commitments in the salary projections area of Finance 6 after all salaries have

been recorded, they will need clearing before the Financial Year can be closed.

Click Personnel Links and then Salary Projections.

Click View Details.

In the example given above commitments outstanding for August (period 5) and March (period 12)

must be cleared before the year can be finalised.

Click Close to close this view.



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Click the Clear Commitment button.

Select the relevant month using the Browser:-

Click Tag All.

When the red flags appear in the margin against the names click Clear Commitment.

At the prompt ‘Are you sure you want to clear commitment for all the tagged records’? – click Yes.

Click Save.



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4 Checks in the old Financial Year after Final Reconciliation

The System Check Report can be run to assist you in preparing the system for closure. You may find it

useful to run this report periodically in preparation for the final close of the financial year.

Select Reports | Year End | System Check and enter a tick against Include Transferable Transactions

and Include Support Items. Click OK.

This report will check for any outstanding transactions that require processing before the year can be

closed.

When the System Check Report is produced, you will receive a list of all transactions.

If you have any items on your system that require further action to enable preliminary close to run,

these will be listed on the report along with their current status.

The following table demonstrates problems that you may encounter which may prevent preliminary

close taking place.

Transaction Type Status Action

Order Not Authorised Authorise and Print or

Delete

Non-Invoiced Income Unposted Delete or Post

Accounts Receivable

(Invoiced Income)

Created Cancel or Print (Post)

Accounts Payable Invoice

(centrally paid)

Not fully authorised Authorise then Pass for

Payment or Cancel

Accounts Payable Invoice

(centrally paid)

Invoice on hold

Authorised

Change Status, Cancel

Invoice.

(Transferable if

Authorisation Slip printed)

All Journals Unposted Post or Delete

Petty Cash Expenditure Unposted Post or Delete



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All of these items need some action before the closedown can take place. In addition to using the System Check reports various checks can be carried out in the old year to ensure

that all transactions have the correct status to perform the final closure:-

Accounts Payable | Purchase Order Processing, change the view to Un-Authorised to check if there

are any unauthorised orders that may need deleting or processing.

Accounts Payable | Invoice/Credit Note Processing, change the view to Un-Authorised to check if

there are any unauthorised invoices that may need to be cancelled or authorised.

Central | Central Authorisation and check that you do not have any invoices in this area awaiting

batching.

Passed for Payment – Invoices passed for payment but not yet reconciled should be left to transfer on

closure. These will appear on a new financial year Oracle print out for reconciliation.

Non Invoice Income | Receipts, change the view to Not Paid In and check to confirm that all Non

Invoiced Income has been paid in or posted.

Central | Central Payment, change the view to Receipts and check to confirm that unexpected income

has been added.

Once you have dealt with all the system check queries the report should be re-run to confirm that all

transactions have the correct status to perform a successful preliminary closure.

The report may appear with transactions with the symbols T or TS which indicates that they are

transferable items (T), or transferred in support (TS) (i.e. order in support of a transferable invoice).

If all transactions have been cleared, the report will print without any information other than headings.

The headings will appear to be “randomly” spread over the page. At the top of the report it will say

“No transactions to report on”.

In the new financial year, it may be necessary to allocate from Reserves to Cost Centres incurring

expenditure originally planned in the old financial year but actually carried forward into the new

financial year. This can be adjusted after final close down.To identify the Cost Centres with outstanding

commitments in the old year print out a copy of the Cost Centre Commitment report. Select Reports |

Accounts Payable | Purchase Order Reports | Cost Centre Commitments.

Authorise or

Cancel

Authorise or Cancel

Post or Cancel

Post or Cancel

Post or Cancel



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Following final reconciliations from Month 13, ensure that any Order Books for the old Financial Year

have been closed using Tools | Books. Highlight the Order Book you want to close and click on the

Close Books button, you will be asked if you want to free unused numbers for use in new book.

Click No.

NOTE: You will be unable to close order books if there are any unauthorised orders.

This process may also be applied to the Petty Cash Folio Books using Tab 2.

Ensure that new Order Books have been created as discussed in the Creating the New Financial Year

document.

Formula Capital Funding the old Financial Year - Ensure that all expenditure is coded correctly (e.g.

ledger code 11096 in Lancashire) and matches Month 13. Please refer to the specific end of year notes

issued by your LA.

Print a copy of the Cost Centre Commitments Report – Reports | Accounts Payable | Purchasing Order

Report | Cost Centre Commitment.

Close Book



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5 Schools Using Accounts Receivable

5.1 Working in 2016

All Accounts Receivable Invoices, Credit Notes, Receipts and Paying in Slips from the old Year must be

printed and posted otherwise the Preliminary Closure will fail.

Outstanding Invoices created (printed) but not receipted should be dealt with at Year End using one of

the following options:-

Confirmation that Income will not be received: Write Off the invoice in 2016. This must be

completed before the first date of the new Financial Year.

Invoice to be receipted in the new Year: Transfer the Invoice to the new Financial Year.

Write Off in 2016 prior to the beginning of the new Financial Year

A Write Off Cost Centre MUST be defined. The Cost Centre defined must be attached to a least one

expenditure code, NOT an income code. This Cost Centre must have sufficient budget allocated to

absorb the write off values.

You are advised to create a Write Off Cost Centre as 06BADDEBT and link this to the Ledger Code for

Administrative Resources.

You may need to create a new Cost Centre of 06BADDEBT in Finance 6 using the route Tools | General

Ledger Setup | tab. 2 Cost Centres. Once the Cost Centre has been created link it the Ledger Code via

tab. 6 C/Centre Ledger Links.

When a Write Off is made, the Write Off (debit) will be made to the default Write Off Cost Centre

defined, and the new Cost Centre should be set as the default using

Tools | Accounts Receivable Parameters.



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To Write Off the outstanding invoice, highlight and open the invoice details and click the Write Off

button or select Focus | Write Off.

Click the Write Off button.

The Write Off Details screen will be displayed.

Enter a Journal Narrative.



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Click the blue tick on the menu bar to save the changes.

To confirm the changes, click on the Debtor button on the menu bar, or select Focus | Debtor to display

the Debtor Details screen.

Highlight the Debtor and double-click to open the details. Select tab 3 Review to view the changes.



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5.2 Write Off in 2016 after the start of new Financial Year and prior to Preliminary Closure

If you attempt to Write Off an Invoice in 2016 after the start of the new Financial Year the following

message will be displayed.

You will not be able to Write Off the Invoice in the new Year until after the Preliminary Close has been

run. Once the Preliminary Close has been completed you will then be able to transfer the Invoice to

the new Financial Year to complete the Write Off.

5.3 Transfer Outstanding Invoice to the new Financial Year after the Preliminary Close

Working in 2016, highlight and open the invoice details. Click the Write Off button or select

Focus | Write Off.

Click the Write Off button



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The following message will be displayed:-

Select Yes to transfer the Invoice to the New Financial Year.

5.4 Working in 2017

Once transferred to the new Year the Invoice is then available to match a Receipt to, or to Write Off. Important: When using Accounts Receivable, note that the credit to the Cost Centre and Ledger Code is made at the Invoice stage. Therefore, when the Invoice is transferred to the New Year the credit remains against the Cost Centre and Ledger Code in the Old Year. The Receipt does not impact on the Cost Centre or Ledger Code, but will appear on the bank account statement for reconciliation.

If a Write Off is made in the New Year for an Invoice transferred from the Old Year the debit will be

made in the New Year against the Cost Centre defined in Tools| Account Receivable Parameters.

5.5 Accounts Receivable Year End Adjustments (Central Schools)

Once the Old year has been closed this may also necessitate adjustments to account for any outstanding

income for Invoices raised but not credited on your Period 13 printout.

This will require the income to be reduced in the old Year using a Direct Central Receipt with a minus

for each Ledger Code with an outstanding balance credit which relates to the Invoice raised in Accounts

Receivable. This transaction will then be reversed (Direct Central Receipt) in the new Year to reflect

the income still due – which will then enable the school to reconcile when the income appears on the

monthly printout.



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6 Closure of the old Financial Year

Before proceeding with the Closure Routines for the old Financial Year ensure ALL transactions,

virements and reconciliations in the old Financial Year have been completed.

NETWORK schools – ensure that all users are excluded from Finance 6 whilst this

procedure takes place.

Once the files for the old Financial Year have been closed no new work of any type can be performed -

there is no going back! Once closed, the old year will only be available for accessing reports.

Unused Cost Centres or Ledger Codes may be deleted in the new year, once the final close has been

performed in the old year - remember to undo Cost Centre Ledger Code links prior to attempting to

delete the Cost Centre/s. Please note this is not always successful, depending on whether the chosen

Cost Centre has records in the Audit Trail. Please also ensure that any Cost Centre or Ledger Code to be

deleted is not attached to any Journal Transfer templates or included in any User Defined Reports.

If any Cost Centres or Ledger Codes have been added to the old Financial Year after the new Financial

Year has been created, it will be necessary to update the structures through Tools | Define Financial

Years | Update Next Year's Structures in the old Financial Year.



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7 Preliminary Close of the Financial Year

From the menu bar, select Tools | Define Financial Years | Define/Edit Years, highlight the year to be

closed.

Click Preliminary Close.

The system will carry out a number of checks, which when complete will have a tick or a cross in the

Passed column, similar to the screen displayed below:-

Any items with a cross against them will

need investigating before the close can be

completed.

Click Report to print a copy of the year end report giving details of any actions required before the

Financial Year can be closed.

If all Actions have a tick in the ‘Passed’ column, click Continue.



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The Select Transfer Mode overlay screen will be displayed.

Click into the radio button against Transfer All Central Transactions.

Click Continue to display the Preliminary Close checks screen, as displayed below.

Click Report to print a Year End Transferred Transactions Report, which will list all the items you have

transferred to the new financial year.

Click Perform Close.



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At the following prompt, click Yes.

The Define Years screen is now displayed, with the old financial year 2016 Closed – Not Finalized,

similar to the screen below:-

Click Save.



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8 Final Close of the Financial Year

Once the Final Close has been run you will be unable to do any work in the old financial year, but the

year is still available for reporting.

Highlight the old Finance Year 2016 Closed – Not Finalized and click on Final Close.

You may receive an additional message asking if you want to close the year if it is within 28 days of the

preliminary close.

Click Yes.

The Final Checks screen will be displayed and the system will carry out a number of checks, which when

complete will have a tick or a cross in the Passed column.

The screen should resemble the image below:-



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If any items appear with a cross against them they will need investigating before the close can be

completed. Click on Report to print a copy of the year end report giving details of any actions required

before the Financial Year can be closed.

If all actions have a tick in the Passed column, click Continue.

The system will continue with the Final Close process. Your screen should now resemble the image

displayed below:-

When the above screen is displayed with all ticks in the Status column, click Perform Close – a message

will be displayed informing you that this operation is not reversible.

Click Yes to continue.



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The old Financial Year should now be displayed as Finalized.

Click Save.

At this point no new work can be performed in the old Financial Year, but the year is still available for reporting.

Reports in the new Financial Year may display transactions which have been transferred from the old

Financial Year. Below is a list of the Cross Year Symbols:

T This symbol indicates that the listed item has been transferred to the next financial year

and requires additional processing.

TS If this symbol marks a transaction, the item has been transferred to the next financial year

as a supporting item, e.g. the order relating to an invoice may be transferred.

TR The only time you are likely to see this symbol, is when a transaction has been copied in

support and the item it is supporting has been cancelled.

F This symbol indicates that the listed item has been transferred from the previous financial

year and requires further processing.

FS When this symbol is recorded in the next financial year, the item has been transferred as

a supporting item, e.g. the order relating to an invoice requiring processing.

FR You will find this symbol placed against an item that has been copied in support, but the

item it is supporting has been cancelled. If further processing is required it will be

reinstated and available for completion.



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9 Working in the new Financial Year

9.1 Petty Cash

As advised in the Creating the new Financial Year 2017/18 document, you may have entered a

temporary reimbursement until the accounts for 2016/17 were finalised. This temporary

reimbursement should now be removed.

9.2 Removal of Temporary Reimbursement

To remove your temporary Cash in Hand in Petty Cash click General Ledger | Petty Cash Processing

and highlight the line with the temporary reimbursement and click on the Red Cross button on the top

right-hand side to cancel.

Click Save Changes.



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9.3 Adjustment to Balances

After the Final Closure of the old Financial Year check the fund allocations through Route:

Budget Management | Fund Allocation.

This screen displays information about the amount of money allocated to the Fund(s), that has already

been budgeted (allocated to Cost Centre/Ledger Code links) and what is still left unallocated to Cost

Centres in the “Reserves” column, as illustrated below:-

Assuming that all the old Financial Year School Budget Share Allocation has been Budgeted (allocated

to Cost Centres) and the new Year School Budget Share has been allocated to Cost Centres the figure

shown as Reserves in Finance 6 should represent the Out-turn figures for the old Financial Year.

Remember to take into account any carried forward balances that will need to be allocated to Cost

Centres in the new Year for orders or invoices that have transferred from the old Year and any Cost

Centre Balances to be retained.



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9.4 Adjusting Balances

Once the out-turn figures are available following the FINAL Month 13 printout and you have closed the

old Financial Year, it may be necessary to work in the new Financial Year to make some adjustments.

Even though the Month 13 printout has been reconciled “to the penny”, an additional adjustment is

necessary. This is because out-turn figures are rounded to the nearest pound and so to match the LA’s

figures precisely, a debit or credit of even a few pence is essential.

Adjustment to match the LA out-turn figures

The amount shown as Finance 6 reserves may need an adjustment to ensure that your figure matches

exactly to the out-turn statement. This is the figure provided at the end of the report - Balances carried

forward to 2017/2018.

Use Budget Management | Fund Allocation | Increase or Decrease Allocation as appropriate and type

in the narrative:

Close of Year - adjustment to match year end out-turn figures.

School Reserve figure

When all adjustments are complete ( you may wish to allocate the carried forward amounts to Cost

Centres both for unreconciled transactions and any balances retained) you will need to allocate the

balance of your School Reserve figure to your Reserves Cost Centre using Budget Management | Cost

Centre Allocation.



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10 Useful Reports in the old Financial Year

Summary Cost Centre Report

Reports | General Ledger | Transactions | Cost Centre Summary Transactions | Cost Centre Summary

by Cost Centre

Summary Cost Group Report

Reports | General Ledger | Transactions | Cost Centre Summary Transactions | Cost Centre Summary

by Cost Group

Cost Centre Allocation Audit Trail

Reports | Budget Maintenance | Cost Centre Allocation Audit

Fund Allocation Audit Trail – detailed

Reports | Budget Maintenance | Fund Allocation Audit Trail

Chart of Accounts Review

Click General Ledger and then Chart of Accounts Review:

Click Print to produce a copy of the report.



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11 Checks in the New Year

11.1 Check the Fund Reserves

Once you know your exact School Budget Share and your Budget Plan has been approved, your initial

School Budget Share allocations are entered into Finance 6 into the relevant 00 Cost Centres.

Once the School Budget has been agreed with the Governors it must be fixed in Finance 6. This is an

Audit requirement and will also assist you to monitor any virements.

Check the fund reserves to ensure that your Budget Share is fully allocated and there is nothing in

Reserves. Click on the Budget Management | Fund Allocation button.

11.2 Fixing the School Budget

To fix the School Budget, open Budget Management | Cost Centre Allocation and click the Fix the

Budget button.



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At the following prompt, click Yes.

If required, print out the Annual Budget Listing report for reference / information purposes.

Reports | Budget Maintenance | Annual Budget Listing.

11.3 Reminders for All Users

Delete unused Cost Centres

With the previous Financial Year closed you may now be able to remove any Cost Centre Ledger Code

Links to Cost Centres and delete the Cost Centres.

From the menu bar, select Tools | General Ledger Set Up | Tab 6 C/Centre Ledger Links.

Find the Cost Centre and Ledger Code link; click the minus sign to undo each Ledger Code link and Save.

You may now be able to delete the Cost Centre.

From the menu bar, select Tools | General Ledger Set Up | Tab 2 Cost Centres.

Find the Cost Centre; click the minus sign and Save.



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MONTHLY PROCESSES:

Always ensure that the Batch Files and Invoices are forwarded to the Authority simultaneously.

Aim to reconcile from your monthly printout within 1 week of receipt.

Print Trial Balance report of Ledger Codes to check that individual figures in Finance 6 match

your monthly report :-

From the main menu, select Reports | General Ledger | Trial Balance | Ledger Code Balances

for the same Period as your printout.

Check the Fund Review report - the ‘Actual’ figure should match the printout Closing Balance:-

From the menu bar, select Reports | General Ledger | Fund Review.

NOTE: Remember the printout's closing balance may be out to the value of any outstanding Petty

Cash claims and/or Accounts Receivable.

Print the two reports suitable for Governors :-

From the menu bar select, Reports | General Ledger | Transactions | Cost Centre Summary

Transactions | Cost Centre Summary by Cost Centre.

And

Reports | General Ledger | Transactions | Cost Centre Summary Transactions |

Cost Centre Summary by Cost Group.

Inform the Governors about virements for the previous month.

Print out a copy of the Audit Trail :-

From the menu bar select, Reports | General Ledger | Audit | Audit Trail.

Select: Audit Type [G].

Audit Sub Type [C].

Select the date range.

bt lancashire services · 2017-03-27 · bt lancashire services finance 6 final closure for 2016/17...

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