Step | System | Area | Description | Responsibility | Deadline |
1 | Xero | Process monthly transactions | Ensure that all transactions have been entered into the accounting system. All transactions include the following:- Customer invoices - A valid invoice and PO- Supplier invoices - A valid invoiceNB: This excludes any credit card transactions as we do not receive the statements until 4th of the month. These are not material month on month therefore no accrual is made. | Head of Finance | WD 1 |
3 | Excel Spreadsheet | Deferred Income | Review the Non recurring tracker (’031c - Non-recurrent Rev and Forecast’) and ensure that the following is up to date for the previous month:1) All live implementation projects are included2) For each implementation project, include the time completed to date3) For each implementation project, include the time estimated to complete | Andrew Phelps | WD 1 |
4 | Excel Spreadsheet | Recurring Revenue | A master schedule (’031b - Renewals Tracker’) will be maintained by the Business Support Associate (Eddie), which details the following split by customer- Annual revenue- Renewal dates- Contract lengths- Cost of sales- Invoicing status- Identify customers where support has incepted, but we have not yet invoiced the customerIt is Eddie’s responsibility to make sure this file is kept up to date with a complete list of all implementation projects. This includes the total revenue for each project.Eddie to confirm to Luke that the spreadsheet has been updated by the appropriate stakeholders | Eddie | WD 2 |
5 | Excel Spreadsheet | Non Recurring Revenue | A master schedule (’031c - Non-recurrent Rev and Forecast’) will be maintained by the Business Support Associate (Eddie), which details the following split by customer- Annual revenue- Renewal dates- Contract lengths- Cost of sales- Invoicing status- Identify customers where support has incepted, but we have not yet invoiced the customerIt is Eddie’s responsibility to make sure this file is kept up to date with a complete list of all implementation projects. This includes the total revenue for each project.Eddie to confirm to Luke that the spreadsheet has been updated by the appropriate stakeholders | Eddie | WD 2 |
6 | Excel Spreadsheet | Deferred Income | Review the ’031b - Renewals Tracker’ and ’031c - Non-recurrent Rev and Forecast’ trackers and confirm that the invoicing status per the spreadsheet is correct and aligned to what has been invoiced in Xero for the month.When complete, confirm to Luke that this has been completed | Marie | WD 2 |
7 | Excel Spreadsheet | Deferred Income | Review the Non recurring tracker and ensure the following:1) The invoice status for each implementation project is accurate with the status of invoicing.2) For each one, include the invoice or quotation number on the spreadsheetConfirm to Luke when this has been actioned | Marie | WD 2 |
8 | Xero | Approve monthly transactions | Approve transactions on Xero | Tom | WD 3 |
9 | Excel Spreadsheet | Deferred Income | Finance Manager to check and confirm that all contract dates raised on invoices are consistent with the master spreadsheet, which is maintained by the Business Support Associate. As part of this check, this will ensure that all invoices raised in Xero are listed as raised on the master spreadsheet. | Marie | WD 3 |
10 | FlowRev | Deferred Income | Log into FlowRev >> Org >> Change/Update - Ensure that the correct legal entity is selected. Ensure that the status of all imports is updates as well to reflect the required periodWhen selected the correct legal entity, make sure that press the button, ‘Update selected’. This will ensure that the latest transactions are pulled through from Xero. | Marie | WD 3 |
11 | FlowRev | Deferred Income | Log into FlowRev >> Org >> Accounts - Do not update the mapping accounts without prior agreement with TLL. This tab should not be updated at all unless it has been agreed | Marie | WD 3 |
12 | FlowRev | Deferred Income | Log into FlowRev >> Invoices - This includes a breakdown of all invoices that have been imported from Xero. Select the data to identify the accounting period for which you need. e.g. FY 2023 or FY 2022. You can click on the individual INV numbers on this page to see the breakdown of each invoice and which revenue accounts the invoice has been mapped to, along with the contract recognition dates. Refer to example screen shot below - ‘Example of Invoices Details on FlowRev’The definitions for the recognition criteria are included below. Refer to ‘Recognition definitions’ below. IT IS CRITICAL THAT THESE ARE COMPLETED ACCURATELY TO ENSURE THE RECOGNITION RULES ARE APPLIED CORRECTLY.By default, the following process should be followed when entering the invoice information:- Make sure the 'recognition' box is correct. For all that the 'Account' states it is 'RR', this should be selected as 'Monthly' and 'per diem'. For all others (NR) this should be selected as 'None'. Selecting ‘None’ will ensure that the invoice is recognised on the same date as the invoice date.- Ensure that for each invoice, the contract start date per the invoice aligns to what is in FlowRev.When complete, select the button ‘Update Service dates’. | Marie | WD 3 |
13 | FlowRev | Deferred Income | Log into FlowRev >> Invoices - Where a credit note has been issued to reverse a previously issued invoice, ensure that the recognition profile is identical to the invoice that it is reversing. This is to ensure that the credit note reverses correctly. | Marie | WD 3 |
14 | FlowRev | Deferred Income | Reconciliation step: Ensure that there is no change in the deferred income balance to the previous periods as a result of the updates made on a monthly basis. If there is a change, this needs to be 100% explainable. | Marie | WD 3 |
15 | FlowRev | Revenue recognition | Log into FlowRev >> Revenue - This details the revenue recognition based on the recognition rules that have been entered on the invoices tab.When all invoice dates have been updated per step 8 above, select ‘generate revenue schedule’. This will ensure that the revenue journal postings are posted to Xero.Ensure that there is no balances that are shown as unsynced. Refer to guidance section below for how to check this.Revenue - This shows the total revenue recognised for the monthSales - Total of invoices raised in the month.Schedule Defer - The total amount to be deferred (for the month only) based on the invoices entered for the monthSchedule Recognise - The deferred income to be released for the month based on the recognition rules applied on invoices to date.Hence the Revenue line is calculated as Sales - Schedule Defer + Schedule recogniseTo view what invoices are included on each line, you can click on the individual balances | Marie | WD 3 |
16 | FlowRev | Bills and Costs | Log into FlowRev >> BillsReview Cost of Sale bills and add recognition dates where applicable. Note - recognition rules only need to be applied where the service is paid for a period of more than 1 month.When complete, select ‘update service dates’. | Marie | WD 3 |
17 | FlowRev | Bills and Costs | Log into FlowRev >> Costs - This details the cost recognition based on the recognition rules that have been entered on the invoices tab.When all invoice dates have been updated per step 11 above, select ‘generate cost schedule’. This will ensure that the cost journal postings are posted to Xero.Ensure that there is no balances that are shown as unsynced. Refer to guidance section below for how to check this. | Marie | WD 3 |
18 | FlowRev | Deferred Income | On a daily basis, FlowRev will automatically post the deferred income adjustment to Xero (e.g. Dr Revenue accounts and Cr deferred income) to ensure that the balances in Xero are correct.When all FlowRev steps above have been completed, confirm to Luke that this has been completed | Marie | WD 3 |
19 | Excel Spreadsheet | Bank reconciliation | Bank reconciliationOn a monthly basis, the Finance Manager will complete a reconciliation of the bank balance per the Natwest bank accounts to the bank balance per Xero. This will be completed by doing a the way reconciliation between 1) the bank statements balance per bankline 2) the bank statement balance per Xero (fed in by automated feed) and 3) the account transactions balance per XeroThe supporting workings will be maintained on the Ccube Sharepoint in folder ‘10 - Finance and Admin’ and under the document called - ‘Bank Reconciliations’. | Marie | WD 3 |
20 | Excel Spreadsheet | Processing of monthly numbers | Open ‘Ccube Master’ >>> Go onto the ‘Xero’ tab >>> Create a new column next to the previous month’s financial information. Copy and paste the values in Column A so that theses are included in the newly created column. Ensure you paste values though so these are not copying the formulas. Down the extract of the TB from Xero. See steps in video below - https://www.loom.com/share/20f62e4579c04ab994b9cfb816cbea70?sid=a73efdc4-3f92-4f36-8ed5-ce33563bdf89 | Luke | WD 5 |
21 | Excel Spreadsheet | Processing of monthly numbers | Log into Xero >>> Take an extract from Xero for the financial period in question >>> Ensure that the correct account GL code is entered into the correct field in Ccube Master. Ensure that the sum of the columns is equal. See steps in the video - https://www.loom.com/share/b021c14a53a94fda9e61a79469e7d197?sid=c3418410-d0e7-4cbb-b1ef-83c2bf744e7fNB: The accounting software in Xero will exclude a GL code for the period you have exported if it returns a nil value. Therefore it is sometimes helpful to extract the data by comparing to financial periods going back to at least 31 December 2022 to ensure these are not excluded.NB: Ensure that the correct TB codes from the Xero report are aligned to the information input into Ccube master. This is not likely to be able to be imported in one go due to the point raised above. Ensure complete check at the end. | Luke | WD 5 |
22 | Excel Spreadsheet | Processing of monthly numbers | Refer to the ‘TB’ tab on Ccube Master. Column AJ includes the figures that have been extracted from Xero. A number of manual adjustments are then completed from column AJ onwards to arrive at the monthly numbers. These include:- ADJ1: Prior period BS (manual adjustments) - Take no action. This should not be changed- ADJ2: FlowRev adjustments - This adjustment relates to a legacy adjustment on the implementation of FlowRev in December 2023. FlowRev does not have the funtionality to automatically apply revenue recognition rules to invoices that incepted prior to the implementation year (e.g prior to FY23). This balances relates to contracts that were taken out prior to FY23 and the contract length runs into 2024 and future years. This adjustment will reduce to zero at the end of FY24.This adjustment is assumed to release evenly throughout FY24. Therefore each month, one 12th of the balance needs to be released to the PL- ADJ3: LP NR Revenue - Take no action. This should not be changed- ADJ4: CY NR Revenue: The way Xero is designed, the system will assume that an invoice is fully recognised at the point of invoicing unless recognition criteria are applied to that invoice within FlowRev. No recognition criteria is applied to NR invoices. Therefore this needs to be manually adjusted through ADJ4. Follow this process: Request from Edemir Monteiro to update the Non-Recurring revenue sheet. When the spreadsheet has been updated, follow the following steps:1) Filter Colum E to show only projects that have been invoiced.2) Take the sum of all remaining entries in column W. This will show the total revenue that needs to be deferred for that month.NB: Only caveat to the above, exclude complete project, if all complete jobs have been invoiced. Otherwise we will need to adjust for thatThis figure will be provided from a centrally maintained spreadsheet. The manual journal will be posted to Ccube Master by doing the following steps:1) Remove the manual journal from the prior month. 2) Replace the prior month journal with the current period amount to be deferred.The journal will be posted as a Cr to the deferred income account and a Dr to the Revenue account. NB: If Eddie is unavailable, then need to request Andrew Phelps to update for the estimated time to complete for each project.- ADJ5: LP accrued income (RR) - Take no action. This should not be changed- ADJ6: LP accrued income (NR) - Take no action. This should not be changed- ADJ7: CP accrued income (RR) - Follow this process1) Request from Edemir Monteiro (document reference: CCube Sharepoint - Renewals spreadsheet - 031b - Renewals Tracker) for status of all customers where the new contract year has incepted, but we have not yet invoiced the customer. Corroborate this to the central spreadsheet on a call with Eddie.2) Where invoices have not yet been invoiced, these will need to be accrued for that month. Add to Adj 7 tab on CCube Master which will then feed into Adj 7 column on TB tabThe journal will be posted as a Cr to the revenue account and a Dr to the Accrued Income account. NB: Month on month we would expect this figure to be Zero (excluding the impact of NHS E&I). So please check with Tom Llewellyn-Lloyd for whether the value is correct.- ADJ 8: CP accrued income (NR)Request from Edemir Monteiro to update the Non-Recurring revenue sheet. When the spreadsheet has been updated, follow the following steps:1) Filter Column E to show only projects that have not been invoiced.2) Take the sum of all remaining entries in column W. This will show the total revenue that needs to be accrued for that month.NB: Only caveat to the above, exclude complete project, if all complete jobs have been invoiced. Otherwise we will need to adjust for thatThe following adjustment should be posted manually to the monthly accounts: DR Accrued Income CR Revenue recognisedADJ 9: LP Accrued liabilities - Take no action. This should not be changedADJ 10: CP Accrued liabilities - Ensure have accrued for the following:ProAct IT cost - Take the latest invoice from Xero and accrue for that amount. Usually circa 5kEqinilet IT (Quinlan) - Take the latest invoice from Xero and accrue for that amount. Usually circa 5k.Any other expenses over 2k where the expense has been incurred, but we have not yet been invoicedThe manual journal will be posted into Ccube master by doing the following steps:1) Remove the manual journal from the prior month. 2) Replace the prior month journal with the current period amount to be accrued.The journal will be posted as a Dr to the expense account and a Cr to Accrued liabilitiesReview the budgeted costs for the month on the ‘C’ tab of the document ‘Ccube Budget FY24’ (refer to reference above) and consider if there are any large expected costs that have not been incurred? For example in the month of February, we accrued for Andrew Silva costs.NB: Note that Prepayments (e.g. for Atalasoft) are processed through FlowRev and therefore no manual adjustment is required.NB: The Tern Management fee should be £16.6k per month. Check that the exceptionals line totals roughly for this amount. Otherwise one will need to be accrued for.ADJ 11: LP Prepayments - Take no action. This should not be changedADJ 12: CP Prepayments: This should include for items over 2k, where we have incurred the cost, but this should be deferred over the life of the contract. Should include:HTN: Usually billed in MarchInsurance (Irvine Mitchell)ADJ 13: Bonus accrual - Ensure that the total amount for the month should be equal to the following: Refer to ‘C’ tab in ‘Ccube Budget FY24’. Take the total for the total number of months on row 106. Circa 8k per month as a sense checkADJ14: Re-classify Quinlan costs. This should reflect the total costs classified as ‘Eqinilet’ on XERO.All adjustments have been made to the monthly numbers. | Luke | WD 5 |
23 | Excel Spreadsheet | Processing of monthly numbers | Open Ccube Master >>> S tab. Complete the following tasks: Update commentary in column F. Note that the commentary may well be similar to the commentary included in Step 6. | Luke | WD 5 |
24 | Excel Spreadsheet | Processing of monthly numbers | Open Ccube Master >>> F FY24 tab. This tabs shows the expected outturn for the year, which takes the total of actual months completed, plus the forecast for the remaining future months. Complete the following tasks:- Update period end date in cell C4- Update commentary in column F to explain movements vs the original budgeted numbers. | Luke | WD 5 |
25 | Xero | Processing of monthly numbers | When the monthly adjustments referred to in step 17 have been reviewed and agreed with the Finance Director, the monthly journals need to be entered into Xero to ensure that the monthly Profit or Loss, Balance Sheet and Cash Flow can be generated from the system. Complete the following steps:1) Follow the steps outlined in the guidance section below ‘How to reverse monthly journals on Xero’. Request the Finance Manager to complete this task and then request to ‘Save as Draft’. This step is needed to reverse the impact of the prior month manual adjustments. If the Finance Manager is not available, this can be completed by Luke.2) Request the Finance Manager to complete the batch journal template for the current month adjustments that need to be entered into Xero. When these have been reviewed, post these into Xero. If the Finance Manager is not available, this can be completed by Luke.NB: The previous month manual journals need to be reversed by following the steps above prior to any new journals being posted. Speak to the Finance Director if there is any confusion.When all completed, complete a reconciliation of the numbers generated from Xero vs the MB Master to ensure they are the same (e.g. that the manual journal adjustments have been posted correctly. | Luke | WD 6 |
26 | NA | Processing of monthly numbers | Send to Finance Director for review | Luke | WD 6 |
27 | Bankline | PAYE | Set up payment of PAYE on bankline | Marie | To be completed within 2 days of receipt of the information from payroll provider |
28 | Bankline | PAYE | Approve PAYE on bankline | Tom | To be completed within 2 days of receipt of the information from payroll provider + 1WD |
29 | Bankline | Payment run | Complete the payment run | Marie | Tuesday prior to the last Thursday of the month |
30 | Bankline | Payment run | Approve payments on Bankline | Tom | Wednesday prior to the last Thursday of the month |