This guide gives an overview of Central Payments and Receipts, and in doing so provides links to the individual guides written for Schools that Use a Central Bank Account. It is split into five parts:
2. Central Payments / Accounts Payable
3. Central Receipts / Accounts Receivable
4. Manually Recording Central Payments and Receipts
5. Reconciling Central Payments and Receipts
1. Overview
Schools that have some or all of their Accounts Payable payments paid from a Local Authority bank account use Central Payments. Similarly, Schools that have some or all of their Accounts Receivable payments paid into a Local Authority bank account use Central Receipts.
Payments and Receipts that are made Centrally are processed differently to those processed through the School’s Bank Account.
To check whether the system is set up for processing Central Payments and Receipts, see: How to Set Up Bromcom Finance for Central Payments and Receipts.
2. Central Payments / Accounts Payable
In Accounts Payable, for goods and services that are to be paid for Centrally, the Purchase Orders, Invoices and Credit Notes are produced at School Level.
2.1. Purchase Orders
To create a Centrally Paid Purchase Order, see: How to Create a New Centrally Paid Purchase Order.
2.2. Invoices
To create or cancel Centrally Paid Invoices and Credit Notes, see: How to Process Centrally Paid Invoices in Accounts Payable.
After creating Centrally Paid Invoices and Credit Notes, they must be passed to the Local Authority for processing. See: How to Pass an Invoice or Credit Note for Central Payment Using Central Authorisation.
2.3. Reconciling Central Payments
***Once the Local Authority has paid the Invoices, it sends a file back to the School to be Reconciled. The fastest and easiest way to Reconcile Central Payments is to use Automatic Reconciliation. For instructions on this process, please see: How to Use Automatic Reconciliation to Reconcile Central Payments and Receipts.
***If, for any reason, it is not possible to use Automatic Reconciliation, Central Payments can be Reconciled Manually. See: How to Complete Central Manual Reconciliation. Make sure the Toggle is set to Accounts Payable (AP) during this process.
3. Central Receipts / Accounts Receivable
In Accounts Receivable, the School’s Customers pay the Local Authority for invoiced goods and services. The School-Produced Invoice has the Central Payment Details on it. The Local Authority then informs the School of any payments made.
3.1. Invoices
For Accounts Receivable, Invoices are produced in the normal way. The School-Produced Invoice has the Central Payment Details on it. See: How to Raise an Invoice in Accounts Receivable.
3.2. Receipts
The School then issues a Receipt for the payment. See: How to Add an Invoice Receipt and How to Process a Non-Invoice Receipt.
3.3. Paying In Slips
The School also creates a Paying In Slip. See: How to Process a Paying In Slip for a Central Payment.
3.4. Reconciling Central Receipts
Once the Paying In Slip is Processed, the Payment needs to be Reconciled. To do this automatically, see: How to Use Automatic Reconciliation to Reconcile Central Payments and Receipts.
If, for any reason, it is not possible to use Automatic Reconciliation, Central Receipts can be Reconciled Manually. See: How to Complete Central Manual Reconciliation. Make sure the Toggle is set to Accounts Receivable (AR).
4. Manually Recording Central Payments and Receipts
The Local Authority may make or receive a Payment on behalf of the School without Invoices being raised. In these instances, the Central Payments and Receipts can be Manually Recorded. See: How to Record Central Payments and Receipts and How to Reverse Central Payments and Receipts.
5. Reconciling Central Payments and Receipts
5.1. Automatic Reconciliation
The fastest and easiest way to Reconcile Central Payments and Receipts is to use Automatic Reconciliation. For instructions on this process, see: How to Use Automatic Reconciliation to Reconcile Central Payments and Receipts.
5.2. Manual Reconciliation
If, for any reason, it is not possible to use Automatic Reconciliation, Central Payments and Receipts can be Reconciled Manually. See: How to Complete Central Manual Reconciliation.