Any invoice for capital items received in the 2017 financial year where the invoice is still outstanding will need to be ‘listed’.
The example below is for computer equipment funded from GAG with the order raised against the ledger code/relevant capital acquisition nominal used to purchase the asset. The accrual would need to be actioned and capitalised as follows:
- Accrual:
FMS – Normal Journal
DR 99998-01 Fixed Asset Purchases (prior to capitalisation)
CR Listed Creditor BL001 Accruals (reversing journal in old year) acts like invoice transaction.
PSF – General Journal
DR relevant revenue expenditure nominal
CR 9600 Accruals (reversing journal in old year)
2.Transfer to Balance Sheet:
FMS – Normal Journal
DR BA005 Computer Hardware-normal journal (old year)
CR 99998-01 Fixed Asset Purchases (prior to capitalisation)
PSF – General Journal
DR 9010 IT Equipment as Cost (old year)
CR relevant revenue expenditure nominal (as per step 1)
3.Transfer to Restricted Fixed Asset Fund:
FMS – Normal Journal
DR 99999-01 Fixed Asset Fund Transfer
CR 99999-04 normal journal (old year)
PSF – General Journal
DR 7900 Revenue Cont to Capital (cost centre set with the relevant GAG fund)
CR 8120 Cont from Revenue (cost centre set with fund code RESTFA) – old year
The invoice must then be posted in new financial year to match the accrual actioned.