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20
Scribe Accounts 2015
printing and copying. It is good practice to work out the structure of cost centres and codes on paper
before you start, and this will normally match the way your budget was put together.
Some people, including some auditors, prefer to have an income cost centre which is separate from a
number of expenditure cost centres. It is true this may be simpler to understand. However it does not
then show the true cost of any service which receives income eg village halls, allotments or cemeteries.
If you provide such services you will only see the net effect if you have both receipts and payments in the
same cost centre. So this all depends on how you construct your budget - if you formulate the precept
figure by adding up all costs and deducting all income, then separating income would not be an issue.
However if you look at costs and income in each service, and add a net cost from each service to the
precept calculation you would need to reflect this in the accounts.
You enter these by going to the Setup menu, and selecting Cost Centre or Cost Code.
When you are entering then in Setup, you will have to put the Cost Centre in before the Codes which
relate to it, However you can choose whether to enter all the Cost Centres and then go back and put
Codes against each; or instead create one Cost Centre, and then add its Codes, before moving on to the
next Cost Centre. The results will be the same.
As each Cost Centre is saved, an ID will be allocated to it (1,2,3 etc), so if you wish those IDs to be in
numerical sequence, you should create the structure in the sequence you wish to see later. Codes will
also be allocated IDs in the sequence you enter them. For example if you have Cost Centre 1 with
Codes 1 to 4, Cost Centre 2 will have Codes 5 to 9 if you do that one next.
In both cases (Cost Centres and Codes) all you have to enter is the descriptive name, not the ID
number.
You don't have to enter the budget at the same time - you can come back to that later if you wish, after
you have the full structure in place.
3. What are Transfers?
Some people find this hard to understand initially because some financial actions do not involve actual
receipts or payments.
If you have more than one bank account you will sometimes need to transfer money from one to the
other. You can record this transfer so that the balances held against each account remain correct. That
is relatively straightforward.
To enter a transfer, go to the Bank menu and select Bank Transfer.
However one such account is also set up to deal with Cash. Sometimes you may receive small amounts
of cash from sales, or spend small amounts of cash on minor items. So we maintain a cash account,
just like the bank accounts, and it will cover what happens in the 'petty cash box'.
From time to time you will need to carry out a transfer relating to cash. If you have collected quite an
amount you will need to bank it. Or if you have spent a lot of your petty cash you will need to top it up by
drawing a cheque. Both of these are also transfers, just like a transfer from the savings account to the
current account.
The council is not spending or receiving money when it moves money from the bank to the petty cash
box, even though you may use a cheque to obtain it.
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