Before proceeding you may like to refer to the sections…
“Accounts, Set-up Account Sets”
“Accounts, Standard Sets of Nominal & Control Accounts”
“Accounts, Nominal & Control Accounts Explained”
Then starting from the “Accounts Menu”…
1. Click the “Starburst” button on the toolbar to create a new record
2. Enter the “Account short name” (e.g. “SHAR” or “0100”, etc)
3. Enter the “Account long name” (e.g. “Share Capital”, etc)
4. Set “Include in spreadsheet” to “No” unless the account is to do with commission that is either transferable or in suspense
5. See the section below regarding “Make available for invoicing”
6. Ignore the two dropdowns entitled “If this is a transferable account transfer to” except for General Insurance, in which case see section below regarding “Suspense & Transferable Controls”
7. Click the “Save” button on the toolbar
8. There is no point in setting up budgets for control accounts, so ignore the “Bulk setup account budget” button
9. At any time you may click the “Budget and actual monthly totals” button, bottom right of screen, to review the movement of monies through the control, as shown below
To delete an existing control account simply click the “Bin” button when the account is displayed on screen. You will be unable to delete active control accounts, and also certain controls required by the system, such as for “Debtors Control”. However you can change their long names, so for example, although you cannot delete the control “DEBT”, you can change its long name from “Debtors Control” to “What I’m Owed”.
It is common practice to initially allocate all purchase invoices for assets (e.g. cars and computers) to purchase nominal accounts, then subsequently to make journal entries to move their values to control accounts (e.g. Assets, Tangible, Computers). In some other accounting systems you have no choice but to complete this process in two stages, whether you like it or not. In Durell’s system, when setting up control accounts, you can optionally choose to tick the box entitled “Make available for invoicing”, in which case invoices can then be allocated to that control immediately (e.g. Assets, Tangible, Computers), without the need of a journal. Durell recommends you make all your asset control accounts available for invoicing (N.B. except those for depreciation). The example below shows an invoice for computer equipment and training. Note how the first two transaction lines for the computers and printers have been allocated to the control account “ATAC - Assets, Tangible, Computers” while the last line for training has been allocated to a normal purchase nominal for “OTRN – Overheads, Training”.
You are advised to use suspense and transferable controls ONLY for General Insurance. These are optional features that may be used to distinguish commission at different stages…
The example below shows an invoice for £630, originally divided into £558.00 of GPRM (General Premiums) and £72 of G*CS (Commission in Suspense). At this point the client has made a down payment of £500, leaving £130 still due. During the process of reconciling the £500 the system has automatically re-proportioned the commission into £57.14 received (so now called Transferable Commission) and £14.86 still outstanding (still Commission in Suspense).
At any time subsequently the brokerage can choose to check how much “Transferable Commission” has been received and is currently in the “Client” bank account, from where they may then move it to the “Office” account via the “Transferable” routine accessible from the “Period End” button on the “Accounts Menu”. After the transferable commission has been moved each invoice line containing a transferred sum is automatically re-adjusted to a nominal account (e.g. the £57.14 Transferable Commission shown above would be automatically re-allocated to GCEA - General Commission Earnings). This success of this process is dependent on the following three set-ups…
The third of these three set-ups is controlled via the two dropdowns on the Control Account set-up screen, as shown on the first illustration above, entitled “If this is a transferable account transfer to”. Typically there will be three such transferable control accounts…