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Accounts, Period End, Transferable

The FSA requires you to move your commission out of your Client Bank Account within 28 days. To do so, starting from the Durell “Main Menu”…

  • Click “Accounts”
  • Click the “Period End” button
  • Click the “Transferable” tab, and you should see a screen like that illustrated below
  • Ensure that the “Include manual ledger entries” option is ticked
  • o Invoices can also be made manually in the Sales Ledger by clicking the “Starburst / New” button. This tick enables the routine to include such invoices

  • Click the “Report” button to get a printed list of what you are about to transfer. This report is essential as it cannot be repeated after the transfer.
  • Click the “Transfer” button to start the transfer process (n.b. the button will be greyed out until after you have run the associated report)
  • You’ll then be presented with an automatic journal, like that shown below
  • Click the “OK” button to accept the journal
  • On return to the “Transferable” screen either click the “Cancel” button to exit, or repeat the above if there are more sums to process…
  • o You may find you need to repeat the process for GXIA-General, Charges (i.e. in addition to G*CT-General, Comm), which is quite normal.

    o However you should not have any Introducer or Adviser commission to transfer. If you do then you must contact Durell’s Help Desk immediately so they can fix your “posting defaults”

    So that they don’t get transferred twice, the process described above changes the selected accounting transactions from the “Transferable commission” control to the “Earned commission” nominal (fully discussed below). It also prepares Cashbook transactions to move the money out of the Client Bank and into the Office one. To complete the process you need to go to the Cashbook and use the “Signpost” option to “Cash-up to bank”. At the same time you need to write the actual cheque(s) involved to physically move this sum between the accounts.

    Shortcut - Use Default Journal Templates

    Once you’ve worked-out exactly what ought to be done with a journal, to save it as a template for future re-use simply…

  • Highlight it (e.g. the “Transfer into Euros” one, below)
  • Click the “Signpost” button
  • Select “Use as template”
  • Give it a name (e.g. “Transfer into Euros”, “VAT Return”, etc)
  • Click the “OK” button
  • Then the next time you’re starting a new journal to do the same thing just click the “Load default” button and pick the one you want, as shown below.

    If you subsequently find the description isn’t quite right (e.g. you wish you’d saved “VAT Return” as “VAT Return for quarter” then just edit the text and click “Save Description”, as shown below, in which case the default template will be renamed AND its title passed to the Description field (see above) of all future journals based on it.

    The Transferable Commission Process

    This allows you to verify what commission…

  • is outstanding (i.e. this appears in the “G*CS-General, Comm in suspense” control)
  • has been received but is still in the Client Bank account (i.e. this appears in the “G*CT-General, Comm transferable control)
  • has been fully processed and moved to the Office Bank account (i.e. this appears in the “GCEA-General, Comm received” nominal)
  • The system processes commission through these three stages automatically, as shown in the following three screens, using the example of an invoice to Aaron F for his policy Ref 674563453….

    The above screen shows his invoice immediately after it has been created, with the total amount of £588.00 due. At this point the “Commission” appears in the “G*CS” control account (i.e. the “General Commission in Suspense” control – so called because you can never be 100% sure that the client will pay it). The following screen shows the same invoice after Mr Aaron has paid the £588.00 to the brokerage, which you can tell because the “Due £” box at the bottom centre is now empty. All such received sums are entered in the system via the Cashbook reconciliation process, which not only re-sets the “Due” amount, but also re-sets all received commission into the “G*CT” control account (i.e. the “General Commission, Transferable” control – so called because, since it has been received, you may now transfer it from the client holding bank account into the office spending bank account).

    At any point you may use the “Trial Balance” or the “List Sales Ledger” reports to check what commission is in the “Suspense” and “Transferable” controls, like that shown in the two illustrations above. When you have sufficient transferable commission (where “sufficient” is a matter of personal judgement) you can choose to run the “Transferable” routine, described above. This routine adds up all the transferable amounts and then automatically creates a journal entry to move that sum from your Client Bank to your Office Bank account. While doing so it also automatically re-sets all the transferred commission to the “GCEA” nominal account, as shown below (i.e. General Commission, Earnings, so called because this is what the brokerage earns for processing the business). The point of this is to prevent a given item of commission from being transferred more than one time.

    Process Dependencies

    The Suspense and Transferable control accounts are further discussed in “Accounts, Set-up Control Accounts”, but the three issues that are essential for this process to function are… 

    1. You must have correctly set-up “Posting defaults” (see “Accounts, Set-up, Posting Defaults” and the illustration screen below

    1. You must have one bank account designated as the “Client” one, and another as the “Office” one (see “Accounts, Set-up Bank Accounts” and the illustration, below)

    1. All of your “transferable” control accounts must have designated nominal accounts into which their sums will be transferred (see “Accounts, Set-up Control Accounts” and the illustration below)