Once the Finance Division has paid the credit card statement each department's expenditure total is posted to a designated control account in the department's accounts and an announcement made in the bulletin. The Finance Division's accounting entries are as follows.
The direct debit payment:
DEBIT: U.00. AP Control account
CREDIT: U.00. Bank account
DEBIT: U.xx.xxAA.AAAA.FJAA (where 'xx' represents the department code)
CREDIT: U.00. AP Control account
Following authorisation by Departmental Heads/Administrators expenditure should be charged to the relevant expenditure account and a corresponding entry posted to the control account.
DEBIT: U.Dept.Cost centre.Source of funds. Trans code - Dept.Expenditure A/c
CREDIT: U. xx. xxAA. AAAA. FJAA - Dept. Control A/c
The authorised expense claim and accompanying receipts should be attached to the General Ledger/Grants journal as supporting documentation and files kept for six years, to comply with Financial Regulations.The retention period may be longer depending on the terms of the grant.
Each department is responsible for clearing its own control account on a monthly basis. The control account should be completely clear at the end of each financial year to ensure that current year costs are not carried forward.
Care needs to be given to situations where VAT would normally be reclaimed, as this may be more difficult when using a credit card. The Tax Section must be consulted to determine if the VAT element of the cost is reclaimable.
Where Services Tax would be incurred it is necessary to contact the Tax Section and to provide details of the expenditure.