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claim on cash

Claim on Cash Table

CX uses the information in the Claim on Cash table (claim_table) only for the claim on cash feature. The table defines the CHF account that triggers the claim on cash feature, and also specifies the accounts for the local departmental transactions that result from using claim on cash. If your institution does not use this feature, do not create any table entries for the Claim table, and do not set the CLAIM_ON_CASH entry in the Configuration table (config_table) to Y.

If you use the claim on cash feature, you must define all cash, accounts receivable (student accounts), and accounts payable accounts in the Claim table. You can designate the same contra and object accounts for two or more accounts. For example, both the Cash in Drawer and Cash in Bank accounts can use the same contra and object accounts.

Using the dbmake Audit Function

The dbmake utility can maintain an audit trail of changes you make to the institution’s tables. Because of the complex nature of the claim on cash feature, Jenzabar recommends that you implement the dbmake audit function for the Claim table. You can then use the audit trail to track changes to the Claim table.

Access

Select the following CX menus to access the screen for entering Claim table values:

Fiscal Management > Accounting > Table Maintenance > Financial (A-C) > Claim-on-Cash Table

Fields

The Claim table contains the following fields:

The account that appears on an input transaction and triggers the use of the claim on cash feature. An input transaction must match these four fields (fund, function, object and subfund) exactly to cause the claim on cash feature to create entries.

The account that claim on cash charges (with the opposite sign, debit or credit) when an input entry matches the account in the Account Number: fields. The balance in this account offsets the balance in the Cash, Accounts Payable, or Accounts Receivable account.

The account that serves as the claim account in the local department. When claim on cash creates entries, charges to this account have the same sign (debit or credit) as the original input entry.

Complete the Object Account with an object code only. The entry based on the object code will obtain its fund and function codes from the original input transaction.

The date on which the table entry becomes valid. Leave blank if the entry is valid for an indefinite period of time.

The date on which the table entry becomes invalid. Leave blank if the entry is valid for an indefinite period of time.

Claim on Cash Table CX uses the information in the Claim on Cash table (claim_table) only for the claim on cash feature. The table defines the CHF account that triggers the claim on cash feature,

Cash basis

You must keep records of all business income and expenses to work out your profit for your tax return.

Income

With cash basis, only record income you actually received in a tax year. Don’t count any money you’re owed but haven’t yet received.

ExampleYou invoiced someone on 15 March 2017 but didn’t receive the money until 30 April 2017. Don’t record this income for your 2016 to 2017 tax return, but instead for 2017 to 2018.

You can choose how you record when money is received or paid (for example the date the money enters your account or the date a cheque is written) but you must use the same method each tax year.

All payments count – cash, card, cheque, payment in kind or any other method.

Expenses

Expenses are business costs you can deduct from your income to calculate your taxable profit. In practice, this means your allowable expenses reduce your Income Tax.

Only count the expenses you’ve actually paid. Money you owe isn’t counted until you pay it.

Examples of allowable business expenses if you’re using cash basis are:

  • day to day running costs, such as electricity, fuel
  • admin costs, for example stationery
  • things you use in your business, such as machinery, computers, vans
  • interest and charges up to £500, for example interest on bank overdrafts
  • buying goods for resale

You can check what else counts as an allowable expense.

For the 2013 to 2014 tax year onwards you can also choose to use the simplified expenses scheme instead of calculating expenses for:

  • running a vehicle
  • working from home
  • making adjustments for living on your business premises

Cars and other equipment

If you buy a car for your business, you can claim the purchase as a capital allowance (but only if you’re not using simplified expenses to work out your business expenses for that vehicle).

Unlike traditional accounting, you claim other equipment you buy to keep and use in your business as a normal allowable business expense rather than as a capital allowance.

If you’re currently claiming capital allowances and want to switch to cash basis, HM Revenue and Customs (HMRC ) have guidance on the changes you need to make.

Small businesses can record income and expenses when money is actually paid rather than when they’ve invoiced or received ]]>