For councils working in Income & Expenditure it is very likely that their Box 7 (Balances Carried Forward) and Box 8 (Total Value of Cash and Short Term Investments) will be different. This is due to adjustments made to the year end accounts to reflect the timings of transactions and how the relate to the financial year.
Scribe will automatically calculate the VAT adjustment at Year End, which will be equal to the closing balance on the VAT Summary. Any other adjustments must be entered under Year End → Adjustments.
The adjustments types that can be selected and the effects they have on the accounts are as follows:
| Adjustment Type | Effect on the Accounts | Details |
| Creditors | Increase Expenditure | Creditors as at 31 March - check all invoices received from suppliers for goods or services supplied but not paid by this point, and use the invoice date as the dividing line. |
| Accruals | Increase Expenditure | This option can be used when goods or services have been received by 31st March but an invoice hasn't. An adjustment can be entered for the anticipated amount of the goods or service. |
| Prepayments | Decrease Expenditure | Payments made where the cost relates to the next financial year, for example, insurance premiums or maintenance contracts. You can allocate a proportion of the cost if you wish. |
| Debtors | Increase Income | Income due to the Council at 31st March such as unpaid invoices. The ▶️ YE Debtors Report can help to calculate the debtors adjustment. |
| Receipts in Advance | Decrease Income | Relates to receipts you have already collected which relate to the next financial year, for example, advance bookings or fees. |
| Stocks/Stores | Decrease Expenditure | Used to record information about the value of stock held when this is substantial (i.e. over £1000) and which therefore needs to be treated as available for subsequent years. |
| Doubtful Debts | Increase Expenditure | Is very rarely used, but if any can be identified they should be added in order to be flagged up in the Balance Sheet. Enter a total provision as at the year end. Doubtful Debts does not need allocating to a cost code - this will be processed automatically. |