RMS End of Month/Period Balancing.

 

These procedures are intended as a guide to balancing the RMS system reports at the end of the month or quarter.

 

Cash Accounting

 

There are several reports that may be of interest when balancing your end of month figures.

 

  1. Daily Cash reports for each week that makes up the month
  2. Cash report from Management reports for the month
  3. GST Audit Report – Cash Accounting for the month

 

As a general rule of thumb your Daily cash reports, totalled for each day of the month should equal the total of your Cash report for the same month printed from the Management reports.

 

If you take the totals of the Cash report, less suspense figures (not taxable) you should equal your GST Audit report for the same period.

Suspense is not included on the GST Audit report as tax is not payable on credits.

 

It is normal for a property to print the Cash report from the management reports each month to help provide the figures for your BAS statement.

 

It is not necessary to print the GST audit report every month given that it has the same GST totals as the Cash report.

 

If you wish to break down your balancing on a daily basis the general rule is that if your Daily Cash Report balances the rest of RMS should also balance.

 

Accrual Accounting

 

There are several reports that may be of interest when balancing your end of month figures.

 

  1. Daily Charge reports for each week that makes up the month
  2. Charge report from Management reports for the month
  3. GST Audit Report – Accrual Accounting for the month

 

As a general rule of thumb your Daily charge reports, totalled for each day of the month should equal the total of your Charge report for the same month printed from the Management reports.

 

If you take the totals of the Charge report you should equal your GST Audit report for the same period.

 

It is normal for a property to print the Charge report from the management reports each month to help provide the figures for your BAS statement.

 

It is not necessary to print the GST audit report every month given that it has the same GST totals as the Charge report.

 

General RMS Balancing

 

As a further test to ensure that RMS balances for the month you will need to follow the procedure below on a monthly basis.

 

  1. Print the Debtors Ledger as at the conclusion of the trading day at the end of the previous month
  2. Add the total of the Charge report for the month
  3. Less the total of the Cash report for the month
  4. Should equal the New Debtors Ledger total as at the end of the month

 

i.e. The Debtors ledger as at the 31-Mar-00 plus the Charges Total for April less the Cash Total for April equals new Debtors as at 30-Apr-00

 

 

Your Banking, Receipt, Refund, Cash Expenses, Journal, and all Cash reports are irrelevant when calculating GST liability for an Accrual based system. This is because these reports are dealing with money that has been paid (Cash) NOT money that has been charged (Accrual).

 

However, balancing an Accrual based accounting system as a whole does not negate the Debtors balancing formula as shown above.