Can I apportion Gift Aid income or staff HMRC contributions to the correct calendar month?
This article explains how to apportion Gift Aid and HMRC contributions to the correct month - also known as accruals.
This article is for churches and charities that account on an accruals basis.
In this article:
You can make adjustments in the Adjustments screen to show income and expenditure in the month it relates to.
Gift Aid
Gift Aid income that you are waiting to receive would be recorded as Accounts Receivable (money owed to you). How you do this in ExpensePlus depends on whether you have auto-accruals enabled (see What are auto-accruals?).
Apportioning Gift Aid if you have auto-accruals enabled
If you have auto-accruals enabled, you will have the option to auto-accrue any Gift Aid claim made through ExpensePlus:
Apportioning Gift Aid if you don't have auto-accruals enabled
If you do not have auto-accruals enabled, you will need to follow these instructions to create the adjustment manually: How can I accrue for income owed? (Accounts Receivable).
When you then receive the Gift Aid, you will need to reverse out the adjustment.
You can set up an Accounts Receivable adjustment for each month or copy a previous adjustment.
If you have auto-accruals enabled, any invoice you create will automatically create a corresponding Accounts Receivable entry, which will be reversed when the invoice is paid.
HMRC contributions
HMRC contributions (PAYE, NIC, etc.) would be recorded as Accounts Payable (money you owe).
Apportioning HMRC contributions if you use ExpensePlus's Payroll Upload function
If you use the Payroll Upload function in ExpensePlus, your payroll expenditure will be accrued automatically.
Apportioning HMRC contributions if you don't use ExpensePlus's Payroll Upload function
If you do not use the Payroll Upload function in ExpensePlus, you will need to follow these instructions to create a manual adjustment: How do I record my creditors? (Accounts Payable).
When you then pay the HMRC contribution, you will need to reverse out the adjustment.
You can set up an Accounts Payable adjustment for each month or copy a previous adjustment.
There is no statutory requirement for you to make the adjustments referred to above, as you do not need to account for these items within a particular calendar month. However, it is a requirement to do this at year-end if the amounts involved are considered material to your charity. Read this blog to learn more about materiality.
To help you better understand the Adjustments module as a whole, please visit the module overview page here.