The procedure to create a new sinking fund for a cost centre is as follows:
- Navigate to Quick Menu > Service Charges > Management > Sinking Funds. The Sinking Fund window is displayed.
- Click on New Sinking Fund
1. All fields are activated ready for data entry.
- Enter a Description for the sinking fund into the field provided 2.
- Enter a Cost centre description into the dynamic search field provided 3. All possible matches are returned in the Cost Centre Search Results summary table.
- Double-click on the row matching the cost centre to which the sinking fund relates. The selected record appears in the Cost centre field.
- Using the Cost elements drop-down field, multi-select all elemental components covered by this sinking fund, or choose the All option, as required 4
1.
- Using the Charge period drop-down field, select the period over which sinking fund charges are calculated i.e. Year, Quarter or Month.
- Enter the Period 1 start date using the calendar icon (
), or type in the value directly (permitted entry format DD/MM/YY or DD/MM/YYYY) i.e. the date on which sinking fund calculation charges commence for the chosen period 5.
- Where sinking fund charges are to be automatically calculated for each applicable asset, activate the Calculate contributions tick box provided. Alternatively, such charges can be derived by the end user and entered manually.
- Choose an Effective from date for this sinking fund i.e. the date on which it came into effect 6.
- Choose an Effective to date if the sinking fund is to be reviewed on a specific date or to capture a change of circumstances; a blank field means the sinking fund will be continually valid.
- Enter the eight digit Bank account number of the sinking fund into the field provided.
- Enter the Bank sort code into the field provided i.e. the unique six digit identifier for the bank and branch combination.
- Optionally, enter the name of the Nominal company into the field provided i.e. the financial institution to which the sinking fund is linked.
- Optionally, enter the Nominal account code into the field provided i.e. the profit and loss ledger code to which the sinking fund is linked.
- Click on Save. The new sinking fund appears in the alphabetical list, underneath the relevant cost centre heading.
Tip
1 Where only a small number of parameter values are not required, activate the All tick box first and then de-select individual items from the full list, as appropriate; the All tick box will be automatically removed once an item is de-selected.
Note
1 Upon first access, all fields are automatically activated ready for data entry; hence the New Sinking Fund button is inactive.
2 System validation rules ensure that the description entered for each sinking fund is unique for the effective period.
3 The field will operate as a dynamic search function and match against any component of the cost centre description based on the successive characters entered.
4 Only cost elements linked to the chosen cost centre will be available for selection.
5 Where the sinking fund contributions are to be included in a service charge calculation, ensure that the start date and period length match the relevant service charge calender.
6 The Effective from date defaults to the current system date and cannot be left blank.
See related topics...
Sinking fund management overview
To add a new expected cost to a sinking fund
To add a new charge to a sinking fund
To apply an adjustment to a sinking fund account
