NSW Department of Education |Schools Finance– management of scholarships in schools 19/12/2019

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Description This document describes the process for the financial management of scholarships in schools.

Scholarships operate within schools where the funds are received:

for a particular student

the school decides the recipient/s, there may be more than one within a year

are not targeted at an individual student, and administered by the school under terms and

conditions set by the donor. The interest earned on the initial investment provides the funds for

the scholarship going forward

Scholarship funds are to be managed within a local internal order in SAP with the ability to use the funds

to make payments against outstanding fees for a student/s in ebs:central or for external purchases. Full

visibility of the scholarship funds are provided in SAP for reporting and acquittal purposes.

This guide will step through the following processes:

1. Create Local Internal Order

2. How to account for Revenue (Option 1) – receipting scholarship funds over cash desk

3. How to account for Revenue (Option 2) – Creation of Sales Order to invoice scholarship payee

4. Expenditure – payment of student fees over the cash desk and journal required

5. Production of Bank Queries list on G/L account report

6. Expenditure – Reimbursement for cost of items purchased

7. Expenditure – Creation of Shopping Cart/Purchase Order

8. Reporting – Schools Local Activity/Initiatives/Excursions Report and Schools Overview Report

9. Calculation of interest on balances each month and preparation of journal to allocate interest

against the scholarship internal order

Prerequisites An understanding of the following training material is a prerequisite to the steps detailed in this

guide.

WI – Request to create a local internal order

SM12a – Managing Student Finance – Fee Administration

Search for a customer number/business partner by ABN - QRG

How to create, change or extend a Business Partner

Shopping cart or Purchase order

Guide How to manage scholarships in schools

NSW Department of Education | Schools Finance – management of scholarships in schools 19/12/2019 Page 2 of 10

SALM-SM12b – Managing Student Finance: PART 2– Processing Transactions

QRG – How to create a standard journal entry

Banking and cash report - QRG

Complete a single student or parent payment - QRG

QRG – Schools overview report

STEP INSTRUCTIONS SCREENSHOT | CLARIFICATION

1 Create Local Internal Order

Creation of a local internal order to track scholarship funds.

Check the Internal Order Overview Report to see all your school’s local

internal orders and to make sure there isn’t already one available for

use.

1.1 Log on to the SAP Portal. Select the Finance tab,

Forms. Select Internal order master maintenance form Refer to Work Instruction – Request to Create a Local Internal Order

1.2 In Request type select Create Internal Order from the drop down (if required)

1.3

Activity Type:

Schools: Local Activity/Initiative

Description:

Enter a description to identify the

Scholarship excluding student

names.

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1.4 Select the appropriate:

Profit Centre

Requesting Cost Centre

Fund: 6300

Actual Posted Cost Centre

(The cost centre selected is

used in every transaction as

demonstrated in this guide.)

Check

Submit

How to account for Revenue –

Receipting of Scholarship

There are 2 options for the receipt of

payment for the scholarship

Option 1 – Receipt scholarship over the ebs:central cashdesk as an Other

Transaction when the payment has been received directly to the school and a Sales Order hasn’t been created. Refer to Step 2.0

Option 2 – Create a Sales Order to provide the scholarship payer with an

invoice. Refer to Step 3.0

2.0 Revenue – Option 1

ebs:central setup for Fee

Type/Fee Value to receipt

Scholarship

If the scholarship is receipted over the cash desk without a sales order

the following fee setup is required.

2.1 Create the Fee Type as shown

Log onto ebs:central from the Staff

Portal

Navigate to:

ebs:central>System>Reference

Data>Fee Types>People

ADD

Fee Category: INTERNAL

The name is to be consistent

with the local internal order

number in SAP

Cost Centre – As per Step

1.3

Select the local internal order

number created

Refer to Set up fee types, fee values,

fee waivers, concessions and

exemptions -QRG

Note: Explanation of GST Codes:

S1 – Person/Entity providing scholarship funds receives a material benefit in return for their scholarship contribution – eg. Advertising. S5 – Person/Entity providing scholarship funds does not receive any material benefit in return for the scholarship contribution – purely a “donation”.

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2.2 Create Fee Value

2.3 Receipt Scholarship funds as an

Other Transaction

Refer – Managing Student Finance:

PART 2 – Processing Transactions

SALM-SM12b

2.4 Payments Tab

Enter the name of the Scholarship

Payer into the Payer Field

Save

3.0 Revenue Option 2 –

Create Sales Order

It is necessary to ensure that the

scholarship payer is setup as a

customer (BP) first.

Please refer to the Guides:

How to Search for a customer number or business partner by ABN - QRG

How to create, change or extend a Business Partner

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3.1 Create Sales Order Follow Create a sales order - QRG Material codes: 20072 – Internal Public Money - S1 GST Code 20076 – Internal Public Money – S5 GST Code

Tip: These material codes link

to the GL 420024 – Internal Public

Money

3.2 Account Assignment Select

Cost Centre. As per step 1.3

Local Internal Order number created for scholarship

Tip: As soon as a Sales Order is approved the funds are credited to the school in the GL determined by the Material Code e.g. 420024

3.3 If payment is received for a Sales Order over the Cash Desk please use the Finance Invoice tab to receipt the funds

Please refer to:

Receipt a payment for a sales order or contract via the cash desk - QRG

Expenditure There are a number of ways that expenditure can be made against

scholarship funds. The processes involved are outlined below at Step 4,

Step 6 and Step 7.

4.0 Payment of Student fees This process explains how you can receipt scholarship funds against

outstanding student fees on the ebs:central cash desk.

6XXXXXXX

10600XXXX

NSW Department of Education | Schools Finance – management of scholarships in schools 19/12/2019 Page 6 of 10

4.1 Evidence of Fees outstanding is

required. eg. Student Statement of

Account from ebs:central

Navigation:

ebs:central>Reports>Finance>

Student Statement of Account

Save document for evidence for

upload in the journal (step 4.3)

Scholarship funds are not

to be receipted as Fees in

Advance. Fees must be charged

against the student first. It is possible

to add a people charge on the

statement of account.

4.2 Standard Journal in SAP

Prepare a Standard journal as per the

screenshot with your schools relevant

cost assignment

Line 1

GL 105125 (Fund code

appears as 6910

automatically)

Cost Centre – not applicable

Tax Code – not applicable

Description – ensure relevant

information is provided

including student name

Credit – outstanding amount

as per statement of account

Line 2

GL 528658 – Internal Public

Money

Internal Order – Local

Internal Order setup for this

Scholarship.

Fund 6300

Cost Centre – as per step 1.3

Tax Code – P5

Description same as line 1

Debit – outstanding amount

as per statement of account

and equals line 1.

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4.3 Attachments –

Supporting documentation to

be added eg. Student

Statement of Account

Notes – provide explanation

as to why journal is required.

For assistance in completing a

standard journal please refer to the

QRG- How to create a standard

journal entry

4.4 In ebs:central cash desk

Receipt outstanding fees for Student

Search for the

student/financially

responsible adult from the

search option.

On the fees tab, select the

fees that are to be receipted

Refer to Guide Managing Student

Finance: PART 2-Processing

Transactions SALM-SM12b

4.5 Finalise payment in the Payment tab

Select payment method - Not

for Banking (NFB)

Edit the Payer - “Scholarship”

Auto settlement of NFB will push

banking to SAP, no additional

banking is required.

5.0 Bank Queries list on GL

account report

Run the Bank Queries report listed in

the Report tab under Banking & Cash

using GL105125 to verify the

reconciliation of scholarship

transactions:

- Journal from step 4.2

- Receipt from steps 4.4 & 4.5

Document numbers:

- SA – Standard Journal

- XO – ebs:central banking

Refer to QRG – Banking and cash

receipts report

6.0 Reimbursement to

Parent/Caregiver

Reimbursement for cost of items purchased using Scholarship funds

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6.1 Complete the Student/Parent payment

form

The schools ONE-TIME vendor

number is required which can be

obtained from EDConnect. This is

used as the SAP Vendor number

Enter the Parent/Caregiver payment

details

6.2 Complete the relevant Accounting

details:

- GL 528658 (Internal Public

Money)

- Tax Code – P5

- Fund – 6300

- Cost Centre – as per step 1.3

- Internal Order – Local

internal order created for

Scholarship

- Amount including GST

6.3 Authorisation

S12 Authority to incur expenditure

S13 Authority to authorise payment of

claim.

Once this form is signed, it needs to

be scanned along with a copy of the

purchase receipt/invoice and emailed

to:

EDConnect.apschools@det.nsw.edu.au

Accounts Payable will make the

reimbursement payment on behalf of

the school to the parent/caregiver.

7.0 Creation of Shopping

Cart/Purchase order

Purchase of an item for a student using Scholarship Funds

Refer to Shopping cart or Purchase order

NB: P5 Tax Code is used in the creation of the Shopping Cart

6XXXXXXX

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7.1 Account Assignment

- Fund 6300

- Account Assignment

Category – Internal Order

- Cost Centre as per step 1.3

- Order – Local Internal Order

number created

- General Ledger Account –

528658 – Internal Public

Money

8.0 Reporting

Navigation: SAP Portal

(New)>Reports>Schools

Management Reporting>Schools

Overview Report

The Internal Order view within the Schools Overview report provides

transactional data to track related income and expenditure for the

accountability of scholarship funds against an internal order. The ‘Goto’

Actual Detail Report displays individal related transactions if required.

8.1 Schools Overview Report

From Internal Order View

Right click on funds received

Goto > Actuals Detail Report

Refer QRG – Schools overview report

8.2 SAP – Schools Overview Report –

Actuals Detail Report

Add the column internal order

This report provides the detail of all

transactions recorded against this

Scholarship internal order.

9.0 Calculating Interest on scholarship

funds monthly

Refer to the above report on a month end basis to determine the funds

available for the calculation of interest

9.1 Determine balance of Scholarship at

month end. eg. $3,847

Apply the following calculation:

Scholarship balance x Official Cash Rate % / 12 = Monthly interest

amount

Eg. 3,847*1.5%/12=$4.81

(Official Cash Rate is published at: Reserve Bank of Australia)

Cost centre as selected

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9.2 Prepare a standard journal on a

monthly basis to journal the interest

earned.

Line 1

- G/L Account – 440004

- Fund – 6300

- Cost Centre – as per step 1.3

- Tax Code – S5

- Description – “Bank Interest

on Scholarship for (month)

- Debit - $xx.xx

Line 2

- G/L Account 440004

- Internal Order – Scholarship

Local I/O

- Fund – 6300

- Cost Centre – as per step 1.3

- Tax Code S5

- Credit - $xx.xx

For assistance in completing a standard journal please refer to the QRG-

How to create a standard journal entry

9.3 Add notes and supporting

documentation to justify the journal

Sub-Process Title (Only required where a

QRG covers multiple processes)