ICAEW Accreditation Scheme. Client Cash Accounting Software (UK lettings market) Evaluation. Reapit Ltd. Product: RPS Client Accounting Version: 10

Transcription

1 ICAEW Accreditation Scheme Client Cash Accounting Software (UK lettings market) Evaluation Reapit Ltd Evaluation carried out by: IT Evaluation Services] Date completed: 7 th December 2012 Signed: ICAEW Version

2 Table of Contents 1 Summary Approach to evaluation Matters to consider before purchase Evaluation conclusion Security and continuity of processing Input of transactions File maintenance Processing Performance of requisite accounting functions Service charge for block management Reports Value Added Tax User Documentation Efficiency Integration and www facilities Support and maintenance National Approved Letting Scheme system requirements see separate document ICAEW Version

3 1 Summary 1.1 Introduction The suitability of client cash accounting software for the UK letting market for each particular user will always be dependent upon that user's individual requirements. These requirements should therefore always be fully considered before software is acquired. The quality of the software developers or suppliers should also be considered at the onset. 1.2 Fundamentally, good client cash accounting software should: Be capable of supporting the accounting functions for which it was designed. Provide facilities to ensure the completeness, accuracy, confidentiality and continued integrity of these accounting functions. Meet relevant legislative requirements. Have controls in place to ensure client accounts cannot become overdrawn. Be effectively supported and maintained. It is also desirable that good client cash accounting software should: Be easy to learn, understand and operate. Make best practical use of available resources. Accommodate limited changes to reflect specific user requirements. It is essential, when software is implemented, for appropriate support and training to be available. 2 Approach to evaluation 2.1 Objective To evaluate RPS Client Accounting v10, against a set of criteria developed by the ICAEW to ensure that the software meets the requirements of client cash accounting software for the UK letting market, as laid down in the summary. 2.2 Approach and Work performed In order to effectively evaluate RPS Client Accounting v10, a product specialist from Reapit Ltd completed the detailed questionnaire and provided it to the evaluator to examine. The evaluator then visited the Reapit Ltd office in London and in conjunction with the operation of the various aspects of the software assisted by a member of Reapit Ltd s technical staff checked the answers to confirm their validity. The questions were individually reviewed and commented on and the majority of assessments were confirmed. The evaluator discussed the assessments with a member of Reapit Ltd staff in order to clarify certain points. In the event of disagreement between Reapit Ltd and the evaluator, the evaluator's decision was taken as final and the response changed accordingly. 3

4 RPS Client Accounting v10 was used throughout the evaluation. The evaluation covered the lettings agency software. In addition, the optional extra module Service Charge Module for Block Management was also examined. When the evaluation had been completed, the responses were completed by the evaluator and a draft copy sent to the ICAEW for review before completion of the final report. 2.3 Software/hardware utilised RPS Client Accounting Version 10 was used throughout on a Dell Vostro with Intel Core i5, 4GB RAM and 300GB hard drive. 2.4 Report structure The report has been broken down into its main constituents in the contents page. The evaluation questionnaire was provided by the ICAEW and has been used without alteration or amendment. 3 Matters to consider before purchase 3.1 General overview Reapit claim the main application for its software is suitable for estate agents for residential sales, lettings, property management and accounts, rural and agricultural, commercial, auctions, private buying and land and new homes. Client Accounting, which is the subject of this evaluation, is an option offered to clients. The remaining parts of the property management & marketing software were not included in this evaluation. 3.2 Supplier background The software was originally developed as a bespoke application for George Stead, now Reapit s managing director, estate agency business in Fulham, London in Reapit was founded in 1996 retaining this software. Since then the company has gone from strength to strength investing towards the continuing development and support of its software. The client accounting module was developed over several years and was launched in As well as their head office in Fulham they have support and training centres in Birmingham and Leeds and in 2008 opened an office in Edinburgh. Reapit currently employ around 90 staff. 3.3 Product background and Suitability for user Reapit say their software is the most widely used estate agency software in use today. It is installed in just under 3,000 estate agency offices (not all using Client Accounting) across the UK and the world and claim it is the choice of software for the majority of the top 50 agents. There is output from this system to the agency s back office accounting system that can be any commercial package. Many of Reapit s Clients are audited by both ARLA and RICS to ensure they are compliant with the relevant legislation, and the RPS software sits at the centre of this process. Reapit also employee a qualified accountant and staff who are MARLA. 4

5 3.4 Typical implementation A typical installation is for use by 10 offices within an agency and with around 50 users. 3.5 Vertical applications Third party software either in-built or linked includes: Postcode lookup: Postcode Anywhere SMS (via specified URL) External property details: Ravensworth, PrintConcern Floorplans: Metropix, Datography AppImp: Portal applicant registration PropertyImporter: PrimeLocation, Rightmove, Lonres TAPI PDF995, vapdf GoogleMaps (v3 API) Marketing: BriefYourMarket Electronic Signatures: Docusign Deposit Registration: TDS, DPS 3.6 Software and hardware specifications Development environment Visual Foxpro Server platforms Windows 2000 and above Databases Microsoft SQL Server 2000 or greater, MySQL Server 2005 or greater Operating software Windows XP, Vista, System 7 & System 8 both Professional and Business Versions Protocols TCP/IP Minimum client PC specification Processor: Dual-Core Pentium 2GHz, 2 GB RAM Support and maintenance Reapit professional services include project management, training, business consultancy and making bespoke changes to the software to fit around a client s needs. All upgrades of the software are included in the software licence. 5

6 3.7 Software installation and support Installation, tailoring and support are carried out entirely by Reapit staff based at their centres around the country. Onsite training is provided to clients twice a year as part of their ongoing support package. 3.8 Partner network and related accreditation process ne all software, training and support is provided by REAPIT. 3.9 Limitations and matter to be considered This is a front end system dealing with invoices, payments and receipts between the Estate Agent, landlords and tenants. The only VAT generated is for agent s fees to landlords. All transactions are output via XLS for inputting into the Estate Agent s back office accounting system where the VAT generated is handled. The system has only two bank accounts, one for all tenants and landlords rent, fees and repairs and another for all deposits held. Each tenant and landlord has their own unique ledger account where invoices, payments and receipts are matched. There are controls so that landlord accounts cannot be overdrawn. System interfaces to a back office accounting system for all VAT processing and agent accounts, although this is not automated menu tailoring Unallocated transactions can be deleted with password security master file changes recorded in audit trail except bank account details Cannot post transactions during bank reconcilliation run accruals or prepayments New accounts cannot be created during input Single company only multi-company version not available minal analysis is single level by office service charge functionality as standard set periods as the system is date driven budgets Single currency Little VAT processing involved but full details are passed to back office accounting system direct link to Agents accounting system all transactions via XLS client bank accounts, all transactions stored in dedicated landlord/tenant accounts 4 Evaluation conclusion There were no areas in the evaluation that gave concern given the highly specific target marketplace for the product. RPS Client Accounting v10 is well designed, adequately fulfils the needs for end users in this type of business and is sufficiently specified. 6

7 Disclaimer Any organisation considering the purchase of RPS Client Accounting v10 should consider their requirements in the light of proposals from Reapit Ltd or its dealers and potential suppliers of other similarly specified products. Whilst the contents of this document are presented in good faith, ICAEW cannot accept liability for actions taken as a result of comments made herein. 7

8 5 Security and continuity of processing 5.1 What security features are included to control access to the application? 5.2 Can access to application functions be managed so users can only see (in menus and other links) and access those functions they are authorised to access? 5.3 Is this access to the application managed by: Individual user profiles? User groups based on their job roles? 5.4 If menus can be tailored would this override the application access control? 5.5 Passwords Is access to the software controlled by password? Please state the basis of control available (e.g., role based etc) If there is no password facility please state how confidentiality and accessibility control can be maintained within the software? Are single user systems access controlled by password? Does the software allow for each user to have separate log on (user ids)? If : How does the software track user activity? Is each user required to have a personal password? User name and password Role based security access, restricted items are either greyed out or removed completely. Individuals have a unique user name Each user is assigned security based on job role. menu tailoring Each user has a unique log in and password plus domain security 8

9 5.5.7 Are passwords one-way encrypted? [i.e. Is it impossible for anyone to see other user s passwords in the software?] Are passwords masked when entered by any user logging in? Is password complexity available at application level? If : Please specify [e.g. Number of digits, requirement for special characters, numeric, upper/lower case etc.] Is there a facility to enforce password changes after a chosen period of time? Is there a facility to specify a minimum age for passwords (e.g. 1 day)? How many previous passwords are retained by the system to limit users recycling passwords (e.g. 24 or 32)? Passwords are chosen by the user and can be any combination of alpha or numeric that they wish. Maximum 20 characters - if set against the domain account, which is our recommended security. as above. t retained. 5.6 Please state how security allows for access to be specified separately for : Read? Defined by role Read and write? Defined by role Delete and amend? Defined by role. 5.7 Are any data files, such as budgets or price updates, imported by users validated by the application software before main data files are updated? 5.8 Does the software require higher or specific levels of user access for changes to sensitive data, such as customer credit limits? 9

10 5.9 Please specify the specific security procedures (by passwords or warnings) over the: Update of ledgers Passwords Closing of accounting periods Deletion of transactions Unallocated transactions only. Restricted by user role. Warning screen prompts for confirmation. Record kept of user, date and time Archiving of transactions Is it impossible to delete a transaction? If : 5.11 How are deletions controlled by the system? 5.12 Are deleted transactions retained in the audit trail and denoted as such? 5.13 Can a report be produced detailing all current users, via user groups if relevant, and their authority levels and/or access rights? 5.14 If data can be accessed by separate reporting facilities, such as ODBC or separate report writer, is the user access security control applied? If : Please explain any other protection in place to prevent unauthorised access to data with such facilities Is the level of security (described with this section) appropriate for the expected size of business using the software? All deleted transactions are stored in a separate table. Only receipts that have not been allocated to an invoice can be deleted. The audit trail combines the main transaction table and the deleted transaction table, list of users and supervisor can view individual user rights on screen, with access security 10

11 5.17 Is there a clear indication in the software or manuals as to how the data is: Backed-up? Recovered? 5.18 Back ups How are back ups provided: Within the software application? Within the operating software? Are backup procedures automatic? Is the user forced or prompted to back-up at certain intervals? Can the intervals be customised? 5.19 Recovery Please state how the software facilitates recovery procedures in the event of software failure? (E.g. roll back to the last completed transaction). Data synchronised in mirror system on server roll back to last completed transaction If software failure occurs part way through a batch or transaction, will the operator have to re-input the batch or only the transaction being input at the time of the failure? Only the transaction at the time of the failure Are these automated? Do the recovery procedures work? 5.20 What features are available within the software to help track down processing problems? Diagnostic tool with multiple reports 5.21 Are software messages clear? 11

12 5.22 Are user responses properly structured to ensure that erroneous key strikes do not lead to inappropriate actions? 5.23 Is there a software log which details: Error messages? Security violations? 5.24 Audit trail Does the software have a detailed audit trail? Is it impossible to turn off or delete the audit trail? Are all master file changes recorded in the audit trail? If : Does each change have a system generated reference allocated? Are the originator and authoriser identified? Is the change date and time stamped? Are all standing data changes recorded in the audit trail? If : Does each change have a system generated reference allocated? Are the originator and authoriser identified? Is the change date and time stamped? Bank details only, transactions only 12

13 Is all input data included within the audit trail, including amendments, deletions, journals etc? Does the software allocate a system generated unique reference number to each transaction? Is this stamped with a user id? Is this unique reference number presented to the user at time of input? Is the transaction date and time stamped? Are all imported /interfaced transactions allocated a software generated reference number? How are transactions differentiated within the audit trail? All transactions and bank details, deletions in separate table, receipts generated from bank statements Transaction ID, Transaction Type i.e. Invoice, Payment etc 5.25 What are the procedures for handling dates? (E.g. 2 digit years, 4 digit years) In the case of two digits what is the break point for the century? Are dates handled consistently throughout the software? 4 digit years 13

14 6 Input of transactions The following sections in Input of transactions, File maintenance, Processing and Reports are primarily aimed at the three main accounting ledgers and where applicable Sales Order Processing, Sales Invoicing, Purchase Order Processing and Stock Control. 6.1 Is data input controlled by selfexplanatory menu options? 6.2 Are these menus applicationspecific? 6.3 Does the software provide input validation checks such as account code validation, reasonableness (limits, VAT or discount checking) and validity checks (VAT check-digit calculations)? Bank detail validation checks, date and postcode. Letting records need full details. 6.4 Can the user amend data on an input screen prior to update? 6.5 What control features are within the software to ensure completeness and accuracy of data input? 6.6 Are all input transactions subject to this control? 6.7 How does the software ensure uniqueness of the input transactions? (i.e. to avoid duplicate transactions) 6.8 Does the software allow for batch control totals? If : Are batches automatically numbered? Are batches forced to balance before ledger update? Receipts from Bank Statement routine directly imports transactions from the bank statement removing the potential for human error allocations can be overridden Bank Reconciliation screen would not balance if duplicate transactions created. Further work limited by unreconciled transactions. 14

15 6.8.3 Does the software allow the temporary halting of input of a batch to allow for queries or other activities to take priority (e.g. set up a new account) Is the user forced to confirm batch totals? 6.9 Is attempted posting of unbalanced journals rejected? (G/L) Are input errors highlighted? 6.11 If are they: Rejected and reported on screen? Rejected and error reports generated? Accepted and posted to suspense? Adjustments automatically generate balancing journal 6.12 Does the software have an automatic facility to correct/reverse/delete transactions? If : Is each double entry transactions documented in the audit trail? 6.13 What are the controls to ensure the internal integrity of the ledger(s) or the accounting information, e.g., control of accounts Is it possible to allocate input values directly to ledger control accounts?, can correct allocations and delete unallocated transactions, including correcting transactions Diagnostic Tool has various reports for internal integrity 15

16 If : Please note the mechanisms available to allow the user to establish why the total balances on individual accounts do not agree to a respective control account? 6.15 Can automatic accruals or prepayments be generated? 6.16 Will these automatically be reversed after the period end? (G/L) 6.17 Does the software have a purchase invoice register? on Supplier Ledger 6.18 Does the software permit multi debit/credit journals? 6.19 How are transactions identified on screen/reports as to: Type? Debit or credit? Each transaction is assigned a Category and Type Dictated by the order of the double entry transaction 6.20 Can separate nominal analysis codes be input for each invoice line? If : Does this cover: Sales ledger? Purchase ledger? Stock? 6.22 Can receipts and payments be matched to specific invoices? If :- Is this Automatic or manual? - pre-set Tenant Ledger Supplier and Landlord Ledgers Either 16

17 6.23 Will the software permit part payments? 6.24 Will the software allow: Payments to be made to customers? Receipts to be received from suppliers? 6.25 Does the software handle purchase credit notes? tenants & landlords tenants, landlords and suppliers 6.26 Is there an ability to automatically amend stock if applicable? 6.27 Can the software generate sales credit notes? 6.28 Does the software handle discounts and promotions? 6.29 Does the software provide for early settlement discounts? 6.30 Can early settlement discounts be automatically generated? 6.31 Are there controls over accepting settlement discounts (e.g. time limits)? 6.32 Is VAT treated correctly on early settlement discounts? 6.33 Will the software permit the posting of unallocated cash to the ledgers? for tenants & landlords Only supplier commission Does this apply to: Sales ledger? Purchase ledger? Landlord Ledger 17

18 6.34 Are unallocated cash/credit notes specifically reported for follow up? 6.35 Are outstanding transactions displayed for allocation? If does this apply to: Sales ledger? Purchase ledger? 6.36 Is it possible for new accounts to be created during input? 6.37 Does this cover the following ledgers: Sales? Purchases? General? Stock? 6.38 What controls are there over the creation of new accounts? 6.39 Is the originator and/or authoriser identification logged by the software? 6.40 Is the user prevented or warned from overriding credit limits or discounts? (S/L) Does the software have a bank reconciliation facility? 6.42 Does the software enable transactions to be posted to the ledgers whilst performing a bank reconciliation (e.g. standing charges, bank charges etc)? Security access controls Authoriser there are limits and warning on works orders that can be set per Landlord 6.43 Are these adequately reported? 18

19 6.44 Does the software accept input files from other computer packages? Online bank statements If : What formats are accepted? What controls are in place over the interface? 6.45 Does the software have a facility for calculating interest on late payments? All UK bank statements User selects which file to upload, duplicates not allowed 19

20 7 File maintenance 7.1 Are ledgers: Open item? Balance forward? 7.2 Does the above cover: Sales ledger? Purchase ledger? General ledger? 7.3 Is a month end routine required to be undertaken? 7.4 Is the creation or amendment of standing data (e.g. customer account details) controlled by menu options? 7.5 Are menus: Application specific? User specific? 7.6 Is it impossible to delete accounts if the balance if Nil but transactions have been recorded against the code. Does this apply to: General Ledger? Sales Ledger? Purchase Ledger? Stock? 7.7 Are there any other constraints over the deletion of accounts? 7.8 What is the size and format of reference numbers and descriptions within: General Ledger? Sales Ledger? Purchase Ledger? Stock? 11 character reference, system generated, no limit on description 20

21 7.9 Is the scope of the reference number adequate to permit sufficient depth of analysis? 7.10 How does the software guard against/warn about, duplicate account numbers on set up? 7.11 How does the software enable the traceability - from, to and through the accounting records - of any source document or interfaced transaction? 7.12 What drill down/around functionality is available within the software? 7.13 Can reports be invoked which identify all the fields which have been modified? 7.14 If the software uses a lot of standing information which changes frequently or regularly, does the software allow for such changes to be effected through the use of parameters or tables? If : Is the use of such parameters or tables adequately reported? 7.15 What controls are within the software over changes to parameters and tables e.g. reporting, password etc? Duplicates rejected Allocation and transfer tables Double click any transaction shows Account, Allocations and Transfers. The transfers can then be followed to the related transaction Audit trail includes all transactions and bank details but not changes to tenants, landlord or supplier details VAT rate table Security access controls 7.16 Does the software allow selective archiving of old data on a user-defined basis? Only records without transactions 21

22 7.17 What controls are in place over the handling of archived data? 7.18 Can archived data be used for reporting purposes? 7.19 Does the software allow for the restoration of archived data for audit without affecting current accounting data? Password protected 22

23 8 Processing 8.1 Does the software ensure that menu options or programs are executed in the correct sequence (e.g. ensure outstanding transactions are processed before month end procedures run)? 8.2 After an external document (e.g. sales invoice or cheque payment) has been generated and posted to the accounts is it impossible to amend this data? 8.3 Is there an audit trail of all changes to transactions which have updated the ledgers? 8.4 Can the software calculate prices or values by reference to master file data? 8.5 Does the software provide automatic recalculation, where appropriate, of data input? (e.g. VAT) 8.6 Does the software warn the user when the ledger is out of balance? 8.7 How is this done e.g. when the software is switching on or on ledger update? - the master file data is stored against the tenancy and this data is used to calculate rent and fees etc. Client Account Reconciliation report 23

24 9 Performance of requisite accounting functions 9.1 What control features are provided by the software to support effective user controls? 9.2 Is there: Transaction sequencing? Automatic dating of posting transactions? Identification of user id or source of document? 9.3 Is the software available as multi user? 9.4 Can the same function be used by more than one person at the same time, whilst still retaining the separate user identities? 9.5 Is the software available as multi-company? If :- How many companies are supported? 9.6 Is a group consolidation facility available? 9.7 Can the software consolidate entities with different charts of accounts? 9.8 How many levels of nominal analysis can be handled by the software? 9.9 How does the software handle cost centres, departments, divisions? 9.10 How are periods handled by the software? User name and password plus automatic double entry User IDs logged against transactions, in most cases Single level by office Every tenancy is assigned an office, and a negotiator within that office. periods date driven 24

25 9.11 How many: Accounting periods can be set up? Years can be set up? 9.12 Can the length/ number of periods be adjusted to suit different user requirements? 9.13 How many accounting periods can be open at any one time? 9.14 How many years can be open at any one time? 9.15 Can a period or year be reopened after it has been closed? If : What controls are in place over this function? If : Is the data archived on the server? Is this accessible for reporting purposes? Can a previous year be restored from backup? 9.16 Can data from all accounting periods and years be accessed at any one time? date range reports available Single period covering all dates Any date 9.17 Can previous months and years be accessed for enquiries or reports? 9.18 Does the software handle posting date as well as document date? If : Are transactions analysed by posting date or document date? Any date Document date 25

26 9.19 Can transactions be posted to more than one accounting period at any point in time? 9.20 Does this cover: General ledger? Sales ledger? Purchase ledger? 9.21 Is it possible to allocate transactions to: Future periods? Previous closed periods? A previously closed year? If : What controls are in place e.g. level of authorisation and on screen warnings? Will the software revise subsequent periods accordingly? 9.22 How will transactions outside the current period be: Reported Accounted for in the VAT return? 9.23 Does the software permit use of budgets and provide comparisons between budgets and actuals? If : How many versions of budgets/forecasts can be maintained on the system? 9.24 Are budgets available for: General ledger? Sales ledger? Purchase ledger? Overheads? Balance sheet? 26

27 9.25 Can budgets be set by: Period? Annually? 9.26 Can the software automatically generate budgets? If :- Please state how this is achieved What is the maximum value of transactions and of totals that can be handled by the software? 9.28 What is the maximum number of transactions that can be handled by the software? 9.29 What is the maximum number of accounts on each ledger: Sales ledger? Purchase ledger? General ledger? 9.30 Is the system multi currency? If : Please list Does the system produce sales invoices? If : Can the layouts be amended? limit limit limit Single currency for tenants and landlords 27

28 10 Service charge for block management 10.1 Does the system warn the user if a transaction could render the client account to become overdrawn? 10.2 How does the system handle CNR tax deductions in relation to:- System only allows user to pay reconciled items. Cannot make landlord account overdrawn 10.3 The landlord s account? Deducts tax on all income received then raises credits for any charges paid i.e. supplier invoice or management fee 10.4 Payments to HMRC? Batches all Landlord Tax payments for the quarter in to one payment 10.5 How does the system ensure that tax deductions relating to non resident landlords are in accordance with current guidelines? 10.6 How does the system handle tax exemptions Can the tax exemption certificate be linked to the landlord s account? 10.7 How are payments to HMRC handled by the system? 10.8 How does the system handle refunds due to a landlord from HMRC? 10.9 Are all transactions including refunds and deposits shown on the landlord s statement? Tax deducted on receipt of rent. Percentage of tax is configurable to allow for changes in guidelines. and the CNR reference can be entered and certificate attached. Batches all Landlord Tax payments for the quarter in to one payment by BACS Deducts from the following quarters batch payment to HMRC, including overseas tax. 28

29 10.10 Does the system provide a list of property expenses? Can the user add to this list?, by generating new works orders Can the system differentiate between tax deductible and non tax deductible expenses? the system errs on the side of caution. Tax adjustments can be completed by users with the appropriate security level Can these be user defined? As above Can the system handle multiple landlords for one property? Can the percentage split (of income and expenditure) be user defined? Can one off expenditure be allocated to a specific landlord? Can the system produce consolidated statements by landlord? Can the system produce letting agents (section 19) reports? Agent fees can be charged to the Landlord. Supplier invoice are charged to the property. there is an option when running the report to include n Resident Landlords Can the software handle service charges i.e. Charges directly to tenants for shared services? Is there any limit to the number of units in a block to which service charges may be raised? Supplier invoices can be charged to Tenants Service charge functionality is not offered as standard at this time Can the charge periods for expenses be defined? Periodic agent fees. 29

30 10.22 Can user defined expenses be added to the list of expenses of service charges? Can service charges expenses be treated as composite? Is there a RICS translation table for expenses under the service charges? Is there a schedule of contributions report to show invoices to be raised to tenants? Do the reports generated comply with the recommendations in the Commonhold and Leasehold Reform Act 2002? Does the system permit under/over apportionments of 100% of the services charges? Is it possible when creating a new period to: Copy the prior period? Apply a % increase? Are year end balancing statements laid out as per the s 21(5) of the Landlord and Tenant Act 1985? Are Summary of Obligations and Rights statements produced as required under: s153 relating to service charges s158 relating to administration charges s166 relating to ground rents service charge functionality, block management charges service charge functionality service charge functionality service charge functionality service charge functionality service charge functionality service charge functionality 30

31 11 Reports 11.1 Are all reports adequately titled and dated? (E.g. report name, client name, data, period, batch, last entry number, period end, pages, numbers etc.) 11.2 Do the reports provide totals where applicable? 11.3 Are these totals calculated or taken from a control file? Please state the reports that do not feature calculated totals Is it clear when the report has ended? (totals or end markers) 11.5 Can reports be saved in electronic format (as distinct from just printing)? 11.6 Are such files adequately protected from deletion or amendment? 11.7 Is a report writer provided as part of the software or as an add on? Please state the name of any third party package What level of knowledge is required to use the report writer e.g. beginner, regular user, expert? 11.9 Can the report writer make use of user-defined fields (including external fields)? Calculated Lists, page numbers X of Y. PDF or Excel. Users responsibility The Query Accounts report tool is part of the software Regular User, although this is for expert users 31

32 11.10 Does the report writer enable: Separate access to each system area? Reports to be prepared which combines related data from a number of system areas (e.g. Customers Sales Stock items) in the same report? Can users define the parameters, columns, fields and selection criteria used on reports reported? Are standard reports always produced, even when they are nil returns? Is there an option for reports to exclude nil balances, this year or where there are nil balances this year and last year, to enable a comparative report to be produced with the completeness of both years being maintained? Can screen layouts, reports and transaction formats be easily adapted to users requirements? Can a hard copy be produced of all screen enquiries? Can transaction files for all previous periods of the year be retained in the software to permit enquiries and reports? no stock Parameters and criteria can be selected through RPS. The fields and columns can be selected in the excel export.. Some screen layouts - each user can manipulate their view and then save the display settings. to reports. to transaction formats All transactions are retained in the software. 32

33 11.17 Are reports of all changes to standing data on customers, suppliers, tax rates etc automatically generated or stored for later printing? If : Is the report able to capture the nature of the change, user id and data and time of the change? Are all transactions on all reports individually identifiable? Do the reports show whether items are debit or credit? Do reports give sufficient narrative and coding to enable cross referencing? Is it possible to drill down from reports to the ledgers and original transactions? Can the software produce all requisite reports: Day books Trial balance Profit and loss account Balance sheet Aged debtors Aged creditors Aged stock Aged unallocated cash (debtors) Aged unallocated cash (creditors) Budgets Cash flow statement VAT reports VAT form EC Sales Listings Intrastat returns (SSD) 33

34 Various other reports specific to Client Accounting can be run including Client Reconciled Balances Deposits Held and required HMRC NRL reports Are the above reports standard within the software or do they have to be written? Is the age criteria fixed or user definable? Can the aged analysis and day book reports be in summary and detail? Do standard reporting options give sufficient flexibility to tailor individual reports? They are standard Dates used rather than age Can all reports be reproduced after the period end the month end date: Transaction listings? Day books? Trial balance? Is it possible to print out retrospective month end aged sales and purchase ledger reports that agree back to the month end trial balance control account figures as at the month end? Do the standard budget reports provide sufficient analysis of variances? Do such reports provide exception reporting, percentage analysis and comparatives? Reports can be run for any time period as and when needed Chase Arrears routine prints both Landlord and Tenants arrears reports 34

35 11.31 Do standard reports show sufficient analysis of trading results? (E.g. sales analysis by region)? Are all movements during each accounting period shown on sales, purchase, general, stock ledger detail reports? Do the sales and purchase ledger reports show how all partial payments or allocations (unallocated cash) have been treated? Is there a general ledger report that shows balances brought forward and carried forward plus all posted transactions in the period? Can the management accounts, profit and loss account and balance sheet be sufficiently analysed by: Project/job Cost centres Department Division Company Group (if applicable) Can the above be user defined by Period and/or range? What controls are there in place so that the user is aware of partly processed transactions: Unposted invoices Uninvoiced dispatches Batch Receipts screen highlights all unallocated payments. All agent fee types can be analysed by Negotiator, Department and Office. Pending supplier invoices report Authorised and awaiting posting routine 35

36 Payments Receipts State the controls that are in place to ensure that the correct price/discount has been applied to invoices/credit notes? Detail all automatically generated documents for external use. (E.g. sales invoices and statements, remittance advices.) Can the software reproduce source documents? [E.g. sales invoices; POs, Remittance advices ] Are the duplicates an exact replica of the relevant financial and VAT accounting information as stored on original documents [i.e. they do not take account of any subsequent changes to the standing data?] Are these clearly identified as duplicates? Does the software force the production of month-end reports? Can the reporting function make use of external data files? Does the report writer have the facility to scroll up and down when output to screen? Can all reports be run without the need for period-end procedures to be initiated? Unprocessed BACS and Cheque run report Receipts from Statement shows unallocated Letting and Management fee invoices, rental invoices, Remittance Advice, Payment Receipts, statements and overdue letters 36

37 11.46 Does the report writer allow print previews of all reports? Can transactions and standing data be output directly to other formats e.g. CSV, txt, XML, PDF etc. for any period of time required? to DBF, XLS, WKI and PDF files 37

38 12 Value Added Tax The following sections detail the general requirements/features of an accounting package in handling VAT. It cannot cover all eventualities or all users and where necessary members should contact their local HMRC office for detailed guidance. The overall objective is to accurately record the accounting for VAT in order to support VAT returns to HMRC. Software features 12.1 Does the software have the facility to hold the following VAT information: UK VAT registration for both Agent and number? Landlord Intrastat code? EC Code? EC VAT registration numbers (10)? VAT rates (please specify number available), no limit 12.2 How does the software handle roundings? Predefined logic within the application 12.3 Is this applied consistently? 12.4 Does the software handle VAT Scale charges with automatic double entry processing? 12.5 Does the software handle VAT calculation tolerances? If do any discrepancies produce: Warning? Appear in the audit trail Appear in the VAT exception report? 38

39 12.6 What security features (password/ audit trail) are in place to control changes made to: General ledger VAT control accounts? VAT tables set up and change? Tolerance levels? Invoice sales number table? Changes on VAT code on customer files? Changes on VAT code on stock files? VAT calculated on sales invoices or credit notes? 12.7 Does the software store and report a VAT return identifier [VRI]? 12.8 How does the software ensure that that each eligible posting is reported only once in a VAT return? Method of operation Security access for adjustments based on user role System Administrators can amend the default value in the configuration settings The Agent VAT report shows any back dated fees Agent VAT report exports the transactions: net, VAT and gross breakdown of agents fees 12.9 VAT basis. Can the software handle: Invoice (standard) Agent VAT report accounting? supplies invoice date Cash accounting? Agent VAT report agent invoice paid date If the software can handle both invoice (standard) and cash methods of accounting for VAT is the basis clearly identified during set up? The Agent VAT report is for use only with the company account software 39

40 12.11 Does the software allow for a switching between methods? If : Is the change fully supported by audit trails to ensure proper VAT treatment of all transactions? Is this ability to change a basis of accounting clearly flagged, i.e. users warned etc Does the software alert the user that they require HMRC authorisation if they attempt to apply, retrospectively, the Cash Accounting Scheme for VAT accounting? Does the software provide useful and relevant information on switching in the software help section? Can the software handle the following VAT schemes:- Annual accounting scheme? Flat rate scheme? Retail schemes? Account for VAT on the margin? Can the software be configured to handle partial exemption methods? Please state the number of VAT codes available for VAT analysis. 40

41 12.15 How does the software handle: Outside scope? Distance selling (supply to an unregistered EC customer)? How the software handle EC VAT: Goods and related service? Services only? Process? Triangulation? Does the software include the functionality to identify EU acquisitions? If : Can the software generate acquisition tax? Can a report be generated of all EU acquisitions and the amounts of acquisition tax generated? Does the software include the functionality to identify transactions liable to reverse charge VAT? If : Can the software generate reverse charge VAT? Can a report be generated of all transactions liable to reverse charge VAT, and the amounts of tax where so generated? 41

42 12.23 Does the software have a facility to reconcile the VAT returns amounts for input, output and net VAT payable/recoverable to the General ledger control account? How does the software handle late transactions posted outside the closed VAT return period? Input VAT (purchases) Can the software handle VAT inclusive amounts and automatically calculate the input VAT? Does the software require the following to be entered: Supplier reference? Supplier document reference? Internal document reference? Invoice tax point date? Invoice posting period date? Invoice gross total? Invoice VAT amount? Individual invoice lines: Net amount VAT rate (optional from VAT code, product supplier) This would be handled by the companies accounting software 42

43 12.27 Does the software validate individual invoice line VAT amounts against the total invoice of VAT (less early settlement at discount) and accept or reject the amount subject to the software tolerance? Can the user override the software derived input VAT amount and input VAT as shown on the supplier invoice? Does the software allow VAT to be reclaimed on the basis of registered but unposted invoices? If : Does the software flag the status as: VAT not yet reclaimed? VAT claimed? Output VAT (sales) Does the software generate sales invoices? If : For each invoice generated is the following information included on the sales invoice: Unique software generated invoice reference Your name, address, EC country code and VAT number? The time of supply (tax point) but it will be the Lettings Agent/ Property Management details 43

44 Date of issue (if different to the time of supply) Your customer s name (or trading name) and address, EC country code and VAT number (if applicable) The unit price [applies to countable goods or services. E.g. an hourly rate; or a price for standard services.] A description which identifies the goods or services supplied Does the software identify supplies that are zero-rated or exempt on an invoice and that there is no VAT payable? If : Is this by way of a report? Does the software handle Proforma invoices? If : Are the invoices clearly identified as this is not a tax invoice? VAT Reporting Does the software produce a VAT 100 form as standard? Landlord/Tenants name and address and VAT number where held Landlord and Tenant fees are always subject to VAT at the standard rate 44

45 If : Does the software have a means of producing reports that support the completion of the VAT return? Is the VAT return information available by report on a three monthly basis or any other specified period? Is there a detailed and summary analysis of all transactions included in each return sorted by VAT code and transaction type making up the total in each of the boxes on the VAT 100 Form? Can the VAT return be recreated showing all the transactions which were included in the original VAT return? Does the software have a separate VAT audit log? te where the software details the following non routine event in the audit trail or VAT audit log etc: Changes to VAT tables Change from invoice/cash VAT accounting or other Schemes VAT tolerance Changes to VAT rates on customer, supplier, product master files., but details passed to agents accounting system As required, details passed to agents accounting system 45

46 12.44 Are the above changes noted above stamped with a: User id? Software generated unique reference number? Date and time? VAT postings Are all VAT postings recorded in the audit trail or VAT audit log? Does the software denote whether each transaction has been included in a reconciled VAT return? How does it denote which VAT Return the transaction has been included in? Does the software produce a VAT Exception report detailing such transactions as: VAT amounts outside tolerance levels? Manual changes to software generated VAT? Write offs Zero value invoices? If for any of the above: How does the software document these occurrences? 46

47 12.48 Does the software handle intra-community supply of goods? Does the software support production of an EC Sales List? If : Does the report show the country code, the customer name, their EC VAT number, the invoice reference and indicators for different types of despatches? Does the software produce invoice level reports that enable every value on each EC Sales List report to be traced to source documents? Does the software have a means of ensuring that each eligible posting on the EC Sales List is reported only once? (Please state how this is done within the software) How does the software handle triangulation? E.g. a movement of goods without a related invoice transaction Does the software produce the relevant documents in a format [e.g. CSV or XML] that can be uploaded direct to the HMRC gateway? Can these be electronically transmitted direct from the system? 47

48 12.56 Does the software produce Intrastat reports where applicable? How are errors on VAT accounts corrected? How does the software handle the VAT on purchase and sales ledger contras? How does the software handle partially allowable expenditure, e.g. VAT on petrol invoices where employees are provided with petrol (adjustment required for own use)? Can the software handle cheque refunds to customers? If : How is the VAT accounted for under cash accounting? Can the software handle invoices with multiple rates of VAT? How does the software handle write off of bad debts and the related VAT? 48

49 13 User Documentation This section applies to any of: online, hardcopy or other (e.g. WWW) documentation specify which are applicable. Several manuals available in hard copy and as PDF files 13.1 Is the manual clearly laid out and understandable? 13.2 Is the manual comprehensive and accurate? 13.3 Is there an index to the manual? table of contents only in hard copy 13.4 Is it easy to locate specific topics in the manual when required? 13.5 Is it easy to follow through all procedures in the manual? 13.6 Does the manual include: A tutorial section?, separate Training Guides A guide to basic functions? Pictures of screens? Completed examples included in the manual? Specific error correction Where appropriate procedures? VAT information? 13.7 Does the documentation clearly specify the actions to be taken by users at each important stage of processing? 13.8 Are help screens available relating to the task in hand? (context sensitive help) Are on-line instructions on how to use particular features of the software available? process maps Only in some screens 49