ICAEW Accreditation Scheme. Financial Accounting Software Evaluation. Capita SIMS. Financial Management System (FMS) Version 6.

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1 ICAEW Accreditation Scheme Financial Accounting Software Evaluation Capita SIMS Financial Management System (FMS) Spring 2011 Evaluation carried out by: IT Evaluation Services Date completed: 27 th July 2011 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 Reports Value Added Tax Currency Sales Order Processing and Invoice Production Purchase Order Processing Stock Control User Documentation Efficiency Integration and www facilities Support and maintenance ICAEW Version

3 1 Summary 1.1 Introduction The suitability of accounting software 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 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. Be effectively supported and maintained. It is also desirable that good 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 Capita FMS version against a set of criteria developed by the ICAEW to ensure that the software meets the requirements of Good Accounting Software, as laid down in the summary. 2.2 Approach and Work performed In order to effectively evaluate Capita FMS version 6.138, a product specialist from the Capita SIMS completed the detailed questionnaire and provided it to the evaluator to examine. The evaluator then visited the Capita SIMS office in Bedford and in conjunction with the operation of the various aspects of the software assisted by a member of Capita SIMS 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 Capita SIMS staff in order to clarify certain points. In the event of disagreement between Capita SIMS and the evaluator, the evaluator's decision was taken as final and the response changed accordingly. Capita FMS version was used throughout the evaluation. The evaluation covered the fully integrated sales, purchase and general ledgers and where appropriate sales invoicing, purchase order processing and stock lists; separate 3

4 reports have not been prepared for each ledger. Instead a composite report has been prepared with references made to the appropriate ledger as necessary. Other modules in the SIMS range were not included in this evaluation. 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 Capita FMS version was used running under Windows XP Pro v2002 service pack 3 on an Intel Core 2 2Ghz with 1Gb RAM and a 39.9Gb disk. 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 The Capita SIMS system is designed as a Management Information System for primary and secondary schools and Local Authorities and is used by maintained schools, academies and independent schools. FMS is provided by Capita Children s Services and users are encouraged to provide feedback so that requests can be reviewed periodically which influences the product roadmap. Currently, FMS is released three times a year to coincidence with the SIMS Database. Backward compatibility is documented in the Release tes. 3.2 Supplier background Capita Children s Services (Capita) claim to be the market-leading provider of and Finance Systems to Schools, Academies and Local Authority Children s Services in the UK. They currently supply a Management Information System (SIMS) and Finance system (FMS Financial Management System) to Schools, Academies and Independent schools. Capita Children s Services works alongside Schools and Academies across the UK and internationally; they claim their experience has proved that an effective implementation of a robust finance system can increase efficiency and significantly reduce costs. Capita Children s Services headquarters are based in Bedford employing 440 employees. They are part of the Capita Group Plc, a FTSE 100 company employing over 37,500 employees nation-wide. 4

5 3.3 Product background and Suitability for user FMS has been developed over twenty years to become an established leading school accounting system in the UK. Specified originally by a leading accounting company together with continual feedback from Schools and Local Authorities, it is currently licensed to over 17,000 schools, Academies and Independent schools. FMS is a suite of software encompassing FMS, Accounts Receivable, (Budget Planning and Equipment Register not included in this review). It can support functionality for a school with a bank account enabling cheque and BACS payments to be made to suppliers. FMS has the unique characteristic of having interfaces with a Local Authority central system. For schools that do not have a means of paying suppliers invoices directly (where they do not have a bank account), invoices and credit notes after being saved, can be passed electronically to the Local Authority to be paid. Once paid the invoices together with all other transactions for the School i.e. salary payments, can be transferred back electronically for reconciliation purposes. The Chart of Accounts can be tailored to meet the schools specific needs allowing ledger codes to be mapped into report templates to external reporting purposes. A full and comprehensive Audit Trail captures all significant changes made within the database. The largest element of a school s budget is staffing where salary projections can be generated from data held within the SIMS database seamlessly. FMS has the ability to interface with government portals using web services allowing a P2P (Purchase to Pay) system for Schools. 3.4 Typical implementation Schools of all sizes use FMS where the typical number of users can vary between one and six users. FMS is a multi-user system although discreet areas have been designed to required exclusive use. These areas are documented. 3.5 Vertical applications FMS is a suite of software encompassing FMS, Accounts Receivable, Budget Planning and Equipment Register. Multi-year budgeting solutions and payroll packages are offered via partners. 3.6 Software and hardware specifications Development environment FMS is developed using Borland Delphi 4, COM,.net 2 & 4 and Crystal Reports Server platforms Windows Server 2003 (SP2), Windows Server 2008 (SP2) both 32 bit and 64 bit versions. Also Windows XP Pro (SP3) and Windows 7 Professional 32 bit and 64 bit (SP1) for low number of users. 5

6 3.6.3 Databases Microsoft SQL Server 2008 and R Operating software Server Microsoft SQL Server 2008/SQL Express (SP2) or Microsoft SQL Server 2008 R2. Workstation Windows XP Pro (SP3 & above) 32 bit, Windows Vista Business (SP2) and Windows 7 Professional (SP1) Protocols TCP/IP, HTTPS, SMTP Minimum client PC specification Server 3.0 GHz processor or higher (Quad Core 2.4 GHz or higher recommended for optimum performance in secondary schools) with 2GB or higher memory (4GB recommended for optimum performance in secondary schools). Workstation 3.0 GHz processor or higher (Quad Core 2GHz recommended for optimum performance) with memory of 1GB (2GB) or higher, 2GB or higher for Vista or Windows 7 installations Support and maintenance Capita offer a support contract to schools and Local Authorities but Local Authorities offer extra services to schools. Corrections and updates are issued via the Internet. 3.7 Software installation and support Installation can either be by schools with IT Technicians, by the SIMS team in Local Authorities or directly by Capita. Both Capita and Local Authorities offer consultancy support and training. 3.8 Partner network and related accreditation process Capita train Local Authorities to be able to demonstrate the system to schools but all sales are made through Capita. 3.9 Limitations facility to enforce password changes or to retain previous passwords archiving automatic accruals or prepayments part payments permitted early settlement discounts Unallocated credit notes are not shown in the aged reports New accounts cannot be created during transaction processing facility for calculating late payment interest unallocated cash in P/L 6

7 Unallocated credit notes are not shown in the aged reports Unable to post transactions during bank reconciliation User needs to specify G/L code structure prior to implementation Single company only but 2 databases (see 9.5) no consolidation (planned) retrospective month end S/L & P/L reports (planned) user defined fields EC VAT or Intrastat handling Cash accounting method not supported Cannot drill down from reports only from screen enquiries Special VAT schemes and VAT tolerances not supported 100 report produced VAT return identifiers (planned) Single currency only SOP only invoice production stock control only stock list for S/L and imported catalogues for P/L 4 Evaluation conclusion Capita FMS version is an integrated financial management system that has been specifically designed for schools and Local Authorities. The package is fully supported through Capita and by Local Authority units. In terms of the functionality that is present in the current version and the target market for Capita FMS version 6.138, the application has a comprehensive audit trail and analysis capabilities that should be easily sufficient for the target market but it is single currency and has no Sales Order Process, Stock Control or EC VAT features. Disclaimer Any organisation considering the purchase of Capita FMS version should consider their requirements in the light of proposals from Capita or Local Authorities 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? Access to FMS is controlled by the use of a User Login and Password access rights are assigned to each user so that users only have access to appropriate functionality Access can be determined by individual profiles or by the use of user groups based upon their specific role i.e. User Defined Access Rights Menu routes cannot be tailored separately from access rights. Functions restricted by access rights are greyed out - access is controlled by a user login and password Each user can be assigned a specific access right or a access right based upon a role A password is required all systems are controlled by a password planned interface being changed in Autumn 2011 release 8

9 5.5.5 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? 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)? 5.6 Please state how security allows for access to be specified separately for :- each user has a unique user login determined by User Code. All appropriate entries are recorded in the Audit Trail each user has a personnel password it is not possible for the supervisor or user to see another user s password Passwords are masked when entered but limited Passwords must be at least 6 characters in length as requested by Local Authority Auditors. Previous passwords are not checked when a new password is created 9

10 5.6.1 Read? Specific access right templates have been provided that allows a user to be able to Read Only Read and write? Specific access rights templates have been provided that allows a user to be able to Read and Enter Only Delete and amend? Specific access rights templates have been provided that allows a user to be able to Read, Enter, Delete (which causes a reversal transaction to be generated) and Amend i.e. Enter and Authorise and Supervisor. 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? Budgets can be imported from the SIMS FMS Budget Planning module or from accredited Third Party Budgeting software. With Third Party software, a user login and passwords is required to be entered before the budgets can be imported. Supplier catalogues can be imported only from a file that has been created by SIMS. All or nothing accepted by validation procedures Users with the access rights of Enter and Authorise or Supervisor can modify sensitive data. Additionally, if a user has been assigned a specific access right that data can be modified. 5.9 Please specify the specific security procedures (by passwords or warnings) over the: Update of ledgers Security by user rights Read & Enter. 10

11 5.9.2 Closing of accounting periods Security by user rights - a warning message is displayed when periods are closed Deletion of transactions Transactions cannot be deleted, only reversed; the entry is recorded in the Audit Trail Archiving of transactions. archiving 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? This information can be viewed but cannot be printed. all external reporting facilities are subject to standard user access controls of having a current FMS User ID and Password. The level of security has been developed over the last 20 years with comments and feedback from Local Authorities Auditors. FMS is currently planned to be able to print report in Autumn 2011 release 11

12 adopted in around 130 Local Authorities in England, Wales and rthern Ireland 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? Detailed guidance in the handbook upon how to restore the FMS Transaction Database. Additionally, Local Authorities provide their own guidance. The ability to backup the database is provided via menu route Tools - FMS Transaction Backup using the software. Other options may have been adopted Can the intervals be customised? The interval of backups can be customised by using third party backup facilities Recovery Please state how the software facilitates recovery procedures in the event of software failure? (E.g. roll back to the 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? The database uses standard SQL Server 2008 techniques hence transactions that fail will roll back to the last saved transaction. Transactions are saved individually rather than a batch. Where a file is imported (from the Local Authority), if the file has been fully imported the file would not be able to be reimported but could be processed. 12

13 Are these automated?, has to be undertaken manually Do the recovery procedures work? there has been no reported issues of data being lost What features are available within the software to help track down processing problems? Run trial balance and check balances Are software messages clear? The messages within the software are clear and meaningful as the majority of users do not have a formal accounting background or qualifications 5.22 Are user responses properly structured to ensure that erroneous key strikes do not lead to inappropriate actions? The majority of data fields have validation that ensures that the entered data is valid i.e. alpha, numeric or text. Fields also have restriction upon the size of value that can be entered and on the occasions where unusual values are permitted i.e. negative values, confirmation messages are displayed I s there a software log which details: Error messages? Security violations? this can be configured within SQL Server Audit trail Does the software have a detailed audit trail?, a comprehensive Audit Trail is maintained. That can be viewed by user, date range and area Is it impossible to turn off or delete the audit trail? It is not possible to delete or turn off the Audit Trail. 13

14 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? Is all input data included within the audit trail, including amendments, deletions, journals etc? all standing data is recorded in the Audit Trail with each entry being separately indentified based upon a date/time stamp. A unique number is not allocated the user making the entry of data is recorded in the Audit Trail each change is date and time stamped. whenever any input data is entered it is recorded in the Audit Trail 14

15 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? 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? each new record has a unique transaction number allocated. The transaction number are different dependent upon the ledger involved i.e. Purchase Ledger, Sales Ledger and minal Ledger. each new record is associated with a user the unique number (Transaction ID) is displayed in the screen at the time of input to the user. the unique number is date and time stamped. all imported transactions are allocated a unique reference number differentiation use next number. The format of dates is DD/MM/YYYY dates are handle in a consistent manner 15

16 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)? 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? Data input is controlled by specific labelled menu routes. The menu routes are specific to FMS. a series of validation checks have been established over the years i.e. valid account code, size of fields and checks for ISBN numbers. If the user has the appropriate access right, data can be amended and then updated. Validation exists that all required fields must be completed prior to posting. all transactions are subject to this validation. Where supplier invoices are entered with duplicate numbers, FMS detects this, warns the users and if accepted by the user a suffix (a) is added to the invoice number. This is repeated i.e. to infinity Importing transactions generated by a Local Authority allows for an optional batch total. This feature is only used when 16

17 If : Are batches automatically numbered? Are batches forced to balance before ledger update? 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? schools do not have a bank account and will not be applicable to Academies. unique name from Local Authority. When the unique file is imported into FMS, the transactions are assigned a transaction ID and recorded in the FMS Audit Trail, if a Local Authority. batch total is provided (see 6.8.4) if the Local Authority has used a batch total it is checked by FMS prior to being imported. (Number of lines but not values). If this does not match a warning is displayed and the batch is rejected. an unbalanced journal is rejected and cannot be posted. Data input errors that unreasonable are displayed on screen allowing correction prior to posting. the error must be corrected prior to posting but it is not reported. data errors cannot be posted. FMS does not have a suspense account. 17

18 6.12 Does the software have an automatic facility to correct/reverse/delete transactions? If : Are all the 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? 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? Unallocated transactions can be cancelled by creating a reversing transaction i.e. supplier invoice or a journal reversed. FMS is a double entry application whereby all transactions (other than Purchase Orders commitments) have two entries in the general ledger. Consequently, if the Trial Balance does not balance to zero is the first check to undertake. it is not possible to allocate input values directly to ledger control accounts. accruals and prepayments need to be manually processed Does the software permit multi debit/credit journals? 6.19 How are transactions identified on screen/reports as to:- 18

19 Type? Debit or credit? 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? 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? Each transaction type is separately indentified in reports. Credit entries are identified by the use of a negative sign - or CR. Debit entries are indentified by the value being positive or DR. Selected nominal analysis codes can be on invoices. See below:- Upon S/L invoices only Income type nominal codes can be used. Upon P/L invoices, Expenditure, Salary and Asset nominal codes can be used. receipts can be matched to S/L invoices and payments matched to P/L invoices. The matching is manual for S/L invoices and Automatic for P/L invoices. part payments are not permitted based upon advice from Local Authorities. in the circumstances where customers have overpaid, a refund cheque can be made. receipts can be received from suppliers as a Credit te. supplier Credit tes can be handled. 19

20 6.26 Is there an ability to automatically amend stock if applicable? there is no facility for stock 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? S/L Credit te can be generated. Discounts can be handled but not promotions. early settlement discounts are not catered for. Does this apply to: Sales ledger?, in S/L Purchase ledger? It is not possible within the P/L 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? Unallocated cash within the S/L will appear on the Aged Debtor Report as a credit value. User can report on credit notes. Unallocated cash within the S/L will be displayed within the Aged Debtor Report. 20

21 Purchase ledger? Outstanding transactions within the P/L are associated with a supplier Is it possible for new accounts to be created during input? it is not possible to create a new account during data input 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)? New accounts can only be created by user with the access rights of either Enter and Authorise or Supervisor. the software logs both the originator and authoriser. Users are warned when credit limits are exceeded. a bank reconciliation facility is available. all transactions must be recorded / posted prior to commencing the bank reconciliation. statement file import planned for future release Are these adequately reported?, rerun reconciliation report after posting 6.44 Does the software accept input files from other computer packages? If :- a variety of files can be received from other computer packages. 21

22 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? Automatic Reconciliation (flat ASCI files), format specified by Local Authorities, Third Party Budgeting (XML), specified by Capita, Requisitions (UKGov 3.09) and Invoices/Credit tes (BASDA 3.09), from Procserve. The format of these files is checked in all instances prior to import. Total accept or reject all. 22

23 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? Open item transactions are held and processed as single records and are not summarised at period closure. - month end is optional but is deemed good practice but not forced. the modification of supplier details is controlled by access rights and recorded in the Audit Trail Menu routes are determined by the access rights that have been given to the user. it is impossible to delete accounts if the balance is nil but has been used. Accounts (supplier accounts and nominal accounts) can only be deleted if they have not been used for a transaction. 23

24 7.8 What is the size and format of reference numbers and descriptions within: General Ledger? Sales Ledger? Purchase Ledger? Stock? 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? 8 A/N code 8 A/N code 8 A/N code analysis is based on reference number. FMS does not allow duplicate account numbers to be defined. Drill through is available from source documents to the accounting record. In certain areas drill through is available from the accounting record to source document. In addition, a number of reports are available displaying the reference and source document reference number. Drill through is available from source documents to the accounting record. In certain areas drill through is available from the accounting record to source document. All modified data is available within the Audit Trail, which can be printed by user or date range. standing information in the form of tables. 24

25 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? 7.16 Does the software allow selective archiving of old data on a userdefined basis? 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 achieved data for audit without affecting current accounting data? no archiving facilities available. 25

26 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?, where there is a flow, transactions that need attention are displayed at the top of the screen. It is impossible to amend the data of posted entries. The posted data can be reversed and these actions are recorded in the Audit Trail. changes allowed. In P/L from supplier catalogues and in S/L from a stock list. where VAT is applicable, VAT is calculated. Within the P/L the VAT value can be modified to agree with VAT on the supplier s invoice. Within the S/L VAT is not editable. other than checking the Summary Trial Balance. 26

27 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 multicompany? If :- How many companies are supported? All transactions are double entry and associated to a user who must have a unique User ID and password. transactions have a unique sequential number allocated by ledger. Transactions are posted with the current system date. Each transaction is associated with the user that has amended the transaction. the software is multi-user although documented areas are exclusive use e.g. cheque processing, Year-end. more than one user can use the software with transactions being associated with the appropriate user. Schools have two sets of accounts 1. The accounts that are funded by external organisations such as the Local Authority or DfE/YPLA. 2. Their own School Fund which is funded from school fund raising activities i.e. raffles, school fetes etc The treatment of VAT is different hence the FMS licence allows schools to run two FMS 27

28 databases with each database having its own Audit Trail and Trial Balance. 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? 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? Dependent upon how the nominal ledger is defined, three levels of analysis are possible. Funds / ledger groups / ledger codes. Dependent upon how the software is defined, cost centres and departments can be established. Periods must be defined and the default is calendar periods. Other options are available. The default is 12 calendar periods with 1 additional period for year-end. The maximum number of periods is 17. Any number of years can be defined although only 2 can be open at any one time. Potentially all periods in a defined financial year. This would normally be 12 periods. in development plans only same chart of accounts planned 28

29 9.14 How many years can be open at any one time? 9.15 Can a period or year be re-opened after it has been closed? 2 financial years can be open at any time. a period or a financial year cannot be re-opened. 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? 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? 9.19 Can transactions be posted to more than one accounting period at any point in time? All data on system is accessible All years available for reporting data in any period and financial year can be accessed by selecting the appropriate financial year and period. previous months and years can be accessed for enquires and reports. transactions are saved with the current system date (posting date). If the document date is for a period which is closed the transaction will be posted in the next period. In the main, analysis is undertaken by use of the posting date a transaction can only be posted to one accounting period 29

30 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? Specific transactions as follows: P/L invoices and Recurring payments in current year. Generally no. Special case for central payments batches from Local Authorities are only where a school does not have a bank account. Due to timing differences it may take a couple of weeks for the Local Authority to return the paid invoices to the school in which time the school may have closed accounting periods, FMS reconciles the invoice in the accounting period in which it has been accounted in as detailed in By access rights. Messages are displayed on screen when these transactions are recorded. Unposted future commitments are included by default in the default reports; Central Payments are included by default in closed periods. Both of these transactions types do not attract VAT. 30

31 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? 9.25 Can budgets be set by: Period? Annually? budgets are an integral element of the software and comparison between budgets and actuals is provided. 2 versions of the budget are available. Original when the budget was fixed and Current 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? Budgets can be generated using historical data, historical data with an uplift, zero budgeting or imported from Third Party Budgeting software 99,999, is the maximum value. Potentially infinity. Current users probably enter less than 10,000 entries per financial year in total. Potentially infinity. rmal usage is as follows: , As stated As stated As stated 31

32 10 Reports 10.1 Are all reports adequately titled and dated? (E.g. report name, client name, data, period, batch, last entry number, period end, pages, numbers etc.) 10.2 Do the reports provide totals where applicable? 10.3 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) 10.5 Can reports be saved in electronic format (as distinct from just printing)? 10.6 Are such files adequately protected from deletion or amendment? 10.7 Is a report writer provided as part of the software or as an add on? Please state the name of any third party package. Reports have the report criteria within the report header with date and time in the footer. Reports have appropriate totals. Different approaches are taken depending upon the report. Some reports totals are generated directly from source transactions whilst other from summary totals. t lists. Reports have totals at the end of reports as well as having page X of Y in the footer. Reports can be saved electronically. Advice given is that reports are saved into a secure area on the network. However, once reports are saved outside FMS, the user has the ability to delete the reports. The report writer is included within the software. Capita have developed their own report writer, which is called Defined Reports. This enables the writing of customised reports for nominal balances but not transactions. 32

33 10.8 What level of knowledge is required to use the report writer e.g. beginner, regular user, expert? 10.9 Can the report writer make use of user-defined fields (including external fields)? 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? Capita offer a 0.5 training day course that should enable a user to be confident with User Defined Reports. User defined fields are not available within FMS hence cannot be included in the report writer. The report writer only allows nominal balances from the Trial Balance and budgets to be included. It does not allow standing data from S/P & P/L to be included. selection criteria in standard reports but in user defined reports users can define the data, parameters and criteria to be included in reports. The chosen criteria are printed on the reports. standard reports are produced where there are nil returns. - based upon user feedback, selected reports have the option to exclude zero values/nil balances. A zero value is where the nominal account does not have a budget, commitment or actual. 33

34 10.14 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? 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? Screen layouts and transaction formats cannot be modified at all. Based upon user feedback, on selected reports the user has the ability to decide which transactions and the order in reports. A hard copy of screen enquires can be produced. previous periods are retained within the software hence are available for enquires and reports. All changes to standing data are recorded in the Audit Trail. The Audit Trail cannot be deleted and is able to be printed when required. the Audit Trail automatically includes user, data and time together where a reason for the change has been entered by the user Each transaction is separately identifiable by use of the Transactions Number. transactions are reported using the standard that positive values are debits and negative values credits. However, on the statutory Consistent Financial reporting (CFR) reports, the government have stated that all values are positive. 34

35 10.20 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) 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? Reports provide the appropriate narratives to enable cross referencing on screen only. It is not possible to drill from reports to the ledgers or original transactions, only from screen enquiries. The following reports are available:-, by period User defined User defined - the available reports are standard whilst Profit and Loss and Balance Sheet reports can be created using User Defined Reports. On both the creditor and debtor aged reports, the age criteria is fixed using the standard 30 days periods. The aged creditor report can be produced at both detailed and summary levels. The aged debtor report can only be produced at a 35

36 summary level Do standard reporting options give sufficient flexibility to tailor individual reports? The standard reports options have been based upon user feedback over recent years 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? 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? Reports can be produced for a period but not at the period end date. The date of the transaction will be displayed - the standard budget reports have been developed based upon user feedback. The standard reports for budgets have been developed based upon user feedback. Most reports are based upon the selected year although User Defined Reports can include multiple years. all movements (transactions and journals) are shown on detail reports. - ability to reproduce the aged creditor report at different dates is in their development plans for Spring

37 10.33 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: S/L reports do show part payments. It is not possible make partial payments within the P/L. this report exists within the Chart of Account review and the Summary Trail Balance report by period. Management account reports can be generated as detailed below. P/L and Balance Sheet are based upon nominal balances 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 Payments Receipts The screens have been designed so that the transactions that need action are displayed at the top of screens. All Unauthorised invoices are posted to the nominal accounts. It is not possible to partly make a payment. It is not possible to partly make a receipt 37

38 10.38 State the controls that are in place to ensure that the correct price/discount has been applied to invoices/credit notes? (e.g. Gross Margin reports) 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? The application of discounts is unusual in their market and they rely upon the user to make the appropriate entries. such report exists. The following can be generated:- Purchase Order Central Authorisation Listing Cheque & Remittance Advice BACS & Remittance Advice (printed and.pdf) Receipts Sales Invoice Sales Credit te Sales Ledger Statement Variety of XML documents POP for electronic trading see list above whenever duplicates are replicated they are an exact copy of the original document. On occasions, the layout of the source document may be modified but the data is the same. all duplicates have the word Copy on the printed format and within the appropriate XML tag. period end is optional and no period end reports as such are produced although standard reports can be produced for specific periods at any time. 38

39 10.44 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? 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? external data cannot be used within the reporting functionality. outputs from User Defined Report provide the ability to scroll up and down on screen. reports can be produced without period end being undertaken. User Defined Reports can be previewed. Transactions reports and the Audit Trail can be output to.csv. If a.pdf printer driver is available,.pdf documents can be generated. 39

40 11 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 11.1 Does the software have the facility to hold the following VAT information: UK VAT registration number? Intrastat code? EC Code? EC VAT registration numbers (10)? VAT rates (please each VAT rate is a specify number separate nominal code. available) Can set up as many as required How does the software handle roundings? VAT is calculated at a line level and then rounded to the nearest penny on the transaction Is this applied consistently? the rounding described above is applied consistently Does the software handle VAT Scale charges with automatic double entry processing? 11.5 Does the software handle VAT calculation tolerances? scale charges. VAT tolerances are handled by allowing the user to override the calculated VAT value in P/L to match the external document. 40

41 If do any discrepancies produce: Warning? - it is reliant upon the user to ensure that the correct VAT is entered within the P/L Appear in the audit trail Appear in the VAT exception report? 11.6 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? The Purchase Invoice that has the modified VAT appears in the Audit Trail. Additionally, the difference in the calculated and entered VAT is displayed within the VAT reports. The modified VAT appears in the VAT report. Details below:- All VAT control accounts are recorded in the Audit Trail. VAT table see There are no tolerance levels for VAT. All S/L Invoice numbers are recorded in the Audit Trail. User can set start and finish numbers. VAT code is held on customer files in S/L. stock files. 41

42 VAT calculated on sales invoices or credit notes? 11.7 Does the software store and report a VAT return identifier [VRI]? 11.8 How does the software ensure that that each eligible posting is reported only once in a VAT return? Method of operation VAT on Sales Invoices and Credit tes is automatic by the software. date return finalised only. An internal flag is set when a posting is included in VAT return not visible to user. All transactions are included within a selected period or the next VAT period. considering VRI number in future release 11.9 VAT basis. Can the software handle: Invoice (standard) accounting? Cash accounting? If the software can handle both invoice (standard) and cash methods of accounting for VAT is the basis clearly identified during set up? 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. 42

43 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. As many as required see How does the software handle: Outside scope? Outside scope VAT codes can be defined and associated with appropriate nominal codes Distance selling (supply to an unregistered EC customer)? 43

44 11.16 How the software handle EC VAT:- 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? 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? Currently, Local Authority schools using FMS who have a bank account submit a VAT claim to their Local Authority. The Local Authority includes the 44

45 school VAT claim and submits their VAT claim to HRMC. The local Authority refunds the claimed VAT back to the school. In terms of Academies, Academies will submit their VAT claim directly to HRMC. When the claimed VAT is refunded, a journal is posted between the bank account and relevant VAT control ledgers 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? Once the VAT report for a period has been confirmed as submitted, all subsequent transactions will be included in the next VAT report. this functionality exists only within Petty Cash 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? 45

46 Invoice gross total? Invoice VAT amount? Individual invoice lines: net amount VAT rate (optional from VAT code, product supplier) VAT code only but rate rates shown against code on bottom of invoice 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 is validated at Invoice level rather than line level. The user can override and enter the required VAT value from the supplier Invoice VAT not yet reclaimed? VAT claimed? Output VAT (sales) 46

47 11.31 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) 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. Sales Invoices can be generated together with a remittance advice slip to be returned. a unique Invoice number is generated together with a remittance advice. establishment and address but no EC code or VAT number. Tax Point date. date of issue debtor s name and address but no EC code or VAT number. a description of goods provided is displayed. 47

48 11.33 Does the software identify supplies that are zero-rated or exempt on an invoice and that there is no VAT payable? the VAT code for each line on the Sales invoice is displayed. If : Is this by way of a report? This is displayed upon the actual Sales Invoice at line level 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? 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?, not currently. historically Local Authorities have accepted the VAT Submittal Report. The standard VAT reports can be monthly or quarterly. The norm is monthly as this allows establishments to be reimbursed quickly. each VAT report can be produced either in summary of detail. However, VAT 100 Form is not produced. 48

49 11.41 Can the VAT return be recreated showing all the transactions which were included in the original VAT return? VAT reports can be recreated which will show all original transactions included 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. all transactions including VAT are recorded in the one Audit Trail. VAT Table but changes to N/L codes recorded 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?, Audit Trail 49

50 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?, but internal flag set., but internal flag set 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 this is displayed on Zero value invoices? If for any of the above: How does the software document these occurrences? the detailed VAT report. It is not possible to generate a zero value Invoice. It has been agreed with Local Authorities that zero value Invoices cannot be produced and messages are displayed 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, 50

51 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? Does the software produce Intrastat reports where applicable? How are errors on VAT accounts corrected? The original transactions need to be cancelled by a reversal transaction. If the error is between VAT accounts, a journal between VAT accounts can be posted to correct the balances. 51

52 11.58 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? contras. the ability to override the calculated VAT element is allowed. refund can be made to debtors when they have overpaid cash accounting. each product line on the Sales invoice is associated with a VAT code hence allowing multiple rates to be handled on Sales Invoices. write off can be handled with the appropriate amount of VAT being included in the VAT reports 52

53 12 Currency currency FMS can be used where there is a single currency that has a maximum of two decimal places 12.1 Is multi-currency processing available? If : State number of currencies available Does this cover: General ledger Sales ledger Purchase ledger Stock Is conversion to sterling automatic? If : Does this cover General ledger Sales ledger Purchase ledger Stock Can the user select which currency to value each of the ledgers? If : Does this cover: General ledger Sales ledger Purchase ledger Stock What are the currency capacities? What are the maximum and minimum exchange rates? What approach will the Software House take towards handling the EURO? 53

54 12.2 What currency information is held: Currency Code/description? Country? Currency rate table? Date rates effective fromto? Previous rates held? 12.3 Can a base currency be selected? 12.4 Can the user over ride the exchange rates during a transaction? 12.5 Can the user change the exchange rates per account? 12.6 Is there a restriction on accounts to a single selected currency? If : What controls are in place over any changes? 12.7 Can the user manually over ride the currency calculation? 12.8 Are gains or losses on currency calculations automatically processed? 12.9 Can the user over ride the calculation /processing of currency gains and losses? Can a user override an exchange rate on each transaction? 54

55 12.11 Can the user define the treatment of foreign exchange gains/losses i.e. where posted to in the general ledger? Can ledger accounts be defined to take invoices/payments in specified currencies/ multiple currencies? Does the software prevent the deletion of the active currency? Does the software prevent use of duplicate currency codes? Can currency transactions be entered in selected currency and/or base currency? Can transactions be entered in multiple currencies? How does the software handle exchange differences? How does the currency treat revaluations relating to: Ledgers (sales/ purchases) Monetary assets/ liabilities General ledger accounts 55

56 13 Sales Order Processing and Invoice Production SOP only Invoice Production from details entered or from a simple stock list Does the software start with a quotation or the sales order? 13.2 Are recurring or schedule orders handled? 13.3 At quotation or initial order stage state how does the software: Checks stock availability Highlight alternative stock How does the software check credit status of customer: On receipt of order? Prior to dispatch? 13.5 Can the software block: Customer orders? Deliveries? Invoice production? 13.6 Where stock is not available is a back order raised and a purchase order issued? 13.7 Does the software handle forward orders? If is this: Only when stock is now available? Allocated from future planned stock? 13.8 Can multiple addresses be held for each customer (invoice and delivery address). 56

57 13.9 Are the following documents produced: Quotations? Order confirmation? Picking lists? Labels? Dispatch/Delivery note? Invoices? Are the following reports available: Quotes for which orders not received? Orders received (analysis)? Items placed on backorder and/or purchase orders raised? Items dispatched not invoiced? Items ordered but not dispatched due to stock out? Gross margin (by invoice or item)? Are invoice details derived from order input? (e.g. prices, quantity) Can picking lists /dispatch notes be amended for non availability of stock? If : Is this reported? Are the items dispatched reflected in final invoice? Is there one dispatch note and invoice per order? 57

58 13.14 How does the software ensure all dispatches are invoiced? e.g. where multiple dispatches are raised per order, or several orders on a single dispatch note Can manual invoices be raised (i.e. without a sales order)? Does the software produce proforma invoices as required? Can returned goods be processed to produce credit notes? Are these referenced to the original order/invoice? Will the product accept orders from the Web? If : How are web orders integrated with the sales order processing ledgers? What control features are available for checking web orders before processing? 58

59 14 Purchase Order Processing 14.1 Does the software generate suggested orders? 14.2 Can orders be generated by the user? 14.3 Is the software easy and efficient to use, i.e. scroll backwards and forwards in the product file, tagging more than one item per order? 14.4 Can more than one supplier be allocated to each product? 14.5 Does the software hold details of substitute products if applicable? 14.6 Based on automatic and manual order generation (above) does the software produce a list of proposed purchase orders, if so, can these be easily amended? 14.7 Is stock availability updated for stock on order? 14.8 Can the software handle partially completed orders and returns? 14.9 Are receipts checked to orders and discrepancies reported? Are purchase invoices checked to purchase orders, confirmed receipts and discrepancies reported? Purchase Orders can be manually entered or via external web sites i.e. Procserve. Whilst creating Purchase Orders, a supplier catalogue can be used to build the Purchase Order. More than one item can be placed in an order. each product can only be associated with one supplier. substitute products are not available. Purchase Orders can be amended with the appropriate access right up to the point that the order is authorised. Financially but not stock quantities. The ability to record Deliveries is available whereby Deliveries are compared with items ordered but no discrepancy report. For Order Invoices, items are compared to Purchase Orders. The ability to record Deliveries is available that will ensure that sufficient deliveries have been recorded before an Invoice can 59

60 14.11 Are the following reports available: be authorised. But no discrepancy report. n-order Invoices such as utilities are not compared against a previous Purchase Order Purchase Orders raised (analysis)? Purchase Orders not received? Goods received discrepancies? Invoice to goods received discrepancies? Goods received not invoiced? Can the software handle back to back ordering?, by supplier, date range and cost centre. 60

61 15 Stock Control stock control but the user can set up a stock list for S/L and can import major supplier s catalogue lists for Purchase Orders 15.1 What information is held in respect of stock (and are there any limits): Item numbers/ description? Location(s)? Quantity, (available, allocated, on order)? Minimum and maximum stock levels? Reorder lead times? Supplier(s)? single supplier per catalogue Prices/cost/ discount - prices details? Batch/serial number? Weights etc? Other please specify? 15.2 How is stock updated? Dispatch of goods? Receipt of goods? Adjustments? Transfers between locations? 15.3 Is negative physical stock allowed? 15.4 Can the software handle sale or return stock? 15.5 Can the software handle variations to a standard pack of products? 61

62 15.6 What methods of stock valuations are allowed? Average FIFO LIFO Standard cost Other please specify 15.7 How can stock enquiries be made, i.e. by product code, short name/supplier etc Does the software track orders and enable enquiries by date, e.g. list of all stock due on a particular day; stock to be dispatched on a set date? 15.9 Does the software facilitate the regular counting/ inspection of physical stock (e.g. by producing random/defined stock check lists)? Can the software handle more complex situations such as: Bill of materials Links to CAD/CAM systems Job costings to collate and value WIP. 62

63 16 User Documentation This section applies to any of: online, hardcopy or other (e.g. WWW) documentation specify which are applicable. PDF files plus Word documents that the Local Authority can edit Is the manual clearly laid out and understandable? 16.2 Is the manual comprehensive and accurate? The functionality of FMS is broken down and documented in several user manuals. The manuals cover all functionality and are maintained with each release Is there an index to the manual? Each manual is indexed Is it easy to locate specific topics in the manual when required? 16.5 Is it easy to follow through all procedures in the manual? 16.6 Does the manual include: Specific topics can be located by use of the index. The handbooks are written so that hyper-links enable quick access to the appropriate topic. Each manual details the functionality of the software by following manual routes and the natural flow of the software A tutorial section? training can be provided by Capita Professional Services Department if required A guide to basic functions? Pictures of screens? Completed examples included in the manual? Specific error correction where appropriate e.g. procedures? Automatic Reconciliation VAT information? 63

64 16.7 Does the documentation clearly specify the actions to be taken by users at each important stage of processing? 16.8 Are help screens available relating to the task in hand? (context sensitive help) Do they provide on-line instructions on how to use particular features of the software? Can they be edited or prepared by the user? Will the Software House make the detailed program documentation (e.g. file definitions for third party links) available to the user, either directly or by deposit with a third party? the aim of the handbooks is to provide a guide to the manner in which the software should be used. Additionally, Local Authorities have provided their own guidance in terms of usage and financial regulations. the help file will open at the appropriate location dependent upon the underlying processing screens. They are screen sensitive. wherever possible examples of how to use the software have been included. the help files cannot be edited / prepared by the user. wherever possible the help file contains explanations for Third Party links or a separate manual has been provided. 64

65 17 Efficiency 17.1 Are the various functions of the software menu-driven, or otherwise easy to initiate? 17.2 Is there a good response time in the initiation of functions? 17.3 Is data entry easily repeated if similar to previous entry? 17.4 Does the software prevent access to a record while it is being updated? 17.5 Is there locking at file or record level? 17.6 Does the software allow for the running of reports whilst records are being updated? 17.7 Does the software retain a log of file updates until the next occasion on which the relevant information is reported or the relevant file used in a regular control procedure? 17.8 Can regular reports be easily duplicated if required? The functionality is driven by menu routes and icons. Additionally, each menu route has a hot key that can be used. Depends on the hardware platform and the size of data. In selected area, a previous entry can be copied/clone to improve efficiencies. These areas are primarily in journals where repetitive journals will be posted. but if two users are updating a record at the same time the first update is lost when the second is saved. locking of records. reports can be run whilst records are being updated. The Audit Trail maintains a record of all significant updates that have been processed. This has been agreed with the user base. Standard reports can be run periodically although there is no scheduling of reports. User Defined Reports can be specific period based and can be cloned so that another period can be selected and reported upon. 65

66 17.9 Does the software warn the user when space is becoming short? FMS does not warn the user that space is becoming short. However, the user will normally notice a degradation of performance beforehand. 66

67 18 Integration and www facilities 18.1 Are the different accounting modules integrated? 18.2 Are they integrated on real time basis or batch basis? 18.3 Can the integration of batches be by batch, weekly or monthly? 18.4 Is the ledger updating process satisfactorily controlled by the production of control reports? 18.5 What operating systems does the software run under? the different accounting modules are totally integrated. The different accounting modules are integrated on a real time basis. The import of external data can be undertaken by the user. This import is undertaken by the user on a time basis determined by them. rmally it relates to the timing of processes by the Local Authorities. The major updating is the importing of transactions from the Local Authority. At the end of the import, any failed transactions can be printed for further investigation / resolution. Server Microsoft SQL Server 2008/SQL Express (SP2) or Microsoft SQL Server 2008 R2. Workstation Windows XP Pro (SP3 & above) 32 bit, Windows Vista Business (SP2) and Windows 7 Professional (SP1) Which databases can be used? The only supported databases are Microsoft SQL Server 2008 and R Can more than one software function be performed concurrently? more than one software function can be performed concurrently. However, a small number of functions required exclusive use i.e. cheque printing and Year-End. 67

68 18.8 Can the software be linked to other packages e.g. word processing, graphics, financial modelling, to provide alternative display and reporting facilities? 18.9 Can definable links to spreadsheets be created? Does the software integrate with any web trading software? The data can be exported to.csv,.tsv allowing the data to be displayed in EXCEL. Capita have recognised Third Party Budgeting partners whereby the FMS Chart of Accounts can be used externally, allowing budgets to be determined and imported back into FMS. Within the Third Party Budgeting packages budgets can be displayed. The data can be exported into.csv but links to spreadsheets cannot be created. Capita have worked with DfE to use open standards UKGov3.09 for Requisitions and Purchase Orders and BASDA for Invoices and Credit tes External or Procserve/xchangewales Suppliers own? Kent County Council (webservices) and Yorkshire Purchasing Organisation for requisitions via te which other business application software that can be linked to the software: Payroll? files from Pegasus Opera and IRIS, Earnie plus Local Authority interface Time/fees? from Capita Children Services Fees module for independent schools MRP? Fixed assets? a Fixed Asset Register is - planned Document management software? planned for later in

69 Job costing? CIS? Other please Third Party Budgeting and specify? Capita Children Service Personnel module Is the software compatible with XML standards? If so in what respect? (input/ output/ other)? The following XML standards are used:- Inputs Gov3.09 Requisitions BASDA 3.09 Invoices/Credit tes Outputs Gov3.09 Purchase Orders DfE CFR Return 69

70 19 Support and maintenance 19.1 How is the software sold: Direct from Software House? Via Value Added Reseller (VAR)? 19.2 How is the product supported: Direct by Software House? By VAR? 19.3 Is the software sold based upon number of users or number of concurrent users? 19.4 Do VARs have to go through an accreditation process? If please note the process If please explain how organisations are chosen to be VAR? 19.5 In the event of a dispute between Supplier and VAR how can the situation be resolved? 19.6 Detail the types of cover available. FMS is sold direct from Capita Children Services to Local Authorities and schools. There are Local Authorities Support Units that promote the system to schools but sales are through Capita. FMS is supported directly by Capita Children Services. Local Authorities Support Units The software is sold based upon a site licence. A voluntary accreditation process exists enabling Local Authority Support Units to promote and demonstrate the system. Details of the scheme are available on request. Whilst schools can channel requests through Local Authorities, the software agreement is from Capita only. Standard from Capita, various levels from Local Authorities. 70

71 19.7 Please note all method of support available : Telephone Modem link Internet Other specify Please provide an indicative cost of cover Are bug fixes free of charge? For how long? 19.9 How often are general software enhancements provided? Will they be given free of charge? How are enhancements and bug fixes provided to customers? Is hot line support to assist with immediate problem solving available? Webinar, Site visit. Annual entitlement is based upon the number of pupils within the school based upon ages hence each school will have a unique charge. On going FMS is released 3 times a year and enhancements are included in each release. Some enhancements are more significant than others. Enhancements that enhance existing functionality are included under Annual Maintenance whilst new functionality is charged separately. Enhancements are provided via periodical internet updates. If the bug can be resolved by modifying the SQL code a patch will be provided via the internet. If the bug an application change it will be provided in the next software update. the Capita Service Desk is available for immediate problem solving. 71

72 19.13 If so, is there an additional cost involved? At what times will this support be available? Who provides training: Direct from Software House? From a VAR? Is hardware and maintenance provided by: Software House? VAR? Is a warranty offered in respect of specification of the software? Will the software supplier/dealer make the program source code available to the user, either directly or by deposit with a third party (Escrow)? Are there any unduly restrictive conditions in the license for the software? The Capita Service Desk support is included within the Annual Maintenance fee. The Capita Service Desk is available from Monday to Thursday and Friday. Training can be provided by Capita Children Services. Training can be provided by Local Authority Support Units Hardware and maintenance can be provided by Capita Children Services Hardware and maintenance can be provided by Local Authority Support Units Capita Children Service ensures that the software is statutory compliant as soon as possible. warranty is provided. The source code is deposited with ESCROW. the licence arrangements are annually reviewed by Local Authorities. 72

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