Flow of financial activity to nominal codes

You will need to consider how the Nominal Codes are to be set up. In addition to what may already exist in your accounting system or cash book, you will need further accounts to look after the various control accounts within the ClubMinder.net system. Generally accounts on the right hand side in the diagram are Balance Sheet accounts as they deal with the money or funds in the system, whereas the account on the left are typically Profit and Loss accounts as they deal mainly with your revenue.

Dealing with a Franchise (not VAT registered)

An exception to this rule is if you are dealing with a non-VAT registered Franchise (e.g. Catering). In this case you may wish to set any Catering Departments to point to Balance Sheet items so that they are not included in the Club's revenue lines. The Caterer would then be paid out of this account. In this case the Club is acting as the Franchise's Agent and is not required to declare the income on its VAT return.

Setting up the Control Accounts

You will need to set up some additional control accounts in your accounting system for the different types of money being stored in the system. These are typically Balance Sheet accounts (as they deal with funds operating in a similar manner to your bank and deposit accounts). You will need them for:

Subscription Control Account.

This is where the value of subscriptions is placed until such time as a subscription is paid. This is a liability to the Club until such time as the subscription has been paid. When the money is received, the liability is reduced by the value of the payment, and the money is creditted to your bank account.

Members Control Account for Subscriptions

This is the other side of the Subscription Control Account and is an asset to the club until such time as the subscription is paid by the member. When money is received, the value of the asset is reduced, and sales are made to the individual products according to the allocation process.

ClubHouse Control Account

The ClubHouse control account is required to look after money and funds that members use to buy products through the till system. If you have a ClubHouse Subscription in place, then any value from this is transferred to the ClubHouse Control Account when payment has been received.

Setting Additional Special Nominal Accounts

Discount Nominal Codes

Because ClubMinder.net is capable of presenting a 'transparent' view of charges to members, it is possible to set up all sort of different discounts based on Age, Length of Service, Loans, or anthing of an ad hoc nature. Hence, the Club can say that the full male subscription is £500, but because the member is 65 and has 10 years service, that member gets a £200 discount. The members subscription letter shows both these values. This then allows the club to understand and analyse exactly how much money is being given back to members through discounts. Hence, the Club needs to add one or more Nomianl Codes to track the different discounts. These should be PNL items as they reflect a reduction in revenue to the Club.

Surcharge Nominal Codes

ClubMinder.net can be set up with a variety of payment methods. The Club may elect to charge for the different payment services it offers to members. Hence there may be an additional charge of 5% for payment by Credit Card, or £60 for payment by standing order over 10 months. The Club will need to set up additional PNL Nominl Codes to reflect this additional revenue.