Financial reporting for Sundry Tax Invoice/Recipient Created Tax Invoice (STI/RCTI) transactions

Department of Education

01 August 2019

Schools Direct Debit Clearing Account GL 500030

Financial reporting for Sundry Tax Invoice/Recipient Created Tax Invoice (STI/RCTI) transactions - Schools Direct Debit Clearing Account GL 500030.

Schools receive a sundry tax invoice around the 21st of each month showing transactions for the recovery of:

  • expenses incurred by Corporate on behalf of schools (money owed by your school to the department) and
  • receipts received by Corporate on behalf of schools (money owed by the department to your school).

Each month these transactions are posted into the school's GL Account 500030.

Each month schools are required to prepare a journal to re-allocate the amounts in GL 500030 to the appropriate GL accounts, in effect clearing GL 500030 account to NIL. This reallocation journal must be completed prior to the end of each month.

This reallocation will facilitate schools' financial information being more accurate as expenses and receipts will show in the correct GL accounts.

Corporate financial year end is 30 June whereas school's financial year end is 31 December. Reporting issues occur for both schools and corporate when reallocation journals are posted for transactions relating to a previous year end in the current reporting period. Posting reallocation journals by the end of each month and ensuring there is a NIL balance in GL 500030 will eliminate financial reporting issues.

Process for clearing GL 500030 transactions going forward:

  • From July to December each year, schools must not clear transactions in GL 500030 that relate to STI/RCTI from January to June (6 months previous).
  • From January to June each year, schools must not clear transactions in GL 500030 that relate to STI/RCTI from July to December (6 months previous).

For instructions on how to generate the Banking and Cash Report please refer to the Banking and cash report - QRG.

It is important that the journal to clear the account is not processed until you have verified the amount credited or debited on the Banking and Cash Report as it may differ from the STI/RCTI Statement. Correct use of tax codes is essential when processing the journal.

PLEASE NOTE: It is recognised that schools may have processed a Sundry Tax Invoice, issued in a previous financial and/or school calendar year. In this case, the clearing account will not report a zero balance at the end of a financial year and/or school calendar year. Do not make any adjustments in this instance.

  • 2019
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