Munsoft Matters: MSCOA Chart 6.5 Changes And Other Important Matters

Dear Munsoft Client,

Kindly take note below of a few very important items:

Please be informed that a patch of chart 6.5 was released last week, which required a special budget release patch. The Chart patch introduces the following:

Added:                 Fund, Item Revenue, and Item Liabilities relating to the new operational grant – Program and Project Preparation Support Grant has been added.

Corrections:          The levels of the listed accounts indicated below were corrected:

IA002011001005002
IA002011006005002
IA002011007005002
IA002011008005002
IA002011012005002
IA002011013005002
IA002011014005002
IA002011015005002
IA002011016005002

This patch has been rolled out since Tuesday, 30 March 2021 and will be finalised on 31 March 2021, connectivity dependent.
 

We would like to highlight the following matter again as we have received a high volume of queries concerning Inventory and the budget thereof.

Take note that Chart 6.5 introduced the following line items for more defined alignment on the Cash Flow:

·         Liabilities: Current Liabilities: Trade and Other Payable Exchange Transactions: Payables and Accruals: Contractors

·         Liabilities: Current Liabilities: Trade and Other Payable Exchange Transactions: Payables and Accruals: General

·         Liabilities: Current Liabilities: Trade and Other Payable Exchange Transactions: Payables and Accruals: Inventory

Munsoft will automatically select the newly added line item (Contractors and Inventory) to ease the process.

 Please take care when budgeting on Inventory Expense, note the following example:

The Municipal Finance Management Act, 2003 (Act No. 56 of 2003) (MFMA) and MBRR require that municipalities perform their month-end reconciliations at the end of every month before they submit their financial performance information to the National Treasury.

Surplus or deficit journals must be passed monthly before a data string is generated to ensure that the financial system remains in balance. The monthly data strings reflected in the Statement of Financial position (table C6 of the regulated C Schedules) will not be in balance for those municipalities that are not doing this, and their mSCOA data strings will therefore not be accurate.

As part of the next release, Munsoft will introduce an automated journal transferring the Net Surplus to the Accumulated Surplus on a monthly basis.
 

More details will follow closer to the release.

If you have any inquiries relating to matters listed above, please get in contact with your respective Service Delivery Manager and we will gladly assist.

Kind Regards,

Munsoft