Click to download Journal Form with Analysis Fields to be used in posting Vacancy Savings. Account coding and use of analysis fields set out below:

Central Charge

Dr 4321-81507 (Central vacancy savings)

where 4321 represents the cost centre in the College Allocation Unit.

The charge is applied each month.

Re-allocation to units

Dr 1234-81508 (Local vacancy savings)

Cr 4321-81509 (Local vacancy savings recharge)

where 4321 represents the cost centre in the College Allocation Unit & 1234 represents the local cost centre.

This journal must balance - it is to re-allocate charges to units and by definition must total to 0. Depending on the local circumstances, FMs may be re-allocating more (ie over-recovering) or less (under-recovering) than the Allocation Unit has been charged, which will leave a net positive or negative amount in the Allocation Unit, but either way the re-allocation journal itself must be balanced.

For the credit side of the journal, the re-classification from the college/central unit to the local area, the text ‘Vacancycge’ should be input in the analysis 4 field, this will then label these as ‘Vacancycge’ when the SALWAG actuals are loaded to PBCS, on the Actual V Plan reports.

EF Cost Centre

Where an EF cost centre is used, it is to be entered as the Job Code in the journal, in addition to the regular code being entered as the cost centre. E.g. 4321 as the cost centre plus EF4321 as the job code.

Person Identifier

Where an employee number is known this should be populated in the analysis 3 field for the local vacancy savings charge (debit). Where the employee number is not yet know, analysis field 3 should be populated with the ‘person’ code dropping the ’18.’, for example person code ’18.S086.001’ will become ‘S086.001’

Some elements of the Vacancy Savings position are known when forecasting, some can be predicted with a reasonable level of accuracy, and some may be unknown.

• The Central Charge to the college is known, and will be charged each period to account 81507.
• Actual Savings, as identified by the FM, are known and charged monthly or quarterly to account 81509.
• Predicted Savings. While there is always uncertainy about future events, generally there is some level of certainty about some future vacancy savings. For example, where a decision has been made not to proceed with replacement of a post in Unit 1 until the start of next year, the amount and location of savings until then can be predicted.
• Anticipated Further Savings. The forecasted pay costs of the various units implicitly include costs that will turn into vacancies as the year unfolds, but the amounts by unit cannot be forecasted with reasonable accuracy. Taking into consderation factors such as the size of units, the historical level of savings etc., the FM can form a view of the likely level of further savings across the college.

Together, these items represent a forecasted over-or under-recovery of vacancy savings as defined below:

(Over) or Under-recovery = Full Year Central Charge for college - Actual Savings to date for every unit - Predicted Future Savings for every unit - Anticipated Further Savings for the college.

Forecasting Accounts

The FM will enter forecasts for each unit that reflect the Actual Savings plus the Predicted Savings to the Vacancy Savings Local Charge Forecast account.

The FM will enter the forecasted over or under recovery for the college to the Vacancy Savings Under or (Over) Recovery Forecast account of the Allocation Unit.

The Anticipated Savings are not entered as a vacancy savings forecast. These savings are by definition not possible to quantify against a particular unit and are implicitly within the forecasted pay costs of units. In an ideal world we would be able to forecast with great accuracy, all savings would be predicted against particular units and therefore no savings would be classified as 'anticipated'. 

Where an allocation unit is not used (e.g. the College of Business has a single school), the 2 different accounts should still be used so that the level of actual savings is forecasted, and the level of over- or under-recovery is forecasted. Where an allocation unit is used, no local charge should be forecasted against the allocation unit, just an over-or under-recovery.

Vacancy Savings Forecasting Accounts

The 2 forecasting accounts to be used in PBCS are shown below, and are part of the overall Salaries and Wages Forecast.

Example - prepared at Q2

The net amount over- or under-recovered at year end should be calculated in the Allocation Unit by viewing the VACSAV account. This should equal the central charge received (account 81507) less the amount recharged out locally (81509). This balance should be transferred to the balance sheet.

If the charge has been over-recovered (i.e. a net negative amount), the double entry is:

Dr Y234-89999 Reserve Drawdown

Cr Y234-99996 Vacancy Savings Reserve.

If the charge has been under-recovered (i.e. a net positive amount), the double entry is:

Dr Y234-99996 Vacancy Savings Reserve.

Cr Y234-89999 Reserve Drawdown.

The calculation of the general NDE Variance versus Target for transferring to account 99999 should be performed after the transfer to the Vacancy Savings Reserve has been made.