Due to the nature of the driving instructing industry where payments can be taken by both instructors
and driving schools (or a mixture of both),
Holding Amounts have been reserved for driving schools only.
Similarly, instructors use Cash, Prepaid and Top-up invoices.
This draws a definite distinction between invoices which makes Cash Flow easily understandable.
For the reasons described above the Cash Flow can be generated from both the driving school and instructor points of view.
Instructor's Invoices
Cash, Prepaid and Top-up
Should be set
As Income by instructors only.
All Cash, Prepaid and Top-up invoices are included and considered as income.
Do not include both Holding and Prepaid invoices.
Driving Schools' Invoices
Holding Invoices
Should be set
As Income by driving schools only.
Holding invoices are considered as income for driving schools even if the money is released to an instructor later.
When a driving school releases the fee to an instructor, the fee is considered as an expense and inserted into Expenses column.
When all fees have been released, the balance of the Holding invoice become zero.
Do not include both Holding and Prepaid invoices.
Refund Invoices
Applies to both instructors and driving schools.
Before including a refund into the Cash Flow, the system looksat the original invoice.
Refund invoice is included in Cash Flow if
- Driving Schools' Invoices are set as Income and the original invoice is a Holding invoice
- Instructor's Invoices are set as Income and the original invoice is a Cash, Prepaid or Top-up invoice
Include Unpaid Invoices
Every invoice can be marked as Paid, Unpaid and Void.
Void invoicesare never included.
If Include unpaid invoices is not selected then only paid invoices are included
Released Fee
For driving schools the Released Fee should be set as expense
For Instructors the Released Fee should be set as income
Lesson Charge and Lesson Paid
Only one of these fields should be selected.
The system will prevent selecting both fields.
If you select
Lesson Paid then
Lesson Charge is set to 'No'.
There is a possibility that a pupil can ask to pay later and the instructor agrees to that.
Paid field is included only for the purpose of indicating that the instructor did actually receive the fee.
These fields are included only if the lesson is paid by cash i.e. no invoice attached.
Instead of including these fields the system will insert the total amount of the corresponding invoice which will cover this lesson.
Expenses
Always included as expense.
The system stores expenses on the local computer and therefore will not be displayed in any other diary.
Therefore, a driving school is not aware of instructors' expenses.
Franchise
For driving schools the Franchise should be set as income
For Instructors the Franchise should be set as an expense
See also
