Q & A: Non-profitable organizations’ accounting

Non-profitable organizations’ payment operations

Does a non-profitable organization have to work by transfer account? What are the application forms of the payment operations, what do the payment order and the collection order contain, are a part of the questions answered in this issue of The Civic World, as an attempt to facilitate the accounting process of the non-profitable organizations. The answers have been prepared by Milka Bozinovska – Miova and Emina Nuredinoska, using the materials of “Moram, mogu i hocu (racunovodstvo malih udruga)”ICNL, Ri-Centar. 

1. Non-profitable organizations as a part of the non-cash payment operations
Does a non-profitable organization have to work by transfer account?
Yes. According to the Law for payment operations, all legal entities are obliged to realize their work through a transfer account. The payment operations realization accounts are opened and run by the banks. Each legal entity chooses a bank to open a transfer account. A legal entity can open an account for regular operating, an account for organizational operating and an account for special purposes. A legal entity can have accounts in several banks, but in one bank it can open only one account for regular operating and one account for each organizational part.

Business entities can also open a foreign currency account and it does not have to be opened in the bank where the business entity has opened a denar account for regular operating.

 

1. Payment operations application forms
1.1.  What are payment operations application forms?
Payment operations application forms, that is payment orders, are the orders that the applicant uses to imply payment from the bank account.

According to the form of payment, there are the following payment orders are:
1. a payment order - order
2. a collection order in cash
3. a non-cash order – an assets transfer order
4. a public incomes order
 

1.2.  What does the payment order contain and how is it filled in?
The payment order or PP 10 form is filled out in case of cash payment on the own account or the account of another business entity. It is filled out on an order and it contains the following elements: title (name) of the person who pays - the name of the organization; name of the recipient – the name, that is the name or the shortened name of the legal entity (recipient) on whose account the cash is paid; the number of the recipient’s account – the number of the recipient’s transfer account; amount – the amount that is paid and a star or equals mark should be put before it, the amount is written in denars and deni, so that denars are separated from the deni with a decimal comma with two decimal places, and the amount of the thousands is divided with a point; remittance purpose - the purpose of payment is briefly described; a code of the description of payment – the code is written of the description of payment determined by the bank; approval; date of payment - the date when the cash is paid.

Payment order is submitted in two copies, and the first copy is held in the bank as an order on the basis of which payment has been done on the recipient’s account. The bank confirms the copy of payment on another copy or in some other way.
 

2.3. What does the collection order contain and how is it filled in?
Collection order or PP 40 form is filled out in case of collecting cash from the account. It is filled out on an order and it contains the following elements: title (name) of the person who is paid - the name of the organization from whose account the cash is paid; the number of the client's account – the number of the client’s transfer account; title (name) of the recipient – name and surname and unique personal citizen’s number; amount – the amount that is paid and a star or equals mark should be put before it, the amount is written in denars and deni, so that denars are separated from the deni with a decimal comma with two decimal places, and the amount of the thousands is divided with a point; remittance purpose - the purpose of payment is briefly described; a code of the description of payment – the code is written of the description of payment determined by the bank; approval; date of payment - the date when the cash is paid;  attestation of the client – signature of the authorized person; recipient’s signature – the person to which the cash is paid signs it – the recipient must be identified by his/her ID..

Payment order is submitted in two copies, and the first copy is held in the bank as an order on the basis of which payment has been done on the recipient’s account. The bank confirms the copy of payment on another copy or in some other way;

------ is submitted in two copies, and the first copy is held in the bank as an order on the basis of which ---- has been done from the recipient’s account. The bank --- ---- or in some other way.

(To be continued in the next issue)