Van Finance

Sourcing

We purchase the base vehicle from Renault via dealership Lookers Motors

We purchase H2FC conversion kit (and conversion) from Symbio FCell

Shipping to customer (or dealership near them) seems to be covered by Renault

Customers

We have sold vehicles to:

 - Amey, via their fleet company Hitachi

 - BAM Construction

 - Emwood Vehicle Services, who supplied to a London Courier firm, possibly City Sprint

 - Orkney Council (x4), but only the base vehicle went through us, they had already paid for the fuel cell

 - Revolve Technologies, who paid part of it via Investec finance

 - Sheffield City Council (x5)

 - Skanska, via their fleet company Leasplan

We have leased vehicles to:

 - TfL Tubelines (x6)

Others:

We have 2 vehicles which we are keeping and renting to customers. Initially they were sold to Ecubes Arcola, then bought back (negative income in 2017-18)

There are 4 vehicles which were sold to TfL Tubelines, but they cancelled (negative income in 2018-19, then sold to Aberdeen in Oct 2018)

There is 1 vehicle which were sold to Cenin, but they cancelled (negative income in 2017-18, then sold to Aberdeen in March 2018)

Accounting Treatment

We have agreed with our accountants that the purchase cost and sales revenues on most of the vehicles will be recognised 75% in 2016-17 and 25% in 2017-18. This is regardless of when invoices are actually raised and regardless of the Leasing arrangements with TfL Tubelines.

The cost of the Symbio conversion recognised in the 2016-17 accounts is based on the EUR24k equating to £21,600. Thus any exchange rate variation must be treated as a separate cost (COM OVR) not as part of the vehicle cost in order to avoid needing to make complex adjustments to our now posted Statutory Accounts.

The cost of the Renault Base vehicles recognised in the 2016-17 accounts is based on the expected cost at the time of submission. Any subsequent changes e.g. due to after-market upgrades needs to be treated as a separate cost or discount (COM OVR) not as part of the vehicle cost in order to avoid needing to make complex adjustments to our now posted Statutory Accounts.

Payments to Suppliers

We have been very late making most payments to suppliers

We have arranged finance for the 6 vehicles supplied to TfL Tubelines (2xLDF, 2xArkle, 1xBradgate, 1xFirstBusiness) and for our own 2 vehicles (Amicus)

Due to complications with late arrangement of financing, we have moved payments between vehicles and made partial payments (plus the need to split invoices by financial year), thus reconciliation between Suppliers, Steve (managing them) and our accounts is painful.

Symbio charge the same EUR24k for all vehicles apart from Revolve (350bar). Thus payments can be moved, provided the COM OV adjustments to match financial year splits are moved with them.

Lookers prices vary between customer vehicles, so moving payments results in partial payment. Several customers also changed spec / delivery terms so prices have varies significantly.

Payments from Customers

Simple Sale

Most customers purchase vehicles outright. Thus they have mostly paid us (some of them via a Fleet Management company eg Skanska > Leasplan, Amey > Hitachi). Any outstanding invoices are probably pending some final delivery / issue being resolved - Steve T to advise.

Lease

Transport for London (Tubelines) are paying for 6 of their their vehicles over 3 years. This has some complications:

 - We recognised 75% of the income for the 3 years in 2016-17, with remaining 25% in 2017-18, as lump-sum invoices on 31st March of each year. The monthly payments need to be dated to preserve the total in these years.

 - Thus the Accounting Date on all monthly rental income invoices must thus be in 2016-17 up to 75% of the agreed provisional total (£33,715.98) and then subsequent invoices in 2017-18 up to (£11,238.66). Any additional income (or if there is a shortfall) must be treated as COM OVR so as not to disturb the accounting treatment. The Invoice date should be the actual monthly invoice date. VAT date needs match the end of the Accounting Year as it has already been accounted for in March 2016-17 and March 2017-18 VAT returns???

 - Steve T generates invoices monthly, from the Fleet Database. They should be emailed directly to arcolaenergy-bank@receiptbank.me where they can be added to accounts as web-links.

 - When entering Monthly rentals, the invoice total needs to be distributed across vehicles as per the breakdown in the Invoice.

Entries already added to the Accounts book

First Invoice - start service date in Oct 2017 to end of Nov 2017.

Thereafter monthly @ £1,248.74 +VAT per vehicle until full contract value billed. Split 75%-25% in correct FYs

Thus adding Monthly Invoice is a matter of checking all 6 vehicles are charged full monthly amount and then adding the Receipt Bank ref and Invoice Number to the existing entries.

Cancelled Orders

Treated as sales in 216-17 and 2017-18 as planned.

1 x Cenin - Reversed end of 2017-18 (negative income), then resold to Aberdeen City end of 2017-18

4 x TfL Tubelines - Reversed end of during 2018-19 (negative income), then resold to Aberdeen City October 2018

Our vehicles

Nominally sold to Ecubes Arcola (so that accounting treatment is same as other vehicles) then reversed in 2017-18.

OPEX Charges

Sheffield CC are paying us to manage Grant Claims and training. Steve is managing this, recognise it as it is invoiced. 3yrs of OPEX charges were included in the upfront purchase.

Amey should be paying us for OPEX, £3,700+VAT invoice raised in May 2017. Probably to be spread - as of 11th September 2018 Steve to chase through different Department.

Stock Control

No stock considerations, though possible we will need to move the TfL cancelled vehicles in to stock for 2017-18 if accountants prefer this treatment.