FNSACC312 Administer Subsidiary Accounts and Ledgers MYOB 2017 ISBN Number: 978-1-925782-96-7 Part Number: 412 Version: 18.4 ARL 2017 AUTHOR – Kerryn Maguire Kerryn has been working with accounting software products for over twenty years. Originally working from 1994 as an accountant with small business when accounting software became mainstream. Kerryn then focused on providing consulting and training services to small business in particular. Expanding from this into to providing curriculum based resources to TAFE and private RTOs. From this she established Microstar Publishing and more recently incorporated OfficeLink Learning to provide a wide range of resources for the Accounting and Business Services Certificate courses. Kerryn has a long association with many TAFEs and RTOs across Australia. Kerryn’s fundamental aim is to provide resources that are easy to understand while providing a practical application of skills acquired. Kerryn also co-authors two titles for Cambridge University Press which are in their 4 th Edition – first published in 2000. Kerryn has considerable experience and knowledge: Bachelor of Applied Science Mathematics Diploma of Education Graduate Diploma of Accounting CRI: Criterion Referenced Instruction Member of Institute of Certified Bookkeepers Member of VELG Reproduction and Communication for educational purposes The Australian Copyright Act 1968 (the Act) allows a maximum of one chapter or 10% of the pages of this publication, whichever is greater, to be reproduced and/or communicated by any educational institution for its educational purposes provided that the educational institution (or the body that administers it) has given remuneration notice to the Copyright Agency Limited (CAL) under the Act. For details of the CAL license for educational institutions contact: Copyright Agency Limited Level 15 233 Castlereagh Street Sydney NSW 2000 Telephone: (02) 9394 7600 Facsimile: (02) 9394 7601 Email: [email protected]Sample for Review
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FNSACC312 Administer Subsidiary Accounts
and Ledgers MYOB 2017 ISBN Number: 978-1-925782-96-7
Part Number: 412
Version: 18.4 ARL 2017
AUTHOR – Kerryn Maguire
Kerryn has been working with accounting software products for over twenty years. Originally working from 1994 as an accountant with small business when accounting software became mainstream. Kerryn then focused on providing consulting and training services to small business in particular. Expanding from this into to providing curriculum based resources to TAFE and private RTOs. From this she established Microstar Publishing and more recently incorporated OfficeLink Learning to provide a wide range of resources for the Accounting and Business Services Certificate courses. Kerryn has a long association with many TAFEs and RTOs across Australia. Kerryn’s fundamental aim is to provide resources that are easy to understand while providing a practical application of skills acquired. Kerryn also co-authors two titles for Cambridge University Press which are in their 4th Edition – first published in 2000. Kerryn has considerable experience and knowledge:
Bachelor of Applied Science Mathematics Diploma of Education Graduate Diploma of Accounting CRI: Criterion Referenced Instruction Member of Institute of Certified Bookkeepers Member of VELG
Reproduction and Communication for educational purposes
The Australian Copyright Act 1968 (the Act) allows a maximum of one chapter or 10% of the pages of this publication, whichever is greater, to be reproduced and/or communicated by any educational institution for its educational purposes provided that the educational institution (or the body that administers it) has given remuneration notice to the Copyright Agency Limited (CAL) under the Act. For details of the CAL license for educational institutions contact:
UNIT 1 INTRODUCTION ...................................................... 1 Organisation of this user guide ....................................... 2 What You Will Need .................................................... 4 Conventions Used in This User Guide ............................... 4 Symbols Used in This User Guide .................................... 5 Installing AccountRight Plus 2017.1 On A Windows Pc ............ 6 Case Study Introduction .............................................. 12 Introducing AccountRight Plus ...................................... 14 Viewing the Accounts List ............................................ 17 Help ..................................................................... 18 Spell Check Preferences ............................................. 20 Security Preferences .................................................. 21 Setting Up Linked Accounts .......................................... 22 Tax Codes You May Need for Your Business ....................... 24
UNIT 2 PURCHASING FROM SUPPLIERS ................................. 27
Makka’s Plumbing – Purchasing Procedures ....................... 28 Ryce Plumbing – Account Application .............................. 29 Overview of Purchase Transactions ................................ 30 Valid Tax Invoices ..................................................... 31 Research Legislative, Statutory and Regulatory Requirements 33 Overview of Legislation, Regulations and Codes of Practice ... 34 Tax Agent Services Legislation ...................................... 35 Professional Associations ............................................. 40 Privacy Act 1988 ....................................................... 41 Setting Up a Company File Password ............................... 42 Viewing Purchase Preferences ...................................... 43 Adding Supplier Cards ................................................ 44 Search and Find ....................................................... 47 Deleting a Card ........................................................ 48 Account Opening Balances ........................................... 50 Entering Historical Supplier Balances for Purchases ............. 51 View Supplier Cards ................................................... 54 Using Purchase Layouts .............................................. 55 Creating an Item Purchase Order ................................... 56 Changing the Status of Purchase Orders ........................... 59 Create A Service Bill .................................................. 62 Create Service Bill and Add a New Supplier Card ................ 64 Receiving Bills from Suppliers ....................................... 67
Bill Received from Ryce Plumbing ................................. 68 Entering an Invoice – Purchase of an Asset ....................... 70 Viewing Your Purchases ............................................. 72
UNIT 3 SUPPLIER PAYMENTS AND REPORTS ........................... 75
Learning Outcomes ................................................... 75 Payables Procedures ................................................. 76 Working Out What Is Owed .......................................... 77 Finding Information in Your File .................................... 81 Cheque Requisition Forms ........................................... 82 Recording Supplier Payments ....................................... 83 Send Remittance Advices ............................................ 85 Checking the Accuracy of Statements Received ................. 86 Simple Explanation of Debit and Credit ........................... 88 Display Payables Reconciliation [Detail] Report ................. 91 Exporting Reports to Microsoft Excel .............................. 93 Reconciling Accounts Payable to General Ledger................ 94 Preparing Report for Owner – Unpaid Bills ........................ 95 Set Up Linked Banking Accounts ................................... 96 Entering Payments Using Electronic Payments ................... 98 Authorisation of Electronic Payments ............................ 100 Checking Bank Register Details .................................... 101 Displaying Supplier Payment History Report .................... 102 Displaying GST Claimable for The Month ......................... 103 Entering a Supplier Adjustment ................................... 104 Settling an Adjustment Against the Original Invoice ........... 105 Balance Sheet at The End of the Month .......................... 106 Reconciling Trade Creditors and GST Paid ....................... 106
UNIT 4 BACKING UP AND RESTORING ..................................109
Backing Up a Company File ........................................ 110 Restoring A Backed Up Company File ............................. 113 Closing AccountRight ................................................ 115
UNIT 5 CONSOLIDATION EXERCISE ACCOUNTS PAYABLE ...........117 UNIT 6 PROCESSING SALES ..............................................131
Calculating Cost of Materials and Labour ........................ 144 Creating A Service Invoice for Real Estate Maintenance ...... 145 Correcting Errors .................................................... 150 Billing Procedures – Contract Plumbing .......................... 151 Creating an Invoice for Contract Plumbing ...................... 151 Viewing the Customer Ledger ..................................... 152 Billing Procedures – Domestic Plumbing ......................... 153 Creating an Invoice for Domestic Plumbing ..................... 154 Sales Reports ........................................................ 159 Entering an Adjustment to an Invoice............................ 162 Settling an Adjustment Against the Original Invoice ........... 163 Questions to Answer ................................................ 163 Finding Information ................................................. 165
UNIT 7 RECORDING CUSTOMER PAYMENTS ........................... 167
Find Out How Much Your Customers Owe You .................. 169 Business Insights ..................................................... 169 Aged Receivables Reports .......................................... 172 Recording Full Customer Payments ............................... 173 Recording Partial Customer Payments ........................... 175 Reviewing Customer Payments .................................... 176 Sales Register ........................................................ 178 Print and Email Statements........................................ 181
UNIT 8 BANK RECONCILIATION ......................................... 185
Preparing A Bank Deposit .......................................... 186 Viewing the Bank Deposit Report ................................. 187 Viewing Transactions in The Bank Register ..................... 189 View Transactions in The Receipts Transaction Journal ...... 190 Bank Account Reconciliation ...................................... 191 Reconciling Your Cheque Account with Your Bank Statement 191 Printing A Reconciliation Report .................................. 195 Undo Bank Account Reconciliation ............................... 196
UNIT 9 MORE REPORTS AND DEBT RECOVERY ....................... 199
Learning Outcomes ................................................. 199 Collecting Debts and Disputes ..................................... 200 Makka’s Plumbing – Account Application ........................ 205 Research – Appropriate Conduct Involved in Debt Collection 206 Debt Collection Recovery Steps ................................... 207 Reconciling Accounts Payable to General Ledger .............. 209 Question to Answer ................................................. 213 Placing A Customer on Hold ....................................... 214 Writing off A Bad Debt ............................................. 217
Print Profit and Loss Report ....................................... 219 UNIT 10 GENERAL JOURNAL ENTRIES .................................221
Learning Outcomes .................................................. 221 The Accounting Cycle ............................................... 223 Creating Manual Journals to Correct Errors ..................... 224 Add a New Account to The Accounts List ........................ 225 Entering a General Journal Entry ................................. 225 View the Accounts for The Reallocation of Funds .............. 226 Printing a General Journal Entry .................................. 227 Trial Balance Report ................................................ 228
UNIT 11 Consolidation Exercise Accounts Receivable .............233 Appendix A Elements of Competency and
Performance Criteria ...................................247 Appendix B Solutions to User Guide ...................................253 Appendix C Solutions to Accounts Payable
Consolidation Exercise .................................275 Appendix D Solutions to Accounts Receivable
To protect data, the AccountRight company file should have a password to open the file.
1. Click on File Open in the menu bar.
2. Now open Makkas Plumbing v2017 2018.myox, the file you have been using in this workbook.
3. In the Sign on window, select Change Password.
4. In this workbook leave existing password blank as there is not one
5. In New Password, type in myob.
6. In Confirm Password, type in myob.
7. Click on Record and OK to save the password.
You will now have to enter this password to open your company file. In your business, you would select a password that other people cannot guess. Do not select the names of your children, partner, pets, etc. Choose some other password. Make sure you record it somewhere safe in case you forget it.
Note: A Supplier must inform the buyer of their ABN (Australian Business Number) and their invoice must indicate if they are registered for GST by supplying a Tax Invoice. It is not law that the ABN be recorded in your accounting software but the ABN must be on file.
If an ABN is not quoted, the buyer must deduct 47% Withholding Tax from the payment of an invoice over $75 ex GST.
@ To check the validity of an ABN and if this ABN is registered for
GST go to www.abr.business.gov.au and use the ‘ABN Lookup’.
Please note that the ABN used in this workbook does not belong to any business.
1. Enter the following New Supplier cards to the company file. You will be required to make up the contact details for each.
Supplier Name Scott Hardware TradeLink Supplies
GST Reporting Reports GST Reports GST
Purchase layout Item Item
Linked Account 5-1000 Materials at Cost 5-1000 Materials at Cost
Terms 30 days 30 days
Credit Limit $5000 $5000
Supplier Name Wayne Judge Mark Smith
GST Reporting Reports GST Reports GST
Purchase layout Service Service
Linked Account 5-2000 Contractors at Cost
5-2000 Contractors at Cost
Terms 7 days 7 days
Supplier Name Chris Hagen
GST Reporting Does not report GST and does not have an ABN. Set his tax code to be ABN and ensure you tick Use Suppliers Tax Code on the buying details tab.
Purchase layout Service
Linked Account 5-2000 Contractors at Cost
Terms 7 Days
2. Once the cards have been created, click Close to return to the Command Centre.
When the company file was created the Account Opening Balances for Makka’s Plumbing were zero, as they had been working on a manual bookkeeping system prior to commencement of the AccountRight software.
Makka wants to be able to use accounting software to process all the customer and supplier transactions along with reconciling the bank account to produce financial reports.
1. Click on Setup in the Menu bar.
2. Click on Balances Account Opening Balances.
3. Click into NAB Cheque Account and type 20000.
4. Click into Trade Debtors and type 19400.
5. Scroll down to Trade Creditors – type in 7500.
6. Scroll down to Capital and type in 31900.
7. Check that Amount left to be allocated is 0.00
This is a very simple start to Opening balances. Ordinarily in a month not at the start of financial year there would be many more account balances to enter if you were creating a new company file – however we are focusing just on accounts payable and receivable in this guide.
Entering Historical Supplier balances for Purchases
To set up the Supplier opening balances, we need to enter the historical bills still unpaid for each supplier. Therefore, purchases that were made before the conversion month of October that are still outstanding are entered into the system waiting for payment.
The total of all your historical purchases should be the same as the amount that is entered as the Opening balance of the Trade Creditors account, $7,500.
Supplier Date Historical Balance
Supplier Inv No.
P/O No.
Ryce Plumbing 1/9/2018 $3750 456 1
TradeLink Supplies 1/9/2018 $1293 235 2
Wayne Judge 17/9/2018 $880 67 3
Scott Hardware 21/9/2018 $1142 2365 4
Mark Smith 17/9/2018 $435 78 5
1. Click on Setup menu and choose Balances, then Supplier Balances.
1 Upon receipt of an invoice, the validity and accuracy of the invoice must be checked before entering into the AccountRight company file.
2 Statements received are reconciled with invoices received.
3 Due Dates of supplier invoices are monitored, using the To Do List.
4 Accounts due during the month are usually paid by direct deposit or cheque. All cheques are accompanied by a Remittance Slip.
5 Before payment is made by the bookkeeper any invoices for expenses incurred e.g. office supplies must be authorised by Makka. He must sign the original bill and stamp approved.
6 The bookkeeper is authorised to pay accounts by direct deposit or electronic transfer and sign cheques.
7 At the end of the month, a Payables Reconciliation report is printed to make sure the Payables Ledger and General Ledger reconcile. This report is exported to Excel and reviewed by Makka who authorises on the Excel printout the accounts to be paid by the bookkeeper.
8 Monthly accounts are usually paid by electronic transfer and authorised by Makka before the bookkeeper transfers the file to the bank.
Working out what is owed The Accounts Payable (A/P) can be viewed from the To Do List or via the Business Insights tool.
Both tools will display your creditors aged over 30, 60, 90 and 90+ days.
When purchase transactions have been entered into AccountRight or any payments have been made, it is necessary that the original documents are batched together and filed for possible future reference. This could include remittance advices or reports from electronic Bank transfers.
Method (a) Business Insights
The Business Insights tool provides detailed information about how much you owe suppliers, with data aged over 30, 60, 90 and 90+ days and provides a supplier purchase history.
1. Click on Setup Preferences then the Reports & forms tab
You can nominate to analyse your payable via months or number of days.
2. Click on OK
1. From the Purchases Command Centre, click on Business Insights
and select the Supplier Analysis tab. The Aged Payables window shows all money owed to suppliers, totalled by supplier.
1. From the Command Centre, click the Reports icon and click the Purchases tab.
2. At the top of the list of Purchase reports in the Payables section click on Aged Payables [Summary].
3. In the As of field set the date to 31/10/2018.
4. Click Display Report to view the data.
5. Click on Close and Close again
Note: The difference between the Aged Payables reports versus the Reconciliation reports is that the Reconciliation ones show whether the Purchase ledger balances.
Sometimes businesses require a Cheque Requisition form to be completed in order to generate the payment and approval of bills. Here is a completed example.
Dale has approved for Wayne Judge to be paid.
CHEQUE REQUISITION SLIP I certify that the services described on the attached tax invoice are accurate and price has been agreed to.
Reason for expenditure Supplier of contracting services at Bondi.
General ledger allocation A/c following policies and procedures of the organisation
Cost of Sales - Contracting services
Amount $......880.00.... GST FRE ANR
Signed by: Bookkeeper’s Name
Authorised by: Dale McKay
Entered in AccountRight by: Bookkeeper Date Entered: 17/9/18
Date of Payment: Payment Ref: Entered in AccountRight by: Bookkeeper Date Entered: 24/10/18
You can make payments in the following ways; using the Pay Bills or Purchase Register windows and paying straight from your bank account or by grouping your payments to pay your supplier electronically. Dale has authorised you to make the following payments.
When you make supplier payments they can be a:
• Full payment of all bills
• Payment of specific bills
• Partial payment of a specific bill
There are two methods to Pay Bills:
(a) Pay Bills
(b) Purchase Register
To make a Supplier Payment from the Pay Bills window
In the following example we will make a payment of $880.00 to Wayne Judge’s account to settle purchase Bill No. 3 using the Pay Bills window.
The Wayne Judge’s account was due on the 24th of the month.
1. A cheque will be written out to pay the above account.
2. On 24 October 2018 complete the cheque below to pay Wayne Judge. (This topic should have been covered in previous units studied.)
Date …………………….. Pay ……………………… Details ………………...... …………………………….
FWD This Cheque
Balance 001001
WBC Bank Plumbsville QLD 4350 001001 Date:
……………………….. Pay ……………………………………………………………….. OR BEARER The sum of ………………………………………………………
1. From the Purchases Command Centre, click Pay Bills. The Pay Bills window appears.
2. In the Pay from Account field, check that the 1-1110 NAB Cheque Account is displayed. In practice if you were using your credit card to pay your supplier, this should be a credit card account.
3. In the Supplier field, click the search icon , select Judge from the list displayed.
Note: Default entries are displayed in the Cheque Number and Date fields. These can be changed.
4. Click into the Cheque No. field and type 147591.
5. Tab to the Date field and enter 24/10/2018.
6. Tab to the Amount field and enter 880.00.
7. Amounts owed to the Supplier are displayed in the scrolling list in the middle of the window. Next to the open bill for $880.00 (purchase 3), click in the Amount Applied column.
8. $880.00 should appear automatically – press TAB and check that Out of Balance reads 0.00
9. Check that Remittance Advice… is To be Printed
10. Click Record to record the payment.
11. Click Cancel to return to the Purchases Command Centre.
In this section of the user guide, whenever you are asked to print any reports or listings, you will be required to name them AR1. for example:
Printout AR1 – Accounts Listing
The three types of sales transactions that can be entered in your AccountRight software are Quotes, Orders and Invoices. These transactions are entered through the Sales Command Centre. Before you record any sales transactions, let us understand our Government’s rules on GST and Invoices.
GST and Invoices Cash or Accrual Reporting
As of 1 July 2010, major changes came into action in the GST system regarding invoices. Invoices are an integral part of the GST system. A GST registered entity is only entitled to claim a GST credit if it is in a possession of a valid tax invoice at the time it lodges its Business Activity Statement (BAS). As well as being in possession of a valid tax invoice, the rules for attributing GST collected and GST credits to a period depend on whether you account for GST on a cash or accruals basis.
When you report GST on a Cash basis, the business must make purchases in the tax period in which it pays for those purchases. If it pays only part of the cost of a business purchase in a tax period and has a valid tax invoice, it will only be able to claim GST credits for the part payment made in the tax period. The business must hold a copy of a valid tax invoice and only claim the GST amount listed on the tax invoice. The same applies on the sale side.
When you report GST on an Accruals basis, this means you account for the GST when the invoice is issued or when you receive payment for the goods or services sold. Similarly, GST payments made on purchases can be claimed or if a tax invoice is issued. You can only claim the credit on purchases if the tax invoice is received at the time of lodging the Business Activity Statement. Meaning the actual date of issuance for an invoice is when it is sent, for example:
• Electronically transmitted • Posted • Couriered • Hand delivered.
Understandably there can be some confusion around the payment date and when the credit can be claimed (also referred to as the ‘consideration’). The GSTR 2003/12 clarifies when the ‘consideration’ is deemed:
Method of payment When consideration takes place
Cash When the payment is tendered (i.e. when it is handed over).
Cheque For the payer, when the cheque is posted or handed to the payee. for the payee, when the cheque is received.
Credit Card For the payer and payee: • Where payment is made in person, when the
docket is signed authorising the transaction • Where payment is made remotely (i.e. phone
or internet), when the payer submits the credit card number and other details.
Direct Credit For the payer, the date of the transaction is authorised to take place via BPAY or EFT or Bank Transfer. For the payee, when the payment is credited to the supplier’s bank account or credit card.
If you buy taxable goods and services that cost more than $82.50, your supplier must provide you with a tax invoice within 28 days after you request one. Tax invoices that contain incorrect or incomplete information are not valid.
When this file was set up $19,400 was entered as a balance for outstanding customer invoices: Trade debtors owed $19,400. You still need to enter these invoices so when they are paid the money received can be applied.
Customer Invoice No. Invoice date Amount inc GST
Joes Carpentry 640 1/9/2018 11,000.00
AJ Construction 658 28/9/2018 2,200.00
Townsend General Store
659 28/9/2018 6,200.00
Total 19,400.00
First, we will add the Customer cards.
1. Open the company file Makkas Plumbing v2017 2018.myox.
2. Click on Card File in the Command Centre.
3. Click on Cards List
4. Click on New and enter the following details for Joes Carpentry
5. Under Selling Details link his card to the income account 4-1100
Service and Repairs General and set his payment terms to 7 days.
A Quote enables you to record estimates of your items or services. A quote does not impact your stock levels. A quote can be converted into an order or invoice.
An Order is where no items or service have actually been completed or sold. If the order includes a deposit then a transaction will appear in the Sales Journal. Item orders will appear in the Analyse Inventory window showing committed stock numbers.
An Invoice can be created before or after the goods or services are delivered. Stock levels and Accounts will be updated, including debtors.
Open – invoice is not paid in full.
Closed – invoice is paid in full.
Sales Layouts
AccountRight provides a number of sale transaction layouts from which you can choose.
The sale layout you use will be determined by the type of business you have (for example, manufacturing, retail, service), and whether a printed invoice is required. There are five types of sales layouts you can use: service, item, professional, time billing and miscellaneous.
The three commonly used ones are described in the following pages.
1. Click on Setup Preferences in the Menu bar The Preferences window appears.
2. Click the Sales tab to display the Sales Preferences.
3. Ensure that the following Sales preferences are selected:
4. Click on the Terms button – these are general terms that will automatically be applied to each new customer. These can be customised for each customer via their customer card.
Upon receiving money from customers it needs to be applied against the open invoice(s). Money can be received from your customers in full or partial payments. You can group your customer payments, by selecting an option to post all your customer receipts to account 1-1210 Undeposited Funds or a Clearing Account in the Receive Payments window.
At any time AccountRight is able to show what is owed to you by using the Business Insights or by viewing the Aged Receivables Reports.
Important: DO NOT use Receive Money in the Banking Command Centre to record money received from a debtor because this will not allocate the receipt to the individual debtor’s account. This will cause your debtor balance to be out of balance.
PAYMENT OF CUSTOMER ACCOUNTS PROCEDURES
1 Under the Privacy Act 1988, details kept must be accurate and not given to any person without the consent of the customer.
2 Payments in the form of cash and cheques are processed immediately upon receipt, stored in the safe during the day, and allocated to undeposited funds in AccountRight. A receipt is written out for accounts paid in cash over the counter.
3 Any payment resulting in an overpayment is recorded as a credit and applied to a future invoice.
4 Bank Deposit Slips are printed and submitted to the bank with a credit summary slip when cash and cheques are banked.
5 Cheques are only accepted from long-term customers. On receipt of the cheque, the date, payee, amounts and signature must be checked.
6 Monthly statements are printed by the 5th of the following month.
7 Full payment is required by the end of the following month. A 5% cash discount may be allowed to high volume customers for payment within 14 days.
8 At the end of each month a Receivables Reconciliation report is printed to identify overdue accounts and the accuracy of the ledgers.
The Business Insights, Customer Analysis window provides detailed information about how much your customers owe, and the data is aged according to settings in Preferences. This is a system wide setting. If you prefer them to be 7, 14 and 28 days, for example, then you must alter the setting.
2. Click on Setup Preferences then the Reports & Forms tab.
You can nominate to analyse your payable via months or number of days.
2. You would enter 7, 14 and 28 in the 1st, 2nd and 3rd boxes respectively
3. We will leave the ageing as 30, 60 and 90 days.
Now let’s look at the Customer Analysis in the Business Insights area.
1. In the Sales Command Centre, click Business Insights and then select the Customer Analysis tab.
The Customer Analysis shows all money owed by customers, a sales history graph and summary by customers.
Note: Your customer analysis will very likely be different from that
shown in the screen shot overleaf as the customers shown to owe money and the ageing of invoices will depend on the current system date on your computer.
1. From the Sales Command Centre, click the Reports icon and select Sales.
2. At the top of the list of Sales reports, select Aged Receivables [Summary].
3. In the As of field set the date to 31/10/2018
4. Click Display Report to view the data.
The difference between the Aged Receivables reports versus the Reconciliation reports is that the Reconciliation ones show whether the Sales Ledger balances.
The following cheque was received from Joes Carpentry on 8/10.
Eastpac Bank Bondi NSW 2026 001100 Date:
8/10/2018 Pay Makka’s Plumbing OR BEARER The sum of Eleven thousand dollars------------------ ………………………………………………………………………-
$11,000-00
DRAWER Joes Carpentry
J Verdi
001100 084'222: 12478945
Check the cheque details for accuracy.
(a) Is the cheque dated correctly i.e. less than15 months old or
dated ahead? …………………….
(b) Do the words and figures match? ……………………………...
(c) Is the cheque made payable to the business? ………………
(d) Is the cheque signed? ………………………
(e) Are all the details correct? ………………………
Recording Full Customer Payments The Receive Payments function is used to apply a customer’s payment against an open sales invoice. When receiving customer payments, we are going to deposit them into the Undeposited Funds account as this will provide one total for the amount being banked rather than all the individual amounts. It will make reconciliation of the bank statement faster and easier.
This User Guide maps to the following Financial Services Unit FNSACC312 Administer subsidiary accounts and ledgers.
Element Performance Criteria Mapping
1 Review accounts receivable requirements
1.1 Check receipts entered into manual accounts receivable system for accuracy, consistency and completeness
Units 7, 11
1.2 Identify and make record of incorrect entries according to type and source of receipt
Units 6, 7, 8, 9, 10, 11
1.3 Identify and investigate discrepancies between monies owed and monies paid according to organisational policy, procedures and guidelines
Units 7, 8, 9, 11
1.4 Amend receipts entered into manual accounts receivable system according to established procedures
Units 7, 8, 11
2 Identify bad and doubtful debts
2.1 Review debtor ledger according to organisational policies and guidelines to identify outstanding monies and seek further information where required
Units 9, 11
2.2 Verify bad or doubtful debt status through liaison with debtors
Units 9, 11
2.3 Complete reporting procedures and required documentation for bad and doubtful debts according to organisational policies and guidelines
Units 9, 11
3 Review compliance with terms and conditions and plan recovery action
3.1 Identify clients in default of trading terms according to organisational credit policies and operating procedures
Units 9, 11
3.2 Contact identified clients and promptly and courteously make satisfactory arrangements for payment of outstanding monies
3.3 Action organisational policy and procedures for monies owing that constitute breaches of organisational credit policy
Units 9, 11
3.4 Review previous activities and communication with clients to establish adequacy of follow-up procedures, and determine whether usual organisational recovery avenues have been exhausted
Units 9, 11
3.5 Develop plans to pursue debt recovery or to initiate legal action with measures completed in line with organisational policies, guidelines and timeframes
Units 9, 11
4 Prepare reports and file documentation
4.1 Prepare reports that document accounts receivable, debt recovery type and cause and debt recovery plan
Units 9, 11
4.2 Distribute reports to supervisors, managers and other designated parties
Units 9, 11
4.3 File documentation in according to organisational policy and procedures
Units 2, 3, 6, 9, 10
5 Distribute creditors invoices for authorisation
5.1 Identify, investigate and rectify invoice discrepancies and encode and record invoices correctly
Units 2, 3, 5, 6, 7, 8, 10, 11
5.2 Request authorisation for payment from designated personnel
Units 2, 3, 5
6 Remit payments to creditors
6.1 Draw up and ensure authorisation of cheque requisition
Units 2, 3, 5,
6.2 Collect and record data relating to creditor details and amounts paid according to organisational guidelines, and prepare report for ratification by management
Units 2, 3, 5, 9
6.3 Prepare creditor payment in line with organisational requirements
Units 2, 3, 5,
6.3 Prepare journal to record payment Units 3, 5, 10
7 Reconcile outstanding balances
7.1 Obtain statements of outstanding balances from suppliers where required
Units 3, 5,
7.2 Reconcile balances outstanding to invoices received
This User Guide maps to the following Financial Services Unit FNSACM302 Prepare, match and process receipts.
Element Performance Criteria Mapped
1 Receive, identify and record receipts
1.1 Check receipts against remittance documentation in accordance with established procedures
Units 7, 8, 11
1.2 Record and allocate receipts accurately in accordance with organisational policy and procedures
Units 7, 8, 11
1.3 Complete batching in accordance with organisational systems and operating procedures, and advise relevant departments of total daily receipts
Units 7, 8, 9, 11
2 Match receipts to documentation
2.1 Check and match receipts to documentation accurately and promptly, and maintain documentation securely to protect interests of all parties to transaction
Units 7, 8, 9, 11
2.2 Note unmatched receipts for follow up or referral in accordance with organisational, industry and legislative requirements
Units 7, 8, 9, 11
3 Enter data to systems
3.1 Record and allocate receipts to appropriate chart of accounts in timely and accurate manner in accordance with organisational policy and procedures
Units 7, 8, 9, 11
3.2 Match receipts accurately to system debit, and promptly identify data and allocation discrepancies for follow up
Units 7, 8, 9, 11
3.3 Seek advice on source of and solution to discrepancies, where necessary, to solve outstanding problems
Units 6, 7, 8, 9, 11
3.4 Update related systems, complete reconciliations and resolve discrepancies between general ledger and sub-systems
Units 8, 11
4 File documentation
4.1 File documentation promptly in accordance with organisational policy and procedures
Units 6, 7, 8, 9, 11
4.2 File documentation in location that is accessible and easily traceable
This User Guide maps to the following Financial Services Unit FNSACM303 Process payment documentation.
Element Performance Criteria Mapped
1 Enter data to system 1.1 Enter data into systems without error and within time requirements in accordance with organisational policy and procedures
Units 2, 3, 5
1.2 Allocate data to correct systems and accounts, and update related systems
Units 2, 3, 5
1.3 Maintain system controls to ensure integrity and security of customer and payee database
Units 2, 3, 5
2 Create payment facility 2.1 Process payment facility accurately in accordance with organisational policy and procedures
Units 2, 3, 5
2.2 Maintain documentation in secure manner to protect privacy and interests of all parties
Units 2, 5
3 Verify payments against documentation
3.1 Confirm payment authorisation, with information on payment facility matching approved documentation
Units 3, 5
3.2 Identify discrepancies and follow up promptly
Units 2, 3, 5
4 Effect payments 4.1 Make payments within agreed credit arrangements in accordance with organisational policy and procedures, and industry and legislative requirements
Units 2, 3, 5
4.2 Ensure payment instruments are signed in accordance with relevant authority levels, and related systems updated promptly to ensure that integrity of accounting systems is maintained
Unit 3, 5
4.3 Cancel or note primary documentation associated with payment to ensure multiple payments are not made
Units 2, 3, 5
5 File documentation 5.1 File documentation promptly in accordance with organisational policy and procedures
Units 2, 3, 5
5.2 File documentation in location that is accessible and easily traceable