A step by step approach to Process Financial Transactions and Extract Interim Reports (manually)

Transcription

1 A step by step approach to Process Financial Transactions and Extract Interim Reports (manually) Software Publications Pty Ltd, June 2015 All rights reserved. No part of this material may be reproduced or copied in any form or by any means (graphic, electronic or mechanical, including photocopying or by information retrieval systems) without permission in writing from Software Publications. Written by: Marian Brown, Dip T (Commerce), MICB BAS Agent Cert IV Training and Assessment, Cert IV in Financial Services (Bookkeeping) MYOB Certified Consultant since 1995 MYOB Accredited Author, MYOB Accredited Trainer, ABN Tax Client Manager Revised by: Lyn Joyce, Dip T (Commerce), B Ed Cert IV Training and Assessment Secondary and tertiary teacher for 40 years and Marian Brown Publishers: Software Publications Pty Ltd (ABN ) Head Office Sydney Unit 10, 171 Gibbes Street Chatswood NSW SUITABLE FOR FNSACC301 ISBN FNSACC301A Process financial transactions and extract interim reports (manually) 2013 edition Software Publications Pty Ltd,

2 Limitations of Liability: This material is designed to provide basic information on how to enter transactions and extract interim reports. Because business circumstances can vary greatly, the material is not designed to provide specific GST or business advice for particular circumstances. Also, because aspects of the GST are complex and detailed, the material is not designed to comprehensively cover all aspects of the GST. Further, the laws implementing GST and rulings and decisions under those laws may change. Before you rely on this material for any important matter for your business, you should make your own inquiries about whether the material is relevant and still current, and whether it deals accurately and completely with that particular matter; and as appropriate, seek professional advice relevant to that particular matter. This information is for learning purposes only and is not to be taken as a substitute for professional advice. Consequently Software Publications Pty Ltd, Marian Brown and Lyn Joyce accept no responsibility to any person who acts on information herein without consultation with an accounting professional. 2 Software Publications Pty Ltd, 2013

3 Delivery This is designed to be used in trainer-directed or self-paced learning, as learners follow a set sequence of exercises. As a guide, this takes about 40 hours to complete. Provision has been made in the for both formative and summative assessment. a. Revision exercises are placed strategically throughout the to allow for feedback during the instructional process and to help assess learner progress. b. Four formal assessments are available on the training resource CD, available to trainers. These assessments should be attempted at the following learning stages. Assessment 1 follows unit 5, assessing the use of documents relating to transactions involving customers and accounts receivable. Assessment 2 follows unit 7, assessing the use of documents relating to transactions involving suppliers and accounts payable. Assessment 3 follows unit 8, assessing understanding of a petty cash system. Assessment 4 follows unit 15. The final unit of this is a comprehensive revision exercise to prepare for assessment. This is to be followed by a final summative assessment. Two options are available. Relationship to Competency Standards This is designed to provide training for all the elements of competency in the following units: FNSACC301A Process financial transactions and extract interim reports This unit describes the functions involved in preparation and processing of routine financial documents, preparing journal entries, posting journals to ledgers, preparing, banking and reconciling financial receipts, and extracting a trial balance and interim reports. This unit may apply to job roles subject to licensing, legislative, regulatory or certification requirements so the varying Commonwealth, State or Territory requirements should be confirmed with the relevant body. 10 Software Publications Pty Ltd, 2013

4 Element 1 Check and verify supporting documentation 2 Prepare and process banking and petty cash documents 3 Prepare and process invoices for payment to creditors and for debtors 4 Prepare journals and batch monetary items 5 Post journals to ledger 6 Enter data into system Performance Criteria 1.1 Information from documents is identified, checked and recorded 1.2 Supporting documentation is examined to establish accuracy and completeness and to ensure authorisation by appropriate personnel 2.1 Deposits and withdrawals are accurately entered and balanced according to organisational procedures 2.2 Cheques and card vouchers are checked for validity before processing 2.3 Banking documentation is reconciled with organisation s financial records 2.4 Petty cash claims and vouchers are checked, processed and recorded and the petty cash book is balanced according to organisational procedures 3.1 Invoices are prepared in accordance with organisational procedures 3.2 Invoices are checked against source documents for accuracy and any errors corrected 3.3 All invoices and related documents are filed for auditing purposes 4.1 Journals are prepared accurately and completely and items batched within organisational timelines 4.2 Batch items are precisely matched to initial receipt records 4.3 Journals are authorised in accordance with organisational policy and procedures 5.1 Journals are posted to ledger accurately and in accordance with organisation input standards with transactions correctly allocated to system and accounts 6.1 Data is entered into system accurately and in accordance with organisation input standards with transactions correctly allocated to system and accounts 6.2 Related systems are updated to maintain the integrity of relationships between financial systems Units 4, 5, 6, 7, 8 Units 4, 5, 6, 7, 8 Units 5 and 7 Unit 7 Units 5 and 12 Units 8 and 15 Unit 4 Unit 6 Units 10, 11 and 15 Units 5 and 15 Units 10, 13 and 15 Units 11 and 15 Software Publications Pty Ltd,

5 Element 7 Prepare deposit facility and lodge flows 8 Extract a trial balance and interim reports Performance Criteria 7.1 A deposit facility is selected appropriate to the banking method to be used 7.2 Batch is balanced with deposit facility without error 7.3 Security and safety precautions are taken appropriate to the method of banking in accordance with organisational policy and industry and legislative requirements 7.4 Proof of lodgements is obtained and filed so that it is easily accessible and traceable 8.1 Any special transactions are processed accurately 8.2 Cash and credit journals are completed and posted to general ledger 8.3 A trial balance is extracted and checked and other required reports prepared Unit 5 Unit 5 Unit 5 Unit 5 Units 10, 11 and 15 Unit 13 Units 13, 14 and Any errors are found and corrected Units 13 and 15 Required skills: communication skills to: determine and confirm work requirements, using questioning and active listening as required share information, listen and understand read and interpret documentation from a variety of sources use language and concepts appropriate to cultural differences numeracy skills to make financial calculations information technology skills for accessing and using spreadsheets and databases Units 8 and 15 literacy skills for data analysis and interpretation evaluative and general analytical skills organisational skills, including the ability to plan and sequence work 12 Software Publications Pty Ltd, 2013

6 Required knowledge: accounting conventions, processes and procedures Units 9 and 10 banking procedures and guidelines Unit 5 industry codes of practice Units 2 and 5 legislative and regulatory requirements relevant to the work organisational policy and procedures Units 4, 5, 6, 7, 8, 11 and 15 relevant Acts and regulations Unit 2, 5, 9 and 10 security procedures for handling cheques, vouchers and cash Unit 5 and 7 Learning Outcomes On the completion of this you should be able to: accurately enter and balance deposits and withdrawals process and balance petty cash transactions check and verify supporting documentation apply relevant security measures for preparing and banking receipts batch monetary items and prepare deposit facilities use knowledge of organisational policies and procedures and legislative requirements to accurately enter data into accounting systems and process journal entries prepare and authorise journals and check journal processing reports extract and check/correct basic financial reports file documentation to meet all organisational and regulatory requirements. Software Publications Pty Ltd,

7 Business structures There are different types of business structures designed for different types of activities. Most businesses trade goods or services for profit or non-profit outcomes. The following is a brief explanation of the most common business structures. Sole trader The most basic type of business organisation is called a sole trader. Any individual who wishes to start a business can set up as a sole trader. That person controls and manages the business. The income of the business is treated as the person s individual income and they are solely responsible for any tax payable by the business. The business would need to be registered with the Australian Taxation Office who would issue an Australian business number (ABN). It would also be necessary to register for goods and services tax (GST) if GST turnover will be more than $75,000 per year. Any business with a GST turnover of less than $75,000 per year can choose whether to register for GST or not. GST turnover is the gross business income (not profit) excluding the following: a. GST included in sales b. sales not connected with Australia c. input taxed supplies d. transfer of capital assets e. the result of ceasing an enterprise of substantially and permanently reducing the size of the enterprise. If the business trades in a name other than the person s legal name, the business name must be registered with the Office of Fair Trading under the Business Names Acts of each state and territory. A sole trader is referred to as an unlimited liability organisation. As far as the law is concerned there is no difference between the business and the owner. This means that if the business is unable to pay its debts, then the owner s personal assets may be sold to cover these costs. From an accounting perspective, the business entity is regarded as an entity separate from its owner, and the accounting relates only to the affairs of the business entity. The owner s personal affairs are kept separate from those of the entity. Examples of a sole trader Bob Smith, Plumber Marian Brown, trading as MBS Training Services Name a sole trader you know. What product or service does this sole trader sell? 28 Unit 2: Introduction to accounting Software Publications Pty Ltd, 2013

8 Partnership According to s5(1) of the Partnership Act 1892, a partnership is an association of two or more people who carry on business as partners and receive income jointly. Although the partnership agreement may be oral, a written agreement which formalises the terms and conditions of the partnership will help resolve disagreements. The partnership is not liable to pay income tax. A partnership is required to lodge a tax return (P form) and the profit (or loss) of the partnership is determined and distributed to each partner to be included in their respective income tax returns. Each partner includes their share of the partnership profit in their own income tax return and pays tax on it at their respective marginal tax rates. The profit would be shared according to the terms of the agreement. As with the sole trader it would be necessary to obtain an ABN and to register for GST if the GST turnover is greater than $75,000. A partnership is also an unlimited liability organisation and each partner would be responsible for one hundred per cent (100%) of the debts. Examples of a partnership Bob & Cheryl Smith T & L Brown, trading as Brown Bros Name a business owned by a partnership. What product or services does this business provide? Software Publications Pty Ltd, 2013 Unit 2: Introduction to accounting 29

9 Trust A trust is an obligation imposed on a person/entity to hold property or income for the benefit of others who are known as beneficiaries. A trust requires a tax file number, which is used to lodge the annual income tax return and apply for an ABN. A trust can be registered for GST if required. From a legal perspective, a trust is not a separate entity. Consequently the trustee is responsible for the debts of the trust. A person who wishes to sue a trust must sue the trustee. From a taxation perspective, a trust is not a separate entity. However a trust is required to lodge a tax return (T form). The profit of the trust is determined and distributed to the beneficiaries to be included in their respective income tax returns and pay tax at their marginal tax rate. Example of a trust Brown Family Trust Ressem Pty Ltd as trustee, trading as Ressem Plumbing Name a trust. List the names of the beneficiaries (if known). Company When the owners of a business wish to protect themselves against liability for the debts of the business they can register the business with the Australian Securities and Investment Commission (ASIC) as a company. On forming the company, an Australian Company Number (ACN) with nine digits is issued. When a company registers for an ABN, the number issued is usually its ACN with two check digits at the beginning. The money invested into the company can be obtained from different people. These people are commonly known as shareholders and are given shares in exchange for the money they have invested. A company is a limited liability organisation. This means that the shareholders are only liable for the amount of money invested in the company. Companies can be either privately or publicly owned. Different rules and regulations govern how private and public companies operate. 30 Unit 2: Introduction to accounting Software Publications Pty Ltd, 2013

10 A private company can have a sole director and shareholder provided the constitution of the company allows. Some older companies specify a minimum of two. A private company has the abbreviations Pty Ltd (proprietary limited) on the end of the name, e.g. MBS Training Services Pty Ltd. Owners are actually employees of their company who receive a salary and have PAYG Withholding (Income Tax) withheld. A public company has Ltd (limited) only on the end of the name, e.g. BHP Billiton Limited. Public companies (minimum of five shareholders) can apply for listing on the Stock Exchange. This means that the public can trade in the shares of the company and the price of the shares will fluctuate according to supply and demand. The profit in a company (both private and public) is distributed to shareholders in the form of dividends. Find the Stock Exchange report in a printed or online newspaper, or the Stock Exchange website. Find the listing for BHP Billiton Limited (BHP). What is the current selling price of shares? $... Date of price... Name a business owned by a private company: List the shareholder(s) if known. What product or service does this business provide? Name a business owned by a public company: Refer to the Stock Exchange report. What is the selling price of shares in this company? $... Date of price... What product or service does this business provide? Software Publications Pty Ltd, 2013 Unit 2: Introduction to accounting 31

11 Traders organisations Retail businesses which sell similar products, e.g. IGA Supermarkets, will often set up a traders organisation to provide mass advertising and bulk purchasing power to compete with larger companies such as Aldi, Coles and Woolworths. The ownership of a traders organisation could be a sole trader, partnership, company or trust. Name a traders organisation in your local area. Not-for-profit organisations Not-for-profit organisations, e.g. charities, churches, public libraries, provide services to the public, but are not required to make a profit. Any surplus funds are reinvested in the organisation. These organisations are usually tax exempt. Some of them are incorporated under an act of parliament which gives members protection from debts similar to the limited liability company, e.g. Pine Brass Band Inc. Other organisations are unincorporated, e.g. Wavell Soccer Club. A not-for-profit organisation has to register for GST if the GST turnover is more than $150,000 excluding GST. Name an incorporated not-for-profit organisation in your local area. Name an unincorporated not-for-profit organisation in your local For more information on business structures, visit 32 Unit 2: Introduction to accounting Software Publications Pty Ltd, 2013

12 Receipt of the invoice from North Springwater Pty Ltd The following invoice has been received for the items delivered on purchase order 10. The tax invoice looks like this: North Springwater Pty Ltd Tax Invoice ABN Valley Street Blackburn VIC 3130 (03) TO: Brightspring Traders Delivery address: 25 Spring Street Brightspring Traders BLACKBURN VIC Spring Street BLACKBURN VIC 3130 Date: 10/month 20yy Purchase Order Number: 010 Terms: 30 DAYS Quantity Item Number Description Unit Price inc GST (if applicable) Total including GST Tax Code Pine stand $38.00 $ GST litres North Spring $13.25 $66.25 FRE $ Amount of GST in this invoice: $17.27 Delivery method: North Springwater driver Delivery date: 10/month 20yy (i) Has the supplier quoted an ABN? (ii) Has the correct amount been charged? (Check with the price list on page 100.) (iii) Are there any discrepancies? If so, identify them. (iv) What would you do about this discrepancy? Make the appropriate amendments to invoice Assume an amended invoice has been sent. 110 Unit 6: Purchasing items and services Software Publications Pty Ltd, 2013

13 Returning items Assume one pine stand was found to be faulty (screws missing) although checked on delivery. This stand was returned. (i) Complete the goods returned form which would be completed by Mary in the storeroom, one copy would be given to Sue, the bookkeeper, and one copy sent with the faulty pine stand. Brightspring Traders ABN Spring Street Blackburn VIC 3130 Goods returned to: Goods Returned Purchased on invoice number:. Quantity Item Number Description Reason Returned by. Method: Picked up by North Spring from store Date: 11/current month (ii) On receipt of the faulty stand, North Springwater issued the following adjustment note. North Springwater Pty Ltd Adjustment Note ABN Valley Street Blackburn VIC 3130 (03) TO: Brightspring Traders Delivery address: 25 Spring Street Brightspring Traders BLACKBURN VIC Spring Street BLACKBURN VIC 3130 Date: 11/month 20yy Purchase Order Number: 010 Invoice Number: 1480 Terms: 30 DAYS Quantity Item Number Description Tax Code Unit Price inc GST (if applicable) Total including GST Pine stand $ $33.00 GST -$33.00 Amount of GST in this invoice: $ Reason: Faulty, screws missing Software Publications Pty Ltd, 2013 Unit 6: Purchasing items and services 111

14 Check the accuracy of the adjustment note from North Springwater Pty Ltd against the goods returned docket and original tax invoice. Are there any discrepancies? Checking the bill for a service The following tax invoice (summary of the electricity account) was received from Metropolitan Electricity. Metropolitan Electricity Tax Invoice ABN Account No: PO Box Sydney NSW 2000 TO: Brightspring Traders 25 Spring Street Blackburn VIC 3130 Date: 10/current month Period: 90 days Location: 25 Spring Street Blackburn VIC 3130 Due: 24/month Description Total including GST Tax Code Details of electricity supply $ GST TOTAL including GST $ List 2 ways of checking the accuracy of the above tax invoice. 112 Unit 6: Purchasing items and services Software Publications Pty Ltd, 2013

15 Summary of transactions with North Springwater Pty Ltd for the month List below the documents you should have in the file of North Springwater Pty Ltd for the month. The first two documents have been entered. Document Reference Number Date Original purchase requisition /month NA Total Amount Duplicate purchase order 9 3/month $ Software Publications Pty Ltd, 2013 Unit 6: Purchasing items and services 113

16 Preparing the trial balance In this exercise, you will make a list of account balances (called a trial balance) in the general ledger of Brocks Tyreworld on pages 253 to 259. Referring to the accounts on the previous pages, list all the accounts with balances in the trial balance as at 31 July on the following page. For example the bank account and the petty cash account look like this in the general ledger. 110 BANK Date Particulars Ref Debit Credit Balance Dr/Cr July 1 Balance GJ 10, , Dr July 31 Sundry receipts CRJ 16, , Dr Sundry payments CPJ 9, , Dr 115 PETTY CASH Date Particulars Ref Debit Credit Balance Dr/Cr July 1 Balance GJ Dr July 31 Petty Cash Expenditure GJ Dr Bank CPJ Dr Then write the name of the account and the balance in the Dr column or Cr column according to the Dr/Cr column in the account, i.e. whether the debit or the credit side of the account is larger. Trial Balance Account Name Dr Balance Cr Balance Bank 17, Petty cash On completion, add up the Dr Balance column and the Cr Balance column. The two columns should be equal. 260 Unit 13: Posting journals Software Publications Pty Ltd, 2013

17 TRIAL BALANCE AS AT 31 JULY XXXX Account Name Dr Balance Cr Balance TOTALS $ $ If the debit column does not equal the credit column you could have made the following errors: incorrect calculation of the balance in the account incorrect amount posted from the journal to the ledger amount posted to the incorrect column in the ledger incorrect balance written in the trial balance balance written in the incorrect column in the trial balance. Software Publications Pty Ltd, 2013 Unit 13: Posting journals 261

18 Revision exercise Once you have completed posting the July transactions to the general ledger and your trial balance has been accurately prepared, it is now time to revise all the work you have covered so far in this guide. You will find on the following pages a complete exercise for Brocks Tyreworld, for the month of August 20xx. There are copies of invoices issued and received, adjustment notes issued and received, receipts, cheques and petty cash book. (In this exercise you need not concern yourself with bank reconciliation.) Your responsibility as a bookkeeper is to: prepare the journals for August 20xx, for which stationery has been provided total all columns and check your work carefully. Do not total the cash journals until all the transactions have been entered. post all journal entries to the general ledger on pages 253 to 259. Ample space has been provided in the general ledger used for the July transactions to allow you to add the August transactions to the accounts. Do not commence a new ledger for August. A ledger contains the complete story of each account and therefore the final balances must show the effects of all transactions. calculate running balances for each line of each account prepare a trial balance as at 31 August 20xx. You may need to revised Brocks Tyreworld s Accounting Policies and Procedures which were introduced in Unit 11. Blank journals have been included, as well as a ruled trial balance on pages 271 to Unit 13: Posting journals Software Publications Pty Ltd, 2013

19 Recording handwritten adjustment notes issued to customers in the sales returns and allowances journal Occasionally, a customer returns furniture for a credit. A handwritten adjustment note is issued and the duplicate is recorded in the sales returns and allowances journal. Check the accuracy and record the following adjustment notes in the appropriate journal on page 291. KOOKABURRA FURNITURE Adjustment Note ABN Timber Avenue, ESKDALE QLD TO: Synergy Accountants Date: 7 July, xxxx Terms: EOM after EOM Quantity Item Number Description Unit Price Ex GST Total Tax Code -1 T62145 Office desk - damaged GST Add 10% GST Total including GST -$ KOOKABURRA FURNITURE Adjustment Note ABN Timber Avenue, ESKDALE QLD TO: ECI Electrical Date: 10 July xxxx Terms: EOM after EOM Quantity Item Number Description Unit Price Ex GST Total Tax Code -1 C3426 Office chairs green - damaged GST Add 10% GST Total including GST -$ Unit 15: Revision exercise Software Publications Pty Ltd 2013

20 Recording cash sales and customer payment of accounts During the month, cash and cheques were received from customers and miscellaneous sources, e.g. insurance refund and banked. After checking the accuracy of the cheques, record the following in the cash receipts journal on page 292. Receipts are banked daily. Payment of account receipt 60 Eastpac Bank ESKDALE QLD Date: 10 July xxxx Pay Kookaburra Furniture OR BEARER The sum of Seven hundred and four dollars. $ DRAWER Synergy Accountants '' ''062'''009: '' Insurance refund (no GST) receipt 61 M Megan Eastpac Bank BRISBANE QLD Date: 10 July xxxx Pay Kookaburra Furniture OR BEARER The sum of One thousand six hundred $1, dollars.. DRAWER Suncorp '' ''062'''009: '' Part payment of account receipt 62 M Smith Eastpac Bank ESKDALE QLD Date: 25 July xxxx Pay Kookaburra Furniture OR BEARER The sum of One thousand dollars $1, DRAWER ECI Electrical B White '' ''062'''009: '' Cash sale tax invoice 103 Eastpac Bank ESKDALE QLD Date: 25 July xxxx Pay Kookaburra Furniture OR BEARER The sum of Two thousand, two hundred dollars $2, DRAWER Lilydale Properties '' ''062'''009: '' B North Software Publications Pty Ltd, 2013 Unit 15: Revision exercise 297

21 KOOKABURRA FURNITURE Tax Invoice ABN Timber Avenue, ESKDALE QLD TO: CASH SALE (PAID IN CASH) Date: 25/July Terms: COD Quantity Item Number Description Unit Price Inc GST Total including GST Tax Code 4 C3426 Office chairs - green $ GST Checking the accuracy of the Deposit Slip on 25 July On 25 July, the following deposit slip was written out to bank cash and cheques received. Eastpac Bank BANK DEPOSIT ACCOUNT NAME: KOOKABURRA FURNITURE Coins 4 00 ACCOUNT NUMBER: Notes $ *Cheques etc $3, Details: Total $3, Drawer Bank Place Amount ECI Electrical Eastpac Eskdale $1, Lilydale Properties Eastpac Eskdale $2, TOTAL Cheques/money orders and merchant summaries (transfer to * above) $3, Paid in by (Your name). Date:.25./ 7./ xxxx (i) (ii) Check the accuracy of the deposit slip with your cash receipts journal. Check the accuracy of cash deposited on the day by completing the following cash analysis of notes and coins counted at the end of the day. Number counted Denomination Extended Total Coins: 5 20c 2 50c 0 $1 1 $2 Total Coins: $ Notes: $5 $10 5 $20 4 $50 4 $100 Total Notes: $ Total Coins and Notes: $ 298 Unit 15: Revision exercise Software Publications Pty Ltd 2013

22 Recording cheques written out in the cash payments journal The following cheques (source documents are the cheque butt and the original tax invoice received from the supplier) were written out during the month. The tax invoices have been checked for accuracy and approved for payment by Jason. Record these cheques in the cash payments journal printed on page 293. No: 101 1/July To: Suncorp For: Motor vehicle insurance This cheque $ (including GST) No: 102 1/July To: Local garage For: Repairs This cheque $ (Including GST) No: 103 6/July To: Empire Theatre For: Theatre tickets for the family This cheque $ What would you do if the owner insisted that you allocate this entry to staff amenities and why?.... No: /July To: Furniture Importers For: Part payment of account (no GST involved) This cheque $2, No: /July To: Judy Johns For: Net wages This cheque $ No: /July To: G Hilder For: Accounting Fees This cheque $ (including GST) Software Publications Pty Ltd, 2013 Unit 15: Revision exercise 299

23 No: /July To: Local Garage For: Fuel This cheque $ (Including GST) no: /July to: Officeworks for: New computer (office equipment) This cheque $1, (including GST) No: /July To: Ergon For: Electricity This cheque $ (including GST) No: /July To: Judy Johns For: Net wages This cheque $ No: /July To: Local garage For: Fuel This cheque $88.00 No: /July To: Furniture Importers For: Part payment of account (no GST involved) This cheque $ With reference to cheque 112, what steps would be taken before this cheque was written out? Unit 15: Revision exercise Software Publications Pty Ltd 2013

24 FNS Financial Services Training Package Supplement This can be used by learners completing a qualification in the FNS Financial Services Training Package. Software Publications,

25 FNSACC301 Process financial transactions and extract interim reports Application This unit describes the skills and knowledge required to prepare and process routine financial documents, prepare journal entries, post journals to ledgers, prepare banking and reconcile financial receipts, and extract a trial balance and interim reports. It applies to individuals who use specialised knowledge and follow agreed processes to carefully check and process detailed financial information to ensure standards are maintained. Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on requirements. Elements and Performance Criteria Element Elements describe the essential outcomes. 1. Check and verify supporting documentation 2. Prepare and process banking and petty cash documents 3. Prepare and process invoices for payment to creditors and for debtors Performance criteria Performance criteria describe the performance needed to demonstrate achievement of the element. 1.1 Identify, check and record information from documents 1.2 Examine supporting documentation to establish accuracy and completeness and to ensure authorisation by appropriate personnel 2.1 Enter accurately and balance deposits and withdrawals according to organisational procedures 2.2 Check cheques and card vouchers for validity before processing 2.3 Reconcile banking documentation with organisation s financial records 2.4 Check, process and record petty cash claims and vouchers, and balance petty cash book according to organisational procedures 3.1 Prepare invoices in accordance with organisational procedures 3.2 Check invoices against source documents for accuracy and correct any errors 3.3 File all invoices and related documents for auditing purposes Workbook reference Assessment task Units 4, 5, 6, 7, 8 All tasks Units 4, 5, 6, 7, 8 All tasks Units 5 and 7 Tasks 1, 2 and 4 Unit 7 Units 5 and 12 Tasks 1, 2 and 4 Units 8 and 15 Tasks 3 and 4 Unit 4 Unit 6 All tasks 388 Software Publications, 2013

26 Element Elements describe the essential outcomes. 4. Prepare and post journals and batch monetary items 5. Post journals to ledger 6. Enter data into system 7. Prepare deposit facility and lodge flows 8. Extract trial balance and interim reports Performance criteria Performance criteria describe the performance needed to demonstrate achievement of the element. 4.1 Prepare journals accurately and completely, and batch items within organisational timelines 4.2 Match batch items precisely to initial receipt records 4.3 Ensure journals are authorised by appropriate person and process in accordance with organisational policy and procedures 5.1 Post journals accurately to ledger in accordance with organisational input standards, with transactions correctly allocated to system and accounts 6.1 Enter data accurately into system in accordance with organisational input standards and correctly allocate transactions to system and accounts 6.2 Update related systems to maintain integrity of relationships between financial systems 7.1 Select deposit facility appropriate to banking method to be used 7.2 Balance batch with deposit facility without error 7.3 Take security and safety precautions appropriate to method of banking, in accordance with organisational policy and industry and legislative requirements 7.4 Obtain and file proof of lodgement so that it is easily accessible and traceable 8.1 Process accurately any special transactions 8.2 Complete cash and credit journals and post to general ledger 8.3 Extract and check trial balance and prepare other required reports Workbook reference Units 10, 11 and 15 Units 5 and 15 Units 10, 13 and 15 Units 11 and 15 Assessment task Tasks 1 and 4 Task 4 All tasks All tasks Unit 5 Tasks 1 and 4 Unit 5 Unit 5 Unit 5 Units 10, 11 and 15 Unit 13 Units 13, 14 and Find and correct any errors Units 13 and 15 Task 4 Software Publications,

27 Foundation skills Skill Performance Criteria Reading 1.1, 1.2, 2.1, 2.2, 2.4, 3.2, 4.2, 8.4 Writing 1.1, 2.1, 2.4, 5.1, 8.2, 8.3 Oral communication Numeracy 1.1, , 3.1, 3.2, 4.1, 7.2, 8.1, 8.2 Navigate the world of work Interact with others Get the work done Description Analyses, matches and interprets information, paying attention to detail to identify errors Records information accurately using correct spelling, grammar and terminology 4.3 Uses questioning and active listening to convey and clarify information and instructions 2.1, 2.4, 3.1, 4.3, 5.1, 7.3 Performs mathematical calculations to check accuracy and completeness and reconcile numerical and financial data Follows legislative requirements, and organisational protocols, policy and procedures relevant to own role 1.2, 4.3 Uses correct communication practices and protocols to gain processing authorisations from relevant personnel 1.1, , , , 5.1, 6.1, 6.2, , Plans, organises and implements tasks according to organisational and legislative requirements Responds to predictable routine problems by implementing standard or logical solutions Workbook reference Liaising with trainer and felow students Units 7, 11 and 15 Umit 12 Uses the main features and functions of digital tools to complete work tasks and to access information 390 Software Publications, 2013

28 Assessment requirements v1.0 Performance evidence Evidence of the ability to: Assessment task accurately enter and balance deposits and withdrawals Tasks 1, 2 and 4 process and balance petty cash transactions Tasks 1 4 check and verify supporting documentation All tasks apply relevant security measures for preparing and banking receipts Tasks 1 and 4 batch monetary items and prepare deposit facilities Tasks 1 and 4 accurately enter data into accounting systems and process journal entries according to organisational policy and procedures and legislative requirements prepare and authorise journals and check journal processing reports All tasks Task 4 extract, check and correct a trial balance Task 4 file documentation to meet all organisational and regulatory requirements. Knowledge evidence All tasks To complete the unit requirements safely and effectively, the individual must: To complete the unit requirements safely and effectively, the individual must: identify a range of accounting conventions, processes and procedures Assessment task Task 4 describe banking procedures and guidelines Task 3 outline typical errors that can be made in processing financial transactions All tasks describe forms of proof of lodgement Tasks 1 and 4 describe types of special transactions Task 4 identify and describe the key features of: industry codes of practice All tasks legislative and regulatory requirements relevant to the work All tasks organisational policy and procedures All tasks explain the security procedures for handling cheques, vouchers and cash Task 1 describe the key features of a range of reports. Tasks 1 and 4 Software Publications,