A Step by Step Approach to Processing Financial ... 2-93-7... · Processing Financial Transactions and Extract Interim Reports ... check and verify supporting documentation; ... 8.3

© Software Publications Pty Ltd, 2013 i

A Step by Step Approach to

Processing Financial Transactions and Extract Interim Reports [manually and using MYOB AccountRight v19.8]

© 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 75078026150] Head Office – Sydney Unit 10, 171 Gibbes Street Chatswood NSW 2067 www.softwarepublications.com.au ISBN 978-1-922012-93-7 FNSACC301A Process financial transactions and extract interim reports

SUITABLE

FOR

FNSACC301

ii © Software Publications Pty Ltd, 2013

Copyright/Trademark Information:

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Other products mentioned may be service marks, trademarks or registered trademarks of their respective owners.

Limitations of Liability:

This material is designed to provide basic information on how to use MYOB AccountRight/AccountRight Plus v19.8. 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 enquiries about whether the material is relevant and still current, and whether it deals accurately and completely with that particular matter; and as appropriate, seek your own professional advice relevant to that particular matter.

This information is for the general information of MYOB clients and is not to be taken as a substitute for specific advice. Consequently Software Publications Pty Ltd, Marian Brown and Lyn Joyce will accept no responsibility to any person who acts on information herein without consultation with Software Publications Pty Ltd.

The information in this book is relevant to MYOB AccountRight v19.8. Earlier or later versions of MYOB AccountRight software could change the instructions in this workbook.

2 Unit 1 © Software Publications Pty Ltd, 2013

Purpose of this Workbook

This workbook provides you with the basic knowledge and skills to understand the bookkeeping cycle, the creation of source documents to provide information for recording in the accounts of a business and the recording of transactions in the accounts and preparation of interim reports.

This workbook is divided into 3 parts:

Part 1 In Part 1 you will learn how to prepare source documents manually and in MYOB AccountRight v19.8, eg Tax Invoices and Cheques for Brightspring Traders

Part 2 In Part 2 you will learn the basics of bookkeeping – bookkeeping terms, rules and how to analyse transactions and record in a ledger, prepare a trial balance and prepare financial reports.

Part 3 In Part 3, you will record more transactions for Brightspring Traders and print a Trial Balance, Profit and Loss Statement and Balance Sheet. A revision exercise for Kookaburra Furniture is also given. Data entry in MYOB AccountRight has been kept as straight forward as possible. Other workbooks will cover in depth the entry of data in MYOB AccountRight.

This workbook can be used with the following MYOB AccountRight software. MYOB AccountRight Standard v19.8

MYOB AccountRight Plus v19.8

MYOB AccountRight Premier v19.8 [multi-user version containing all the features of MYOB Accounting Plus and additional features – other currencies and enhanced inventory features]

MYOB AccountRight Enterprise v19.8 [MYOB Premier in Terminal Services environment plus additional locations feature and negative inventory]

MYOB AccountEdge Mac v11.5 [MYOB Premier in a Mac environment]

All screenshots within this manual are taken from MYOB AccountRight Plus v19.8 and therefore will include the Payroll icon. This feature is not available in MYOB AccountRight Standard.

Content and websites in this workbook The information in this workbook is accurate at the time of publishing. Because legislation and websites are constantly changing, information, URLs and website images used in this workbook may have changed.

© Software Publications Pty Ltd, 2013 Unit 1 3

Learning Outcomes

On the completion of this workbook you will be able to

check and verify supporting documentation;

prepare and process banking and petty cash documents;

prepare and process invoices for payment to creditors and for debtors

prepare journals and batch monetary items;

post journals to ledger;

enter data into system;

prepare deposit facility and lodge flows and

extract a trial balance and interim reports.

Delivery This course is designed to be instructor led or self-paced, and participants follow a set sequence of exercises. As a guide, this workbook may take about 35 hours to complete.

Relationship to Competency Standards

This workbook is designed to provide the elements of competency in the following units:

FNSACC301A Process financial transactions and extract interim reports

Element Performance Criteria 1 Check and

verify supporting documentation

1.1 Information from documents is identified, checked and recorded

Units 3,4,5,6,7, 10,13

1.2 Supporting documentation is examined to establish accuracy and completeness and to ensure authorisation by appropriate personnel

Units 3,4,5,6,7,10,13

2 Prepare and process banking and petty cash documents

2.1 Deposits and withdrawals are accurately entered and balanced according to organisational procedures

Units 5, 6, 10, 13

2.2 Cheques and card vouchers are checked for validity before processing

Units 6, 10, 13

2.3 Banking documentation is reconciled with organisation’s financial records

Units 5,10, 13 Bank Reconciliation Unit 11

2.4 Petty cash claims and vouchers are checked, processed and recorded and the petty cash book is balanced according to organisational procedures

Units 7,10 and 13


Element Performance Criteria 3 Prepare and

process invoices for payment to creditors and for debtors

3.1 Invoices are prepared in accordance with organisational procedures

Units 3 13

3.2 Invoices are checked against source documents for accuracy and any errors corrected

Units 4 and 6

3.3 All invoices and related documents are filed for auditing purposes

Throughout workbook

4 Prepare journals and batch monetary items

4.1 Journals are prepared accurately and completely and items batched within organisational timelines

Units 9,10,13

4.2 Batch items are precisely matched to initial receipt records

Unit 5, Unit 13

4.3 Journals are authorised in accordance with organisational policy and procedures

Journals authorised by trainer

5 Post journals to ledger

5.1 Journals are posted to ledger accurately and in accordance with organisation input standards with transactions correctly allocated to system and accounts

Units 9, 10,13

6 Enter data into system

6.1 Data is entered into system accurately and in accordance with organisation input standards with transactions correctly allocated to system and accounts

Units 10, 13

6.2 Related systems are updated to maintain the integrity of relationships between financial systems

Throughout workbook

7 Prepare deposit facility and lodge flows

7.1 A deposit facility is selected appropriate to the banking method to be used

Unit 5, 10, 13

7.2 Batch is balanced with deposit facility without error

Unit 5

7.3 Security and safety precautions are taken appropriate to the method of banking in accordance with organisational policy and industry and legislative requirements

Unit 5

7.4 Proof of lodgements is obtained and filed so that it is easily accessible and traceable

Unit 5

8 Extract a trial balance and interim reports

8.1 Any special transactions are processed accurately

Unit 9,10,13

8.2 Cash and credit journals are completed and posted to general ledger

Units 10,13

8.3 A trial balance is extracted and checked and other required reports prepared

Units 9,10,13

8.4 Any errors are found and corrected Throughout workbook checking with solutions


Required skills and knowledge 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

Liaising with trainer and other students Interpret documentation to produce reports

numeracy skills to make financial calculations Throughout units

information technology skills for accessing and using spreadsheets and databases

Excel – petty cash Use of internet MYOB AccountRight

literacy skills for data analysis and interpretation

Throughout workbook

evaluative and general analytical skills Throughout workbook

organisational skills, including the ability to plan and sequence work

Throughout workbook

Required knowledge

accounting conventions, processes and procedures

Units 8 and 9

banking procedures and guidelines Unit 5 industry codes of practice Unit 5 and

BAS Agent Code

legislative and regulatory requirements relevant to the work

Throughout workbook

organisational policy and procedures Throughout workbook

relevant acts and regulations Unit 5, 8, 9 security procedures for handling cheques,

vouchers and cash Unit 5 and 6


Backing up your company file

Backing up is an essential part of your daily routine. A backup is a copy of your company file in the event of something happening to your original company file such as corruption, virus or theft.

(i) Make sure you have your “Brightspring198” file OPEN. (ii) At the end of every session, select “File”, “Exit”. (iii) Select yes to the “Back Up” option. (iv) Select “Backup Company File and M-Powered Services Centre only”. The following dialog box is displayed.

(v) Read the contents of the dialog box. Select the buttons above.

(vi) Click on “Continue”.

A data-checking message will appear. Hopefully you will have no errors. If you have, MYOB is warning you that your file is corrupted and you should not continue using this company file. You should optimise your company file [“File, Optimise”] then verify again. If the file is still corrupted, you must restore a previous back up copy.

(vii) Click on “OK” to continue with the backup. (viii) Select where you wish to save the backup (perhaps on a USB/external hard drive) (ix) Give the file a name e.g. page 56.zip. (x) If you lose your file, you can restore a copy of the required company file – see

page 57 for instructions on how to restore your backup.

You can make a copy of your company file + BAS + forms + letters + spreadsheets + customised reports if you choose this option


Restoring a Backup Assume your original company file has been corrupted or lost. You will now restore the file you backed up. To restore your backup:

(i) With any company file open, even the Clearwater sample file, go to the “File”

menu and choose “Restore”.

(ii) Select the backup file to restore [double-click].

(iii) Select the destination for the restored company file and give the file a new name.

(iv) Click “Save”.

(v) Click “OK” at the confirmation message to restore and log into the file.

You can now continue entering data in your restored file. In business it would be a good idea to delete the corrupted company file.


Security and Safety Precautions in Handling Cash The cheques and money will be taken to the bank in person, therefore security and safety precautions must be considered. Printed below are some “Cash Handling Tips” from the Queensland Police website retrieved December 2010. Cash Handling

All businesses which handle cash, and particularly those which employ a lone attendant at night, should consider the following:

Count and transfer cash behind closed doors and not in public view.

Reduce cash held on the premises to a workable minimum and advertise this prominently.

Implement a system whereby excess cash is removed to a secure area -perhaps a safe with a 'posting slot'.

Locate cash registers away from doors and keep separated from public areas.

Have only one entrance to the premises which can be easily observed by the attendant.

Remove promotional or other posters from windows which may obscure attendant’s vision from inside or outside.

Advertise the fact that late operators do not have the key, or combination of, your safe.

Place emergency numbers where attendants can easily see them.

Train your staff to establish clear cash register procedures which include the following:

Open cash drawer only while actually being used.

Close cash drawer before merchandise is packaged.

Lock cash drawer and remove key when not in use.

Leave tills open and empty to avoid possible damage by intruders when leaving premises unattended overnight.

Before leaving check that no person has remained on the premises (eg check toilets).

118 Unit 5 © Software Publications Pty Ltd 2013

Moving Cash

Money in transit is vulnerable. Where possible use a cash-transit company, particularly when moving large sums of money. Consider banding together with other small businesses in your area to hire a cash transit company for regular use. To reduce the opportunity for crime when transporting cash consider the following: Assign more than one person to the task.

Send well-trained staff.

Avoid using public transport.

If using a private car, keep the doors locked at all times and do not leave the vehicle en route.

Avoid quiet streets and vary the route and time of travel.

If using taxi, order one by telephone and ask the operator to give you the number of the assigned cab.

If walking, keep to busy streets.

Do not advertise the fact that you are carrying cash (e.g. marked bank bag). Consider using a security case.

Do not talk publicly about cash movements.

Do not establish a routine for cash movements - vary both time and route taken.

Ensure the time of return is known so an alarm can be raised if necessary.

Be aware of drivers of vehicles or people behaving suspiciously.

If using a night safe, do not expose cash until the safe is opened. If a safe or door key cannot be accounted for, change the locks.

Source: www.police.qld.gov.au, Cash Handling Tips, retrieved December 2010.

Remember:

At all times personal safety is paramount. In addition, employers have an obligation under the Work Health and Safety Act 2011 to provide a safe working environment.


Security and Safety Precautions (i) In the business, who is responsible for the banking of cash, cheques and merchant

summaries? ……………………………………… (ii) With reference to the Cash Handling Tips on the previous pages, list 5 personal safety

steps this employee can take when banking the takings. ..........................................................................................................................................

..........................................................................................................................................

..........................................................................................................................................

..........................................................................................................................................

..........................................................................................................................................

Other Methods of Banking Banking can be picked up by a 3rd party security company and delivered to a bank eg

Chubb Security Services. Express Banking where cheques and sometimes cash, depending on the bank, are

placed in an envelope and deposited in a special box at the bank. Use of a night safe, where the deposit slip and cash, cheques etc are deposited after

hours. The business owner must have a special key to open the night safe.

120 Unit 5 © Software Publications Pty Ltd 2013

Batching deposits in your MYOB AccountRight file

(i) In your company file, select the “Banking” Command Centre.

(ii) Select “Prepare Bank Deposit”.

(iii) Key in “8/next month”.

(iv) Tick () each amount to be banked.

Your window should look like this. DO NOT RECORD as yet.

Check the list on page 116 with the above. [Direct Deposit will not be included with the banking].

(v) If one of the dates, IDs, method of payment or Memo in the above entries is

incorrect:

(a) Click on the to the left of the entry.

(b) Correct the error and select “OK” to return to the above window.

(vi) If one of the amounts or customer in the above entries is incorrect:

(a) Click on the to the left of the entry.

(b) Select “Edit” in the Menu Bar.

(c) Select “Delete Payment”.

(d) Re-enter the customer payment.

(e) Display the above list and check with the previous page.

(vii) If one or more of the entries is not visible, you could have:

(a) Used a date AFTER “8/next month”. In this instance, enter in the “Date” field “31/12/9999”. If the entry is visible, call up the entry and enter the correct date [as above].


(b) When entering the payment, you may have selected the “Deposit to Account” instead of “Group with …”.

(viii) To find a missing entry:

(a) DO NOT RECORD. Return to the Command Centre.

(b) In the “Banking” Command Centre, select “Bank Register” for “Cheque Account” and a wide date range.

Your Bank Register could look like this:

(c) Locate the entry, call up, and select the correct account, then “OK”.

You may also have to check the “Undeposited Funds” or other accounts to find the entry.

(ix) Return to the Command Centre.


Transactions Transactions are merely the events that occur within a business which have a monetary value. If you were to examine the events that occur in your own daily dealings, you would find that you could: sell items or services; [Unit 3] purchase items or services; [Unit 4] receive payment for items or services and [Unit 5] pay for items or services. [Units 6 and 7] The transactions that occur in a business are exactly the same. In a business we can say that transactions can be grouped into four types: Sales [Tax Invoice issued] Purchases [Tax Invoice received] Payments [Cheque, Cash, Credit Card, Electronic Funds Transfer] Receipts [Cash, Cheque, Credit Card, Electronic Funds Transfer]

North Spring Water Pty Ltd Tax Invoice ABN 35 903 251 421 1478 54 Valley Street Blackburn VIC 3130 (03) 9555 6779

TO: Brightspring Traders Delivery Address: 25 Spring Street Brightspring Traders BLACKBURN VIC 3130 25 Spring Street BLACKBURN VIC 3130 Date: 5/month, 20yy Purchase Order Number: 009 Terms: 3O DAYS Quantity

Item Number

Description

Unit Price Inc GST [if applicable]

Total inc GST

Tax Code

1 100 Cooler Large $385.75 $385.75 GST

10 600 20 Litres North Spring $13.25 $132.50 FRE

2 120 Cooler Filter Large $50.22 $100.44 GST

$618.69

Amount of GST in this invoice: $44.20

Transaction: The above Tax Invoice received from North Spring Water Pty Ltd [supplier] records the following transaction.

On 5/month, the business [Brightspring Traders] purchased from North Spring Water Pty Ltd the following:

10 bottles of 20 litre North Sprint water and 2 large Filters costing $618.69 including GST on credit [ie buy now, pay later].


Printed below is a cheque written out to pay North Spring Water Pty Ltd.

Date 2/next month

Pay North Spring Water Pty Ltd

Details Payment of Invoice 1478

FWD This Cheque $618.69 Balance

002500

Eastpac Bank Blackburn VIC 3130 002500 Date: 2/next month. Pay North Spring Water Pty Ltd…….. OR BEARER

The sum of Six hundred and eighteen dollars and

sixty-nine cents------------------------------- $618-69 DRAWER Brightspring Traders ABN: 80 000 000 001 123456789

Peter Parker

"002500 "062"'001: 123456789"

What transaction has taken place? ..................................................................................................................................................... ..................................................................................................................................................... ..................................................................................................................................................... The business records the transactions relating to a particular person or item into an account. An account is simply the name of a particular person or item eg Sales A/c or Telephone A/c, ”A/c” being an abbreviated form of “Account”. An account group classifies common types of accounts. There are five account groups used in a business. 1. Asset accounts group 2. Liability accounts group 3. Equity [or Proprietorship] accounts group 4. Expense account group 5. Revenue (Income) account group


Account Groups

The first three account groups are:

Asset Accounts Liability Accounts Equity Accounts 1. Asset Accounts

Assets are items of value owned by the business. Assets are resources with economic value that an individual or business owns or controls with the expectation that they will provide future benefits. Simply stated, assets represent value of ownership that can be converted into cash or are already in cash form.

An example of an asset account is the Bank account.

Another example of an asset is the Debtors [Accounts Receivable] account. This is a less obvious example, but it is expected that the debt owed will be honoured, and is therefore an asset to the business. Another asset could be Office Equipment owned by the business.

2. Liability Accounts

Liabilities are items of value owed by the business. A liability is defined as an obligation of an entity arising from past transactions or events, the settlement of which may result in the transfer or use of assets, provision of services or other yielding of economic benefits in the future.

An example of a liability account is a Loan from the bank.

Another example of a liability account is the Creditors [Accounts Payable] account. As with debtors, it is expected that the business will honour the debt owed, and is therefore a liability to the business.

3. Equity Accounts

As the name implies, this account group deals with the owner/s of the business. It shows the value of all the funds or items of value invested into the business (contributed by the owners), all withdrawals of cash or goods from the business (called Drawings) and any profits made or losses incurred in the accounting period. Owner's equity is expressed differently in each type of business - in a sole proprietorship or partnership, it is expressed as the owner's or partner's capital but in a corporation, it is expressed as retained earnings. Simply put, the only way an owner's equity can grow is by investing more money in the business, or by increasing profits through increased sales and decreased expenses. Equity is similar to a liability but is regarded as a "Special Liability" as the business owes the owner for all money or items of value he/she has invested.


Classify the following as an asset, liability or equity account:

Computer: .....................................................................................................................

PAYG owing to the ATO .............................................................................................

$10,000 invested by the owner .....................................................................................

Credit Card debt: ..........................................................................................................

Toyota Landcruiser .......................................................................................................

$25,000 still owing on the Toyota Landcruiser: ........................................................... The Relationship between Assets, Liabilities and Equity Asset, Liability and Equity Account Groups are related to each other. They represent “what the business owns” or “what the business owes”. Together these accounts indicate the financial position of the business. In bookkeeping, a business report that lists “what is owned” (assets), and “what is owed” (liabilities + equity) is called a Balance Sheet. The Accounting Entity Convention [Accounting conventions, or assumptions, are the basic rules of accounting which have become acceptable procedures over time] states that, in an accounting environment, the business and the owner must always be regarded as separate entities. Even though Owner’s Equity is considered a special liability, the account group Equity is listed separately from the account group Liabilities. All personal transactions of the owner(s) should be kept separate from those of the business. A sample Balance Sheet is printed below.

BALANCE SHEET OF Brightspring Traders AS AT 31 JULY xxxx

ASSETS LIABILITIES

Bank 1,500 Bank Loan 8,000

Accounts Receivable* 8,000 Accounts Payable** 8,500

Office Furniture 10,000

EQUITY

Capital 3,000

$19,500 $19,500 *Accounts Receivable are customers you owe the business money. **Accounts Payable are suppliers to whom the business owes money.


This form of Balance Sheet is known as a "T" form Balance Sheet. In a “T” form Balance Sheet you will notice that Assets = Liabilities +Equity. This formula can be shortened to A = L + E and is known as the Accounting Equation.

The Accounting Equation is an important mathematical concept. The whole bookkeeping process is based on this equation. It will always show you the relationship between Asset, Liability and Equity account groups and is the theory on which the development of debits and credits is based.

A Balance Sheet may also look like this, just another way of reporting the information. This is known as the “Narrative” form.

BALANCE SHEET OF Brightspring Traders AS AT 31 JULY xxxx

EQUITY

Capital $3,000

Represented By:

ASSETS

Bank 1,500

Accounts Receivable 8,000

Office Furniture 10,000 19,500

Less LIABILITIES

Bank Loan 8,000

Accounts Payable 8,500 16,500

$3,000 Note that the Accounting Equation is now: Equity = Assets – Liabilities or E = A – L. The Balance Sheet above tells the following story about the business owned by Brightspring Traders. On the 31st July, Brightspring had the following: $1,500 in the bank Customers who owe $8,000 Office Furniture at a cost of $10,000

$8,000 Bank Loan Owe suppliers $8,500 This business is worth $3,000 to the owner. (The net value of his investment.) NOTE: Assets (as above, Office Furniture) are usually recorded at their historical cost. The historical cost convention is a rule which states that all transactions are recorded at their original value. This method is quite objective, as it relies on documentary evidence such as invoices and receipts and does not allow for subjective adjustment for inflation.

Accounting Equation: A = L + E


Balance Sheet Exercise:

The following is a list of assets, liabilities and equity items of B Mercer, Plumber at the end of the current month.

Prepare a Balance Sheet as at the end of the current month. [Solution in Appendix.]

Bank $20,000 Motor Vehicle $35,000 Office Equipment $15,000 Stock of Taps $4,500 Bank Loan $22,000 Visa Credit Card $2,100 Shed $88,500 Accounts Receivable $14,000 Accounts Payable $3,600 Capital $149,300

BALANCE SHEET in “T” FORM of B Mercer As at

ASSETS LIABILITIES

EQUITY

BALANCE SHEET in “NARRATIVE” FORM of B Mercer

As at EQUITY

Capital

Represented by:

ASSETS

Less LIABILITIES

© Software Publications Pty Ltd, 2013 337

FNS Financial Services Training Package

Supplement

This workbook can be used by learners completing a qualification in the FNS Financial Services Training Package.

338 © Software Publications Pty Ltd, 2013

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.

Performance criteria Performance criteria describe the performance needed to demonstrate achievement of the element.

Workbook reference

Assessment task

1. Check and verify supporting documentation

1.1 Identify, check and record information from documents

Units 3,4,5,6,7, 10,13

All progress assessments

1.2 Examine supporting documentation to establish accuracy and completeness and to ensure authorisation by appropriate personnel

Units 3,4,5,6,7,10,13


2. Prepare and process banking and petty cash documents

2.1 Enter accurately and balance deposits and withdrawals according to organisational procedures

Units 5, 6, 10, 13 Progress assessments 3 and 4

2.2 Check cheques and card vouchers for validity before processing

Units 6, 10, 13

2.3 Reconcile banking documentation with organisation’s financial records

Units 5,10, 13 Bank reconciliation Unit 11

Progress assessment 6

2.4 Check, process and record petty cash claims and vouchers, and balance petty cash book according to organisational procedures

Units 7,10 and 13


3. Prepare and process invoices for payment to creditors and for debtors

3.1 Prepare invoices in accordance with organisational procedures

Units 3 13 Progress assessments 1 and 2 3.2 Check invoices against source

documents for accuracy and correct any errors

Units 4 and 6

3.3 File all invoices and related documents for auditing purposes

Throughout workbook


Element Elements describe the essential outcomes.

Performance criteria Performance criteria describe the performance needed to demonstrate achievement of the element.

Workbook reference

Assessment task

4. Prepare and post journals and batch monetary items

4.1 Prepare journals accurately and completely, and batch items within organisational timelines

Units 9,10,13 Progress assessment 6

4.2 Match batch items precisely to initial receipt records

Unit 5, Unit 13

4.3 Ensure journals are authorised by appropriate person and process in accordance with organisational policy and procedures

Journals authorised by trainer

5. Post journals to ledger

5.1 Post journals accurately to ledger in accordance with organisational input standards, with transactions correctly allocated to system and accounts

Units 9, 10,13 Progress assessment 6

6. Enter data into system

6.1 Enter data accurately into system in accordance with organisational input standards and correctly allocate transactions to system and accounts

Units 10, 13 All progress assessments

6.2 Update related systems to maintain integrity of relationships between financial systems

Throughout workbook


7. Prepare deposit facility and lodge flows

7.1 Select deposit facility appropriate to banking method to be used

Unit 5, 10, 13 Progress assessment 3

7.2 Balance batch with deposit facility without error

Unit 5

7.3 Take security and safety precautions appropriate to method of banking, in accordance with organisational policy and industry and legislative requirements

Unit 5

7.4 Obtain and file proof of lodgement so that it is easily accessible and traceable

Unit 5

8. Extract trial balance and interim reports

8.1 Process accurately any special transactions

Unit 9,10,13 Progress assessment 6

8.2 Complete cash and credit journals and post to general ledger

Units 10,13

8.3 Extract and check trial balance and prepare other required reports

Units 9,10,13

8.4 Find and correct any errors Throughout workbook checking with solutions

340 © Software Publications Pty Ltd, 2013

Foundation skills

Skill Performance Criteria

Description Workbook reference

Reading 1.1, 1.2, 2.1, 2.2, 2.4, 3.2, 4.2, 8.4

Analyses, matches and interprets information, paying attention to detail to identify errors

Throughout workbook

Writing 1.1, 2.1, 2.4, 5.1, 8.2, 8.3

Records information accurately using correct spelling, grammar and terminology

Throughout workbook

Oral communication

4.3 Uses questioning and active listening to convey and clarify information and instructions

Liaising with trainer and other students

Numeracy 1.1, 2.1-2.4, 3.1, 3.2, 4.1, 7.2, 8.1, 8.2

Performs mathematical calculations to check accuracy and completeness and reconcile numerical and financial data

Throughout workbook

Navigate the world of work

2.1, 2.4, 3.1, 4.3, 5.1, 7.3

Follows legislative requirements, and organisational protocols, policy and procedures relevant to own role

Throughout workbook

Interact with others

1.2, 4.3 Uses correct communication practices and protocols to gain processing authorisations from relevant personnel

Units 3–6 and 13

Get the work done

1.1, 2.1-2.4, 3.1-3.3, 4.1-4.3, 5.1, 6.1, 6.2, 7.1-7.4, 8.1-8.4

Plans, organises and implements tasks according to organisational and legislative requirements

Throughout workbook

Responds to predictable routine problems by implementing standard or logical solutions

Throughout workbook

Uses the main features and functions of digital tools to complete work tasks and to access information

Throughout workbook


Assessment requirements v1.0 Performance evidence

Evidence of the ability to: Assessment task

accurately enter and balance deposits and withdrawals Progress assessments 3 and 4

process and balance petty cash transactions Progress assessment 5

check and verify supporting documentation All progress assessments

apply relevant security measures for preparing and banking receipts


batch monetary items and prepare deposit facilities Progress assessment 3

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


extract, check and correct a trial balance Progress assessment 6

file documentation to meet all organisational and regulatory requirements.

Progress assessments 1 and 2

Knowledge evidence To complete the unit requirements safely and effectively, the individual must:

To complete the unit requirements safely and effectively, the individual must:

Assessment task

identify a range of accounting conventions, processes and procedures


describe banking procedures and guidelines Progress assessment 3

outline typical errors that can be made in processing financial transactions

Progress assessments 1–3 and 6

describe forms of ‘proof of lodgement’ Progress assessment 3

describe types of ‘special transactions’ Progress assessment 6

identify and describe the key features of:

industry codes of practice Progress assessment 6

legislative and regulatory requirements relevant to the work


organisational policy and procedures All progress assessments

explain the security procedures for handling cheques, vouchers and cash


describe the key features of a range of reports. All progress assessments

Documents

A Step by Step Approach to Processing Financial ... 2-93-7... · Processing Financial Transactions and Extract Interim Reports ... check and verify supporting documentation; ... 8.3