Computerised Accounting using MYOB AccountRight Plus v19.8 covering

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1 Computerised Accounting using MYOB AccountRight Plus v19.8 covering BSBFIA301A Maintain financial records BSBFIA303A Process accounts payable and receivable BSBFIA304A Maintain a general ledger Software Publications Pty Ltd, June 2015 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 ICB Education Specialist Revised by: Lyn Joyce Dip T (Commerce), B Ed Cert IV Training and Assessment Secondary and tertiary teacher for 40 years Publishers: Software Publications Pty Ltd [ABN ] Head Office Sydney Unit 10, 171 Gibbes Street Chatswood NSW ISBN SUITABLE FOR BSBFIA301 BSBFIA303 BSBFIA304 Software Publications Pty Ltd, 2013

2 Copyright/Trademark Information: MYOB, AccountantConnect, AccountantsEnterprise, AccountantsOffice, AccountEdge, AccountRight, AccountRight Basics, AccountRight Standard, AccountRight Plus, AccountRight Premier, AccountRight Enterprise, Accounting, Accounting Plus, Atlas by MYOB, MYOB BusinessBasics, BankConnect, MYOB CashBasics, ClientConnect, ClientConnect Plus, Exo, FirstEdge, LiveAccounts, Love Your Work, Mind Your Own Business, MYOB - Making Business Life Easier, MYOB Atlas, MYOB ClientConnect, MYOB Enterprise, MYOB Exo, MYOB M-Powered, MYOB M-Power, M-Powered Services, M-Powered Bank Statements, M-Powered Invoices, M-Powered MoneyController, M-Powered Payments, M-Powered Superannuation, ODBC DeveloperPack, ODBC Direct, PowerPay, Premier, Premier Enterprise, RetailBasics, RetailHospitality, RetailManager, RetailManager Enterprise, RetailManager Professional, RetailManager Standard, RetailReady, Smarter Connections are registered trademarks or trademarks of MYOB Technology Pty Ltd and their use is prohibited without prior consent. Ceedata, Solution 6 MAS and Xlon are registered trademarks or trademarks of Solution 6 Holdings Limited, a member of the MYOB group. Adobe, Acrobat, Acrobat Reader, Adobe Reader, PDF, and PostScript are trademarks or registered trademarks of Adobe Systems Incorporated. AddressBook, Apple, imac, AirPort, ical, Macintosh, and QuickTime and the QuickTime logo are registered trademarks of Apple Inc. MobileMeSM is a service mark of Apple Inc. Mac and the Mac logo are trademarks of Apple Inc., used under licence. Brio Intelligence and Hyperion Intelligence are trademarks or registered trademarks of Hyperion Solutions Corporation, Ctree use by permission from Faircom, Dapper used under licence with Apache Software, NiXPS used under licence, WinForms control set used by permission from DevExpress. Crystal Reports is a registered trademark of Crystal Decisions, Inc. in the United States or other countries. FlexNet Connect is a registered trademark of Flexera Software Inc. Google Maps card links included with permission. MasterCard is a registered trademark of MasterCard International Inc, xerces is licenced under Apache Software. Microsoft, Access, Azure, DotNetZip, Excel, Fluent.Net, Internet Explorer,.Net Framework,Office, N-Log used under open source licence, Outlook, Smart Tags, Ribbon Control Library, SQL Azure, SQL CE, Windows, Word and WFPToolkit, are registered trademarks or trademarks of Microsoft Corporation in the United States or other countries. Quicken and QuickBooks are registered trademarks of Intuit Inc. SM2DGraphView Copyright Snowmint Creative Solutions LLC snowmintcs.com. VISA is a registered trademark of Visa International Service Association. RightNow CX is a registered trademark of RightNow Technologies Inc. Sentry Spelling Checker Engine for Windows, copyright Wintertree Software Inc. 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 and Marian Brown 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 Plus v19.8. Earlier or later versions of MYOB AccountRight software could change the instructions in this workbook. References to websites may also change owing to the changing nature of this type of information. Software Publications Pty Ltd, 2013

3 Relationship to Competency Standards This workbook is designed to provide material to cover the performance criteria, required skills and knowledge of three units of competency in the Business Services Training Package BSBFIA301A, BSBFIA303A and BSBFIA304A. The details of each unit are shown below: BSBFIA301A Maintain financial records This unit describes the performance outcomes, skills and knowledge required to maintain financial records for a business. It includes maintaining daily financial records such as reconciling debtors' and creditors' systems, preparing and maintaining a general ledger, and preparing a trial balance. It also includes activities associated with monitoring cash control for accounting purposes. 1 Maintain Daily Financial Records 2 Maintain general ledger 3 Monitor Cash Control 1.1 Correctly maintain daily financial records in according with organisation requirements for accounting purpose 1.2 Identify and rectify or refer discrepancies or errors in documentation or transactions to designated persons in accordance with organisational requirements. 1.3 Accurately credit and debit transactions and promptly enter into journals in accordance with organisational requirement. 2.1 Maintain general ledger in accordance with organisational requirements. 2.2 Post transactions into general ledger in accordance with organisational reporting requirements. 2.3 Reconcile systems for accounts payable and receivable with general ledger 2.4 Accurately prepare trial balance from general ledger in accordance with organisational requirements. 3.1 Ensure cash flow is accurately accounted for in accordance with organisational requirements. 3.2 Make and receive payments in accordance with organisational requirements. 3.3 Collect or follow-up outstanding accounts within designated time lines 3.4 Check payment documentation for accuracy of information and despatch to creditors within designated time line. Units 4, 6, 7, 8, 9 Pages 77,78, 92 and 368 Units 4, 6, 7, 8,9 and BAS Unit Throughout the workbook, accounts added, deleted modified according to Policies and Procedures. Posting is done automatically in MYOB. Pages 321, 368 and 381 Units 7 and 8 Unit 6 Printout 25, 68 All units Units 7 and 8 Page 381 Unit 7, 8 and 9 Unit 8, creditor payments page 381 ii About this Workbook Software Publications Pty Ltd, 2013

4 Required Skills Required Knowledge Critical Aspects of evidence Literacy skills to identify financial information; to read and understand the organisation s accounting procedures; and to edit an proofread documents to ensure conformity and consistency of information Communication skills to clarify information and to refer errors or discrepancies to appropriate people Numeracy skills to read and interpret financial data and to prepare cash analysis sheets Problem-solving skills to reconcile figures Key provisions of relevant legislation from all levels of government that may affect aspects of business Unit 4 Consolidation Ex 2 Clarification of issues through workbook. All units Reconcile bank accounts, subsidiary ledgers Units GST Page 23, WHS Unit 1 Valid Tax Invoices - Page 268 ICB Code of Conduct Unit 9 Accounting Standards Page 206 Organisational policies and procedures Throughout workbook relating to maintaining financial records Definition of credits/creditors and Unit 6 debits/debtors Principles of double-entry bookkeeping Unit 6 and accrual accounting Methods of presenting financial data Throughout workbook Identifying and responding to Pages 77,78, 92 and 368 discrepancies and errors Transferring and recording financial Throughout workbook data accurately Reconciling expenditures and revenue Unit 4 Knowledge of organisational policies Throughout workbook and procedures relating to maintaining financial records Software Publications Pty Ltd, 2013 About this Workbook iii

5 BSBFIA303A Process accounts payable and receivable This unit describes the performance outcomes, skills and knowledge required to maintain accounts payable and accounts receivable records, including processing payments to creditors and handling overdue accounts receivable. 1 Maintain financial journal systems 2 Prepare bank reconciliations (including Bank, Petty Cash and Loan accounts) 3 Maintain accounts payable and accounts receivable systems. 4 Process payments for accounts payable 1.1 Check source documents for accuracy and appropriate authorisation. 1.2 Refer errors and discrepancies in source documents for resolution, in accordance with organisational policy and procedures. 1.3 Enter transactions into the cash and credit journal system in accordance with organisation policy and procedures and relevant legislation and compliance requirements. 1.4 Total credit journals in accordance with organisational policy and procedures. 2.1 Check cash journals against bank statements to identify differences. 2.2 Update cash journals with relevant data from bank statement 2.3 Identify discrepancies and refer to the appropriate staff member, organisation or agency. 2.4 Total the cash journals in accordance with organisational policy and procedures. 2.5 Prepare regular reconciliation reports within designated timelines. 3.1 Enter transactions into individual accounts payable and accounts receivable in accordance with organisational policy and procedures. 3.2 Prepare schedules of accounts payable and accounts receivable for reconciliation purposes in accordance with organisational requirements. 3.3 Reconcile schedules accounts payables and accounts receivable with journal data or general ledger in accordance with organisational requirements. 4.1 Reconcile accounts payable statements with accounting records in accordance with organisational policy and procedures. Units 4, 6, 7 and 8 Pages 77, 78 and 368 Units 4, 6, 7 and 8 Throughout the workbook (automatic in MYOB) Unit 4, Pages 211 and 383 Consolidation exercises 1 5 and integrated Units 7 and 8 Pages 199, 200 Consolidation exercises Pages 321, 344, 346, 356, 231, 241, 246, 273, and 300 Consolidation exercises Unit 8 Pages 321, 344, 346 and 356 iv About this Workbook Software Publications Pty Ltd, 2013

6 5 Prepare statements for accounts receivable 6 Follow up outstanding accounts Required Skills Required Knowledge Critical Evidence 4.2 Check payment documentation for accuracy of information and discrepancies and rectify errors in accordance with organisational requirements. 5.1 Produce and check accounts receivable statements for accuracy of content in accordance with organisational policy and procedures. 5.2 Rectify discrepancies and statements despatched within designated timelines. 6.1 Maintain accounts receivable ledger. 6.2 Conduct aged analysis of accounts receivable to identify outstanding account. 6.3 Report or follow up outstanding accounts in accordance with organisational policy. 6.4 Monitor and review credit terms. Literacy skills to read and understand financial procedures Numeracy skills to: use knowledge of mathematical concepts interpret, compare and calculate with whole numbers and money use decimal fractions and percentages Problem-solving skills to use approximation to check for discrepancies and ensure calculations are correct Key provisions of relevant legislation and regulations from all forms of government, standards and codes that my affect aspects of business operations such as Occupational Health and Safety Page 381 Unit 7 Consolidation exercise 5 and integrated exercise Consolidation exercise 5, integrated exercise, Pages 231, 241, 246, 273, 300 Interpretation questions in all units Unit 6 Petty Cash and private use calculations GST - Page 23 WHS Unit 1 Valid Tax Invoices - Page 268 ICB Code of Conduct Unit 9 Accounting Standards Page 206 Limit of scope of own responsibility Unit 9 Organisational accounting systems and Throughout workbook procedures Maintaining journals and subsidiary Units 4, 6, 7, 8 and 9 ledger systems Accurately entering data into journal Done automatically in and subsidiary ledger system MYOB Reconciling subsidiary ledger system Pages 200, 199 with journal or general ledger data Software Publications Pty Ltd, 2013 About this Workbook v

7 BSBFIA304A Maintain a general ledger This unit describes the performance outcomes, skills and knowledge required to maintain a general ledger within an organisation including processing journal entries and preparing a trial balance. 1 Process journal entries 2 Prepare a trial balance Required Skills Required Knowledge Critical Aspects of Evidence 1.1 Prepare general journal entries from source documents. 1.2 Post journals into general ledger. 1.3 Reconcile accounts payable and accounts receivable subsidiary ledger system with general ledger. 1.4 Ensure processing maintains the accounting equation and is completed within designated timelines. 2.1 Prepare trial balance of the general ledger. 2.2 Identify and rectify irregularities or refer them for resolution when trial balance does not balance in accordance with organisational policy and procedures. Literacy skills to read and understand financial procedures Numeracy skills to use knowledge of mathematical concepts interpret, compare and calculate with whole numbers and money use decimal fractions and percentages Problem-solving skills to use approximation to check for discrepancies and ensure calculations are correct. Key provisions of relevant legislation and regulations from all forms of government, standards and codes that may affect aspects of business operations. Units 4, 5, 6, 7, 8 and 9 Pages 199and 200 Trial Balance and Balance Sheet printed Printout 25 and 68 Unit 6 Throughout workbook Unit 6 Cash analysis Petty Cash Unit 9 GST - Page 23 WHS Unit 1 Valid Tax Invoices Page 268 ICB Code of Conduct Unit 9 Accounting Standards Page 206 Limit of scope of own responsibility Unit 9 Organisational accounting systems and Throughout workbook procedures. Accurately entering data Units 4, 6, 7, 8 and 9 Applying understanding of general Unit 6 journal entries and knowledge of relationship between journal and general ledger. Implementation of double-entry Unit 6 principles Unit 7 Systematic tracing of errors Unit 9 vi About this Workbook Software Publications Pty Ltd, 2013

8 Before you begin exploring MYOB AccountRight If you haven t already, download the exercise files required for this workbook following the instructions in How to download exercise files. Exploring MYOB AccountRight Open MYOB AccountRight Plus v19.8 by double-clicking on the MYOB AccountRight shortcut on your desktop. MYOB AccountRight Plus v19.8 shortcut looks like this. The following window is displayed. To explore MYOB AccountRight and discover how the program works, you will open an existing company file belonging to [Your Name] Copy Centre. Software Publications Pty Ltd, 2013 Unit 2 5

9 [Your Name] Copy Centre is a small business which buys and sells stationery and does photocopying, collating and binding of manuals, reports etc. The business offers an express service. Consequently the business also has a small Snack Bar so that clients can have a snack while their copying job is being done. The business is owned by one person, a SOLE TRADER, and is registered for GST. (i) (ii) (iii) (iv) Point to Open your company file and click. Locate the MYOB AccountRight company file COPY198 already downloaded and saved on your computer or USB. Select [i.e. double-click] COPY198.MYO. You are asked to Sign-On like this: (v) (vi) In this workbook you will sign-on as the Administrator without a password. [Passwords and other User IDs can be set up.] Select OK. The MYOB AccountRight Command Centre is displayed [see next page]. 6 Unit 2 Software Publications Pty Ltd, 2013

10 The MYOB AccountRight Command Centre will look like this. Menu Bar 8 Command Centre Buttons Command Panel Flow Chart for Command Centre Selected Accounts. Software Publications Pty Ltd, 2013 Unit 2 7

11 Reconciling the Cheque Account with the Bank Statement Each month [or even week], it is usual for the business to receive a Bank Statement from the Bank or download their Bank Statement using on-line or Internet banking. Printed below is the Bank Statement received showing transactions up to 19/month: [Your Name] Copy Centre Bank Statement Issued: 19/month Bank Statement 10 Page 1 Date Transaction Withdrawal Deposit Balance 1/ Balance 8, CR 3/ , CR 3/ Deposit , CR 4/ EFTPOS , CR 4/ , CR 4/ Deposit , CR 5/ EFTPOS , CR 5/ , CR 5/ Deposit , CR 6 EFTPOS , CR 9/ , CR 9/ , CR 18/ , CR 18/ Deposit , CR 19 EFTPOS , CR 18/ EFT to T White , CR 20/ A/c Keeping Fee , CR Cheques presented to the Bank, periodical payments and bank fees. Deposits Bank Statement Balance - 20/month To reconcile your Cheque Account with the Bank Statement: (i) (ii) Select the Banking Command Centre. Select Reconcile Accounts. Software Publications Pty Ltd, 2013 Unit 4 71

12 (iii) (iv) In the Account field, select Cheque A/c. [already selected] Key in the Bank Statement Date 19/month and press ENTER. [You may receive a warning if the 19 th is a date in the future. Ignore in this exercise.] (v) In the top right hand corner, key in the New Statement Balance which is the final or closing balance from the Bank Statement and press ENTER. Your Reconcile Accounts window will look like this [using your current month]. [Remember to maximise your window, so that you can see all your entries.] Look at the first entry on your screen: Look at your Bank Statement on the previous page. Has this cheque been presented? YES Date Transaction Withdrawal Deposit Balance 1/ Balance CR 3/ CR (vi) Then click in the column to the left of Cheque 1001 like this: 72 Unit 4 Software Publications Pty Ltd, 2013

13 On your Bank Statement, indicate that cheque 1001 reconciles with your records [usually tick]. (vii) Continue in this manner, checking entries on your screen with entries in the Bank Statement on page 71 Five (5) cheques have not been presented one (2) deposit not credited. The Out of Balance amount of $9 represents Bank Fees. Bank Charges To enter Account Keeping Fees or other Bank Charges: (i) Select the Actions button at the bottom of your Reconcile window. (ii) Select Bank Entry and key in your Account Keeping Fees like this: Note: Account Keeping Fees are GST-free, however Merchant Charges include GST. (iii) Click on Record or press ENTER. Note that the Account Keeping Fees entry is now listed and reconciled in your Reconcile Accounts window. Software Publications Pty Ltd, 2013 Unit 4 73

14 Your Reconcile Accounts window should now look like this. Your Out of Balance amount is 0. Note: If your Out of Balance is NOT 0 : (a) Check the accuracy of your figures. If an entry is incorrect, CLICK on the ZOOM ARROW to the left of the entry and correct. (b) If an entry is missing, it could be dated AFTER 19/month in error. Check your Transaction Journal enter a To date as a date in the future. (c) Ensure you have ticked ALL entries which appear in both our records and the bank s and no others. (iv) (v) Click on Reconcile. If you want a report showing Cleared and Unpresented entries you can print a copy by selecting Print Report. [At this point, do not print this report.] Click on Reconcile in this screen. Your Reconcile window should now only display the five outstanding cheques. Return to the Command Centre. 74 Unit 4 Software Publications Pty Ltd, 2013

15 Undo the Bank Reconciliation You will now Undo Reconciliation so that you can practise reconciling a second time. [In business, you would undo the reconciliation if you have made an error or entered the incorrect reconciliation date. You can undo the last reconciliation, then the previous reconciliation and so on.] (i) (ii) Select Bank Reconciliation and re-enter the statement date and balance. [Suppose your Bank Account no longer reconciles. Something in your file has been changed.] In Actions select the Undo Reconciliation button, (iii) Read the warning. In this workbook, you will learn how to make a back-up copy of your file in Unit 5. Select Undo Reconciliation and OK. (iv) Reconcile the Cheque A/c with the Bank Statement again, exactly as you did it before. Enter the final balance from the Bank Statement, ensuring that you have all the relevant items ticked and Out of Balance figure of 0 on the correct date, before you click Reconcile, then Reconcile again. Return to the Command Centre. Software Publications Pty Ltd, 2013 Unit 4 75

16 PRINTOUT 4 Balance Sheet as at 19/month This report lists all the Assets and Liabilities of the business and the Owner s Equity [capital investment] in the business. You can print this report from Reports in the Command Panel, or use Analysis in the Command Panel. (i) In the Command Panel, click on the Analysis Search Icon. 4 (ii) (iii) Select Balance Sheet. The Balance Sheet for the current month should be displayed. If not, click on Filters and select the month you have been using. To print a copy, click on the Print button, and Print in the Print Dialog box. Your report will have amounts with 0s. I have deleted these so that this report is easier to read. I have also displayed the Balance Sheet in Microsoft Word. Check your figures with the Balance Sheet below. Balance Sheet As of Month Assets Current Assets Cheque A/c $9, Check this balance with your Petty Cash $20.00 Reconciliation Report s MYOB Inventory $ Balance on 19/month. Stock on Hand - Snack Bar $ Stock on Hand Pens $80.00 Total Current Assets $9, Non-Current Assets Furniture & Equipment Furniture & Equipment at Cost $25, less Furn/Equipment Accum Dep -$10, Total Furniture & Equipment $15, Motor Vehicle Motor Vehicle at cost $32, less Motor Vehicle Accum Dep -$10, Total Motor Vehicle $22, Total Non-Current Assets $37, Total Assets $46, Liabilities Current Liabilities GST Liabilities GST Collected on Sales $ GST Paid on Purchases -$ Total GST Liabilities $ Payroll Liabilities PAYG Withholding Payable $65.00 Total Payroll Liabilities $65.00 Total Current Liabilities $ Non-Current Liabilities Bank Loan $10, Total Non-Current Liabilities $10, Total Liabilities $10, Net Assets $36, Equity Owner's Equity Capital $36, Drawings -$ Total Owner's Equity $35, Current Earnings $ Total Equity $36, Unit 4 Software Publications Pty Ltd, 2013

17 Consolidation Exercise 1 (i) (ii) (iii) (iv) (v) In your COPY198 company file, key in the following receipts and payments for the month you are using in this unit. Check the accuracy of source documents and data entry. - amounts - allocation accounts Remember to indicate on the source documents that data has been entered. Print reports as instructed. Check your printouts with the solutions starting on page 81 of this workbook. Task 1 Enter details of Cheques written out Create Card files wherever necessary. Cheque No: /month To: Able Wholesalers For: Frozen food for the Snack Bar Amount: $ inc GST Cheque No: /month To: Telstra For: Mobile Phone A/c Amount: $ inc GST Cheque No: /month To: Able Wholesalers For: Snack Bar Purchases Amount: $ You will need to refer to the handwritten Tax Invoice on the following page to enter the above entry. Check the accuracy of the Tax Invoice and discuss any discrepancies with your supervisor. You can check the validity of the ABN by going to and selecting ABN Lookup. Software Publications Pty Ltd, 2013 Unit 4 77

18 Able Wholesalers ABN Address of your choice 1250 Phone (07) Fax (07) Tax Invoice TO: [Your Name] Copy Centre Address of your choice Date: 22/month Purchase Order Number: Phone Terms: 14 days Description Total Code Bread delivered during the week $ FRE Cakes for the Snack Bar $ GST $ Amount of GST in this invoice: $53.64 Discrepancy [assume Totals are accurate]:... What would you do about this discrepancy?... Cheque No: /month To: QPAC For: Theatre tickets for the owners Allocate to your Drawings A/c. [use N-T Tax Code] Amount: $ Electronic Funds Transfer 25/month To: Tony White For: Wages [Gross $190.00] Amount: $ Cheque No: /month To: Able Wholesalers For: Paper towels for the kitchen Amount: $37.40 [inc GST] Cheque No: /month To: The Trader For: Advertising Amount: $99.00 [inc GST] 78 Unit 4 Software Publications Pty Ltd, 2013

19 Cheque No: /month To: A Landlord For: Fortnightly Rent [Shop] Amount: $ [inc GST] Remember to use the Recurring transaction. Check the accuracy of the cheques entered. [Transaction Journal] Correct any errors NOW. Task 2 Enter Cash Sales Remember to use the Recurring Cash Register Takings transaction 22/month you are using Cash Register Takings Sale of Foods including GST... $ Sale of Foods GST-Free... $22.30 Photocopying - Copy Centre $ TOTAL CASH REGISTER TAKINGS $ Less EFTPOS TOTAL BANKED $ /month you are using Cash Register Takings Sale of Foods including GST... $ Sale of Foods GST-Free... $45.00 Photocopying - Copy Centre $ TOTAL CASH REGISTER TAKINGS $1, Less EFTPOS -$ TOTAL BANKED $ /month you are using Cash Register Takings Sale of Foods including GST... $ Sale of Foods GST-Free... $85.60 Photocopying - Copy Centre $ TOTAL CASH REGISTER TAKINGS $1, No EFTPOS today Check the accuracy of sales data entered. [Transaction Journal] Correct any errors NOW. Software Publications Pty Ltd, 2013 Unit 4 79

20 Entering Credit Card Payments using Spend Money The following invoices were paid by credit card. The invoices will not be recorded in purchases. [Add invoice number to Memo.] You are required to enter the payments using Spend Money. Metropolitan Chemicals Tax Invoice ABN PAID /month TO: Your Fitness Centre Address Date: 10/current month Total inc GST Tax Description Code Pool Chemicals $ GST The above entry will look like this. Make sure MasterCard is selected. Mojo Advertising Invoice ABN PAID $ /month TO: Your Fitness Centre Address Date: 10/current month Description Total ex GST Advertising $ Unit 7 Software Publications Pty Ltd, 2013

21 Before entering the above invoice, answer the following questions? (i) Does the above invoice include GST?... (ii) Give a reason for your answer (iii) What Tax Code will be used?... [Answers can be found at the end of this unit.] (iv) Your entry should look like this. (v) Record the transaction. Display your Bank Register MasterCard Select your Register button in your Spend Money window to display your MasterCard Bank Register for the 10/current month. Call up any incorrect entries [i.e. click on the ] and correct. Return to the Command Centre. Software Publications Pty Ltd, 2013 Unit 7 163

22 Entering Daily Takings [banked into Chq A/c 1] Each afternoon, the Cash Register is cleared and balanced. The business does not accept EFTPOS or credit card payments. Takings are banked the same day. Daily Takings: 12/month Gym Income... $ inc GST Beverage sales:... $33.00 inc GST Beverage sales... $10.00 no GST Membership fees... $49.50 inc GST $ To record the above Daily Takings which were banked into Chq A/c 1: (i) (ii) (iii) In the Banking Command Centre, select Receive Money. Create a new customer card for Daily Takings. Enter the above daily takings like this. (iv) Select Edit, then Recap Transaction to view the debits and credits. Your window should look like this. 164 Unit 7 Software Publications Pty Ltd, 2013

23 (iv) Complete the following table. [Answer can be found at the end of this unit.] Recap Transaction entry Chq 1 NAB Asset Account Type Gym Income Revenue Credit Nature of Account Type Increase or Decrease Debit or Credit GST Collected [money owing to the ATO] Liability (v) (vi) Click on OK to return to your Receive Money window. Because this entry is used daily, this window will be saved as a Recurring transaction. (vii) Select Record to record the recurring transaction. More Daily Takings to enter Enter the following Daily Takings, banked into Chq 1 at the end of the day. 13/month Daily Takings: Gym Income... $ inc GST Beverage sales... $ inc GST Beverage sales... $25.00 no GST Membership fees... $ inc GST $1, /month Daily Takings: Gym Income... $ inc GST Beverage sales... $ inc GST Beverage sales... $15.00 no GST Membership fees... $ inc GST $1, /month Daily Takings: Gym Income... $ inc GST Beverage sales... $ inc GST Beverage sales... $20.00 no GST Membership fees... $80.00 inc GST $ Return to the Command Centre. Software Publications Pty Ltd, 2013 Unit 7 165

24 Unit 8: Accounts Receivable using MYOB Learning Outcomes On completion of this unit you should be able to: Enter sales invoice data and check for accuracy Print invoices, adjustment notes and statements Create items and enter item invoices Customise an invoice according to the requirements of the business Maintain customer information address, credit limits, answer enquiries Print Accounts Receivable reports sales analysis, aged receivables, bank deposit slip Enter over and under charges correction, error correction, returns, allocate commission to sales staff, write off a bad debt Carry out end of period processing Account for cash discount Identify discrepancies and refer to appropriate person Identify outstanding accounts and follow up in accordance with organisational policy Reconcile the Accounts Receivable Ledger with the General Ledger. Software Publications Pty Ltd, 2013 Unit 8 227

25 Simulation Exercise To learn how to perform the functions set out on the previous page, you will set up a landscaping business and maintain the Accounts Receivable transactions for this business. The LANDSCAPING business is owned by a Sole Trader. This business sells a variety of landscaping supplies for cash and on credit, designs and builds gardens and hires out the bobcat. This business has stock on hand of landscaping supplies and irrigation equipment, however quantities are small. Consequently, the business does not wish to inventory stock items. The business will use the Periodic [Physical] Stock system, and take a stocktake at the end of the financial year to estimate the value of stock on hand. The business has an ABN and is registered for GST, reporting quarterly on a CASH BASIS. The business has a Procedures Manual for staff to follow see next page. REVENUE: Sales landscaping supplies Sales irrigation systems Consultancy designing gardens Hire of Bobcat Sales - Labour BANK ACCOUNTS: The business has the following accounts: Cheque A/c main business account Undeposited Funds all money received is paid into this account, then banked. 228 Unit 8 Software Publications Pty Ltd, 2013

26 [Your Name] Landscaping POLICIES AND PROCEDURES ACCOUNTS RECEIVABLE 1 Accounting System The business keeps an Accrual set of books, accounting for debtors and creditors. 2 Invoicing The business always issues Tax Inclusive service invoices on plain paper for landscaping sales. A Tax Inclusive Professional Invoice is used for consultancy invoices. An item invoice is used for landscaping material sales. The business uses Items for sales of landscaping materials, however Physical Inventory is used. 3 Accounts Receivable A card for each cash or credit customer must be established. This card must contain postal and street address, phone numbers and contacts. Under the Privacy Act 1988, details kept must be accurate and not given to any person without the consent of the customer. A Credit Application must be completed by account customers and at least 1 of the referees contacted before credit is given. All sales are recorded in MYOB at the point of sale and a Tax Invoice meeting legislation requirements printed. Before credit is given, the customer account balance must be checked. Payments in the form of cash and cheques are processed immediately upon receipt and stored in the cash register during the day, and allocated to undeposited funds in MYOB. The till is balanced at the end of each day. All cash and cheques are stored in the safe overnight. Only a small amount of cash is received, therefore a weekly banking of cash and cheques takes place. Bank Deposit Slips are printed and submitted to the bank with a credit summary slip. Customers are requested to fax or a remittance if payment is made by Electronic Funds Transfer. These payments must be entered in MYOB as soon as possible. Cheques are only accepted from long-term customers. On receipt of the cheque, the date, amounts and signature must be checked. All customer requests and complaints must be handled immediately in a professional manner. 4 Customer Credit Policy Credit terms are as follows: Full payment is required within 30 days of the date of the invoice. Credit facilities will be placed on hold when accounts are outstanding for more than 60 days, unless an alternative payment arrangement has been negotiated with the customer. Details of such arrangements should be made in the Contact Log in MYOB. An aged receivables report is printed at the end of each month and overdue accounts and credit terms reviewed. Monthly statements are printed by the 5 th of the following month. 5 Overdue Accounts Policy Account overdue up to 30 days: Account overdue 60 days: Account overdue 90 or more days: An overdue reminder sticker will be attached to the next statement. Credit facilities will be put on hold. The customer should be contacted to assess financial position and negotiate a payment plan. A note should be made in the MYOB Contact Log. A letter of demand will be sent to the customer asking for payment within 14 days. If this fails, the MYOB Debt Recovery service will be used to collect the debt if more than $200. Small debts < $200 will be written off as a bad debt. The Debt Collection Guideline for Collectors and Creditors [ website] must be adhered to at all times. Software Publications Pty Ltd, 2013 Unit 8 229

27 Opening the Company File (i) (ii) (iii) (iv) Open CA198Unit7.myo the company file for the Landscaping business downloaded in Unit 1 from the Software Publications website. You will use the current month in the following exercise. Check that the current financial year is appropriate. If not, start a new financial year. Change the name of the business to include your name so that your printouts can be easily identified in the classroom. Adjusting Preferences In the company file, select the following preferences if not already selected. Select Setup in the Menu Bar. Select Preferences. (i) Reports & Forms Preferences: The business will use Daily ageing in 30-day periods. (ii) (iii) Banking Preference: Deselect Display Payee, Rather than Memo, in Registers. Select When I receive money, I prefer to group etc. Sales Preferences: Credit Terms as per Policies and Procedures. Warn for duplicate invoice and purchase order numbers. 230 Unit 8 Software Publications Pty Ltd, 2013

28 (iv) Security Preferences: Select the following preferences: Return to the Command Centre. Linked Accounts Linked accounts for Sales Linked Accounts enable the MYOB user to enter data and not be concerned about the accounting side of the software i.e. MYOB will automatically take care of the DEBITS and CREDITS for you in most windows of the program. (i) (ii) (iii) Select Setup in the Menu Bar. Select Linked Accounts. Select Sales Accounts. Your Landscaping business requires the following Sales Linked Accounts. Check that the options have been selected. Return to the Command Centre. Software Publications Pty Ltd, 2013 Unit 8 231

29 Completing the Activity Statement For information on preparing the Activity Statement, Google NAT In this document, there is a list of what and what not to report at each field on the Activity Statement. [Extract printed below.] Report at G1 DO NOT report at G1 Total amounts for sales including: goods or services you sell or supply dividends you receive sales of trading stock donations and gifts you receive the sale of business assets such as office equipment or private sales not related to your business, for example, motor vehicles, including trade-ins selling your home or furniture from your home the sale, lease or rental of land and buildings salary and wages you receive the provision of memberships government pensions and allowances earnings from financial supplies you make (for example, amounts you receive from hobby activities interest from bank accounts or for lending money but not any trust and partnership distributions you receive including the loan principal) tax refunds the provision of goods or services in return for sponsorship receipts for services provided under a pay as you go voluntary agreement unless made to a business that goods and services provided in return for government is not fully entitled to claim GST credits for the services business loans you receive grants and certain private sector grants the amount on the sale of a luxury car representing the cancelled lay-by sales luxury car tax paid or payable by you forfeited customer security deposits taxes, fees and charges you have received that don t employee contributions for fringe benefits you have include GST, and provided amounts received for sales not connected with Australia, the sale of property of a debtor in order to satisfy a debt unless a special rule makes the sales taxable, GST-free, owed to you by the debtor, if the debtor otherwise would or input taxed. have had to pay GST on the sale creating, granting, transferring, assigning or surrendering a right (for example, royalties received) entry into, or release from, an obligation to do anything refrain from an act, or tolerate an act or situation (for example, agreeing, as part of the sale of your business, not to operate a similar business within a certain area) the GST-inclusive market value of goods and services or other things that you receive in barter transactions, and the GST-inclusive market value of anything you supply to your associate for no payment or sell to your associate for less than the GST-inclusive market value if: your associate is not registered, or required to be registered, for GST your associate has not received the thing either partly or wholly for their business the thing received by your associate relates partly or wholly to making sales that would be input taxed, or the thing supplied is partly or wholly of a private or domestic nature. Software Publications Pty Ltd, 2013 Unit

30 Preparing your Business Activity Statement (i) (ii) (iii) (iv) Select Prepare Statement. Read the Warning, click on OK. If you have been experimenting in MYOB, you may be asked if you want to use the BAS already set up or create a new BASlink. select No. Select Setup to setup a new BASlink. You may find you have different messages or options these vary if a BAS has already been set up on your computer. An information window may be displayed. Read, then close this window by selecting the [x] in the top right hand corner. The following window is displayed. Setting up the GST Amounts you owe the ATO from Sales (i) Select G1 Setup button. A window displaying all your Tax Codes will be displayed. (ii) You will now select the Tax Codes you want to include in the G1 field. In this exercise, your business will select the following: [ ITS Code, if used, would also be included.] 394 Unit 11 Software Publications Pty Ltd, 2013

31 If a Tax Code you linked in G1 should also be linked to another BAS field, BASlink will display a list of fields. SELECT the field the tax code should be linked to by clicking on the radio button and then CLICK on OK. When you selected FRE, the following dialog box will be displayed: (v) Select G3 and CLICK on OK. Setting up the GST Amounts you Owe the ATO from Sales is finished. Click on OK to return to your Calculation Sheet. In this exercise, your Worksheet now looks like this. Compare these figures with Printout 71. Software Publications Pty Ltd, 2013 Unit

32 BSB Business Services Training Package Supplement This workbook can be used by learners completing a qualification in the BSB Business Services Training Package. BSB Supplement 405

33 BSBFIA301 Maintain financial records Application This unit describes the skills and knowledge required to maintain daily financial records such as reconciling debtors and creditors systems, preparing and maintaining a general ledger and trial balance and includes activities associated with monitoring cash control for accounting purposes. It applies to individuals who are skilled operators and apply a broad range of competencies in various work contexts and may exercise discretion and judgement using appropriate theoretical knowledge of financial records. No licensing, legislative or certification requirements apply to this unit at the time of publication. Elements and Performance Criteria Element Elements describe the essential outcomes. 1 Maintain daily financial records Performance criteria Performance criteria describe the performance needed to demonstrate achievement of the element. 1.1 Correctly maintain daily financial records in accordance with organisational and legislative requirements for accounting purposes 1.2 Identify and rectify or refer discrepancies or errors in documentation or transactions to designated persons in accordance with organisational and legislative requirements 1.3 Accurately credit and debit transactions and promptly enter into journals in accordance with organisational and legislative requirements Workbook page reference Units 1, 4, 6, 7, 8, 9 Task 9 Pages 77,78, 92 and 368 Units 4, 6, 7, 8,9 and BAS Unit Assessment task Task 9, transaction 4, 28 and 35 Task BSB Supplement

34 Element Elements describe the essential outcomes. 2 Maintain general ledger 3 Monitor cash control Performance criteria Performance criteria describe the performance needed to demonstrate achievement of the element. 2.1 Maintain general ledger in accordance with organisational and legislative requirements 2.2 Post transactions into general ledger in accordance with organisational and legislative reporting requirements 2.3 Reconcile systems for accounts payable and receivable with general ledger 2.4 Accurately prepare trial balance from general ledger in accordance with organisational and legislative requirements 3.1 Ensure cash flow is accurately accounted for in accordance with organisational and legislative requirements 3.2 Make and receive payments in accordance with organisational and legislative requirements 3.3 Collect or follow up outstanding accounts within designated timelines 3.4 Check payment documentation for accuracy of information and despatch to creditors within designated timeline Workbook page reference Throughout the workbook, accounts added, deleted modified according to Policies and Procedures. Posting is done automatically in MYOB. Pages 321, 368 and 381 Units 7 and 8 Unit 6 Printout 25, 68 All units Task 9 Units 7 and 8 Task 9 Page 381 Unit 7, 8 and 9 Unit 8, creditor payments page 381 Assessment task Linked Accounts set up in Task 3 In computerised system, posting to general ledger is automatic, however throughout the assessment, the user has to code entries to the correct accounts in the ledger. Task 9, transactions 30 and 32 Preparation is automatic Printed printout 17 Transaction 25 and 26 Transactions 18, 19, 20, 21 BSB Supplement 407

35 Foundation skills Skill Performance Criteria Reading , , Writing 1.3, , Oral Communication Numeracy , , Navigate the world of work Interact with others Get the work done Description Recognises and interprets numerical and textual information to determine and complete required activities Integrates data from different sources and records numerical information in a format appropriate to context and purpose of material Prepares clear and detailed information and instructions using format, structure and tone suitable to audience 1.2, 3.2, 3.3 Explains financial issues and requirements clearly, using facts and examples, and uses listening and questioning techniques to obtain sequenced instructions , , Uses a limited range of mathematical calculations to reconcile amounts using whole numbers and decimals and arrange/compare numerical information Recognises, understands and monitors adherence to legislative and organisational requirements in undertaking own work 3.3, 3.4 Understands the importance of using appropriate practices and protocols when handling confidential information , , Takes responsibility for own workload and monitors adherence to specified goals and timelines Uses digital technologies to access, record, store, organise and compile data as required Workbook page reference Throughout workbook Throughout workbook Throughout workbook Through communication with the trainer during the completion of this workbook All units Throughout workbook Throughout workbook Throughout workbook Throughout workbook 408 BSB Supplement

36 Assessment requirements v1.0 Performance evidence Evidence of the ability to: maintain daily transactions and identify and respond to discrepancies and errors Assessment task Task 8 Task 9, transaction 4, 28 and 35 transfer and record financial data accurately Task 8 and Task 9 reconcile expenditures and revenue in a timely manner. Task 9 Knowledge evidence To complete the unit requirements safely and effectively, the individual must: To complete the unit requirements safely and effectively, the individual must: identify the key provisions of relevant legislation, codes of practice and national standards that may affect financial record keeping discuss organisational policies and procedures relating to maintaining financial records define credits/creditors and debits/debtors Task 8 describe principles of double entry bookkeeping and accrual accounting Assessment task Tasks 2, 3 and 9 Throughout assessment Task 8 identify methods of presenting financial data. Throughout assessment BSB Supplement 409

37 BSBFIA303 Process accounts payable and receivable Application This unit describes skills and knowledge required to maintain accounts payable and accounts receivable records, including processing payments to creditors and handling overdue accounts receivable. It applies to individuals employed in a range of work environments supporting the accounting functions and aspects of an enterprise. They may provide administrative support within an enterprise, or may be members of staff who have been delegated accounting responsibilities. No licensing, legislative or certification requirements apply to this unit at the time of publication. Elements and Performance Criteria Element Elements describe the essential outcomes. 1 Maintain financial journal systems 2 Prepare bank reconciliations Performance criteria Performance criteria describe the performance needed to demonstrate achievement of the element. 1.1 Check source documents for accuracy and appropriate authorisation 1.2 Refer errors and discrepancies in source documents for resolution in accordance with organisational policy and procedures 1.3 Enter transactions into cash and credit journal system in accordance with organisational policy and procedures and relevant legislation and compliance requirements 1.4 Total credit journals in accordance with organisational policy and procedures 2.1 Check cash journals against bank statements to identify differences 2.2 Update cash journals with relevant data from bank statement/s 2.3 Identify discrepancies and refer to appropriate staff member, organisation or agency 2.4 Total cash journals in accordance with organisational policy and procedures 2.5 Prepare regular reconciliation reports within designated timelines Workbook page reference Units 4, 6, 7 and 8 Pages 77, 78 and 368 Units 4, 6, 7 and 8 Throughout the workbook (automatic in MYOB) Unit 4, pages 211 and 383 Consolidation exercises 1 5 and integrated Assessment task Task 9 Task 9, transaction 4, 28 and 35 Task 9 Journals are totalled automatically in a computerised system. Task BSB Supplement