SUSAN MORRIS - busadmin - home NE... · Web viewPROCESS ACCOUNTS PAYABLE AND RECEIVABLE BSBFIA303A SECTION 3 LEARNER GUIDE – ACCOUNTS RECEIVABLE When you have completed SECTION

Faculty of Business and Creative Industries

PROCESS ACCOUNTS PAYABLE AND RECEIVABLEBSBFIA303ASECTION 3

LEARNER GUIDE – ACCOUNTS RECEIVABLE

When you have completed SECTION THREE exercises, you should be competent in the following skills associated with ACCOUNTS RECEIVABLE:

explaining the purpose of journals

preparing entries for the accounts Receivable journals

o correctly entering details of tax invoices issued to customers into a columnar Sales Journal

o correctly entering details of adjustment notes issued to customers into a columnar Sales and Returns (and Allowances) Journal

o correctly entering details of duplicate receipts into a columnar Cash Receipts Journal

Accounts receivable are customers to whom the business sells trading stock on credit. As the business is owed money from these customers, accounts receivable are an ASSET (see Section 1).

The source documents relevant for processing accounts receivable are customer invoices, customer adjustment notes and receipts.

Faculty of Business and Computing Page 2 of 16BSBFIA303A – Process Accounts Payable and Receivable – Section 3 Learner Guide Accounts Receivable V7 – Jan 2015

As bookkeeper for Middle Park Distributors you are required to perform the following tasks:

1 Invoices and adjustment notes have been entered into journals for you.

3 Check the accuracy of the journals so far. TOTAL off the Cash Journals as part of Task 2.

Sales JournalSales Returns and Allowances JournalCash Receipts Journal


Duplicates of Tax Invoices issued to customers

MIDDLE PARK DISTRIBUTORSMiddle Park ABN: 77 324 089 161


To: P Gibson & SonsJindalee Tax Invoice 751

Date: 4 March PO 341

To: D Smith LtdIndooroopilly Tax Invoice 752

Date 5 March PO 246Qty Particulars Rate Amount Qty Particulars Rate Amount

Trade GoodsLess Trade Discount Sub totalAdd GSTTOTAL (GST inclusive)

800.00 80.00720.00 72.00

$792.00


700.00 70.00630.00 63.00

$693.00



To: J CunninghamKenilworth Tax Invoice 753


To: J Sarowski Pty LtdIndooroopilly Tax Invoice 754

Date: 19 March PO 621Qty Particulars Rate Amount Qty Particulars Rate Amount


550.00 55.00495.00 49.50

$544.50


500.00 50.00450.00

45.00$495.00



To: P Gibson & SonsJindalee Tax Invoice 755


To: J Sarowski Pty LtdIndooroopilly Tax Invoice 756

Date: 26 March PO 651Qty Particulars Rate Amount Qty Particulars Rate Amount


400.00 40.00360.00 36.00

$396.00


520.00 52.00468.00 46.80

$514.80

Duplicates of Adjustment Notes issued to customers



To: P Gibson & SonsJindalee Adjustment Note 1056

Date: 9 March Inv No 751

To: D Smith LtdIndooroopilly Adjustment Note 1057

Date: 12 March Inv No 752Qty Particulars Rate Amount Qty Particulars Rate Amount

By Returns: (damaged)Trade GoodsLess Trade Discount Sub totalAdd GSTTOTAL (GST inclusive)

150.00 15.00135.00 13.50

$148.50

Returns: (wrong size)Trade GoodsLess Trade Discount Sub totalAdd GSTTOTAL (GST inclusive)

110.0011.0099.00

9.90$108.90


SALES JOURNALS

Invoices we send to our customers are entered into the sales journals. The information is added under each column. Headings indicate what is to be entered underneath – refer to invoices on previous page to see how information is entered from the invoice to the journal.

SALES JOURNAL OF MIDDLE PARK DISTRIBUTORS Folio S1

Date20XX

Tax Invoice

Particulars—Accounts Receivable Folio Sales GST

CollectedAccounts

Receivable Control (Debtors)

04/03 751 P Gibson & Sons 720 00 72 00 792 00

05/03 752 D Smith Ltd 630 00 63 00 693 00

15/03 753 J Cunningham 495 00 49 50 544 50

19/03 754 J Sarowski Pty Ltd 450 00 45 00 495 00

21/03 755 P Gibson & Sons 360 00 36 00 396 00

26/03 756 J Sarowski 468 00 46 80 514 80

SALES RETURNS AND ALLOWANCES JOURNALS

Adjustments notes for customers are entered into the sales returns and allowances journals. Add the information under each column. Headings indicate what is to be entered underneath – refer to adjustment notes on previous page to see how information is entered from the adjustment note to this journal.

SALES RETURNS AND ALLOWANCES JOURNAL OF MIDDLE PARK DISTRIBUTORS Folio SR1

Date20XX

Adjust Note

Particulars—Accounts Receivable Folio Sales Returns GST Collected

Accounts Receivable Control

(Debtors)

09/03 1056 P Gibson & Sons 135 00 13 50 148 50

12/03 1057 D Smith Ltd 99 00 9 90 108 90


Entering Customer Invoices

Open the file Middle Park.myo Setup – Preferences – Sales – check tick removed from ‘show customer purchase number in

Receive Payments; our invoice number will be displayed in the Receive Payments window.

Customer Invoices are entered in the same fashion as Supplier Invoices except Sales is selected from the Command Centre.

Sales

Enter Sales Select Customer

Enter Inv # - 751

Enter Date – 04/03/XX

Enter PO # - 341

Enter details –Trade Goods less discount

Enter sub-total - $720.00

Check for accuracy

Edit – Recap transactions

Record

The debtor is debited with the three parts of the transaction

The Income accounts are credited (inc) by the same amounts.

Equal DR & CR as per the principle of double entry bookkeeping

Click OK to return to the Sales Window

Record to complete the transaction

Enter the remaining invoices for Middle Park.


No tick

Processing Adjustment notes to Customers

Step 1 Sales Command Centre; Enter

Sales (Adjustment notes for customers are entered in the same way as sales invoices but with a negative amount)

For the invoice # enter AN1056; Date 09/03/XX, Customer PO # enter “Inv 751”. Description “Damaged Trade Goods”, Journal Memo change to Sale Adjust, Click on Record

Step 2

Click on Register

Click into Returns & Credits tab

Highlight AN1056 Click on Apply to Sale Date – 09/03/XX Select the correct invoice to

apply adjustment note Delete any discount showing

for the transaction Record

Enter the remaining Adjustment Note for Middle Park


The Cash Receipts Journal is used to record all of the cash received by the business. As banking of cash received is done on a daily basis, the amount written in the CASH AT BANK column on the Debit side of the Journal should reflect the total of the transactions for the day. This reflects the deposit made each time. Note that the one deposit can be made up of multiple receipts. Note that each individual receipt should still be allocated accordingly (see page 8)

For income/asset sales – enter the name of the account that the transaction relates to (from the Chart of Accounts in section 1) in the ACCOUNT CREDITED column, NOT the name of the person. Enter the amount of the transaction (without GST component) in OTHER ACCOUNTS. Any GST that relates to the transaction should be entered in the GST COLLECTED column.

For cash sales – enter Sales in the ACCOUNT CREDITED column. Enter the amount of the transaction (without GST component) in SALES. Any GST that relates to the transaction should be entered in the GST COLLECTED column.

For payment to a debtor/accounts receivable – enter the name of the customer in the ACCOUNT CREDITED column. Enter any discount and related GST in the DISCOUNT RECEIVED and GST COLLECTED columns. The total amount owed by the customer should be entered in the ACCOUNTS RECEIVABLE column.


Duplicates receipts issued to customers Cash Register Sales Summary

Receipt No 140 4 MarchReceived from J Cunningham Ltdthe sum of nine hundred and seventy dollars

20 cents

being for FEBRUARY ACCOUNT--$990Cheque $970.20Discount Allowed 18.00GST Collected (Adjustment) 1.80

Receipt No 141 6 MarchReceived from P Gibson & Sonsthe sum of six hundred and thirty-six dollars

and 2 cents

being for FEBRUARY ACCOUNT--$649.00Cheque $636.02Discount Allowed 11.80GST Collected (Adjustment) 1.18

Receipt No 142 9 MarchReceived from D Smith Ltdthe sum of three hundred and twenty-three

dollars 40 cents

being for FEBRUARY ACCOUNT--$330Cheque $323.40Discount Allowed 6.00GST Collected (Adjustment) 0.60

Receipt No 143 19 MarchReceived from P Noake Pty Ltdthe sum of seven hundred and seventy

dollars (GST inclusive)

being for 1 DISPLAY CABINET (book value)Cheque $770.00

Receipt No 144 21 MarchReceived from J Sarowski Pty Ltdthe sum of five hundred and fifty-five dollars

50 cents

being for FEBRUARY ACCOUNT--$555.50Cheque $555.50

Receipt No 145 24 MarchReceived from P Gibson & Sonsthe sum of Six hundred and thirty dollars

63 cents

being for PAYMENT-TAX INVOICE 751 less TAX ADJUSTMENT NOTE 1056Cheque $630.63Discount Allowed 11.70GST Collected (Adjustment) 1.17


06 MarchSales $800.00GST Collected 80.00

Total Sales (GST inclusive) $880.00









Receipt No 146 31 MarchReceived from Dale Carssthe sum of seven thousand dollars

being for (extra) CAPITAL

Cheque $7000.00

CASH RECEIPTS JOURNAL OF MIDDLE PARK DISTRIBUTORS Folio CR 1

Date20XX

Rec Account Credited FolioDebits Credits

Cash at Bank Discount Allowed

GST Collected

Accounts Receivable Sales Other

AccountsGST

Collected

04/03 140 J Cunningham AR2 970 20 18 00 1 80 990 00

06/03 141 P Gibson & Sons AR1 11 80 1 18 649 00CSS Sales 1516 02 800 00 80 00

09/03 142 D Smith Ltd AR3 6 00 0 60 330 00CSS Sales 786 50 421 00 42 10

19/03 143 Display Cabinet 700 00 70 00CSS Sales 1419 00 590 00 59 00

21/03 144 J Sarowski AR4 555 50 555 50

24/03 145 P Gibson & Sons AR1 630 63 11 70 1 17 643 50

25/03 CSS Sales 924 00 840 00 84 00

31/03 146 Capital 7000 00CSS Sales 7204 60 186 00 18 60


Processing receipts

As in Accounts Payable some receipts will be processed through Sales, Receive payments, and others through Banking, Receive Money.

Note that as in the manual system receipts received on the same day are grouped together and a bank deposit prepared for the day’s receipts. This ensures that records will match the Bank Statement when reconciling.

We have set the system to default to the bank account “Undeposited Funds” to deposit all our deposits. They will sit in this bank account until we do the second step and “prepare a bank deposit”.

Processing Receipts issued to Customers

Sales in Command Centre Receive Payments Select Customer – J

Cunningham Ltd Enter Rec No – 140 Date – 04/03/XX Enter amount – $970.20 Payment Method -

Cheque Check Discount – $19.80

($18.00 + $1.80) Click in CORRECT row Record Box will appear – Select

Print Later Click cancel

As this is the only deposit for the day we will do the second step


Prepare Bank Deposit

Click on the Banking Command Centre

Click on Prepare Bank Deposit

Type date that you are depositing – 04/03/XX

All the deposits that you have entered either through Receive Payments or Receive Money will appear on the screen – we only have one receipt on this day.

Click the box under deposit to make a tick appear

Click on Record

This will make a deposit into the cheque account – you will notice at the top of the screen it has “Deposit to Account” and it has the 1-1110 Cheque Account.

Click on Cancel Click on Bank Register Change the Account to 1-

1110 (Cheque Acct) Change the dates from

01/03/XX to 31/03/XX You will see your deposit

on the 04/03/XX for $970.20

If you click on the white arrow

It will show you what receipts are included in that deposit.

PROCESSING RECEIPTS THROUGH RECEIVE MONEYFaculty of Business and Computing Page 13 of 16BSBFIA303A – Process Accounts Payable and Receivable – Section 3 Learner Guide Accounts Receivable V7 – Jan 2015

STEP 1

Banking Command Centre

Receive Money Group with Undeposited

Funds Leave Tax Inc tick Payor – P Noake Pty Ltd Enter amount – $770.00 ID # - 143 Date – 19/03/XX Acc # - 1-2410 Tax – (CAP) Record

You have one only receipt to enter through Receive MoneyReceipt Number 146. The account needs to be allocated to 3-1100

We will enter the Cash Register Receipts next


Processing a Cash Sale

The next cash receipt to be processed is a Cash Sales of trade goods. Just like, cash purchases, there are different methods of processing these transactions.

An invoice may be generated through the Sales module and marked as Paid Today, or a receipt may be written from the Banking module and allocated to the Sales Account – Receive Money. You will use this last method.

NOTE: Remember to use Recurring Transactions when appropriate.

As you have two (2) transactions that were receipted on 06/03/XX, when Preparing the Bank Deposit you will tick the right hand column next to each transaction and deposit the total amount for the day (= $1516.02).

Process the Cash Sale receipts.

If you have not entered all receipts remember take care that they are processed through the correct area; Sales or Banking and that you are using the Undeposited Funds account.

You can check that you have deposited all the receipts recorded by looking at the account for Undeposited Funds in the Bank Register Report.

When you have prepared all the bank deposits then the total DRs will equal the total CRs and the balance of the account will be $0.00.


Prepare the following reports; check for accuracy

o Sales Register (All Sales) for 1st March to 31st March

MIDDLE PARK

Refer back to your Sales Journals and Sales Returns Journal and you will see that all the information from the manual journals is similar to our MYOB file.

You will note that our MYOB version is all the invoices and adjustment notes added in one report rather than two separate journals as in our manual example.

You can see the Feb Accts which are our opening balances – you did not enter these in they were set up in our MYOB data file

Assessment 2 Argent Hardware Supplies - Comptency

You are about to complete your competency task. In order for you to successfully complete the task it is essential that BEFORE you begin; you speak to your facilitator and collect additional information

Please ensure your log sheet has been signed and dated by your facilitator for all tasks to this point


Documents

SUSAN MORRIS - busadmin - home NE... · Web viewPROCESS ACCOUNTS PAYABLE AND RECEIVABLE BSBFIA303A SECTION 3 LEARNER GUIDE – ACCOUNTS RECEIVABLE When you have completed SECTION